The global 5G automotive market is expected to grow sharply from $2.58 billion in 2024 to $31.18 billion by 2034, fuelled by the rapid adoption of connected and self-driving vehicles.
A compound annual growth rate of over 28% reflects the strong momentum behind the transition to smarter mobility and safer road networks.
Vehicle-to-everything communication is predicted to lead adoption, as it allows vehicles to exchange real-time data with other cars, infrastructure and even pedestrians.
In-car entertainment systems are also growing fast, with consumers demanding smoother connectivity and on-the-go access to apps and media.
Autonomous driving, advanced driver-assistance features and real-time navigation all benefit from 5G’s low latency and high-speed capabilities. Automakers such as BMW have already begun integrating 5G into electric models to support automated functions.
Meanwhile, the US government has pledged $1.5 billion to build smart transport networks that rely on 5G-powered communication.
North America remains ahead due to early 5G rollouts and strong manufacturing bases, but Asia Pacific is catching up fast through smart city investment and infrastructure development.
Regulatory barriers and patchy rural coverage continue to pose challenges, particularly in regions with strict data privacy laws or limited 5G networks.
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