Studies by Qualcomm said that by 2035, 5G will generate more than $2.4 trillion across the automotive industry. It is also slated to create more than 22 million jobs. When 5G is rolled out, it will be able to transfer hundreds of megabytes per second, as opposed to the low tens of megabytes that 4G offers. One of the basic requirements of 5G is that it should be able to handle at least 20 billion bits of downloaded data per second. Let us look at 5G in a bit more detail.
What is 5G?
The 5th generation of cellular technology is set to change our lives in ways that we would have never imagined. Its ever-reliable connectivity allows millions of devices to use and transfer data everywhere. 5G is meant to deliver ultra-low latency, massive network capacity, increased availability, uniform user experience, and peak data speeds. It will result in higher performance, empower users and change the way how many industries operate. In this article, we will look at 5G’s impact on the automobile industry.
5G in the automobile industry:
Every day, millions of vehicles leverage mobile technology for real-time innovation, connected infotainment, emergency services, etc. With the advent of 5G, a new range of applications will spawn Vehicle-2-Vehicle, Vehicle-2-Infrastructure (V2I), Vehicle-2-Network (V2N), and Vehicle-2-Pedestrian (V2P) communications.
According to Gartner, the share of 5G-enabled cars actively connected to a 5G service will reach 94% in 2028. 5G will bring a windfall of sales in the automotive sector, but its impact is beyond just that.
Partnerships for 5G autonomous vehicles:
Benefits of 5G in the automobile industry:
Let us look at the different ways in which 5G will impact the automobile industry.
- Makes manufacturing cars easier:
Thanks to 5G’s secure and real-time connectivity, the manufacturing of automobiles also gets a fillip. Ericsson recently tied up with Telefonica Germany for 5G car production through a private 5G network for Mercedes Benz. Jörg Burzer, Member of the Divisional Board of Management of Mercedes-Benz Cars, Production and Supply Chain, said: “With the installation of a local 5G network, the networking of all production systems and machines in the Mercedes-Benz Cars factories will become even smarter and more efficient in the future. This opens up completely new production opportunities.”
5G will be able to usher in an era where efficiency and profitability will be achieved by automobile companies by creating new innovations in the processes. It could be due to the continued automation of robots, warehouse transportation, or cutting cables for more flexibility. The 5G mobile technology will lower costs, greater flexibility, shorter lead times, etc.
- 5G will result in safer cars:
The mobile technology’s greater throughput, availability, and reliability will enable safety-sensitive applications known as V2X, or Vehicle-to-Everything. V2X, with the help of 5G, will play a huge role in bettering traffic efficiency and reducing car-related accidents. How? Vehicle-to-Vehicle communication gives vehicles the ability to look beyond just what is in their line of sight.
According to Morgan Stanley, V2V communication could save more than $500 billion from accident avoidance. This will make commuting every day safer and make travel a less time-consuming affair. It is estimated that more than $2.7 billion worth of hours will stop being wasted. Autonomous vehicles will know where the parking spots are, determine alternative parking areas, and reduces congestion, thereby saving another $140 billion by avoiding congestion.
The key to developing autonomous vehicles is artificial intelligence, but its biggest enablers are communication and connectivity. Machine-to-machine requires an incredible amount of bandwidth. Thankfully, 5G supports it. 5G’s high bit rate will enable high volumes of 3D data exchange. The speed and reliability of 5G data allow for sharing of sensory data, and it is of huge significance in improving situational awareness, thereby expediting the process toward autonomous automobiles.
- Advanced auto manufacturing:
The impact of 5G in the automobile industry starts in the assembly line itself. 5G will allow remote factories to have better communication and connectivity. It will make the production of cars faster, cheaper, and more efficient. In the future, you will see wireless and connected assembly lines that build parts and the complete construction of the car’s body using cables and wires.
- Better freight and shipping:
With 5G, the logistics industry will see a complete makeover too. It is expected that autonomous trucks will become a reality by 2027. Road assistance will be possible through virtual reality. Companies will manage their fleet using a remote mechanic. It will reduce the time taken to care for trucks, thus getting them back on the roads faster, and improving delivery times. There are times when it becomes impossible to find broken-down trucks. With 5G’s advanced geo-location technology, vehicles will be easier to track. Such route optimization improves delivery speeds and reduces the time taken to travel.
- Will be of huge significance for electric vehicles (EV):
With many legacy brands jumping onto the electric vehicle bandwagon, whether it is launching pure or hybrid EVs, 5G is set to play a major role. Better connectivity leads to greater control, analysis, and performance. 5G will facilitate the infrastructure to assist EV deployment, such as monitoring battery levels, identifying better routes, and finding charging stations quickly.
- Will rejig the automobile industry:
While we are still not sure about the extent of change that 5G will spawn in the automobile industry, there is no doubt that automobile manufacturers will have a lot to think about. For example, the advent of autonomous cars means that car manufacturers and OEMs should concentrate on the rider’s experience while in the vehicle. You might see a wave of in-vehicle apps and other forms of entertainment, and the 5G network will act as an enabler here. Manufacturers will have to find ways to redefine the purchasing experience. You will see newer products and business models.
5G helps leverage the full potential of advanced CASE (Connected, Autonomous, Shared, and Electrified). Autonomous cars use hundreds of sensors to make vehicles faster and smarter.
The automobile industry is going through a massive transformation. In a few years, cars will be more connected, autonomous, shared, and electric (CASE). Automotive manufacturing would go well beyond just manufacturing cars, and will have to focus more on technology-side features too. They should partner with technology companies to optimize and better the existing facilities in automobiles.