5G IoT In The Automotive And Transportation Market Size (2023 - 2030)

The 5G IoT in the automotive and transportation Market was valued at USD 1.49 billion in 2022 and is projected to reach USD 9.71 billion by 2030. The market is anticipated to expand at a CAGR of 26.4% over the forecast period.

INDUSTRY OVERVIEW

The transportation and logistics sectors are setting the way while the commercial and industrial sectors struggle to understand the impact and uses of IoT technology on their supply chains and production capabilities. Due to the nature of their business, transportation and logistics companies must make real-time adjustments over vastly distributed networks using enormous volumes of data. When it comes to managing the data flows and adjustments necessary to convey commodities by land, sea, and rail, the advantages of sensors and connected technologies are immediately obvious. The use of 5G communication technology in automobiles has given the industry's manufacturers access to better features including fuel tracking, cutting-edge driver assistance systems, speed and cruise control, real-time communication and navigation, improved fleet management, and in-car entertainment systems. The main driver of the market's expansion is the rising demand for electric and smart automobiles.

Technology developments in high-definition mapping, adaptive algorithms, sensor-processing technologies, and the implementation of infrastructure-to-vehicle and vehicle-to-vehicle communication technologies are encouraging numerous businesses to increase their production capacities and advance vehicle automation. Automated cars have the potential to increase transportation comfort, vehicle efficiency, and remote vehicle monitoring. The biggest beneficiaries of IoT technology are companies involved in logistics and transportation since it lowers fleet vehicle risk while assisting in cost control and fuel management. It also offers solutions for managing drivers and, through real-time fleet tracking analysis, improves operational competence, driver and vehicle safety, and both. The market for mobile automation has seen a boost from 5G IoT due to the increase in e-commerce activity. Delivery is a crucial component of this industry, and organisations are increasingly implementing automation techniques that give them access to improved monitoring tools. These tools help them to enhance fleet safety, customer services, visibility, and profitability through process management and research. However, constraints including local players' cost sensitivity and a lack of an unbroken, reliable internet infrastructure may slow down industry expansion globally.

COVD-19 IMPACT ON THE 5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET

The epidemic has devastated the healthcare industry and hurt the world's economies and sectors. The lockdown enforced by the government as a preventative measure to stop the virus's spread resulted in supply chain interruptions that made it harder to get raw materials, labour scarcity, and price increases because of an increase in demand, which badly impacted the industry. Changes in consumer behaviour, such as the preference for online shopping and meal delivery through digital platforms, have forced businesses to restructure their company processes and adapt to the shifting business environment. To meet the rising demand for delivery services and logistics, businesses will need to quickly expand their operational capacity. Deploying 5G IoT solutions is a practical option as a result since it lowers costs, improves operational effectiveness, and expands the capacity of delivery networks. The aforementioned elements are thus having a significant impact on the development of IoT in the mobility business.

MARKET DRIVERS: 

The use of IoT in Automotive and Transportation has resulted in improving the overall efficiency of the mobility sector which is acting as a major factor driving the market growth

The 5G IoT in the Automotive and Transportation market is growing as a result of direct advantages such as improving accessibility, flexibility, and dependability of modes of transportation for both consumers and businesses. Another factor promoting the industry's growth is connecting drivers and consumers for better services. The usage of sophisticated IoT solutions in the supply and logistics sectors has been driven by the growth of e-commerce and digital platforms for activities like shopping, eating, and other activities. As a result, businesses are quickly embracing IoT solutions. Automation elements including fuel consumption monitors, GPS monitoring and geofencing, alarm systems, and asset trackers are frequently employed for efficient operations in the logistics industry. By encouraging companies to use IoT solutions for their operations, automation features have decreased theft of goods, improved fuel economy, and better-tracked trucks and goods, among other benefits. This is driving the market's expansion.

