5G in Transportation expected to reach $9.77 billion

5G in Transportation expected to reach $9.77 billion
Investors estimate that 5G in transportation will be worth more than $9 billion.
  • Post category:News

The transportation industry is changing faster than ever since the introduction of the wheel. With electric vehicles and autonomous driving, technology is finding its way into the conversation. The transportation industry is about to get a huge boost with the implementation of 5G wireless networks. What was previously only a crazy idea reserved for science fiction has suddenly become something more tangible, and right around the corner. Investors estimate that 5G technologies in transportation will be worth more than $9 billion by 2030.

Check out any vehicle built after 2016 and you’ll notice that a touchscreen and Bluetooth are just as standard as cupholders and windshield wipers. Driving is safer and more efficient with the infiltration of technology. With faster and more reliable technology, drivers can expect even more features to help with everything from long-haul trucking to Sunday errands to the bank.

The 5G market in transportation currently sits at around $1.49 billion. Because of the global pandemic, 5G infrastructure was slow to roll out. At the height of the pandemic, there were delays in new towers and automotive manufacturing plants closed for months at a time. Now that things are rolling back, things appear to be back on track. Economists believe there may be a little hiccup in their projections, but the $9 billion evaluation of 5G technologies in transportation is still on for 2030.

The tech is there; We just need 5G in Transportation.

5G offers so many amazing opportunities for drivers and engineers to come together. Engineers have already built systems to help the automotive industry. However, the transfer speeds slowed progress. You may have already heard of some of these features as they have been put into concept cars for years. Things like:

  • Advanced Fuel Tracking
  • Advanced Driver-Assistance Systems (ADAS)
  • Real-Time Navigation & Communication
  • Infotainment Systems
  • Speed and Cruise Controls
  • Improved Fleet Management
  • Communication Solutions to Improve Road Safety
  • More

However, buffering times over current Wi-Fi and network technology make some of these features impossible to implement. Previous generation 4G technology had a latency issue. The latency for 4G ranged from 60 milliseconds to 98 milliseconds, while 5G promises a latency of less than 1 millisecond. 50 milliseconds sounds lightning fast, but drivers need to make instant decisions. Latency issues mean the difference between a close call and an accident. With 5G latency, drivers can rely on their technology to make decisions faster than human reactions can, which leads to safer roads and more efficient fleets.

The biggest winner from this technology will surely be the hardware that creates these systems. There is a surging adoption of On-Board Units (OBU). Vehicle-to-everything technology (V2X) is what to look out for next. Toyota was the first to implement this technology into their vehicles in Japan, but it has yet to make its worldwide release. This technology creates a network of cars that share information. This information can predict traffic patterns, erratic drivers, and help prevent accidents, and is a step toward fully autonomous cars. The V2X technology is projected to grow by 30% by 2030, surpassing the 5G technologies in valuations at which V2X needs to work. Even though the technology is in Japan, North America, and more specifically, the United States, appears to be the projected leading regional market in the future.

Soon, cars are going to look very different, at least under the hood. If computers help run our cars, and if done correctly, traffic accidents will drop, fleets will run quicker, and fuel economy will be more efficient in the coming years. It’s just a matter of time and the car companies are excited about bringing this to the forefront of their fleets.

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