5G in Automotive and Smart Transportation Market Report 2025

The 5G in automotive and smart transportation market size has grown exponentially in recent years. It will grow from $2.44 billion in 2024 to $3.07 billion in 2025 at a compound annual growth rate (CAGR) of 25.9%. The expansion during the historical period is due to the growing demand for connected vehicles, the increasing use of vehicle-to-everything (V2X) communication, greater investments in smart transportation infrastructure, the heightened need for real-time traffic management, and supportive government policies promoting 5G adoption.

The 5G in automotive and smart transportation market size is expected to see exponential growth in the next few years. It will grow to $7.64 billion in 2029 at a compound annual growth rate (CAGR) of 25.6%. The anticipated growth during the forecast period is driven by the expanding deployment of autonomous vehicles, rising demand for low-latency communication, increased integration of the Internet of Things (IoT) in transportation, a stronger emphasis on smart city projects, and the growing need for improved passenger and driver safety. Key trends expected in this period include progress in edge computing technologies, enhancements in connected vehicle infrastructure, the creation of real-time high-definition (HD) mapping solutions, innovations in connected car cybersecurity, and advancements in vehicle-to-everything (V2X) communication standards.

The rising adoption of electric vehicles (EVs) is anticipated to drive the expansion of the 5G market in automotive and smart transportation. Electric vehicles are cars powered by electric motors using energy stored in rechargeable batteries instead of traditional fossil fuels. Their growing popularity is fueled by increasing environmental concerns, as EVs generate fewer greenhouse gas emissions than conventional vehicles, helping to decrease air pollution and combat climate change. 5G technology allows electric vehicles to access real-time information about charging station availability and optimal routes, which helps alleviate range anxiety and enhances charging efficiency. For example, according to the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, electric car sales in 2023 were 3.5 million higher than in 2022, reflecting a 35% year-on-year increase. Consequently, the expanding adoption of electric vehicles is propelling the growth of the 5G automotive and smart transportation market.

Key players in the 5G automotive and smart transportation sector are investing in the development of advanced solutions such as vehicle-to-everything (V2X) communication platforms to enable real-time data exchange, enhance road safety, and support autonomous driving technologies. V2X communication platforms allow vehicles to wirelessly connect with other vehicles, infrastructure, pedestrians, and networks, facilitating real-time information sharing that improves safety, traffic flow, and autonomous vehicle performance. For instance, in June 2025, Verizon Communications Inc., a US-based telecommunications firm, launched an edge transportation exchange designed to enable real-time sharing of vehicle data and promote smart mobility solutions. This 5G-based automotive and smart transportation system offers ultra-low latency, high data throughput, and extensive device connectivity, supporting real-time vehicle communication and enhancing the precision of traffic management. The edge transportation exchange improves road safety and traffic efficiency through advanced connectivity.

In June 2025, Qualcomm Inc., a US technology company, acquired Autotalks Ltd., an Israel-based semiconductor firm specializing in 5G automotive and smart transportation technologies, for an undisclosed sum. Through this acquisition, Qualcomm aims to accelerate the development and worldwide rollout of advanced V2X solutions, which are intended to improve road safety, support automated driving, and optimize traffic management.

Major players in the 5G in automotive and smart transportation market are 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., and Cohda Wireless Pty Ltd.

North America was the largest region in the 5G in automotive and smart transportation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in 5G in automotive and smart transportation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the 5G in automotive and smart transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the transport sector, particularly in fleet maintenance and logistics operations. Higher duties on imported commercial vehicles, tires, and engine components have increased operational costs for trucking and freight companies, forcing them to raise shipping rates or reduce margins. Airlines and maritime shippers face similar pressures, with tariffs on aircraft parts and shipbuilding materials driving up capital expenditures. Additionally, retaliatory tariffs in key export markets have reduced demand for U.S.-made transportation equipment, further straining revenue streams. The sector must now prioritize fuel efficiency, alternative sourcing, and automation to offset rising expenses while maintaining service reliability.

5G in automotive and smart transportation involves using fifth-generation wireless technology to build highly connected and responsive transportation systems. It provides ultra-low latency, fast data transfer, and dependable connectivity, allowing seamless communication among vehicles, infrastructure, and control mechanisms.

The key elements of 5G in automotive and smart transportation consist of hardware, software, and services. Hardware includes the tangible parts of a computer or electronic device, such as the processor, memory, hard drive, motherboard, and input/output devices. Vehicles are classified into passenger cars and commercial vehicles and operate via both on-premises and cloud-based platforms. These technologies are utilized in numerous applications such as Vehicle-to-Everything (V2X) communication, telematics, infotainment, fleet management, and more, benefiting end users in industries including automotive, defense, transportation infrastructure, warehousing and logistics, public safety, among others.

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

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.

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.

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