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5G In Automotive And Smart Transportation Market Forecast: What Market Value Is Expected By 2030?
The 5G in automotive and smart transportation market has demonstrated significant expansion in its size over recent years. This market is projected to expand from $3.07 billion in 2025 to $3.86 billion by 2026, achieving a compound annual growth rate (CAGR) of 25.7%. Historically, this growth can be attributed to several factors, including the advancement of mobile communication standards, the rise of connected vehicles, smart city initiatives, an increase in telematics adoption, and early autonomous vehicle trials.
The 5g in automotive and smart transportation market size is projected to experience substantial growth over the coming years. This market is set to reach $9.58 billion in 2030, exhibiting a compound annual growth rate (CAGR) of 25.5%. This expansion throughout the forecast timeframe stems from the acceleration of autonomous mobility, expansion of 5g infrastructure, demand for real-time traffic intelligence, connected logistics growth, and smart transportation investments. Key developments anticipated within the forecast period encompass the deployment of vehicle-to-everything connectivity, expansion of smart traffic management systems, integration of 5g in autonomous driving, growth of connected fleet solutions, and demand for low-latency automotive networks.
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5G In Automotive And Smart Transportation Market Demand Drivers: What Is Fueling Industry Growth?
Future expansion of the 5G in automotive and smart transportation market is anticipated to be driven by the growing embrace of electric vehicles. Electric vehicles (EVs) are defined as cars that operate on electric motors, drawing power from rechargeable batteries rather than traditional fossil fuels. The wider acceptance of electric vehicles stems from escalating environmental worries, given their reduced greenhouse gas emissions relative to conventional automobiles, which contributes to less air pollution and aids in addressing climate change. With 5G connectivity, electric vehicles can obtain live updates regarding charging station status and best routes, thereby lessening range anxiety and boosting charging efficiency. As an illustration, data from the International Energy Agency (IEA), an independent intergovernmental body situated in France, indicated that in 2024, electric car sales in 2023 surpassed those of 2022 by 3.5 million, marking a 35% annual rise. Consequently, the heightened uptake of electric vehicles is fueling the expansion of the 5G in automotive and smart transportation market.
5G In Automotive And Smart Transportation Market Segment Breakdown: Which Categories Generate The Most Revenue?
The 5g in automotive and smart transportation market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Vehicle Type: Passenger Cars, Commercial Vehicles
3) By Deployment: On-Premises, Cloud
4) By Application: Vehicle-To-Everything (V2X), Telematics, Infotainment, Fleet Management, Other Applications
5) By End User: Automotive, Defense, Transportation Infrastructure, Warehousing And Logistics, Public Safety, Other End-Users
Subsegments:
1) By Hardware: Roadside Units Roadside Units, Communication Modules, Sensors And Cameras
2) By Software: Traffic Management Software, Vehicle-to-Everything V2X Platforms, Autonomous Driving Software
3) By Services: Network Deployment And Maintenance, Consulting And System Integration, Data Analytics And Cloud Services
5G In Automotive And Smart Transportation Market Innovation Trends: Which Developments Are Transforming The Industry?
Major companies operating in the 5G in automotive and smart transportation market are concentrating on developing advanced solutions, such as vehicle-to-everything (V2X) communication platforms, to enable real-time data sharing, enhance road safety, and support autonomous driving initiatives. These V2X communication platforms represent systems that allow vehicles to communicate wirelessly with other vehicles, infrastructure, pedestrians, and networks, facilitating the real-time exchange of information to improve safety, traffic efficiency, and autonomous driving performance. As an illustration, in June 2025, Verizon Communications Inc., a US-based telecommunications company, unveiled an edge transportation exchange designed to facilitate real-time vehicle data sharing and smart mobility solutions. This innovative 5G automotive and smart transportation system delivers ultra-low latency, high data throughput, and extensive device connectivity, thereby supporting instantaneous vehicle communication and improving the accuracy of traffic management. The edge transportation exchange promotes real-time vehicle communication, which in turn boosts road safety and traffic efficiency through its sophisticated connectivity.
5G In Automotive And Smart Transportation Market Key Players And Strategic Industry Positioning
Major companies operating in the 5g in automotive and smart transportation market report include Volkswagen AG, Samsung Electronics Co. Ltd., Ford Motor Company, General Motors Corporation, BMW Group, Mercedes-Benz Group AG, Verizon Communications Inc., Hyundai Motor Company, Deutsche Telekom AG, Huawei Technologies Co. Ltd., Nissan Motor Co. Ltd., LG Electronics India Limited, Aktiebolaget Volvo, DENSO CORPORATION, Continental AG, Qualcomm Incorporated, Telefonaktiebolaget LM Ericsson, Nokia Corporation, Autotalks Ltd., Commsignia Ltd., Cohda Wireless Pty Ltd.
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#5G In Automotive And Smart Transportation Market Largest Region: Which Geography Holds The Highest Market Share?
North America was the largest region in the 5G in automotive and smart transportation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the 5g in automotive and smart transportation market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
