5G Automotive Grade Product Market Size - By Component (5G Modules and Chipsets, Telematics Control Units, Antennae & Sensors, Infotainment Systems, Autonomous Driving Hardware), By Vehicle, By Connectivity, By Application & Forecast, 2024–2032

5G Automotive Grade Product Market Size

5G Automotive Grade Product Market was valued at USD 2.1 billion in 2023 and is estimated to register a CAGR of over 19% between 2024 and 2032, owing to growing demand for connected and autonomous vehicles. As consumers and businesses increasingly seek vehicles with advanced connectivity features, the need for high-speed, low-latency communication provided by 5G technology is rising. This demand is driven by the desire for enhanced in-car experiences, such as real-time navigation, infotainment, and vehicle-to-everything (V2X) communication, which improves safety and efficiency.
 

Another driver for the market growth is the increasing deployment of 5G infrastructure. As telecom operators expand their 5G networks globally, automotive companies can integrate 5G technology into their vehicles, leading to enhanced connectivity, improved vehicle-to-everything (V2X) communication, and support for advanced driving features. This widespread 5G rollout accelerates the adoption of 5G-enabled automotive solutions and fuels market growth.
 

One major challenge in the 5G Automotive Grade Product Market is the high cost of deploying 5G infrastructure. Building and maintaining the necessary network infrastructure, including 5G base stations and antennas, requires significant investment from service providers and governments. These costs can slow down the rollout of 5G technology, particularly in less economically developed regions. Additionally, automotive manufacturers need to integrate 5G capabilities into their vehicles, which can be expensive and complex. These financial hurdles can delay widespread adoption and impact market growth.
 

5G Automotive Grade Product Market Trends

A major trend in the 5G automotive grade product industry is the integration of 5G technology into advanced driver assistance systems (ADAS) and autonomous vehicles. As vehicles become more connected and autonomous, the need for high-speed, low-latency communication grows. 5G technology supports real-time data exchange between vehicles, infrastructure, and other entities, enhancing safety and enabling features like adaptive cruise control, lane-keeping assistance, and automated parking. This trend reflects the shift towards more sophisticated and intelligent transportation systems, driven by consumer demand for enhanced safety and convenience. Additionally, the convergence of 5G with artificial intelligence and machine learning is accelerating advancements in autonomous driving technologies, paving the way for more autonomous and connected vehicles on the road.
 

5G Automotive Grade Product Market Analysis

Based on vehicles, the passenger vehicle segment dominated the 67% share of the market in 2023, due to their large market share and high consumer demand for advanced connectivity features. The widespread adoption of connected services, such as real-time navigation and infotainment, drives the integration of 5G technology.
 

Automakers are investing heavily in developing 5G solutions to enhance safety and support semi-autonomous and autonomous driving. Regulatory support and the sheer volume of passenger vehicles further fuel this market segment’s growth. As a result, passenger vehicles are leading the way in 5G technology deployment in the automotive sector.
 

Based on connectivity, the embedded 5G systems segment accounted for over 52% of the market share in 2023, because they offer seamless integration of 5G technology directly into vehicle hardware, providing reliable and high-speed connectivity essential for modern automotive applications.  These systems support real-time data processing for advanced driver assistance systems (ADAS), vehicle-to-everything (V2X) communication, and infotainment features. For instance, Qualcomm’s Snapdragon Automotive Platform integrates 5G directly into vehicles, enhancing connectivity for navigation and safety features. Similarly, Bosch’s connected car solutions utilize embedded 5G modules to improve vehicle diagnostics and real-time communication. Embedded systems further reduce the need for external devices, streamline vehicle design, and offer consistent performance, which drives their widespread adoption in the automotive industry.
 

Asia Pacific region captured 37% share of the global 5G automotive grade product market in 2023, due to its rapid adoption of 5G technology, large automotive manufacturing base, and strong government support for smart infrastructure. Countries such as China, Japan, and South Korea lead in 5G deployment and automotive innovation. For instance, China has accelerated its 5G rollout and is a major hub for both domestic and international automakers developing 5G-connected vehicles. Japan’s Toyota and South Korea’s Hyundai are pioneering advanced 5G technologies in their vehicles.
 

