5G in Automotive and Smart Transportation Market Size, Share and Trends 2025 to 2034

5G in Automotive and Smart Transportation Market Size and Forecast 2025 to 2034

The global 5G in automotive and smart transportation market size was calculated at USD 2.58 billion in 2024 and is predicted to reach around USD 31.18 billion by 2034, expanding at a healthy CAGR of 28.32% from 2025 to 2034. The 5G in automotive and smart transportation market is witnessed to fuel with the requirement of increased connectivity, the working on the autonomous car, and safety provisions.

5G in Automotive and Smart Transportation Market Key Takeaways

• Asia Pacific accounted dominated the global market with the largest market share of 32% in 2024.
• North America is anticipated to witness the fastest growth during the forecasted years.
• By solution, the hardware segment contributed the highest market share in 2024.
• By application, the vehicle-to-everything (V2X) segment has contributed the largest market share in 2024.
• By end user, the automotive segment captured the biggest share of the market in 2024.

AI Integration in the 5G in Automotive and Smart Transportation Market

Artificial intelligence in the 5G automotive and smart transportation market involves the integration of fifth-generation wireless technology in vehicle transportation systems to enhance communication and connectivity to support functions such as self-driven cars and smart transportation systems. The application of artificial intelligence (AI) in automotive manufacturing companies, as well as machine learning (ML), is rapidly changing the manufacturing process since it allows maintenance and process predictions. In transportation, it can be used to power self-driving cars that can exchange information with the environment in real time to reduce accidents and congestion. In manufacturing, it can be used to predict when equipment will have to be maintained, and the quality check can also be conducted in real time.

• In November 2024, MediaTek introduced a dimensity 9400 chipset in the OPPO Find X8 Pro and featured Generative AI and improvements in gaming. The Dimensity Automotive platform was presented, including partnerships with Tata and Skoda for smart vehicle technologies.

Asia Pacific 5G in Automotive and Smart Transportation Market Size and Growth 2025 to 2034

The Asia Pacific 5G in automotive and smart transportation market size was evaluated at USD 0.83 billion in 2024 and is projected to be worth around USD 10.13 billion by 2034, growing at a CAGR of 28.43% from 2025 to 2034.

Asia Pacific accounted for the largest 5G in automotive and smart transportation market share in 2023. The growth is fueled by rapid urbanization and technological advancements in countries like China, Japan, and South Korea. These nations are spending on smart city networks and associated auto tech related to self-driving cars, all of which are boosting the demand for 5G applications. The demand for sustainable public transport solutions, as well as the demand for intelligent traffic control, thereby driving 5G technologies. China is a major consumer of automobiles and also the largest automotive maker in the world. Growing government policies in favor of 5G technology and consistently rising investment in the development of smart transportation structures are expected to drive 5G growth in the automotive and smart transportation market in the country.

• In September 2022, Indra Sistema S.A. inked a collaboration with Masmovil Group, a broadband services provider, to set up an advanced environment to boost smart 5G services for transportation.

North America is anticipated to witness the fastest growth in the 5G in automotive and smart transportation market during the forecasted years. 5G has been well adopted in the United States and Canada, and the use of connected car technology has also increased among consumers in the United States as this technology is favored by consumers in the nation. Promotion of improving the communication systems of vehicles and general transport as well as the upgrade of efficiency towards the increased relevance of 5G in this region. The Government funding also propels 5G in the automotive and smart transportation market. The focus on reducing emissions and promoting sustainable transportation solutions in the region corresponds with the achievable capabilities of 5G technology.

Market Overview

5G in automotive and smart transportation is the adaptation of the 5G technology into vehicles and transportation. It has led to the enhancement of features like advanced driver assistance system (ADAS), fuel monitoring, real-time and wireless communication, speed and cruising control, entertainment components, and enhanced fleet management. 5G technology in automotive and smart transport vehicle innovation enhances communication, productivity, and security. This market growth is due to increasing innovations in urban infrastructures, the reduction of emissions of greenhouse gases, and the need for technology in traffic control systems.

