The 5G In Automotive And Smart Transportation Market is expected to register a 35.4% CAGR from 2023 to 2033, from USD 2.02 billion in 2023 to USD 41.78 billion in 2033.
IoT Solutions Boost Performance by Providing Real-time Visibility and Trustworthy Data
With the transition to 5G, municipalities, transportation, and networks rely on real-time data to improve maintenance and operational performance. 5G technology in vehicles is expected to change the face of transportation.
Vehicle-to-vehicle and vehicle-to-infrastructure communication are expected to make roadways safer and more environmentally friendly, as well as improve bus and public transportation. Furthermore, smart vehicles are linked to new networks and economic models enabled by sensors used on highways, rail, and airports.
The fifth generation of mobile networks is referred to as 5G. It is a new mobile standard that follows 1G, 2G, 3G, and 4G. 5G promises ultra-low latency, better network stability, and network capability. Because of its fast speeds, better dependability, and minimal latency, 5G may leave an impact on every industry.
When integrated with smart city solutions, smart transportation IoT solutions enable government agencies and their partners to improve community services and transportation for all, resulting in a cleaner, more dependable transportation system in cities. Smart transportation enables city transportation authorities and organizations to improve performance while also creating wiser, greener communities for their citizens.
| Report Attribute | Details |
|---|---|
| 5G in Automotive and Smart Transportation Market Value (2023) | USD 2.02 billion |
| 5G in Automotive and Smart Transportation Market Anticipated Value (2033) | USD 41.78 billion |
| 5G in Automotive and Smart Transportation Market Growth Rate (2023 to 2033) | 35.4% CAGR |
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The 5G in automotive and smart transportation market was worth around USD 1.76 billion in 2022, recording a 25.9% CAGR from 2018 to 2022.
The increasing penetration of modern technologies, including 5G and IoT, into the automotive and transportation sectors is expected to provide market participants with significant revenue prospects.
The market is poised for substantial expansion during the assessment period as automotive manufacturers capitalize on both the supply-side and demand-side benefits of incorporating 5G technology in autos.
| Historical CAGR (2018 to 2022) | 25.9% |
|---|---|
| Forecast CAGR (2023 to 2033) | 35.4% |
As per the FMI analysts, a valuation of USD 41.78 billion by 2033 end is estimated for the market.
| Year | valuation |
|---|---|
| 2016 | USD 0.24 billion |
| 2021 | USD 1.10 billion |
| 2022 | USD 1.76 billion |
| 2023 | USD 2.02 billion |
| 2033 | USD 41.78 billion |
The use of sensing, measurement, control, and communication technologies to ground transportation to improve safety, accessibility, and performance is known as intelligent transport. The Intelligent Transportation System (ITS) relies on data provided by car sensors and road networks to assist drivers and cities in making informed decisions.
Established and emerging cities are deploying ITS to address various local issues, including traffic congestion and parking problems. EU and Asian countries are increasingly seeing ITS deployment and integration.
The growth of modern technology in the automobile industry has enabled the creation of self-driving cars. According to the Society of Automotive Engineers International, its SAE J3016TM 'Levels of Autonomous Driving'.
They have categorized it into different levels:
From level 1 onwards, there is a huge demand for high-tech gadgets that aid the driver, such as sensors and cameras. Furthermore, with the advent of the 5G autonomous driving system, the capabilities of self-driving cars may grow significantly.
Furthermore, global telecommunications providers are working diligently with LTE technology to put 5G autonomous driving technologies into real-world operation, bridging the transition to mainstream implementation of 5G cellular vehicle-to-all communications (C-V2X).
The system relies exclusively on internet service connectivity when employing smart transportation. The waves are sent from the hubs to the cars, allowing them to execute various duties. Yet, technical advancements have opened new avenues for cybercrime.
The automobile industry was primarily targeted in the 2IBM X-Force study. Around 30% of the share includes phishing assaults, ransomware extortion, and APT breaches in manufacturing.
Demand for smart technologies has increased substantially over the past few years. Rapid technological advancements have supplemented this. This trend has also been prevalent in the automotive industry and is expected to accelerate over the forecast period.
Increasing digitization, the rising popularity of connected car technology, increasing consumer demand, growing adoption of autonomous cars, rising demand for intelligent transportation, increasing electrification of vehicles, and rising internet penetration in transportation and automotive industries are a few key trends that offer new opportunities for 5G in automotive and smart transportation market players through 2030.
High integration costs and increasing cybersecurity risks are expected to restrain the adoption of 5G in automotive and smart transportation. Despite the restraining factors, the demand for 5G in automotive and intelligent transportation is projected to rise at an impressive CAGR of 26.5% from 2022 to 2030.
Rising Demand for Integration of 5G Technology
Automotive manufacturers are increasing the integration of 5G technology in their vehicles to offer better infotainment and telematics features.
