The 5G in Automotive and Smart Transportation market is projected to grow significantly, from USD 3.465.2 million in 2025 to USD 49,229.5 million by 2035 an it is reflecting a strong CAGR of 19.2%. The emergence of 5G and its extended use in automotive and smart transportation is expected to facilitate widespread high-speed communication with low latency. This allows for dynamic data transmission, which improves the overall performance, safety, and efficiency of the vehicle. There is also a growing need for V2X, infotainment, telematics, and fleet management solutions across multiple industries, such as automotive, defense, transportation infrastructure, and public safety.
European legislative around connected vehicles and cyber standards - stringent regulations and safety mandates - requires significant risk assessments and secure 5G capabilities. To ensure safe and efficient 5G deployments while minimizing the risks of data breaches and cyber threats, organizations are investing in network security, data encryption, and compliance management.
5G in Automotive and Smart TransportationMarket Assessment
| Attributes | Description |
|---|---|
| Industry Size (2025E) | USD 3.465.2 million |
| Industry Size (2035F) | USD 49,229.5 million |
| CAGR (2025 to 2035) | 19.2% |
Smart transportation is being further advanced by companies leveraging 5G-powered cloud services, AI-driven analytics, and edge computing. These technologies facilitate better connectedness, improve operational performance, and further digital transformation. Yet this increasing reliance on 5G solutions means that comprehensive risk management solutions are needed for latency, network vulnerabilities, and possible disruptions.
In today’s world cyber-attacks are on the rise, organization should adopt a solution with Continuous Monitoring, AI-based Risk Assessment and Real-Time Threat Detection. Technologies like network slicing, secure access protocols and encryption are increasingly important for reducing 5G network exposure to risks. One of the industry's top priorities is securing. coherent communication between the two connected entities: the vehicles and the infrastructure.
North America is the largest region when it comes to 5G automotive and smart transportation market because there is a robust regulatory framework, early adoption of 5G, and huge investments from telecom players followed by it. China, Germany and Japan are other countries racing ahead with 5G-powered automotive solutions. In contrast, countries such as India and Australia are witnessing greater growth, driven by government programs, smart city projects and the expansion of digital infrastructure.
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| Company | Kontron AG |
|---|---|
| Contract/Development Details | Secured a significant contract to supply 5G automotive IoT connectivity modules, valued at approximately USD 250 million. The deal involves providing 5G Network Access Devices (NADs) to several global automotive manufacturers, facilitating the industry's shift towards advanced 5G technology. Production is set to ramp up in 2026, with revenues materializing over a period of up to seven years. |
| Date | February 2025 |
| Contract Value (USD Million) | Approximately USD 250 |
| Renewal Period | 7 years |
Rising demand for connected vehicles to enhance safety, navigation, and real-time communication
Data for such vehicles will be increasingly used as the automotive segment changes toward "connected," constantly linked cars which better leverage safety, forecasting and situational awareness. Connected vehicles are equipped with sophisticated communication technology that allows them to communicate with other vehicles, infrastructure, and the cloud, enabling functionalities such as collision avoidance and traffic updates, as well as advanced navigation systems.
This trend has taken wings in India with the government actively pushing Vehicle-to-Everything (V2X) technology. The government panel noted that in the Bharat New Car Assessment Programme (NCAP), India's car safety star ratings, automakers that incorporate V2X should receive an increment in star rating. The project is intended to enhance road safety features by promoting the use of connectivity features that help reduce non-line-of-sight traffic problems, which are widespread in India.
With more than 412,000 accidents reported on India's roads in 2021 alone, leading to 153,972 deaths, these connected vehicle technologies play a critical role in tackling such scourges. The government wants to increase situational awareness for drivers thereby reducing accidents and improving traffic management overall through V2X integration.
Expansion of smart cities and digital infrastructure supporting advanced transportation solutions
The widespread movement towards smart cities across the globe is revolutionizing urban transportation networks with 5G technology becoming pivotal in this transformation. The Smart Cities Mission in India is a vivid example of this evolution, with a major emphasis on transforming urban agglomerations to modern ones underpinned by state-of-the-art digital backbone facilitating smart mobility solutions. This huge investment enabled the completion of 7,352 projects, representing 91% of total planned initiatives.
These initiatives range from the deployment of IoT-enabled traffic management systems and smart parking solutions to real-time public transportation tracking, all of which rely on the powerful connectivity infrastructure 5G provides.
Helping cities relieve congestion, reduce emissions, and improve the efficiency of urban mobility, an advanced transportation ecosystem integrates these technologies. Additionally, the Governments push towards modernizing digital infrastructure will not only support the development of these smart transport solutions but also an innovative, sustainable urban environment.