Additionally, government initiatives, such as China's "Made in China 2025" plan, support the integration of 5G in automotive applications. The region's high investment in smart cities and connected vehicle technologies further propels its market leadership.
 

North America is a major player in the 5G automotive grade product market, driven by substantial investments in 5G infrastructure and advanced automotive technologies. The U.S. and Canada lead in deploying 5G networks, with significant advancements in connected and autonomous vehicle technologies. Companies such as Qualcomm and Ford are at the forefront of integrating 5G into automotive solutions. Regulatory support and high consumer demand for advanced features propel market growth. The focus on enhancing vehicle safety and connectivity continues to drive innovation in the region.
 

Europe holds a significant share of the 5g automotive grade product market, with a strong emphasis on regulatory standards and smart mobility initiatives. Countries like Germany, France, and the UK are leading in the adoption of 5G for automotive applications, driven by major automotive players such as BMW and Audi. The European Union's investment in 5G infrastructure and support for connected vehicle technology fosters market expansion. The focus on safety, environmental regulations, and innovation in autonomous driving enhances Europe’s position in the market.
 

5G Automotive Grade Product Market Share

Qualcomm Incorporated, Huawei Technologies Co., Ltd., and Samsung Electronics Co., Ltd. collectively hold a significant share of over 38% in the 5G automotive grade product industry. These leading players are advancing their 5G technology to enhance vehicle connectivity, safety, and operational efficiency. They are integrating cutting-edge 5G solutions to support real-time data exchange and improve automotive performance. To meet evolving regulatory requirements and consumer demands, these companies are also focusing on sustainable practices in their product development.
 

Through strategic partnerships and acquisitions, they are expanding their capabilities and offering comprehensive solutions, reinforcing their market leadership and driving innovation in the 5G automotive sector.
 

5G Automotive Grade Product Market Companies

Major players operating in the 5g automotive grade product industry are:

• Qualcomm Incorporated
• Huawei Technologies Co., Ltd.
• Samsung Electronics Co., Ltd.
• Nokia Corporation
• Telefonaktiebolaget LM Ericsson
• Intel Corporation
• Robert Bosch GmbH
   

5G Automotive Grade Product News

• In February 2024, HARMAN unveiled its Ready Connect 5G Telematics Control Unit (TCU) at MWC 2024, utilizing Qualcomm’s Snapdragon® Digital Chassis™ technology. This new TCU, featuring the Snapdragon® Auto 5G Modem-RF Gen 2, aims to enhance in-cabin experiences and streamline development for automakers. Designed for superior performance, upgradability, and scalability, it addresses evolving market demands. The collaboration between HARMAN and Qualcomm highlights their commitment to advancing automotive connectivity. The product’s debut at MWC 2024 underscores its potential to transform the industry.
   
• In December 2023, Magna revealed its plan to boost its ADAS capabilities by joining the NorthStar 5G innovation program, a joint effort with Telia Sweden and Ericsson. This collaboration will set up a private 5G network at Magna’s test facility in Sweden, enabling trials of cutting-edge vehicle-to-vehicle (V2V) and vehicle-to-everything (V2X) technologies. The use of 5G Wave technology will ensure low latency and gigabit speeds, essential for real-time data processing and safety functions in ADAS. This initiative is designed to enhance Magna’s driver assistance systems, improve vehicle safety, and support the development of autonomous driving.
   

This 5G automotive grade product market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Component

• 5G Modules and Chipsets
• Telematics Control Units (TCUs)
• Antennae & Sensors
• Infotainment Systems
• Autonomous Driving Hardware

Market, By Vehicle

• Passenger Vehicles
• Commercial Vehicles
• Autonomous Vehicles

Market, By Connectivity

• Embedded 5G Systems
• Tethered Systems
• Integrated 5G Networks

Market, By Application

• Vehicle-to-Everything (V2X) Communication
• Infotainment and Digital Services
• Telematics and Fleet Management
• Safety and Driver Assistance
• Autonomous Driving

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Colombia
  • Argentina
  • Chile
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA