The Global Automotive 5G Market was projected to be $1.7 billion in 2023, and by 2030 it is anticipated to be worth $11.72 billion. The market is estimated to expand at a CAGR of 27.3% between 2023 and 2030.
Driving is becoming safer, more effective, and more fun because of the automobile industry's continuous evolution and adoption of new technology. One such innovation that has received a lot of attention recently is 5G technology in the automotive industry. The fifth generation of wireless communication technology, or 5G, is anticipated to completely change how people communicate with one another and engage with technology in general, including in the automobile sector.
As the demand for connected cars rises, autonomous vehicle technology advances, and the requirement for real-time communication between vehicles and infrastructure, the automotive 5G market is anticipated to expand quickly in the upcoming years.
Increasing demand for connected cars and autonomous vehicles will drive the market growth
As customers desire a safer and more comfortable driving experience, connected automobiles and autonomous vehicles are becoming more and more common. In order to function effectively and securely, these vehicles need a fast connection and real-time communication. Therefore, to function correctly, connected automobiles and autonomous vehicles need 5G networks, which provide the high-speed connection and low latency necessary for real-time communication. The need for 5G technology will increase in tandem with the growth of the market for these vehicles.
Advancements in technology and infrastructure will boost the market growth
Technology and infrastructural developments have increased the availability and affordability of 5G networks. Globally, the rollout of 5G networks is advancing, and more nations are making the technology more accessible. Moreover, improvements in infrastructure like edge computing and tiny cell technologies are simplifying the deployment and management of 5G networks. Because of these developments, 5G deployment is becoming more affordable and automobile businesses are now more likely to invest in the technology.
High deployment costs will impede the market growth
The installation of 5G networks is a time-consuming and costly operation. Infrastructure including base stations, tiny cells, and fibre optic cables must be heavily invested in to make a robust infrastructure. Deploying 5G networks is also a highly regulated procedure that needs clearance from regional and national regulatory agencies. The high cost of 5G implementation, which might be a substantial entry hurdle for some businesses, is a result of all of these reasons.
Standardization and interoperability will restrain the growth of the market
Standardization and interoperability are two major issues that the automotive 5G business must address. There isn't much agreement on the technical requirements and standards for the technology because 5G networks are still in their infancy. The interoperability of 5G networks may be hampered as a result of concerns with compatibility between various devices and systems.
The COVID-19 pandemic has had a significant impact on the automotive 5G market. The global lockdowns and social distancing measures implemented to contain the spread of the virus have disrupted supply chains, manufacturing operations, and consumer demand. As a result, the production and sales of vehicles have declined significantly, which has slowed down the deployment of 5G technology in the automotive industry. However, the pandemic has also highlighted the importance of connectivity and real-time communication, which may lead to increased demand for 5G technology in the long term as the industry recovers from the pandemic.
AUTOMOTIVE 5G MARKET REPORT COVERAGE:
REPORT METRIC |
DETAILS |
Market Size Available |
2022 - 2030 |
Base Year |
2022 |
Forecast Period |
2023 - 2030 |
CAGR |
27.3% |
Segments Covered |
By Application, Component and Region |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regional Scope |
North America, Europe, APAC, Latin America, Middle East & Africa |
Key Companies Profiled |
QualcommInc.,Ericsson,HuaweiTechnologies Co. Ltd., Nokia Corporation, Samsung Electronics Co. Ltd., Intel Corporation, Telefonaktiebolaget LM Ericsson, Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG |
Autonomous Driving
Connected Car Services
Vehicle-to-Vehicle Communication
Vehicle-to-Infrastructure Communication
The category of applications for autonomous driving is likely to grow the quickest in the next few years. Self-driving vehicles are one of the most interesting 5G applications for the automotive sector. Real-time communication between infrastructure and vehicles is necessary for autonomous driving to function, and 5G networks make this feasible. The features provided by connected automotive services include infotainment, navigation, and telematics, to name a few. Due to 5G technology, which provides faster and more stable connectivity for these services, performance and user experience may be improved. Another significant use of 5G technology in the automobile sector is vehicle-to-vehicle communication (V2V). Vehicles can exchange information about their speed, position, and direction of travel through vehicle-to-vehicle (V2V) communication which can assist to reduce accidents and enhance traffic flow. Similar to V2V communication, vehicle-to-infrastructure communication (V2I) involves communication between moving cars and fixed infrastructure, such as traffic signals, road signs, and toll booths.