Development of multi-access edge computing (MEC) to reduce latency in transportation networks
The introduction of 5G technology has enabled the emergence of Multi-Access Edge Computing (MEC), where computation and data storage is located close to the end-users. In regards to automotive and intelligent transportation systems, MEC plays a critical role in minimizing latency which is necessary for real-time processing of data needed for applications such as autonomous driving, traffic control management and vehicle to infrastructure communication. For example, in Sweden the city of Malmö is already operating a flexible heating and cooling system called ectogrid, with the digital network ectocloud.
At the core of this system is the ability to optimize and redistribute energy across the district using edge computing, demonstrating the benefit of thinking of the edge in city management. Success stories like these show how MEC can improve transportation networks and make them more responsive and reliable. MEC processes data at the edge, closer to where it’s generated, and reduces the latency typically associated with traditional cloud computing models, meeting the strict needs for latency.
High infrastructure costs for deploying 5G networks and upgrading legacy systems
5G deployment in the automotive and smart transportation domain often encounters the stark reality of economics with huge infrastructure development costs. All those little races add up to a big change with 5G, specifically that unlike previous generations of wireless technology 5G, uses a dense array of small cell towers and fiber-optic cables and upgraded base stations to provide seamless connectivity. The cost of building this infrastructure in urban areas is high, but the challenge compounds in rural and poorly populated areas where low return on investment slows the roll-out.
The current transportation environment is heavily based on legacy communications systems that are not 5G-ready and thus would require significant capital expense to be updated across roadways, traffic management centers, and connected vehicles.
The automotive manufacturers further need to invest in 5G-compatible hardware for the vehicles, such as modems, sensors, and edge computing units, which in turn raises expenses. Replacing legacy telematics and navigation systems with 5G-enabled solutions can be an expensive burden for fleet operators and public transportation agencies.
| Market Shift | 2020 to 2024 |
|---|---|
| Regulatory Landscape | Transportation authorities set standards for vehicle-to-everything (V2X) communication. |
| 5G Infrastructure Expansion | Deployment of 5G-enabled road infrastructure for enhanced vehicle connectivity. |
| Connected Vehicle Ecosystem | Increased vehicle-to-infrastructure (V2I) applications in urban areas. |
| Mobility-as-a-Service (MaaS) | Integration of multimodal transport apps with real-time 5G updates. |
| Market Growth Drivers | Demand for safer, efficient, and connected vehicle systems. |
| Market Shift | 2025 to 2035 |
|---|---|
| Regulatory Landscape | AI-led traffic governance platforms manage and enforce 5G-connected mobility compliance. |
| 5G Infrastructure Expansion | Full integration of 6G-backed ultra-reliable low-latency communication for autonomous fleets. |
| Connected Vehicle Ecosystem | AI-powered edge computing enhances real-time traffic rerouting and safety automation. |
| Mobility-as-a-Service (MaaS) | AI-driven smart transport ecosystems predict user needs and offer personalized commuting. |
| Market Growth Drivers | Widespread rollout of smart cities and autonomous transportation systems. |
The section highlights the CAGRs of countries experiencing growth in the 5G in Automotive and Smart Transportationmarket, along with the latest advancements contributing to overall market development. Based on current estimates China, India and USA are expected to see steady growth during the forecast period.
| Countries | CAGR from 2025 to 2035 |
|---|---|
| India | 21.7 |
| China | 22.9% |
| Germany | 16.5% |
| Japan | 19.1% |
| United States | 17.8% |
Integrating Vehicle-to-Everything (V2X) communication with 5G infrastructure, China is moving swiftly toward smart transportation. It is the technology that allows vehicles, pedestrians, and road infrastructure to communicate with each other in real-time, as well as with central traffic management systems.
The Chinese authorities have made V2X a top priority within their smart city programs, with intelligent transportation networks already in place in many of the nation's leading urban centers. 5G networks-3GPP telecom standard up to late 2020 - will expand to improve communications with ultra-low latency for roadside infrastructure and other V2X improving road safety, traffic flow, auto performance, and automated driving.
In 2024, MIIT (the Chinese Ministry of Industry and Information Technology) announced the expansion of V2X-enabled highways, with over 5,000 km of roads enabled with smart sensors. The initiative facilitates autonomous driving ventures in cities such as Beijing and Shanghai, where more than 300 smart intersections are being equipped with real-time V2X capabilities. These upgrades are projected to reduce traffic delays by 15% and dramatically reduce accident rates.
