Global 5G in Automotive and Smart Transportation Market Insights Forecasts to 2033

• The Global 5G in Automotive and Smart Transportation Market Size was Valued at USD 1.82 Billion in 2023
• The Market Size is Growing at a CAGR of 25.67% from 2023 to 2033
• The Worldwide 5G in Automotive and Smart Transportation Market Size is Expected to Reach USD 17.88 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Global 5G in Automotive and Smart Transportation Market Size is Anticipated to Exceed USD 17.88 Billion by 2033, Growing at a CAGR of 25.67% from 2023 to 2033.

Market Overview

The integration of 5G communication technology into cars and transportation is known as "5G in automotive and smart transportation." Better features such as advanced driver assistance systems (ADAS), fuel tracking, real-time navigation and communication, speed and acceleration control, in-car multimedia systems, and improved fleet administration are now available from manufacturers. The integration of fifth-generation wireless technology, or 5G, is a term used in the automotive and smart transportation industries to improve the connection, effectiveness, and safety of transportation systems. To support cutting-edge applications like autonomous vehicles, real-time traffic management, and vehicle-to-everything (V2X) communication, 5G provides extremely fast data productivity, low latency, and great dependability. The market's expansion is also anticipated to be significantly driven by the increased adoption of cutting-edge technologies like 5G and IoT in the transportation and automotive industries. The rising R&D and strong adoption rates for communication technologies would generate significant demand for 5G in the automotive and smart transportation sectors, driving up the market's expansion in these market.

Report Coverage

This research report categorizes the market for the global 5G in automotive and smart transportation market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global 5G in the automotive and smart transportation market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global 5G in the automotive and smart transportation market.

Driving Factors

The global 5G market in the automotive and smart transportation sectors is largely driven by the increasing demand for real-time connection. High-speed, low-latency, and dependable connectivity are now more important than ever because of cutting-edge technology like autonomous cars, vehicle-to-vehicle (V2V) communication, and intelligent traffic management systems. Applications in the automotive and transportation industries require real-time communication, which 5G technology makes possible. To ensure safe and effective driving, autonomous cars need to communicate data with their environment in real time. Split-second decision-making is made possible by 5G's enormous bandwidth and low latency. 5G enables real-time data sharing for vehicle-to-everything (V2X) connection, improving traffic control and safety.

Restraining Factors

The use of 5G technology in smart transportation and automotive applications results in significant costs for manufacturers, hence increasing the total cost of the product. This element increases consumer expenditure and has a detrimental impact on manufacturers' profit margins, which might restrict the expansion of the 5G automotive and smart transportation market.

Market Segmentation

The global 5G in automotive and smart transportation market share is classified into solution, application, and end user.

• The hardware components segment is expected to hold the largest share of the global 5G in the automotive and smart transportation market during the forecast period.   

Based on the solution, the global 5G in the automotive and smart transportation market is divided into hardware components, software solutions, and services. Among these, the hardware components segment is expected to hold the largest share of the global 5G in the automotive and smart transportation market during the forecast period. The rapid growth of 5G networks around the world, which requires large investments in infrastructure like network equipment, small cells, and antennas, is the primary driver driving the rise of hardware components. The demand for the 5G hardware segment in the automotive and smart transportation market has also increased due to the growing requirement for efficient transportation and high-speed connectivity.

• The vehicle-to-everything segment (V2X) is expected to hold the largest share of the global 5G in the automotive and smart transportation market during the forecast period.   

Based on the application, the global 5G in the automotive and smart transportation market is divided into vehicle-to-everything, infotainment and telematics, and fleet management. Among these, the vehicle-to-everything segment is expected to hold the largest share of the global 5G in the automotive and smart transportation market during the forecast period. Vehicle-to-everything (V2X) technology enhances road safety and lessens congestion by allowing vehicles to connect with infrastructure, such as traffic lights and signs. With the use of this technology, automobiles can communicate details like direction, speed, and location, which helps drivers make more intelligent decisions. The capacity of vehicle-to-everything (V2X) communication to prevent collisions is driving the growing popularity of this technology.   

• The automotive segment is expected to hold the largest share of the global 5G in the automotive and smart transportation market during the forecast period. 

Based on the end user, the global 5G in the automotive and smart transportation market is divided into automotive, defense, transportation infrastructure, warehousing and logistics, public safety, and others. Among these, the automotive segment is expected to hold the largest share of the global 5G in the automotive and smart transportation market during the forecast period. This is primarily due to automotive sectors everywhere, particularly in China and India, are developing at a rapid rate. These nations' governments have launched several programs, such as the Make in India and Make in China plans, to significantly help in the growth of automotive manufacturing. To transfer a significant amount of data, autonomous and connected cars are becoming more and more popular. 5G networks provide high-speed and quick communication.  

Regional Segment Analysis of the Global 5G in Automotive and Smart Transportation Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the global 5G in the automotive and smart transportation market over the predicted timeframe.

North America is anticipated to hold the largest share of the global 5G in the automotive and smart transportation market over the predicted timeframe. Leading automotive and technology companies are there, together with strong government initiatives and cutting-edge infrastructure that drive North America. Major carriers like Verizon, AT&T, and T-Mobile are leading the way in the implementation of 5G networks in the United States, according to reports from the Federal Communications Commission (FCC). The adoption of 5G in the transportation industry has been greatly supported by the US Department of Transportation (DOT).

Asia Pacific is expected to grow at the fastest pace in the global 5G automotive and smart transportation market during the forecast period. The Asia Pacific region is driven by significant areas for automotive manufacturing, substantial investments in smart city programs, and a rapid pace of urbanization. Major manufacturers including Nissan, Toyota, Honda, Hyundai, and Hyundai are also incorporating 5G technologies into their production lines and automotive.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global 5G in the automotive and smart transportation market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Audi Group
• BMW Group
• Qualcomm Technologies Inc.
• Vodafone Limited
• Daimler AG
• Volkswagen
• Telefónica S.A.
• Verizon
• Mercedes-Benz
• Huawei Device Co. Ltd.
• Robert Bosch GmbH
• Deutsche Telekom AG
• Telefonaktiebolaget LM Ericsson
• Nokia
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2024, A selection of automotive solutions based on Qualcomm Technologies' Snapdragon Digital Chassis platform was announced by the company during the CES exhibition. These devices support improved driver assistance, automated driving systems, connected car technologies, and digital cockpits of the future.  
• In March 2022, To enhance battlefield communications, Lockheed Martin, a well-known American defense equipment company, said that it is creating new technologies to link military vehicles to 5G networks.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global 5G in the automotive and smart transportation market based on the below-mentioned segments: 

Global 5G in Automotive and Smart Transportation Market, By Solution

• Hardware components
• Software solutions
• Services

Global 5G in Automotive and Smart Transportation Market, By Application

• Vehicle-to-everything (V2X)
• Infotainment and telematics
• Fleet management

Global 5G in Automotive and Smart Transportation Market, By End User

• Automotive
• Defense
• Transportation infrastructure
• Warehousing and logistics
• Public safety
• Others

Global 5G in Automotive and Smart Transportation Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa