The 5G in the automotive and smart transportation market is expecting to grow 26% CAGR throughout an approximate period of 2020-2030. This information is available in a recent market study by Future Market Insights.
Growing Dependence on 5G Smart Technology
There is a burgeoning dependence on smart technology comprising IoT and 5G in the transportation and automotive sector. In turn, granting profitable revenue prospects to market players is coming. This 5G market will experience amazing growth over the project period. In turn, automotive producers will leverage both the demand-side and supply-side advantages. These advantages are provided by the incorporation of 5G technology in automobiles.
The production in the automotive sector has significantly dropped. As a result, this has brought down automobile sales, due to the COVID-19 pandemic. Therefore, this poses a challenge for market growth. In turn, a forecast for healthy growth will result in the relaxation of lockdown measures.
“Market players operating in the global market are focusing their efforts toward research and development exercises to discover solutions to real-time communication challenges and are centering on improving fleet management applications,” an FMI analyst commented.
There are a number of key trends. One is the surging number of road accidents which has put a great focus on road safety. It has continuously laid a fertile ground for 5G in the automotive and smart transportation market. Another is smart sensors.
They allow characteristics such as blindspot detection and automatic braking, among others, which as a group, assist in limiting road accidents and creating more market demand. Finally, reliability and the high speed of 5G will remain the key growth feature to the market over the assessment period.
With regard to North America, East Asia, and Europe, there is a specific regional analysis for each continent. In North America, it remains at the forefront of the market for 5G in automotive and smart transportation. This is due to a growing inclination toward connected cars. East Asia is set to become the most profitable region due to the strong presence of the automotive industry in China. That country is hailed as the foremost automobile producer in the world. It is anticipated to grow quickly. This is due in great part from the uncontested government support to develop the industry utilizing 5G technology.