With the advancement in Industry 4.0 and IoT, the industry is looking forward to the future of connected and autonomous vehicles. New business models will come to existence, which will give rise to the development of multiple revolutionary services. The promise of 5G technology has rekindled our imagination because it brings ultra-high speed data transfer and low latency, which means quicker response times and better reliability.
Today, millions of vehicles connect to cellular networks for real-time navigation, connected infotainment, and emergency services. However, new cellular networks like 5G will enable additional applications such as autonomous driving, Vehicle-2-Vehicle (V2V), Vehicle-2-Infrastructure (V2I), Vehicle-2-Network (V2N), and Vehicle-2-Pedestrian (V2P) communications. 5G’s increased throughput, reliability, availability, and lower latency will enable new safety-sensitive applications, which are holistically known as V2V/V2I (V2X, or Vehicle-to-Everything).
The share of 5G-enabled cars that are actively connected to a 5G service will grow from 15% in 2020 to 74% in 2023, reaching 94% in 2028, according to Gartner. By 2023, the automotive industry will become the largest market opportunity for 5G IoT solutions. It will represent 53% of the overall 5G IoT endpoint opportunity in that year.
With the advent of 5G in automotive, it will transform the industry by…
Making Cars Safer
5G’s effect will bring billions in sales to the automotive sector, but its impact will be felt even further. According to Gartner, by 2035, 5G will also enable over $1.4 trillion in sales in automotive use sectors like agriculture, mining, construction, and transportation. For consumers, V2X supported by 5G, will undoubtedly play an integral role in improving traffic efficiency and reducing collisions. V2V communication, for example, allows vehicles to sense obstacles beyond the line of sight. This could be shared video information between cars and shared information from pedestrians and infrastructure. Morgan Stanley believes this could save an estimated $500 billion from accident avoidance. 5G V2X will make commuting to work safer. With fewer time-consuming delays, not only will our easier commutes alleviate frustration, we’ll gain about $2.7 billion worth of once-wasted hours back.
Autonomous vehicles will “know” where parking spots are and identify alternatives to street parking, speeding up traffic and reducing congestion. This could result in a savings of $140 billion from congestion avoidance.
Making Cars Smarter
While artificial intelligence (AI) is key to the development of autonomous vehicles, so are communication and connectivity. High-speed data for consumers was the major consideration when today’s 3G and 4G networks were developed, but increasingly, machine-to-machine communication has become a priority. This requires an enormous amount of bandwidth, which 5G supports. 5G delivers ultra-reliable connections with lower latency. Its high bit rate will enable the exchange of high volumes of 3D mapping data, and the sharing of sensory data will help improve situational awareness, thereby accelerating the path to autonomy.
Reimagining the auto business
There are still plenty of unknowns when it comes to envisioning the future of the automotive industry with 5G. The development of autonomous cars, for example, challenges manufacturers and OEMs to focus on rider experience. A larger emphasis on in-vehicle “apps” and other forms of entertainment will emerge, all supported by a standardized 5G network. The way consumers shop for cars may change as well. Instead of purchasing vehicles strictly for transportation, customers may seek “connected computers on wheels”, challenging manufacturers to redefine the factors that influence purchase. Many drivers may choose to avoid purchasing vehicles altogether, relying instead on more efficient public transportation and ridesharing.
Sparking Innovation
The industry is going to witness new products and business models. We will see flexible manufacturing with robotics and 3D printing providing various customized solutions to a customer’s need. With the help of 5G, a deluge of data will help propel manufacturing-as-a- service and digital twin, and has the power to become the industry norm.
Bringing in Advanced Self-Driving
5G will allow us to leverage the full potential of advanced CASE (Connected, Autonomous, Shared, and Electrified) technologies with artificial intelligence, virtual reality, and the Internet of Things (IoT). Self-driving cars use hundreds of sensors to make vehicles faster and smarter and they have a heavy reliance on data.
The car of the future is your mobile office. Voice enabled, AI-powered vehicle cockpits will guide sales, marketing, services, and e-commerce activities. The automotive industry is undergoing massive digital transformation. By 2030, cars will be more connected, autonomous, shared, and electric (CASE). Continued investments across the automotive industry and beyond indicate that the overriding CASE megatrends are here to stay. It is about striving toward environment-friendly, integrated, automated, and personalized travel on demand. It might seem counterintuitive, but it may be easier to forecast the long-term future than the near-term. 5G is the gateway to an entirely new world for businesses, but it needs multiple technologies coming together to achieve its true potential.