India, with its fast-paced urbanization, has experienced the rising demand for integrated public transport systems that has driven the adoption of 5G-based mobility solutions. The central government, under the Smart Cities Mission, has mapped the integration of 5G in metro rail, bus rapid transit systems (BRTS), and smart traffic management to enable ease of urban mobility. 5G's low-latency and high-speed characteristics facilitate real-time vehicle tracking, automated fare collection, and artificial intelligence based traffic optimization for the public transport.
Also in 2024, the Indian Ministry of Housing and Urban Affairs announced USD 600 million worth of investment in smart transportation projects, including 5G-enabled metro rail systems in Delhi, Mumbai and Bengaluru. AI-based route optimization and predictive maintenance for buses and trains brief to expect 20% reduction in travel time through public transportation by 5G deployment.
5G is rapidly becoming part of the USA logistics network, granting fleet management the ability to minimize delivery delays and help optimize the supply chain. As we see a growing need for eCommerce and just-in-time logistics, 5G allows for real-time tracking of the packages and use of predictive maintenance and AI-lit route optimization for freight logistics. The USA Department of Transportation (DOT) has also highlighted the importance of new 5G-powered telematics that will ensure flows between shipping hubs, warehouses, and last-mile delivery services operate smoothly.
In 2024, the USA government spent USD 1.2 billion to introduce 5G-connected logistics hubs along the freight corridors in California, Texas, and Illinois. By integrating Smart Traffic Monitoring with AI-based analytics, the initiative, which pledge to cut delivery time by 25% and reduce fuel consumption in commercial fleets. Major logistics companies, such as FedEx and UPS, are already testing 5G-powered automated delivery vehicles to improve last-mile efficiency in urban centers.
The section contains information about the leading segments in the industry. By Solution, the Softwaresegment is estimated to grow quickly from the period 2025 to 2035. Additionally, by Industry, Automotivesegmenthold dominant share in 2025.
| Solution | CAGR ( 2025 to 2035 ) |
|---|---|
| Software | 20.6% |
As connected vehicles, autonomous driving, and intelligent traffic systems rely heavily on advanced software solutions, the software segment is growing faster than the 5G Automotive and Smart Transportation Market. Platforms with 5G support enable real-time data processing, AI-powered decision-making, cloud-based vehicle management, and other software features making software a critical pillar for next-gen transportation.
There are also increasing applications of AI-generated traffic control, predictive maintenance, and V2X (vehicle-to-everything) communication systems designed to enhance mobility; this technology relies heavily on robust software infrastructure to function.
Five hundred million dollars were dedicated by the USA Department of Transportation (DOT) in 2024 towards developing AI-enabled 5G traffic management ecosystems in urban areas. The project, with a goal of alleviating traffic congestion by 25% will facilitate real time traffic monitoring and predictive analytics for better road safety. China’s Ministry of Industry and Information Technology (MIIT), on the other hand, is launching large-scale 5G-V2X pilot projects across more than 30 cities, ensuring that vehicles are able to communicate to each other - at long and short range - and with road infrastructure.
| Industry | Value Share (2025) |
|---|---|
| Automotive | 23.8% |
Automotive sector has the highest share of 5G Automotive and Smart Transportation Market, owing to increasing number of connected vehicles, autonomous driving technologies and digital in-car services. To improve vehicle performance and safety, common practice among automakers is incorporating 5G-enabled infotainment, real-time navigation, remote diagnostics, and AI-powered driver assistance systems. The move toward electrification and autonomy has also fueled investments in 5G-backed vehicle communication systems such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) connectivity.
Governments around the world already support full 5G deployment in the automotive space. In 2024, 700 million USD were approved by USA Federal Communications Commission (FCC) for 5G connected vehicle infrastructure to enhance real-time vehicle data sharing and facilitate autonomous vehicle testing. Likewise, by 2026 China is set to install 5G connectivity in more than 12 million vehicles, part of the boom of fully autonomous transport envisioned in the nation.
The adoption of 5G with automotive and smart transportation systems is revolutionizing the mobility sector. Features provided by 5G include ultra-low latency, vast bandwidth and instant communication which are used to enable connected and autonomous vehicles (CAVs), smart traffic management, and improved vehicular safety functionality.
