REPORT DESCRIPTION

Market Size and Overview:

The market valuation of 5G Internet of Things (IoT) within the automotive and transportation sector reached USD 1.88 billion in the year 2023, with a projected surge to USD 9.71 billion by the year 2030. It is expected that the market will experience a compound annual growth rate (CAGR) of 26.4% throughout the forecast period.

INDUSTRY OVERVIEW

The transportation and logistics sectors are leading the way, while the commercial and industrial sectors grapple with comprehending the impact and applications of IoT technology on their supply chains and production capabilities. Due to the inherent nature of their operations, companies in transportation and logistics must make real-time adjustments across expansive networks, leveraging substantial volumes of data. The benefits of sensors and connected technologies become immediately evident when managing data flows and adjustments essential for transporting goods by land, sea, and rail. The incorporation of 5G communication technology in automobiles has granted manufacturers in the industry access to enhanced features, including fuel tracking, advanced driver assistance systems, speed and cruise control, real-time communication and navigation, improved fleet management, and in-car entertainment systems. The primary catalyst for market expansion is the escalating demand for electric and smart vehicles.

Advancements in high-definition mapping, adaptive algorithms, sensor-processing technologies, and the integration of infrastructure-to-vehicle and vehicle-to-vehicle communication technologies are compelling numerous businesses to augment their production capabilities and advance vehicle automation. Automated vehicles have the potential to enhance transportation comfort, vehicle efficiency, and remote vehicle monitoring. Among the primary beneficiaries of IoT technology are companies engaged in logistics and transportation, as it reduces fleet vehicle risks, aids in cost control and fuel management, and provides solutions for driver management. Real-time fleet tracking analysis enhances operational efficiency, driver and vehicle safety, and overall operational competence. The market for mobile automation has experienced a surge propelled by 5G IoT due to increased e-commerce activity. Delivery, a pivotal aspect of this industry, sees organizations increasingly adopting automation techniques for improved monitoring tools, enhancing fleet safety, customer services, visibility, and profitability through effective process management and research. Nevertheless, global industry expansion may face constraints due to local players' cost sensitivity and the absence of an unbroken, reliable internet infrastructure.

COVID-19 IMPACT ON THE 5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET

The pandemic has wrought havoc on the healthcare industry and economies worldwide. Government-mandated lockdowns, implemented as a preventive measure to curb the virus's spread, led to supply chain disruptions, complicating the procurement of raw materials, labor shortages, and price hikes due to increased demand, significantly affecting the industry. Changes in consumer behavior, such as a preference for online shopping and digital platform-based meal delivery, compelled businesses to restructure their processes to adapt to the evolving business landscape. In response to the rising demand for delivery services and logistics, businesses must rapidly expand their operational capacity. Implementing 5G IoT solutions emerges as a practical choice as it reduces costs, enhances operational efficiency, and expands delivery network capacities. These factors exert a substantial influence on the development of IoT in the mobility sector.

MARKET DRIVERS

The integration of IoT in Automotive and Transportation has contributed to enhancing the overall efficiency of the mobility sector, serving as a significant factor propelling market growth.

The growth of the 5G IoT in the Automotive and Transportation market stems from direct benefits, such as improved accessibility, flexibility, and reliability of transportation modes for both consumers and businesses. Another driver of market growth is the connectivity between drivers and consumers, facilitating superior services. The adoption of advanced IoT solutions in supply and logistics, propelled by the surge in e-commerce and digital platforms, further fuels market growth. Automation features, including fuel consumption monitors, GPS tracking, geofencing, alarm systems, and asset trackers, find frequent use in the logistics industry, leading to efficient operations. These automation features contribute to reduced theft, improved fuel economy, and enhanced tracking of trucks and goods, thereby driving market expansion.

A rise in demand for connected vehicles is driving the market growth

A surge in demand for connected vehicles acts as a driving force behind market growth. Factors such as government initiatives to establish smart transportation networks, a growing desire for smart features in vehicles, and the advancement of autonomous driving technologies with cutting-edge safety features contribute to the increasing demand for connected vehicles. Connected vehicles, equipped with various sensors and processors, provide accurate and timely information to drivers, enhancing safety and the overall driving experience. The introduction of smart connected SUVs, exemplified by Hyundai Venue with Hyundai BlueLink, featuring advanced connection systems, showcases the safety benefits of connected car technology, including theft tracking, roadside assistance, vehicle navigation control, and immobilization for stolen vehicle recovery. Over time, these advancements are expected to impact the expansion of the Automotive 5G IoT market positively.

The ability for businesses to make accurate forecasts and respond quickly to any unestimated stimuli made possible by the usage of IoT in corporate operations is driving the market's rise

The ability of businesses to make accurate forecasts and respond promptly to unforeseen stimuli, facilitated by the utilization of IoT in corporate operations, propels the market's ascent. The integration of organizational mobility and IoT enables employees to adapt swiftly to changing market trends and fosters a greater market-awareness among corporate workers, leading to the development of more successful and efficient business strategies. Simplifying the tracking and analysis of customer interaction trends through IoT in mobility facilitates the collection of precise information to improve services provided to customers.

MARKET RESTRAINTS

Privacy and Security Problems with the utilization of linked devices are one factor impeding market expansion

Privacy and security concerns associated with the use of connected devices hinder market expansion. The increased reliance on digital technologies raises apprehensions about security and privacy. The heightened risk of unauthorized access to system data and vehicles by hackers for malevolent or illegal purposes, such as thefts and premeditated crimes, poses a significant challenge. The possession of sensitive information by companies, coupled with the alarming increase in cyberattacks, data leaks, and fraudulent data injection across various industry verticals, impedes adoption. However, substantial investments in cybersecurity are anticipated to counteract these challenges and promote robust growth in the later stages of the projected period from 2023 to 2030.

