5G In Automotive And Smart Transportation Market To Thrive At A CAGR Of 26% Through 2030: FMI
The rising penetration of advanced technologies, including 5G and IoT, into the automotive and transportation sectors is anticipated to bestow lucrative revenue opportunities to market players. As automotive manufacturers leverage both the supply-side and demand-side advantages offered by the integration of 5G technology in automobiles, the market is set for robust growth through the assessment period.
The 5G technology has enabled manufacturers to deliver advanced features in vehicles such as fuel tracking, Advanced Driver-Assistance Systems (ADAS), real-time navigation and communication, in-vehicle infotainment systems, speed and cruise control, and improved fleet management, among others. Likewise, service providers are focusing on enhancing the vehicle-to-everything (V2X) communication solutions to improve road safety and lower the incidence of road accidents.
On these lines, as national governments across the world take measures to curb road accidents, integration of real-time navigation backed by 5G has emerged as an ideal solution, which is expected to further fuel the adoption. Besides, the increasing adoption of multimedia services in the passenger-transportation sector and the subsequent demand for high bandwidth networks to support them will continue to bolster the growth of 5G in the automotive and smart transportation market.
Recent study has projected that the global 5G in the automotive and smart transportation market will rise in value at a stellar CAGR of ~26% between 2020 and 2030. Some of the key takeaways from the report are:
• The market is anticipated to surge past a global valuation of US$ 9,500 Mn 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
“Players operating in the market are directing their efforts towards research and development activities to find solutions to real-time communication challenges and are focusing on enhancing fleet management applications,” remarks report analyst.
COVID-19 Impact on 5G in Automotive and Smart Transportation Market
The unforeseen outbreak of COVID-19 is expected to create fluctuations in the growth of the market, but the long-term growth prospects are expected to remain unhinged. In early 2020, governments in the East Asian region, a prominent regional market, implemented nationwide lockdowns to contain the swiftly mounting rate of infections. As a result, manufacturing in the automotive sector came to screeching health, consequently bringing down the sales of automobiles. Along similar lines, the COVID-19 also posed a challenge to the wide rollout of 5G networks, thus hindering its adoption in the automotive sector. While the downtrend prevailed through the first quarter, the revamp of the automotive market began from the end of the second quarter, ensuring that the healthy growth of the market remains intact.
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.
The 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