5G In Automotive And Smart Transportation Market Report 2026

5G In Automotive And Smart Transportation Market Overview

• 5G In Automotive And Smart Transportation market size has reached to $3.07 billion in 2025 • Expected to grow to $9.58 billion in 2030 at a compound annual growth rate (CAGR) of 25.5% • Growth Driver: Rising Electric Vehicle Adoption Driving 5G Growth In The Market Due To Enhanced Connectivity And Smart Mobility Solutions • Market Trend: Advancements In Real-Time Vehicle Communication And Smart Mobility • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under 5G In Automotive And Smart Transportation Market?

5G in automotive and smart transportation refers to the application of fifth-generation wireless technology to create highly connected and responsive transportation networks. It delivers ultra-low latency, high-speed data transmission, and reliable connectivity, enabling efficient communication between vehicles, infrastructure, and control systems. The main components of 5G in automotive and smart transportation include hardware, software, and services. Hardware refers to the physical components of a computer or electronic system that you can touch and see, such as the processor, memory, hard drive, motherboard, and input or output devices. Vehicle types are categorized into passenger cars and commercial vehicles and are deployed through on-premises and cloud-based modes. These are applied in various applications, including Vehicle-to-Everything (V2X) communication, telematics, infotainment, fleet management, and others, serving end users across sectors such as automotive, defense, transportation infrastructure, warehousing and logistics, public safety, and others.

What Is The 5G In Automotive And Smart Transportation Market Growth Forecast?

The 5g in automotive and smart transportation market size is expected to see exponential growth in the next few years. It will grow to $9.58 billion in 2030 at a compound annual growth rate (CAGR) of 25.5%. The growth in the forecast period can be attributed to acceleration of autonomous mobility, expansion of 5g infrastructure, demand for real-time traffic intelligence, connected logistics growth, smart transportation investments. Major trends in the forecast period include deployment of vehicle-to-everything connectivity, expansion of smart traffic management systems, integration of 5g in autonomous driving, growth of connected fleet solutions, demand for low-latency automotive networks.

Global 5G In Automotive And Smart Transportation Market Segmentation

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

What Is The Driver Of The 5G In Automotive And Smart Transportation Market?

The increasing adoption of electric vehicles is expected to propel the growth of the 5G in automotive and smart transportation market going forward. Electric vehicles (EVs) refer to automobiles powered by electric motors using energy stored in rechargeable batteries instead of conventional fossil fuels. The increasing adoption of electric vehicles is driven by rising environmental concerns, as they produce lower greenhouse gas emissions compared to conventional vehicles, helping reduce air pollution and combat climate change. 5G enables electric vehicles to receive real-time updates on charging station availability and optimal routes, helping reduce range anxiety and improve charging efficiency. For instance, in 2024, according to the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, sales of electric cars in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase. Therefore, the increasing adoption of electric vehicles is driving the growth of the 5G in automotive and smart transportation industry.

What Is The Driver Of The 5G In Automotive And Smart Transportation Market?

The increasing adoption of electric vehicles is expected to propel the growth of the 5G in automotive and smart transportation market going forward. Electric vehicles (EVs) refer to automobiles powered by electric motors using energy stored in rechargeable batteries instead of conventional fossil fuels. The increasing adoption of electric vehicles is driven by rising environmental concerns, as they produce lower greenhouse gas emissions compared to conventional vehicles, helping reduce air pollution and combat climate change. 5G enables electric vehicles to receive real-time updates on charging station availability and optimal routes, helping reduce range anxiety and improve charging efficiency. For instance, in 2024, according to the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, sales of electric cars in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase. Therefore, the increasing adoption of electric vehicles is driving the growth of the 5G in automotive and smart transportation industry.

Global 5G In Automotive And Smart Transportation Market Trends and Insights

Major companies operating in the 5G in automotive and smart transportation market are focusing on developing advanced solutions, such as vehicle-to-everything (V2X) communication platforms, to facilitate real-time data exchange, improve road safety, and support autonomous driving solutions. Vehicle-to-everything (V2X) communication platforms are systems that allow vehicles to wirelessly communicate with other vehicles, infrastructure, pedestrians, and networks, enabling real-time information sharing to enhance safety, traffic efficiency, and autonomous driving performance. For instance, in June 2025, Verizon Communications Inc., a US-based telecommunications company, introduced an edge transportation exchange to enable real-time vehicle data sharing and smart mobility solutions. This innovative 5G automotive and smart transportation system offers ultra-low latency, high data throughput, and massive device connectivity, supporting real-time vehicle communication and improving traffic management accuracy. The edge transportation exchange facilitates real-time vehicle communication, boosting road safety and traffic efficiency through advanced connectivity.

What Are Latest Mergers And Acquisitions In The 5G In Automotive And Smart Transportation Market?

In June 2025, Qualcomm Inc., a US-based technology company, acquired Autotalks, Ltd. for an undisclosed amount. With this acquisition, Qualcomm Inc. aims to accelerate the development and global deployment of advanced V2X solutions to improve road safety, enhance automated driving, and optimize traffic efficiency. Autotalks Ltd. is an Israel-based semiconductor company that offers 5G in automotive and smart transportation technologies.

Regional Outlook

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 this market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the 5G In Automotive And Smart Transportation Market?

The 5G in automotive and smart transportation market consists of revenues earned by entities by providing services such as autonomous driving support, connected vehicle services, and enhanced safety services. The market value includes the value of related goods sold by the service provider or included within the service offering. The 5G in the automotive and smart transportation market also includes sales of connected vehicles, autonomous vehicles, and smart traffic management systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the 5G In Automotive And Smart Transportation Market Report 2026?

The 5g in automotive and smart transportation market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the 5g in automotive and smart transportation industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.