The 5G in automotive market is expected to grow at a CAGR of 45.80% between 2025 and 2030.
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 advanced-driver-assistance system, and the V2X (Vehicle-To-Everything) system, all of which increase 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 significant growth fueled 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.
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,
The 5G in the automotive market, based on geography, consists of major economies such as China, Japan, the 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,
Some of the leading players in the market include Ericsson and Verizon, among others. The product offerings of the major corporation include the following:
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COMPANY NAME |
PRODUCT NAME |
DESCRIPTION |
|
Ericsson |
5G RAN Slicing |
Ericsson’s “5G RAN Slicing” provides guaranteed performance to the opportunity for service providers to monetize their services. The end-to-end approach enables the product to allocate and prioritize different radio resources which makes them ideal to establish connections among passenger vehicles. |
|
Qualcomm Inc |
C-V2X |
The “C-V2X” auto technology offered by Qualcomm enhances overall vehicle safety by establishing a network chain between the vehicle and road users (V2P, infrastructure (V2I), and other vehicles (V2V). Its low latency improves cellular connectivity, thereby easing the way of data exchange among vehicles. |
|
Verizon |
5G Edge |
Verizon’s “5G Edge” is based on a unified technology that provides a connectivity platform for autonomous vehicles and their surroundings. The platform improves the user’s overall convenience to communicate with the external environment, even while sitting inside the vehicle. 5G Edge associates with Verizon’s efforts to bolster road safety through its next-generation communication systems. |
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR of 45.80% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the 5G In Automotive Market |
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| Customization Scope | Free report customization with purchase |
5G in Automotive Market Segmentation: