Report Overview

Increasing digitization, rising consumer demand, growing adoption of self-driving cars, rising demand for intelligent transportation, increasing vehicle electrification, and rising internet penetration in the transportation and automotive industries are expected to boost the growth of India 5G in Automotive Market during the forecast period between 2022 and 2030.

India 5G in Automotive Market - Industry Trends & Forecast Report, 2030

India 5G in automotive market is projected to grow at a CAGR of 65.3% during the forecast period between 2022 and 2030. The growing adoption of virtual networking architecture in the automotive industry and the increase in mobile data traffic are expected to drive the growth of India 5G in automotive market. Increasing M2M (machine-to-machine) connections in the automotive industry will also drive 5G infrastructure growth during the forecast period. 5G technology enables low-latency communications between vehicles (V2V) and roadside infrastructure (V2I). The increasing deployment of 5G - URLL (Ultra Reliability Low Latency) in the automotive industry is also propelling the market growth. An increasing adoption of fully connected vehicles in India is expected to drive the market growth during the forecast period.

India 5G in Automotive Market - Overview

5G connectivity allows vehicles to communicate with one another, with infrastructure, with network services, and with other road users, such as cyclists and pedestrians. As a result, roads can be made safer, faster, and more energy efficient. Journeys will also be more enjoyable with in-car entertainment. Millions of vehicles use mobile technology every day for real-time innovation, connected infotainment, and emergency services. With the introduction of 5G, a new set of applications will emerge, including vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-network (V2N), and vehicle-to-pedestrian (V2P) communications. Increased throughput, availability, and reliability of mobile technology will enable safety-sensitive applications known as V2X, or Vehicle-to-Everything. V2X will play a significant role in improving traffic efficiency and reducing road accidents with the help of 5G.

Growth Drivers

Rising popularity of connected car technology

The initial uses of connected vehicles may be restricted to better infotainment systems and OTA (over the air) software updates as 5G-connected vehicles become more prevalent. However, with technology advancements, connected vehicles might become more significant. In the future, it might make sure that vehicles and drivers are aware of roadblocks, traffic jams, parking spaces, road conditions, and much more. It may pave the way for a time when automated vehicles travel the roads safely while corresponding with other vehicles, traffic signals, and other IoT (Internet of Things) devices, such as those used by pedestrians and cyclists.

Introduction of advanced self-driving

With the help of artificial intelligence (AI), virtual reality (VR), and IoT, advanced CASE (Connected, Autonomous, Shared, and Electrified) technologies will be fully utilized. Self-driving cars rely heavily on data and employ hundreds of sensors to make them faster and smarter. Voice-activated, AI-driven vehicle cockpits are expected to direct e-commerce, services and sales activities. The automotive sector is going through a significant digital transformation. More connected, autonomous, shared, and electric vehicles are expected to be available by 2030. Investments are increasing in CASE trends in the automotive industry and elsewhere. It involves pursuing on-demand, personalized, integrated, automated, and environmentally friendly travel. Hence, introduction and increasing adoption of connected and self-driving cars, which require innovative technologies like 5G, could drive the rapid growth of India 5G in automotive market.

Growing demand for 5G technology integration

To provide better infotainment and telematics features, automotive manufacturers are increasing the integration of 5G technology in their vehicles. Other factors driving 5G adoption in the automotive industry vertical include growing consumer demand for better multimedia services and rising demand for faster internet with better connectivity in cars. All these factors are expected to boost the growth of India 5G in automotive market.

Restraints

Excessive cost of 5G deployment

Main disadvantage of 5G is its patchy nationwide coverage and limited local availability. 5G network will only significantly benefit cities; rural areas may not get coverage for several years. In addition, installing tower stations has an excessive cost compared to other networks. Additionally, if 5G is implemented in an equivalent way to earlier generations to meet the growing traffic demands, mobile network energy consumption will soar. This is unsustainable from a financial and environmental standpoint. Overall, the incorporation of 5G technology into automotive and smart transportation applications is expensive for manufacturers and raises the overall price of vehicles. It, in turn, could reduce manufacturers' profit margins and raises consumer spending, both of which are detrimental to the growth of India 5G in automotive market.

Impact of COVID -19 on India 5G in Automotive Market

The COVID-19 pandemic crisis caused a delay in India's 5G rollout schedule. The initially scheduled June 2020 for 5G spectrum auction was postponed. The Third Generation Partnership Project (3GPP) also postponed the publication of 5G standards. It, in turn, caused layers to halt the manufacturing of infrastructure tools and gadgets. The delay in the 5G spectrum auction caused major companies, such as Samsung and Oppo. to launch their most recent products in India without 5G support, even though the same products have 5G support features in other markets. India 5G market saw a sharp increase in demand for high-speed data amid the pandemic, despite the delay in 5G launch. Post the pandemic, it is expected that India 5G in automotive market will benefit from an exponential increase in data traffic, the need for a seamless network connection for remote work, and deepening penetration of IoT devices.

India 5G in Automotive Market

Segmental Coverage

India 5G in Automotive Market - By Component

India 5G in automotive market has Hardware, Software Solutions, and Services segments based on the component. Hardware segment is further categorized into Telematics Control Units (TCUs), Roadside Units (RSUs), and Onboard Units (OBUs). Services segment is further classified into Consultation Services, Integration and Installation Services, Maintenance and Support Services. The use of 5G in automotive industry and the expansion of smart transportation solutions are predicted to significantly drive the demand for hardware components. By 2030, the hardware segment is expected to hold more than 2/3 of the India 5G market share for automobiles and intelligent transportation. Moreover, through 2030, software solutions are expected to experience steady growth in demand as their significance in increasingly complex connected technologies increases.

India 5G in Automotive Market - By Application

On basis of application, India 5G in automotive market has Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Network (V2N), Vehicle-to-Pedestrian (V2P), and Infotainment & Telematics segments. Among these, the V2V segment is forecast to hold the highest market share in India 5G in automotive market. Due to higher bandwidths of up to 10 Gbit/s and an estimated latency in data transmission of less than 1 millisecond, real-time V2V communication is possible.

India 5G in Automotive Market – By Region

Geographically, India 5G in automotive market has four major regions: North India, South India, East India, and West India. Among the regions, South India is expected to hold the highest market share in India 5G in automotive market, as several major automobile manufacturers and OEMs in India are located at Chennai in the major southern India state of Tamil Nadu. On October 01, 2022, the Prime Minister of India, Shri. Narendra Modi launched 5G services in Pragati Maidan, New Delhi, ushering in a new technological era. The sixth iteration of the India Mobile Congress (IMC) was also officially opened by the prime minister, who also attended the IMC Exhibition. The Prime Minister has launched 5G in a few cities, and over the following few years, it will gradually expand to the entire nation. The 13 cities where 5G networks are launching first are Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, Gandhinagar, Gurugram, Hyderabad, Jamnagar, Kolkata, Lucknow, Mumbai, and Pune. Airtel is the first telecom operator in India to officially launch 5G services. Airtel 5G Plus service has now been launched in eight cities by one of the country's largest telecom operators. Meanwhile, Reliance Jio is launching 5G service in four cities: Delhi, Kolkata, Mumbai, and Varanasi.

Competitive Landscape

India 5G in automotive market is fiercely competitive, with AUDI AG, BMW AG, Robert Bosch Gmbh, Tata Communications, Daimler AG, and Volkswagen as its prominent players. Key strategies used by these market leaders include new product and service launches, mergers and acquisitions, partnerships, collaborations, and joint ventures. To further grow their market share, these companies are also focusing on investing in innovations and expansions.

Recent Developments

• In October 2022 – Shri. Narendra Modi, Prime Minister of India, test drove a car in Stockholm, Sweden, Europe, remotely from New Delhi, India, using the country’s 5G technology during the inauguration of India Mobile Congress (IMC).

• In July 2022 - Bharti Airtel, a major telecom service provider in India, announced that its trial of India’s first 5G private network at the Bosch Automotive Electronics India (RBAI) facility in Bengaluru, Karnataka, India, was successful.

Scope of the Report

 By Component

• Hardware

1. Telematics Control Units (TCUs)
2. Roadside Units (RSUs)
3. Onboard Units (OBUs)

• Software Solutions
• Services

1. Consultation Services
2. Integration and Installation Services
3. Maintenance and Support Services

By Application

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Network (V2N)
• Vehicle-to-Pedestrian (V2P)
• Infotainment and Telematics

By Region

• North India
• South India
• East India
• West India