The increase in the implementation of modern technologies, including 5G and the Internet of Things (IoT), in the automotive and transport industries will influence the growth of the market. Moreover, growth in smart cities and intelligent transportation systems, deployment of a large volume of sensors, and optimization of the flow have put a faster pace for 5G in automotive and smart transportation market. In addition, a rise in expenditure towards research and development and high levels of use of communication technology are also expected to raise the demand for 5G in the automobile and smart transport segment.

5G in Automotive and Smart Transportation Market Growth Factors

• Enhanced Connectivity: 5G delivers higher bit rates, lower latency, massive connectivity requirements, and the efficient exchange of information between automobiles, infrastructures, and cloud networks for modern V2X services.
• Increased Safety and Traffic Management: 5G brings a safety solution such as detecting hazards in real-time, applying emergency brakes, as well as avoiding collisions. Smart traffic management is also supported, allowing a decrease in traffic density and an enhanced flow of traffic.
• IoT Integration: The smart devices in transportation like sensors, cameras, and navigation systems favor 5G data handling capacity that has less interference to manage big data to facilitate the IoT integration in the automobile industry.

Market Scope

Market Dynamics

Driver

Increasing Demand for Connected Vehicles

The more consumers are becoming aware of technology, the need for vehicles with more connectivity features has soared. 5G and gaming vehicles are set to revolutionize the automotive and Smart Transport sector by offering increased data rate, reduced response time, and high connection dependability. It has the potential to increase safety, productivity, and directions of transportation and get smarter and more sustainable mobility. The need for connectivity in cars to support various applications leads to real-time information such as traffic updates, integrated media and entertainment systems, remote software updates of vehicle systems, and improved navigation, all increasing the value for consumers and safety. The shift in consumer preference towards smart vehicles creates demand for 5G in automotive and smart transportation market solutions that allow auto manufacturers to improve their product range.

• In February 2024, HARMAN, a subsidiary of Samsung Electronics Company, launched the HARMAN Ready Connect 5G Telematics Control Unit (TCU), which shall embrace Qualcomm Snapdragon Digital Chassis automotive connectivity solutions to revolutionize automobile connectivity and spread the advantage evenly. Ready Connect TCU is a mini smart device installed in the car to give higher data rates and instant connection to access features like GPS, music, and voice control.

Restraint

High Costs of Integration

The adoption of 5G technology in the automotive and smart transportation sector results in increased costs to manufacturers and increases the overall cost. The primary limitation of 5G in automotive and smart transport is its expensive nature due to a technology of the fifth generation of cellular mobile communications known as 5G. The integration of smart transportation and automotive applications with 5G technology leads to increased costs for the manufacturer, leading to a higher total cost for the goods. That impacts manufacturers’ profit margins and costs consumers’ spending, resulting in hindering the 5G in automotive and smart transportation market growth.

Opportunity

Expansion of IoT solutions

Integration of IoT devices that support 5G will revolutionize transport systems since it will allow for new applications and services to be developed and improve interconnectivity between vehicles, infrastructures, and other devices, leading to improved traffic control, maintenance, and even diagnostics through real-time services and advanced analytics. IoT sensors on the 5G in automotive and smart transportation market allow for real-time infrastructure management for efficient traffic flows and safety. Smart city development and smart parking systems focus on IoT and 5G; thus, developing IoT solutions through 5G connectivity promises considerable growth and innovation.

Solution Insights

The hardware segment noted the largest share of the 5G in automotive and smart transportation market in 2024. The basic and crucial hard components needed for the construction of connected automobiles and smart transportation are the 5G sensors, communication devices, as well as superior onboard units. The segment includes user equipment, radio access points, and base stations, which are critical to the deployment of 5G networks. Additionally, the need for high bandwidth with the advanced requirement in connectivity and transport has further boosted demand in the hardware section of 5G in the automotive and smart transportation market. These components help in handling real-time data exchange, which defines vehicle-to-everything communication (V2X), and also helps in advancing driver assistance systems (ADAS), for which a good quality and reliable hardware system is needed.