Increasing demand for fast internet with better connectivity in vehicles and rising demand from consumers for better multimedia services are other factors that boost the adoption of 5G in the automotive industry vertical, which currently accounts for a dominant market share of 35.2% in the global 5G in the automotive and smart transportation industry.
High Costs of Integration of 5G Technology an Issue
Integration of 5G technology in automotive and smart transportation applications incurs high costs to manufacturers and increases the overall cost of the offering.
This factor negatively affects manufacturers' profit margins and increases consumer spending, which may harm the 5G in automotive and smart transportation market growth.
Increasing the use of 5G in autonomous driving and connected car technology brings a huge amount of transportation systems and components to an online platform, which can be accessed by hacking it via multiple channels leading to catastrophic issues.
Increasing cybercrime and rising instances of cyberattacks are potentially expected to restrain the adoption of 5G in automotive and smart transportation over the forecast period.
| Country | United States |
|---|---|
| CAGR (2017 to 2022) | 4.3% |
| Valuation (2023 to 2033) | USD 598.5 million |
| Country | China |
|---|---|
| CAGR (2017 to 2022) | 4.9% |
| Valuation (2023 to 2033) | USD 186.2 million |
| Country | Canada |
|---|---|
| CAGR (2017 to 2022) | 2.0% |
| Valuation (2023 to 2033) | USD 12.3 million |
| Country | Germany |
|---|---|
| CAGR (2017 to 2022) | 4.4% |
| Valuation (2023 to 2033) | USD 74.9 million |
| Country | United Kingdom |
|---|---|
| CAGR (2017 to 2022) | 4.0% |
| Valuation (2023 to 2033) | USD 52.8 million |
Increasing Consumer Preference for Connected Cars
The United States is the second-leading car manufacturer in the North American region. It has the greatest market share due to favorable technological infrastructure, increased participation of significant automobile and communication businesses, and rising people's purchasing power parity (PPP).
The United States is a highly lucrative market for new technologies and is known for the rapid adoption of technologies. 5G has been widely accepted in the United States and has seen an increase in the use of connected car technology, which consumers in the nation extensively prefer.
Other factors, such as the presence of key companies and an increase in connected vehicles, are also expected to favor 5G in the automotive and smart transportation market potential in the United States.
Germany is the leading car producer country in Europe. According to a report, in 2020, automakers in Germany produced nearly 2 million passenger cars, although the drop in manufacturing was caused due to pandemic crises.
According to the European Commission, implementing such technology in road transportation may result in a 5-15% reduction in congestion, casualties, and traffic collisions, as well as a 10-20% reduction in CO2 emissions.
The automobile industry in Central and Eastern Europe has been flourishing in recent years (CEE). Because of the economic advantages over Western European countries, an increase in carmakers intends to establish new and cutting-edge manufacturing facilities in CEE countries.
As a result of growing political cohesion and economic progress, investors have increased their interest in European countries, viewing them as a single shared source, manufacturing, and logistics hub. Furthermore, the increased usage of technology and the presence of top-tier automobile and telecom firms have aided market expansion.
Highly Lucrative Automotive Manufacturing Sector to Boost Demand
China is the world's leading automotive producer, and this factor alone makes it a highly rewarding marketplace for 5G technology providers.
Supportive government initiatives and increasing investments in the development of intelligent transportation infrastructure are expected to boost 5G in the nation's automotive and smart transportation market growth through 2033. In 2019, the country produced 28% of all trucks and cars, around 26 million vehicles globally.
Hardware Components to Have Bright Demand Outlook
The increasing deployment of smart transportation solutions and the use of 5G in the automotive industry is expected to propel the demand for hardware components on a dominant scale. This segment is expected to account for more than 2/3 of the global 5G in automotive and intelligent transportation market share by the end of the forecast period.
Software solutions are also predicted to see steady growth in demand through 2033 as they become increasingly important in complex connected technologies and products.
5G technology providers in automotive and intelligent transportation applications are investing in the research and development of new technologies to boost their market presence and revenue generation potential.
In March 2022, Lockheed Martin, a leading defense product manufacturer based in the United States, announced that it to develop a new technology to connect military vehicles to 5G networks to improve battlefield communications.
| Attribute | Details |
|---|---|
| Market Size Value in 2023 | USD 2.02 billion |
| Market Size Value at End of Forecast (2033) | USD 41.78 billion |
| Market Analysis | USD billion for Value |
| Key Region Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; The Middle East & Africa |
| Key Segments | By Solution, By Application, By Industry, By Region |
| Key Companies Profiled | Audi Group; BMW Group; Robert Bosch GmbH; Deutsche Telekom AG; Telefonaktiebolaget LM Ericsson; Huawei Device Co. Ltd.; Daimler AG; Mercedes-Benz; Nokia; Qualcomm Technologies Inc.; Telefónica S.A.; Verizon; Vodafone Limited; Volkswagen |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
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5G in Automotive and Smart Transportation Market
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