Home Technology 5G in Automotive and Smart Transportation Market Size Trends, Share and Forecast to 2030

5G in Automotive and Smart Transportation Market

5G in Automotive and Smart Transportation Market Size, Share & Trends Analysis Report By Solution (Hardware Components, Software Solutions, Services), By Industry (Automotive, Defense, Transportation Infrastructure (Highways etc.), Warehousing and Logistics, Public Safety, Others), By Application: (Vehicle-to-Everything, Infotainment & Telematics, Fleet Management) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRTE1488DR
Study Period 2020-2032 CAGR 25.7%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global 5G in automotive and smart transportation Market size had a share of USD 1.40 billion in 2021, which is expected to advance and reach USD 10.97 billion with a CAGR of 25.7% during the forecast period.

With the move toward 5G, massive Machine Type Communications (mMTC) will enable towns, transport, and networks to rely on real-time data for improving maintenance and operational performance. Enhancing vehicles with 5G technology will revolutionize transportation. Vehicle-to-vehicle and vehicle-to-infrastructure connectivity are projected to make roads safer and environment-friendly, improving bus and public transit. Further, new networks and business models enabled with sensors installed on highways, rail, and airfields connect with smart vehicles.

Market Dynamics

Use of 5G in Intelligent Transportation Systems

Intelligent transport includes applying sensing, measurement, control, and communication systems to ground transportation to increase safety, accessibility, and performance. Intelligent Transport System (ITS) depends on data generated by car sensors and road networks to help drivers, and cities make intelligent choices. Globally, increasing number of cities are using ITS to address numerous local challenges, such as traffic congestion and parking violations. Countries in both the EU and Asia are now observing ITS being deployed and incorporated.

According to ‘Mobilizing Intelligent Transport Systems (ITS)’, published by the GSM Association, the global intelligent transport was valued at 67 billion in 2015. Further, these intelligent transport systems when connected to the 5G network are anticipated to deliver a plethora of benefits for Smart Cities, Autonomous Vehicles, Traffic Management Systems, Emergency Services, and Future-Proof Infrastructures. Further, the European Commission asserts that introducing such technologies to road transport would lead to a 5-15% reduction in congestion, casualties, traffic collisions, and a 10-20% decrease in CO2 emissions.

The Advent of Driverless Cars

The proliferation of advanced technology in the automotive sector has enabled the development of autonomous systems. As per the Society Of Automotive Engineers (SAE) International, established its SAE J3016™ ‘Levels of Automated Driving‘. They have categorized it into different levels        :

  • Level 0 – No Automation
  • Level 1 – Driver Assistance (Cruise Control)
  • Level 2 – Partial Automation (Assisted control in speed and steering)
  • Level 3 – Conditional Automation
  • Level 4 – High Automation
  • Level 5 – Full Automation

From level 1 onwards, there is a tremendous need for deploying high-tech devices such as sensors and cameras that assist the driver. Further, the capabilities of self-driving cars will improve considerably with the introduction of 5G autonomous driving system. Additionally, global telecommunications providers are diligently partnering with LTE technology to bring 5G autonomous driving innovations into real-world operation, bridging the transition to mass implementation of 5G cellular vehicle-to-all (C-V2X).

Rising Cases of Cybercrime

While using smart transportation, the mechanism solely depends on internet service connectivity. The waves are transmitted from the hubs to the vehicles enabling them to perform various functions. However, technological developments have raised new possibilities for cybercrimes.

 In the 2IBM X-Force review (the year 2016), the automotive industry was targeted mostly. Approximately 30% of the share included attacks by phishing, extorted by ransomware, and breached by APT’s in the manufacturing industry.

Regional Analysis

North America

North American leads the 5G automotive and smart transportation market. It has the largest market share due to the favorable technological infrastructure, with the increased participation of leading automotive and telecom companies along with the growing purchasing power parity (PPP) of the people.

Besides, the increase in the number of connected vehicles and the growth of internet penetration has flooded the automotive sector. According to GSMA Mobile Economy North America 2020, by the end of 2025, the region is anticipated to transit to approximately 48% of the 5G connections. The report also stated that the Internet of Things connections are anticipated to reach 5.1 billion by the end of 2025.

Europe

The European region is accounted as one of the largest markets for the automotive industry. As stated by the European Commission, the sector provides more than 13.8 million direct and indirect jobs that are approximately 6.1% of total employment. Additionally, as stated by the International Organization of Motor Vehicle Manufacturers, the region is the second-largest producer of vehicles.