A rise in demand for connected vehicles is driving the market growth

One of the variables that might propel the market ahead over the projected period of 2022–2030 is the rising demand for connected automobiles. The need for connected vehicles will increase as a result of factors such as government attempts to create smart transportation networks, growth in the desire for smart features in automobiles, and autonomous driving technologies with cutting-edge safety features. To give drivers accurate and timely information on their cars’, connected vehicles are fitted with a variety of sensors and processors. With its sophisticated security features, connected car technology delivers a safety net while also enhancing the driving and ownership experience. Hyundai Motor India Ltd. unveiled Hyundai Venue in April 2019, the industry's first smart connected SUV with Hyundai BlueLink, a cutting-edge connection system. The safety features offered by the BlueLink linked technology include car theft tracking, roadside assistance, vehicle navigation control, and immobilization for the recovery of stolen vehicles. Over time, these advancements may have an impact on the Automotive 5G IoT market's expansion.

The ability for businesses to make accurate forecasts and respond quickly to any unestimated stimuli made possible by the usage of IoT in corporate operations is driving the market's rise

When organizational mobility and IoT are integrated, employees could decide to learn how to adjust quickly or better to changing market trends. Additionally, encouraging corporate workers to be more market-aware in response to customer desires or needs can result in the creation of more successful and efficient company plans. Tracking and analyzing the trends in all customer contacts will be made simpler with the usage of IoT in mobility. The data gathered by the company using this capacity is utilised to gather precise information that may be used to develop and improve the services provided to customers.

MARKET RESTRAINTS:

Privacy and Security Problems with the utilization of linked devices are one-factor impeding market expansion

The increased use of digital technologies raises concerns about security and privacy. Hackers might use the high danger of unauthorized access to the system data and the vehicle to commit malevolent or illegal acts, such as robberies and premeditated crimes. The company has sensitive information on hand, and the worrisome increase in cyberattacks, data leaks, and fraudulent data injection in several sector verticals is impeding adoption. Nevertheless, substantial expenditures in cyber security are anticipated to counteract this difficulty and encourage wholesome growth in the later stages of the projected period from 2023 - 2030.

The integration of 5G IoT solutions with different industry segments is still in a nascent phase and requires huge capital investment

IoT technology is still in its infancy and is a burgeoning field. Any sector that uses 5G IoT technology uses a variety of high-end, pricy technologies and equipment. Additionally, employing IoT services generates a lot of data. Such data would require rigorous and time-consuming management and storage. This would raise input costs even further, which can have a detrimental impact on the development of IoT in the transportation sector.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET REPORT COVERAGE:

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET – BY COMPONENT:

• Hardware

• Services

• Software

The Hardware sector, out of these, held the largest market share in 2021 and is anticipated to grow at a significant CAGR during the forecast period. IoT technology solutions let businesses integrate various business activities, increasing the expansion of IoT in the mobility sector. It is anticipated that combining 5G IoT-enabled technologies with current operations would increase the firms' overall operational efficiency with little investment in infrastructure. An IoT device may be easily set up to wirelessly run and monitor an e-scooter, e-bike, moped, or any other type of vehicle. This enables the user to send commands to the vehicle and have them carried out as well as to track any errors and keep track of the vehicle's location in real-time.

In 2021, the services sector had the largest market share contribution and was responsible for more than 50% of total revenue. Over the course of the forecast, the category is anticipated to maintain its market dominance. The requirement for automation in the process to lower operating costs and decrease downtime, the demand for real-time communication, and the rising usage of 5G IoT-enabled control systems are factors contributing to this rise.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET - BY CONNECTIVITY FORM FACTOR:

• Tethered

• Embedded

• Integrated

Around 42.2% of the 5G Automotive IoT Market belonged to Integrated Connectivity in 2021. One of the key reasons affecting the growth of this category is thought to be the increasing usage of infotainment applications and services that operate through smart devices like smartphones and tablets. The remarkable display quality and simple user interface of integrated connection in automobiles enhance readability in all-weather situations and enhance the driving experience. The German automaker AUDI offers Audi Connect in 2019 to facilitate the digital connection between drivers, cars, and infrastructure. It integrates every network connection structure used by the cars to stream music and receives real-time information.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET - BY APPLICATION:

