Currently valued at US$ 1.49 billion, the global 5G in Automotive and Smart Transportation Market is predicted to grow to a US$ 9.77 billion market by the year 2030, according to a thorough market study. From 2022 to 2030, demand for 5G in the automotive and smart transportation sectors is expected to grow at an astounding CAGR of 26.5 percent.

It is projected that as modern technologies, such as 5G and IoT, increasingly permeate the automotive and transportation industries, industry participants will have access to lucrative income prospects. The market is poised for strong development during the assessment period as automotive manufacturers take advantage of both the supply-side and demand-side benefits provided by the incorporation of 5G technology in autos.

Fuel tracking, Advanced Driver-Assistance Systems (ADAS), real-time navigation and communication, in-vehicle infotainment systems, speed and cruise control, and improved fleet management are just a few of the cutting-edge features that manufacturers can now offer in their vehicles thanks to 5G technology. In order to increase traffic safety and reduce the frequency of accidents, service providers are concentrating on improving vehicle-to-everything (V2X) communication systems.

In this sense, the incorporation of real-time navigation supported by 5G has emerged as an appropriate solution, which is projected to further fuel adoption, as national governments around the world take measures to reduce traffic accidents. Additionally, the requirement for high bandwidth networks to support the growing use of multimedia services in the passenger transportation industry will continue to drive the development of 5G in the automotive and smart transportation sectors.

In a recent study, FMI predicted that between 2022 and 2030, the global market for 5G in the automotive and smart transportation will grow in value at an outstanding CAGR of 26.5%. The following are some of the report’s main conclusions:

• The market is anticipated to surge past a global valuation of US$ 9.77 Bn by the end of 2030
• On the basis of solutions, the hardware components are poised to account for the majority of the market share, owing to the surging adoption of On-Board Units (OBU) across numerous applications
• By application, the fleet management sub-segment is poised to hold the lion’s share in the market value backed by high demand in the commercial vehicle sector
• The Vehicle-to-Everything (V2X) application, on the other hand, is projected to grow at a tremendous value CAGR of ~30% on the back of growing emphasis on producing connected vehicles
• By region, North America, forefronted by the US, is forecasted to prevail as the leading regional market backed by growing collaborations between service providers headquartered in the region and automotive manufacturers

COVID-19 Impact on 5G in Automotive and Smart Transportation Market

The unanticipated COVID-19 outbreak is anticipated to cause variations in the market’s growth, but the long-term growth prospects are anticipated to remain erratic. Governments in the East Asian region, a significant regional market, enacted nationwide lockdowns in the early 2020s to curb the rapidly increasing prevalence of infections. As a result, the automotive industry’s manufacturing hit a breaking point, which in turn reduced car sales. Similar to the COVID-19, the COVID-19 provided a problem for the widespread deployment of 5G networks, delaying its adoption in the automotive industry. While the automobile market was in a slump throughout the first quarter, it started to turn around at the conclusion of the second quarter, maintaining the market’s steady growth.

Who is winning?

Players operating in the 5G in the automotive and smart transportation market are opting for long-term investments directed towards upgrading new revenue streams, such as Wi-Fi 6, the next-generation standard in WiFi technology, and automotive intelligence to strengthen their foothold. Furthermore, players are launching novel technologies and are entering collaborations to gain a competitive edge:

• In Jan 2020, Qualcomm Technologies, Inc. launched a Car-to-Cloud Service powered by 5G to help automakers keep cockpit and telematics systems up-to-date.
• Around the same time, Verizon announced a partnership with HERE Technologies to collaborate on the development of safety and navigational systems in connected cars.

FMI’s report includes profiles of some of the most prominent names in the market including AUDI AG, BMW AG, Robert Bosch GmbH, Deutsche Telekom AG, Telefonaktiebolaget LM Ericsson, Huawei Device Co., Ltd., Daimler AG, Nokia, Qualcomm Technologies, Inc., Telefónica S.A., Verizon, Vodafone Limited, and Volkswagen

Key Segments of 5G in Automotive and Smart Transportation Industry Survey

5G in Automotive and Smart Transportation Market by Solution:

• Hardware Components
• Telematics Control Units (TCUs)
• Roadside Units (RSUs)
• Onboard Units (OBUs)
• Software Solutions
• Services
• Consultation Services
• Integration & Installation Services
• Maintenance & Support Services

5G in Automotive and Smart Transportation Market by Application:

• 5G Technology for Vehicle-to-Everything (V2X)
• 5G Technology for Infotainment & Telematics
• 5G Technology for Fleet Management

5G in Automotive and Smart Transportation Market by Industry:

• 5G Technology in Automotive
• 5G Technology in Defence
• 5G Technology in Transportation Infrastructure (Highways etc.)
• 5G Technology in Warehousing & Logistics
• 5G Technology in Public Safety
• Others

5G in Automotive and Smart Transportation Market by Region:

• North America 5G in Automotive and Smart Transportation Market
• Latin America 5G in Automotive and Smart Transportation Market
• Europe 5G in Automotive and Smart Transportation Market
• East Asia 5G in Automotive and Smart Transportation Market
• South Asia & Pacific 5G in Automotive and Smart Transportation Market
• Middle East & Africa (MEA) 5G in Automotive and Smart Transportation Market

Information Source:
https://www.futuremarketinsights.com/reports/5g-in-automotive-and-smart-transportation-market