Application Insights

The vehicle-to-everything (V2X) segment has contributed the largest 5G in automotive and smart transportation market share in 2024. V2X technology is becoming a popular option to eliminate accidents from transportation systems using vehicle-to-everything communication. The V2X segment has been such a strong segment where road safety and efficient transport systems have become a concern. Vehicle-to-vehicle (V2V) communication technology increases automotive safety by enabling vehicles and other structures to communicate and avoid incidents. In addition to sharing information between vehicles and infrastructure, including traffic signals, road signs, and Global Positioning System (GPS), V2X technology improves the safety of roads and decreases traffic density. V2X technology is emerging as a key driver of market growth due to the increasing demand for instantaneous Road Safety Solutions, Smart City Solutions, and Autonomous Vehicle.

End-user Insights

The automotive segment contributed the largest share of the 5G in automotive and smart transportation market in 2024. 5G in automotive and smart transportation means the integration of the fifth generation of wireless networks in automotive and smart transportation. The automotive sector has been leading the implementation of 5G for advancements like autonomous driving, ADAS, and V2X communication. The automotive industry is shifting towards smarter automobiles with more connectivity, and autonomous driving is becoming the new focus. The 5G is needed to meet consumers ‘expectations of more complex car features such as route optimization, over-the-air software updates, and vehicle-to-vehicle communication.

5G in Automotive and Smart Transportation Market Companies

• Audi Group
• BMW Group
• Qualcomm Technologies Inc.
• Vodafone Limited
• Daimler AG
• Volkswagen
• Telefónica S.A.
• Verizon
• Mercedes-Benz
• Huawei Device Co. Ltd.
• Robert Bosch GmbH
• Deutsche Telekom AG
• Telefonaktiebolaget LM Ericsson
• Nokia

Announcements by Industry Leaders

• In June 2024, a mobility tech provider, ECARX Holdings Inc., declared that it has strengthened its cooperation with Tencent Smart Transportation, the smart mobility division, to advance intelligent driving & cockpit products.
• Ziyu Shen, Co-founder, Chairman, and CEO of ECARX, said, Extending the partnership with Tencent is a big step for ECARX to build up a distinct system of cooperation that helps the company advance its ecosystem of customers and potential clients while developing advanced technology solutions. The opportunities to work in partnership with Tencent to advance and integrate a robust suite of technologies and services will set a new benchmark for the industry and elevate the user experience to new levels.

Recent Developments

• In September 2024, Verizon Business collaborates with Vay Technology to enable extensible 5G connectivity for Vay electric automobiles operated from a distance. The application of this partnership enables teleoperation, data transfer for vehicles’ operation, and software for improving smart transportation and mobility services in the US market.
• In September 2024, Robert Bosch GmbH and Pirelli cooperate on intelligent tire technology, integrating Pirelli's sensors with Bosch's software to improve safety, comfort, and driving dynamics. This intense and real-time tire data feeds the system regarding vehicle stability, making connected and autonomous driving a reality.
• In July 2024, Nokia Corporation acquired Infinera, bolstering its optical networking and improving its position hugely in the webscale market. This acquisition is strategic to the growth of Nokia’s 5G ecosystem and empowers smart transportation, self-driving vehicles, and other artificial intelligence projects.

Segments Covered in the Report

By Solution

• Hardware Components
• Software Solutions
• Services

By Application

• Vehicle-to-everything (v2x)
• Infotainment and Telematics
• Fleet Management

By End-user

• Automotive
• Defense
• Transportation Infrastructure
• Warehousing and Logistics
• Public Safety
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa