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5G in the automotive industry: Real-world uses and benefits
5G's speed and bandwidth enable numerous applications, from smart manufacturing to autonomous driving, route optimization, predictive maintenance and in-vehicle entertainment.
Automotive vehicles -- from passenger cars to commercial autonomous vehicles -- have become intelligent devices, and they rely on increasing amounts of computing power and connectivity to operate.
A combination of digital technologies, including machine learning, other types of AI and the internet of things, drives these advances in the automotive industry. Among the most critical technologies is 5G, the fifth generation of wireless cellular technology.
5G connectivity is poised to experience significant growth in the coming years. A report from Global Market Insights valued the market in 5G automotive-grade products at $2.1 billion in 2023 and predicts a compound annual growth rate of 19% between 2024 and 2032.
"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," the report stated. "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."
Benefits of 5G in the automotive industry
Each new generation of cellular technology is engineered to improve on the last, and 5G is no exception. 5G brings increased speed and bandwidth to cellular networks compared with its predecessor, 4G, and the LTE technology that formed the global basis for 4G networks. 5G also has lower latency.
Those features of 5G enable numerous use cases in the automotive sector, bringing several key benefits:
- Faster, more dependable data exchange. This is a keystone benefit of 5G, enabling nodes -- sensors on vehicles, connected vehicles themselves and manufacturing plants -- to share data quickly, consistently and reliably.
- Enhanced and expanded connectivity. Because 5G has higher bandwidth, it can support more connected nodes, more data coming from additional sources and more data being exchanged between nodes, which are essential in vehicle-to-vehicle (V2V) and V2X communication. "A car could connect to another car," said Michele Polese, an assistant research professor of electrical and computer engineering at Northeastern University, noting that this is still an emerging capability. "It's called side link, where devices connect so cars can share data."
- New, improved features and capabilities. With faster, reliable data exchange, engineers can deliver capabilities such as autonomous driving. Car manufacturers can also use 5G to remotely update software on their vehicles. "Updates had been done with Wi-Fi, but those earlier updates weren't that intensive. 5G provides the high bandwidth and low latency needed for updates today," said Octavio Garcia, senior analyst at Forrester Research.
- Expansion of smart automotive manufacturing. Automotive factories use public and private 5G networks to support AI and robotics throughout the manufacturing process.
- Increased safety and driving accuracy. Analyses of the data exchanged over 5G networks, combined with machine learning and AI capabilities, enable applications designed to improve vehicle and traffic safety.
- Increased efficiency. 5G creates efficiencies by supporting improved manufacturing processes, optimized logistics and enhanced vehicle connectivity.
5G-enabled use cases in the automotive sector
The low latency and high bandwidth provided by 5G, along with the data exchange it enables, support numerous applications and use cases. They include the following:
- Autonomous driving. 5G allows for real-time communication between vehicles, infrastructure such as traffic control systems, and cloud computing in which data is analyzed to generate precise decision-making and actions, thereby enabling computers to safely drive vehicles and navigate without human intervention. "The car cannot carry enough compute to truly drive itself around. It needs access to the network because it offloads data to a server in the cloud," said David Witkowski, senior member of IEEE, an association of electrical and computer engineers and other technologists.
- Fleet management. Sensors on connected vehicles transmit data that enables centralized tracking and management of the vehicles. 5G provides the connectivity for sharing not only vehicle location data from GPS but more detailed, real-time information, Garcia said.
- Platooning. V2V communication enables platooning, where vehicles -- typically commercial trucks -- travel in a synchronized, single-file line. "You need low latency as well as reliability for platooning," Polese said.
- Predictive maintenance. The data generated on connected vehicles can be analyzed to determine what maintenance is required, enabling car owners, fleet managers, manufacturers and service providers to service or repair vehicles before a breakdown occurs or performance is diminished. 5G also supports centralized control and real-time diagnostics, which can reduce downtime and improve operational efficiency.
- Smart roadways and infrastructure. With V2X communication, data can move between vehicles and roadway infrastructure such as traffic lights, public safety systems and road sensors. This enables smart systems to create more efficient traffic flow, reduce accidents, support real-time route adjustments and send alerts about hazards and accidents to emergency services.
- Route optimization. In similar fashion, 5G's ability to quickly and reliably move massive amounts of data enables fleet managers and others to optimize routes in advance or in near real time to respond to changing road conditions.
- Intelligent manufacturing. According to Garcia, 5G supports the use of digital twins, robotics, AI and real-time analytics in manufacturing, boosting agility, efficiency and productivity in automotive factories, while also supporting enhanced safety and quality control measures.
- Enhanced driver and passenger experiences. 5G enables real-time updates of driving conditions, as well as personalized information, services and infotainment for drivers and passengers. The capacity provided by 5G is particularly important for AI applications, such as AI-enabled dashboard cameras, Witkowski said.
- Vehicles as mobile hot spots. 5G's support for internet hot spots is another way it accommodates the growing demand for constant connectivity.
- On-vehicle telematics. Data from onboard sensors that need to be monitored, such as those on refrigerated trucks -- where maintaining a constant temperature is essential -- need 5G's capacity, Witkowski said.
Key considerations
The automotive industry has already benefited from 5G, which was introduced in 2019. Experts expect the industry to expand and improve on 5G applications.
However, this latest generation of cellular network connectivity is far from universally available. That limits where the automotive sector can deploy applications that rely on 5G.
Witkowski explained that some regions have 5G but with a 4G core, while some only have 4G. Pockets of the United States have no connectivity at all. "That's kind of a lowlight, because many of the things we thought 5G could be haven't materialized."
The future of 5G in the automotive industry
Although 5G supports significantly more applications, thanks to its latency, reliability and bandwidth advantages, carriers have not fully implemented the technology across their networks.
They lack the financial incentive in some markets because they don't anticipate having enough customers to deliver a positive ROI in the desired time frame, Witkowski said.
But the customers aren't there because they can't launch their applications unless 5G is already in place. "It leads me to believe that 5G isn't as much of a revolutionary upgrade as we wanted it to be," he added. "We haven't made true use of 5G yet."
But Witkowski and others said they expect that carriers will continue to build out their 5G networks and that more customers, including in the automotive sector, will take advantage of 5G's capabilities. It will happen through the process of using 5G to expand the reach of applications they've already developed and by continuing to develop new ways to harness 5G's power.
And while some are looking ahead to the next generation, 6G, others suggest it might be worth delaying its anticipated 2030 arrival, given where 5G adoption is today.
As for the automotive sector, Witkowski said 5G is proving capable of handling the industry's applications and use cases as they exist now.
Mary K. Pratt is an award-winning freelance journalist with a focus on covering enterprise IT and cybersecurity management.