Further, in recent years, the automotive industry has been booming in the area of Central and Eastern Europe (CEE). Increased numbers of carmakers plan to set up their new and state-of-the-art manufacturing sites in CEE countries due to the economic advantage over Western European countries. As a result of increased political consolidation and economic growth, the Europe has gained increased interest from investors, seeing it as one shared-source, manufacturing, and logistics hub. Further, the increase in the technology adoption, and the presence of major automotive and telecom companies have bolstered the growth of the market.

Report Scope

Report Metric Details
Segmentations
By Solution
  1. Hardware Components
    1. Telematics Control Units (TCUs)
    2. Roadside Units (RSUs)
    3. Onboard Units (OBUs)
  2. Software Solutions
  3. Services
    1. Consultation Services
    2. Integration and Installation Services
    3. Maintenance and Support Services
By Industry
  1. Automotive
  2. Defense
  3. Transportation Infrastructure (Highways etc.)
  4. Warehousing and Logistics
  5. Public Safety
  6. Others
By Application:
  1. Vehicle-to-Everything
  2. Infotainment & Telematics
  3. Fleet Management
Company Profiles Audi BMW Group Bosch Deutsche Telekom Ericsson Huawei Mercedes-Benz Nokia Qualcomm Inc Telefónica Verizon Vodafone Group Volkswagen
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

By Solution

  • Hardware Components
    • Telematics Control Units (TCUs)
    • Roadside Units (RSUs)
    • Onboard Units (OBUs)
  • Software Solutions
  • Services
    • Consultation Services
    • Integration and Installation Services
    • Maintenance and Support Services

The hardware components cater to the maximum share in the market owing to the deployment of various hardware components such as Telematics Control Units (TCUs), Roadside Units (RSUs), and Onboard Units (OBUs).

Further, by presenting alarms, providing notifications, offering automobile resources, and managing contact with the world of a car, the On-Board Device (OBU) is built into a vehicle for interaction with other drivers. OBU may help mitigate driver misjudgment with features like, stop traffic collisions and map out the successful driving path. The tremendous application of the OBUs across various industry verticals have bolstered the growth of the market.

By Industry 

  • Automotive
  • Defense
  • Transportation Infrastructure (Highways etc.)
  • Warehousing and Logistics
  • Public Safety
  • Others

The automotive segment caters to a larger share of the market. The continuous evolution of the existing vehicles with new technology and multiple benefits offered by the 5G networks has bolstered the market growth.

Further, as stated by the 5G Automotive Association, Cellular-V2X (C-V2X) revolutionizes the mobility ecosystems and enables efficient communication of the driver to the outside world. Further, the start of in-vehicle commercial deployment (type-approved vehicles) is foreseen for 2020/2021 globally, thereby bolstering the growth of the segment.

Market Size By Solution

Market Size By Solution
  • Hardware Components
  • Software Solutions
  • Services
  • Impact of covid-19

    The pandemic led to a temporary lockdown that hindered big enterprise and market verticals. The automobile industry, primarily consisting of outdoor jobs, was poorly exposed to the uncertainty that contributed to a dramatic decline in automotive sales.

    Furthermore, the instability of the supply chain industry, mostly due to closed national and foreign borders and the decision not to use Chinese products, may impede the operation. However, the new norm of social distancing may have a slight impact on the market growth.

    Recent Developments

    • In 2019, Qualcomm announced the first 5G Dual SIM Dual Active and New 4G LTE-Advanced Pro-Tiered Platform Suite for Automotive Industry with C-V2X Optimized and Specific Positioning Support for Next-Generation Vehicles.
    • In 2020, Qualcomm and Great Wall Motor collaborated to provide next-generation intelligently linked and autonomous vehicles with luxury intelligent mobility experiences.

    Top Key Players

    5G in Automotive and Smart Transportation Market Share of Key Players

    5G in Automotive and Smart Transportation Market Share of Key Players
    Audi BMW Group Bosch Deutsche Telekom Ericsson Huawei Mercedes-Benz Nokia Qualcomm Inc Telefónica Verizon Vodafone Group Volkswagen Others

    Frequently Asked Questions (FAQs)

    What is the growth rate for the 5G in Automotive and Smart Transportation Market?
    5G in Automotive and Smart Transportation Market size will grow at approx. CAGR of 25.7% during the forecast period.
    Some of the top industry players in 5G in Automotive and Smart Transportation Market are, Audi, BMW Group, Bosch, Deutsche Telekom, Ericsson, Huawei, Mercedes-Benz, Nokia, Qualcomm Inc, Telefónica, Verizon, Vodafone Group, Volkswagen, etc.
    In the 5G in Automotive and Smart Transportation Market, North America has established itself as the market leader with a significant market share.
    The Europe region has experienced the highest growth rate in the 5G in Automotive and Smart Transportation Market.
    The global 5G in Automotive and Smart Transportation Market report is segmented as follows: By Solution, By Application, By Industry


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