5G In Automotive Market Size, Share, Opportunities, And Trends By Component (Hardware, Software, Services), By Application (Vehicle-to-everything (V2X), Infotainment And Telematics, Fleet Management), And By Geography - Forecasts From 2024 To 2029

The 5G in automotive market is projected to expand at a CAGR of 51.62%.

GROWTH DRIVERS

• Bolstering growth in connected vehicle sales and public access EV charging stations has accelerated the market growth.

The 5G technology adoption is on the rise as the demand for high-speed networks increases and major industrial sectors such as automotive are laying plans to elevate the adoption scale. Hence, the ongoing technological innovations have accelerated the demand for connected car technology and software-defined vehicles that are equipped with advanced features such as vehicle tracking, the overall fleet management system, the advance-drive-assistance system, and the V2X (Vehicle-To-Everything) system, all of which increases the safety and convenience of the owner. According to the 5G Automotive Association, in Q2 of 2022, the sales of connected vehicles reached 250 million which surpassed the sales volume of non-connected vehicles.

Likewise, the growing prevalence of electric vehicle adoption has led to investments in publicly accessible chargers in major economies namely the US, China, and the European Union, which will drive the scope of 5G network usage since it offers reliable communications that are essential for the real-time monitoring of charging stations. According to the International Energy Agency, the strength of public access to fast EV charging stations grew by 330,000 globally with China accounting for 90% of new installations. The scope of installation is expected to witness a significant growth fuelled by the growing EV adoption, according to the “Global EV Outlook 2024”, in Norway the electric vehicle accounts for 90% of the new vehicle sales.

EMERGING OPPORTUNITIES FOR 5G IN AUTOMOTIVE INDUSTRY MARKET

• HARDWARE AND SERVICES

Based on components, the 5F in the automotive market is divided into hardware, software, and services. Where services are poised for the quickest growth thereby accounting for a considerable market share fuelled by the high latency, spectrum efficiency, and ability to manage high user density offered by the 5G network over its predecessor, which has made such technology an ideal option for promoting smart connectivity in vehicles. 

The ongoing investments in advanced driver-assistance systems, fleet management, and vehicle monitoring have led to various strategic investments in software-defined vehicles that are expected to bolster the 5G subscription-based or on-demand services for enhancing the level of safety. Likewise, the government implemented policies to bolster road safety and vehicle theft has provided major scope for the usage of V2X communication solutions which is anticipated to drive the overall market expansion. Hence, various product launches, partnerships, and collaborations are taking place in the market.

For instance,

• In February 2024, HARMAN launched its “HARMAN Ready To Connect 5G Telematics Control Unit” which leverages Qualcomm’s state-of-the-art “Snapdragon Digital Chassis” connected car technology. The product marks a significant development for advanced automotive by pushing connectivity boundaries beyond the standard scope that would deliver a rich-in cabin experience for users. HARMAN such developments match the company’s objective of providing next-generation automotive connectivity.
• In December 2023, Magna joined Telia and Ericsson’s “North Star” program which would leverage the 5G technology for the active safety features development for the vehicles that would minimize the risk of road accidents. As per the program Magna would use Ericsson’s “%g mmWave” technology that would offer high speed at low latency thereby enabling Magna’s driver support and driving assistance system to undertake milliseconds decisions.
• In August 2023, Avanci launched its “5G Connected Vehicle Program” that would simplify cellular technologies licensing and increase their scope of usage in next-generation connected vehicles. The program would enhance the usage of technologies such as cellular vehicles-to-everything that established communication between a vehicle and pedestrian, cyclist, transportation infrastructure, and other vehicles as well.

GEOGRAPHICAL PRESENCE

The 5G in the automotive market, based on geography, consists of major economies such as China, Japan, USA Germany, and South Korea among others all of which hold high growth potential for the 5G network. Economies namely China and the USA are at the forefront of new technological innovations and the governments of countries are implementing necessary steps to bolster smart connectivity which has positively impacted the scope of 5G usage. Moreover, strategic collaboration and launches by key players are also impacting the regional market growth. For instance,

• In February 2024, Cisco in collaboration with TELUS announced to launch of new 5G capabilities across the North American region that would serve the Internet of Things across various sectors with a major focus on smart connected vehicles. The advanced network will establish a foundation for North America’s automotive manufacturers in the development of 5G-based connected vehicles.
• In March 2022, T-Mobile launched its “Magenta Drive” in BMW’s 2022 “iX” and “i4” models thereby making them the first 5G connected vehicles in the United States. The drive would convert vehicles into a mobile Wi-Fi hotspot thereby connecting all in-vehicle devices and providing unlimited voice calling. The advanced antenna system equipped in BMW’s models enables “Magenta Drive” to provide high cellular signal and 5G throughput.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Ericsson and Verizon among others. The product offerings of the major corporation include the following:

Segmentation:

• By Component
  • Hardware
  • Software
  • Services
• By Application
  • Vehicle-To-Everything (V2X)
  • Infotainment and Telematics
  • Fleet Management
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • UK
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others