The integration of 5G IoT solutions with different industry segments is still in a nascent phase and requires huge capital investment

The integration of 5G IoT solutions with diverse industry segments is still in a nascent phase and demands significant capital investment. IoT technology is in its early stages and represents a burgeoning field. Each sector leveraging 5G IoT technology necessitates a range of high-end, expensive technologies and equipment. Additionally, the utilization of IoT services generates a substantial volume of data, requiring rigorous and time-consuming management and storage. This further elevates input costs, potentially hindering the development of IoT in the transportation sector.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET – BY COMPONENT:

• Hardware
• Services
• Software

Among these components, the Hardware sector held the largest market share in 2021 and is expected to experience significant growth at a substantial CAGR during the forecast period. The integration of IoT technology solutions allows businesses to streamline various activities, fostering the expansion of IoT in the mobility sector. The combination of 5G IoT-enabled technologies with existing operations is anticipated to enhance overall operational efficiency for firms with minimal infrastructure investment. IoT devices can be easily deployed to wirelessly operate and monitor vehicles such as e-scooters, e-bikes, mopeds, or any other type, enabling users to send commands, track errors, and monitor real-time vehicle location.

In 2021, the Services sector contributed the largest market share, accounting for more than 50% of total revenue. This category is expected to maintain its market dominance throughout the forecast period. Factors driving this growth include the need for automation to reduce operating costs, decrease downtime, the demand for real-time communication, and the increased usage of 5G IoT-enabled control systems.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET - BY CONNECTIVITY FORM FACTOR:

• Tethered
• Embedded
• Integrated

Integrated Connectivity comprised approximately 42.2% of the 5G Automotive IoT Market in 2021. The growing adoption of infotainment applications and services operating through smart devices like smartphones and tablets is a key factor influencing the growth of this category. The excellent display quality and user-friendly interface of integrated connections in automobiles enhance readability in all-weather conditions, contributing to an enhanced driving experience. German automaker AUDI introduced Audi Connect in 2019 to facilitate digital connections between drivers, cars, and infrastructure, incorporating various network connection structures for music streaming and real-time information reception.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET - BY APPLICATION:

• Infotainment
• Fleet Management
• Predictive Maintenance
• Vehicle Security
• ADAS
• Traffic Management
• Others

In the global 5G IoT Automotive and Transportation Market, Predictive Maintenance is anticipated to exhibit the highest CAGR of over 31.0% from 2023 to 2030. Predictive maintenance for vehicles involves monitoring and forecasting ambient conditions, optimizing engine efficiency, reducing fuel consumption, and ensuring optimal performance. Leveraging data gathered from sensors installed in vehicles, algorithms assess and process the data to prevent downtime, offering benefits such as reduced maintenance costs, increased vehicle utilization, extended vehicle life, and enhanced safety. Leading automaker BMW AG integrated the IBM Watson cloud platform into its cars in May 2019, utilizing predictive maintenance and advanced analytics to prevent unplanned production downtime.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET - BY REGION:

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

North America played a pivotal role in the growth of the IoT in the automotive and transportation market, dominating with over 35% of the market share in 2021. Factors such as extensive internet usage, the presence of smart cities, and significant investments in adopting the latest technology contributed to this market dominance. Canada, with government policies encouraging IoT solution adoption, also witnessed substantial growth.

The European and Asia Pacific markets experienced noteworthy development, with governments focusing on creating connected, safe, and sustainable transportation to drive global economic growth. The Asia Pacific is projected to be the fastest-growing market, driven by factors like urbanization, increased disposable income, and a push towards digitization. The region, especially in countries like Japan, China, and Taiwan, is witnessing strong adoption of sophisticated automation solutions due to a competitive landscape, expanding connected solution options, and significant demand for online shopping platforms. The benefits of automation are becoming increasingly apparent, prompting industries to modernize their processes across the Asia Pacific region.

5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET - BY COMPANIES:

Several prominent players operate in the 5G IoT in the automotive and transportation market, contributing significantly to its development. Some key companies in this domain include:

• AUDI GROUP
• BMW GROUP
• ROBERT BOSCH GMBH
• DEUTSCHE TELEKOM AG
• TELEFONAKTIEBOLAGET LM ERICSSON
• HUAWEI DEVICE CO. LTD.
• DAIMLER AG
• MERCEDES-BENZ
• NOKIA
• QUALCOMM TECHNOLOGIES INC.
• TELEFÓNICA S.A.
• VERIZON
• VODAFONE LIMITED
• VOLKSWAGEN

NOTABLE HAPPENINGS IN THE 5G IOT IN THE AUTOMOTIVE AND TRANSPORTATION MARKET:

• PRODUCT LAUNCH: Lockheed Martin, a prominent American defense products manufacturer, announced in March 2022 its plans to develop new technology connecting military vehicles to 5G networks, aiming to enhance combat communications.
• COLLABORATION: In August 2021, General Motors (GM) and AT&T revealed their collaborative initiative to integrate 5G cellular connectivity into millions of GM vehicles over the next decade in the United States. This partnership aims to establish the industry standard for automotive communication using fifth-generation cellular networks to meet the requirements of electrified and driverless vehicles.