With automakers and governments intensifying efforts to develop intelligent transportation systems (ITS) technology systems providers are competing to deliver robust, scalable and interoperable 5G solutions. The market is a mix of telecom behemoths, chip makers and enterprise tech companies - all of whom are helping to build out the connected mobility ecosystem.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Qualcomm | 20-25% |
| Huawei | 15-20% |
| Ericsson | 10-15% |
| Nokia | 8-12% |
| Intel | 6-10% |
| Other Companies (combined) | 25-35% |
| Company Name | Key Offerings/Activities |
|---|---|
| Qualcomm | Develops 5G chipsets and C-V2X platforms; collaborates with automakers for in-vehicle 5G integration and autonomous driving systems. |
| Huawei | Builds end-to-end 5G infrastructure and connected car platforms; partners with Chinese OEMs to deploy smart transportation solutions. |
| Ericsson | Offers 5G infrastructure and cloud-native network services; enables smart mobility applications through multi-access edge computing. |
| Nokia | Delivers private LTE/5G networks and smart city transport solutions; integrates edge computing for real-time analytics. |
| Intel | Develops automotive-grade processors and 5G modems; enables data processing and connectivity for ADAS and autonomous vehicles. |
Qualcomm (20-25%)
Qualcomm Technologies, Inc. is the industry leader in automotive 5G, enabling this capability through its advanced chipsets and industry-leading C-V2X technologies. Its 5G capabilities are used for embedded advanced driver assistance systems (ADAS), infotainment and telematics, working closely with truck and tractor Original Equipment Manufacturers (OEMs) and Tier 1 suppliers. Real-time communication, sensor fusion and edge AI hyperscale applications via Qualcomm’s Snapdragon Automotive platforms are already present in commercial vehicles and are powering its market share dominance.
Huawei (15 to 20%)
Huawei have taken on new dimensions, particularly when it comes to building 5G smart transportation ecosystems in Asia. Achieving unparalleled success in a volatile regulatory environment Do you expect that in the short term, at least, markets outside of China will remain relatively closed to Huawei?Huawei is doing well in China, maybe even better than expected, as they collaborate with automotive OEMs和 municipal governments. These support connected vehicle ecosystems and traffic management systems through integrated 5G base stations, onboard modules, and vehicle-cloud platforms. Regional markets: Huawei maintains a competitive edge thanks to its end-to-end hardware-software integration.
Ericsson (10-15%)
Ericsson offers the 5G radio access networks (RAN), cloud-native cores, and edge computing infrastructure critical to smart transportation applications. Real-time data delivery and network slicing support mobility-as-a-service (MaaS), smart intersections and remote fleet management. Ericsson's global presence and collaborations with governments and telecom operators further facilitate 5G-enabled ITS deployments in a public-private ecosystem.
Nokia (8-12%)
Providing private LTE/5G solutions designed specifically for bodegas and factories, Nokia is yet another outlier on our chart. The smart city infrastructure of the company integrates vehicle telemetry and traffic lights with real-time alerts for seamless coordination. The NOK digital automation cloud platform has edge computing designed for autonomous vehicles and logistics, so it stands a good chance of bellwethering smart transit innovation. It has expanded through partnerships with transport authorities across Europe and North America.
Intel (6-10%)
NVIDIA has a special focus on Visual AI providing the compute for the next generation of vehicle automation. Its processors and network solutions drive onboard computing, AI-enabled perception and edge analytics. The synergy of compute, connectivity, and safety is likely where Intel brings its greatest value, and its acquisitions in the autonomous vehicle-facing side of the industry, like Mobileye, only add fuel to the fire. The open architecture of the company enables integration between several automotive and infrastructure platforms.
Other Key Players (25-35% Combined)
Key supporting players in the 5G automotive and smart transportation value chain include the likes of Samsung Electronics, Cisco Systems, ZTE Corporation, NEC Corporation and IBM. Samsung supplies the chipsets and onboard modems, Cisco provides the network security and connected vehicle platforms, ZTE offers the emerging markets infrastructure, NEC helps with edge AI deployment, and IBM leads in software integration and data analytics. Together, these companies are leading the innovation for V2X communication, fleet intelligence, and infrastructure-as-a-service for mobility providers.
The Global 5G in Automotive and Smart Transportation industry is projected to witness CAGR of 19.2% between 2025 and 2035.
The Global 5G in Automotive and Smart Transportation industry stood at USD 3.465.2 million in 2025.
The Global 5G in Automotive and Smart Transportation industry is anticipated to reach USD 49,229.5 million by 2035 end.
East Asia is set to record the highest CAGR of 21.3% in the assessment period.
The key players operating in the Global 5G in Automotive and Smart Transportation Industry Qualcomm, Huawei, Ericsson, Nokia, Intel, Samsung Electronics, Cisco Systems, ZTE Corporation, NEC Corporation, IBM.
In terms of Solution, the segment is segregated into Hardware, Solution and Services.
In terms of Application, the segment is segregated into Vehicle-to-Everything, Infotainment & Telematics and Fleet Management.
In terms of Industry, it is distributed into Automotive, Defense, Transportation Infrastructure (Highways, etc.), Warehousing & Logistics, Public Safety and Others.
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East and Africa (MEA), and Europe.
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5G in Automotive and Smart Transportation Market
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