Hardware Component
Software Component
Services
In the upcoming years, the hardware component segment will expand the most. The automotive industry's 5G ecosystem includes hardware components like 5G modems, antennas, sensors, and processors. The high-speed connectivity and data processing necessary for cutting-edge applications like autonomous driving and V2V communication depends on these components. Operating systems, applications, and platforms are examples of the software elements that make up the 5G ecosystem in the automotive sector. These parts are necessary to make a number of features and services, including infotainment, navigation, and telematics, possible. The security and dependability of the 5G network in the automotive sector are also critically dependent on software components. The 5G ecosystem also includes crucial services like network deployment, upkeep, and support.
Asia-Pacific holds the crown as the largest market for Automotive 5G. This dynamic region is home to some of the world's largest automotive markets, including China, Japan, and South Korea. With its rapidly growing economy and vast population, Asia-Pacific has become a hotbed for innovation and adoption of advanced technologies. The increasing demand for connected and autonomous vehicles, coupled with supportive government initiatives, has further fueled the growth of Automotive 5G in this region. As a result, Asia-Pacific remains at the forefront of the global Automotive 5G market.
North America, on the other hand, emerges as the fastest-growing region during the forecast period. The region's automotive industry is characterized by a strong focus on technological advancements and a consumer base that embraces cutting-edge innovations. Automotive manufacturers and technology companies in North America are actively investing in research and development to integrate Automotive 5G technology into their vehicles. The push for advanced safety features and the rise of autonomous driving solutions are some of the factors driving the rapid growth of Automotive 5G in North America.
Chapter 1. GLOBAL AUTOMOTIVE 5G MARKET – Scope & Methodology
1.1. Market Segmentation
1.2. Assumptions
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources
Chapter 2. GLOBAL AUTOMOTIVE 5G MARKET – Executive Summary
2.1. Market Size & Forecast – (2023 – 2030) ($M/$Bn)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
2.3.1. Impact during 2023 - 2030
2.3.2. Impact on Supply – Demand
Chapter 3. GLOBAL AUTOMOTIVE 5G MARKET – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier - Distributor Analysis
Chapter 4. GLOBAL AUTOMOTIVE 5G MARKET - Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3 Customer Analysis
4.4. Porter's Five Force Model
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Powers of Customers
4.4.3. Threat of New Entrants
4.4.4. Rivalry among Existing Players
4.4.5. Threat of Substitutes
Chapter 5. GLOBAL AUTOMOTIVE 5G MARKET - Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities
Chapter 6. GLOBAL AUTOMOTIVE 5G MARKET – By Application
6.1. Autonomous Driving
6.2. Connected Car Service
6.3. Vehicle – to – Vehicle Communication
6.4. Vehicle to infrastructure Communication
Chapter 7. GLOBAL AUTOMOTIVE 5G MARKET – By Component
7.1. Hardware Component
7.2. Software Component
7.3. Services
Chapter 8. GLOBAL AUTOMOTIVE 5G MARKET – By Region
8.1. North America
8.2. Europe
8.3. Asia - Pacific
8.4. Rest of the World
Chapter 9. GLOBAL AUTOMOTIVE 5G MARKET – By Companies
9.1. Qualcomm Inc.
9.2. Ericsson
9.3. Huawei Technologies Co. Ltd.
9.4. Nokia Corporation
9.5. Samsung Electronics Co. Ltd.
9.6. Intel Corporation
9.7. Telefonaktiebolaget LM Ericsson
9.8. Verizon Communications Inc.
9.9. AT&T Inc.
9.10. Deutsche Telekom AG
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Frequently Asked Questions
The Global Automotive 5G Market was projected to be $1.7 billion in 2022, and by 2030 it is anticipated to be worth $11.72 billion. The market is estimated to expand at a CAGR of 27.3% between 2023 and 2030.
The advantages of automotive 5G technology include increased safety features for drivers and passengers, quicker and more dependable communication between cars and infrastructure, and better traffic management and navigation.
The high cost of creating and installing 5G infrastructure, the requirement for compatibility and standardisation across various automotive and communication technologies, and worries about data security and privacy are some of the difficulties the automotive 5G business is currently facing.
Qualcomm Inc., Ericsson, Huawei Technologies Co. Ltd., Nokia Corporation, Samsung Electronics Co. Ltd., Intel Corporation, and Telefonaktiebolaget are a few of the leading companies in the automotive 5G industry.
The market for automotive 5G has a bright future, with rising investments in 5G infrastructure and rising demand for connected and autonomous cars predicted to fuel expansion in the years to come.
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