• Infotainment

• Fleet Management

• Predictive Maintenance

• Vehicle Security

• ADAS

• Traffic Management

• Others

In the worldwide 5G IoT Automotive and Transportation Market, Predictive Maintenance is anticipated to expand at the highest CAGR of over 31.0% from 2023 - 2030. Vehicle predictive maintenance is necessary to monitor and forecast ambient conditions, improve engine efficiency, reduce fuel consumption, and ensure optimal performance. Predictive maintenance for automobiles is based on a vast quantity of data that is gathered from sensors installed in cars. For the system to function, algorithms are used to assess and process the data that have been acquired. Predictive maintenance is widely used by fleet businesses to prevent downtime due to its advantages, which include a decrease in maintenance costs, an increase in vehicle utilization, an extension of vehicle life, and an improvement in vehicle safety. Additionally, industry participants typically include cutting-edge technologies to improve the dependability and effectiveness of cars. BMW AG, a global automaker, began integrating the IBM Watson cloud platform into its cars in May 2019. To prevent unplanned production downtime, the integration will provide predictive maintenance or advanced analytics.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET - BY REGION:

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East

• Africa

The North American region contributed the maximum to the growth of the IoT in the automotive and transportation market. North America dominated the 5G IoT in the automotive market with over 35% of the market share in 2021. The significant internet usage in the area, the presence of more smart cities, and high investments in upgrading to the newest technology are all factors that are attributed to the market growth in this area. Canada has also been a key market for this sector and has observed significant growth, particularly due to the policies undertaken by the government to encourage the adoption of IoT solutions in the country.

The markets in Europe and the Asia Pacific also saw significant development. Governments everywhere are concentrating on creating connected, safe, and sustainable transportation since it is a major driver of global economic growth. A rising variety of 5G IoT-enabled mobility solutions will further improve asset monitoring and streamline logistics procedures consequently benefitting the economy. The spontaneous shifting of users to e-commerce channels from mainstream stores has expanded the market for robust logistics services. Due to rising urbanisation, improved disposable income and a push towards digitization Asia Pacific is likewise projected to be the fastest-growing market throughout the projection period. Due to the region's developing competitive landscape, expanding connected solution options, and significant demand for online shopping platforms, sophisticated automation solutions are being adopted strongly, typically in Japan, China, and Taiwan. The advantages of using automation are progressively becoming apparent to industries throughout the area, and they are starting to modernise their processes.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET - BY COMPANIES:

Some of the major players operating in the 5G IoT in the automotive and transportation market include:

1. AUDI GROUP

2. BMW GROUP

3. ROBERT BOSCH GMBH

4. DEUTSCHE TELEKOM AG

5. TELEFONAKTIEBOLAGET LM ERICSSON

6. HUAWEI DEVICE CO.LTD.

7. DAIMLER AG

8. MERCEDES-BENZ

9. NOKIA

10. QUALCOMM TECHNOLOGIES INC.

11. TELEFÓNICA S.A.

12. VERIZON

13. VODAFONE LIMITED

14. VOLKSWAGEN

NOTABLE HAPPENING IN THE 5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET

• PRODUCT LAUNCH- Lockheed Martin, a renowned American maker of defence products, stated in March 2022 that it would be working on a new technology to connect military vehicles to 5G networks to enhance combat communications.

• COLLABORATION- In August 2021, General Motors and AT&T announced their joint effort to install 5G cellular connection in millions of GM vehicles over the following ten years in the US. To fulfil the need for electrified and driverless vehicles, GM and AT&T have teamed together to create the industry standard for automotive communication using a fifth-generation cellular network.