Private 5G in Automotive Market Size, Share, and Trends Analysis, By Component (Hardware, Software, Services), By Product Type (Vehicle Connectivity Solutions, Autonomous Driving Systems, Others), By Technology (5G New Radio, Network Slicing, Others), By Spectrum (Licensed, Unlicensed, Shared), By End-Use (OEMs) and By Region, Forecast 2025-2032

Private 5G in Automotive Market Overview and Key Insights:

The global private 5G in automotive market reached USD 1,132.8 Million in 2024 and is expected to register a revenue CAGR of 36.7% during the forecast period. Growing adoption of connected and autonomous vehicles, rising need for ultra-low latency and high bandwidth, increasing demand for smart manufacturing in automotive and growing investments in Industry 4.0 and digitalization are expected to drive revenue growth of the market.

Market Drivers:

Growing adoption of connected and autonomous vehicles is the major factor driving revenue growth of the market. Around 60% of all newly sold vehicles across the globe are expected to feature Level 2 autonomous driving capabilities by 2025. Level 3 and Level 4 autonomous vehicles will also gain ground. Together, they are projected to make up around 8% of global new car sales by 2030. Additionally, the number of connected cars in operation is forecasted to surpass 400 million by the end of 2025, up from roughly 237 million in 2021. The rapid rise of connected and autonomous vehicles is fueling demand for high-speed, low-latency communication, which is essential for real-time data exchange, V2X connectivity, and advanced driver-assistance features. Private 5G networks provide the dedicated bandwidth, security, and reliability needed to support these functions. It creates high demand for private 5G in automotive and drives revenue growth of the market.

Automakers and suppliers are adopting private 5G to enable seamless over-the-air updates, remote diagnostics, and smarter vehicle operations. In February 2024, for instance, Verizon Business has teamed up with Audi AG to create a cutting-edge private wireless network and advanced technology testing facility at Audi’s test track in Neustadt, Germany. This sophisticated multi-core network is engineered to replicate network conditions from major global markets, featuring customized replicas of Verizon’s U.S. public network, regional European networks, and the roaming infrastructure of Audi’s MVNO partner in the Asia-Pacific region.

Market Opportunity:

Growing adoption of Electric Vehicle (EVs) is creating significant opportunities for the market. According to the International Energy Agency (IEA), nearly 14 million new electric cars were registered worldwide in 2023. It increases the total number of EVs on the road to 40 million. This represents a rise of 3.5 million units compared to 2022, reflecting a 35% year-over-year growth. Electric vehicles made up approximately 18% of all car sales in 2023, up from 14% the previous year. EVs are increasingly integrated with advanced digital systems that require real-time communication for performance monitoring, battery management, and remote diagnostics. Private 5G networks offer the high-speed, low-latency connectivity needed to support these functions efficiently.

Charging infrastructure operators also benefit from private 5G by enabling intelligent energy management, dynamic load balancing, and secure payment processing. In July 2025, for instance, Verizon Business, in collaboration with Nokia, is deploying Private 5G across key industrial locations within Thames Freeport to support EV infrastructure and automation. This initiative represents progress for one of the UK’s most active trade hubs, integrating advanced network capabilities with industrial edge computing solutions.

Recent Trends:

One recent trend in the Private 5G In Automotive market is the rising partnerships between automakers and tech/telecom providers. These partnerships are accelerating the deployment of private 5G networks to support next-generation automotive capabilities such as autonomous driving, real-time vehicle diagnostics, and advanced in-vehicle connectivity. Automakers are teaming up with companies such as Qualcomm, Samsung, Nokia, Ericsson, and Verizon to integrate 5G modules, telematics platforms, and edge computing solutions directly into vehicle systems and production environments. These alliances enable seamless Over-The-Air (OTA) updates, enhanced vehicle-to-everything (V2X) communication, and smarter factory automation.

In February 2025, for instance, Samsung Electronics successfully conducted end-to-end testing of reduced-capability 5G (5G RedCap) on a private 5G network at Hyundai Motor Company’s factory in Ulsan, South Korea. The company described the trial as an industry-first for applying 5G RedCap to private networks in an Industry 4.0 setting. Hyundai is the first company in South Korea to deploy private 5G technology for large-scale manufacturing operations.

Restraints & Challenges:

Security and data privacy concerns pose a significant challenge to the private 5G in automotive market. As vehicles become more connected and autonomous, they generate and transmit vast amounts of sensitive data, including real-time location, driver behavior, and vehicle diagnostics. Ensuring the secure transmission and storage of this data is critical, particularly in private 5G environments that manage vehicle-to-everything communication and over-the-air updates. However, the complexity of securing multiple endpoints across vehicles, production facilities, and cloud systems presents substantial challenges. Additionally, compliance with stringent data protection regulations, such as GDPR in Europe and other country-specific automotive cybersecurity laws, requires significant investment and ongoing updates. It is slowing down the adoption of Private 5G in automotive and restraining revenue growth of the market.

Component Segment Insights and Analysis:

Based on the component, the private 5G in automotive market is segmented into hardware, software and services. Hardware segment is further sub-segmented into Radio Access Network (RAN), core network, backhaul equipment, edge devices and others. Software segment is further sub-segmented into network management software, security software, orchestration & virtualization, and others. Services segment is further sub-segmented into consulting, integration & deployment, managed services, and maintenance & support.

Software segment contributed the largest share in 2024 due to the rising demand for intelligent, real-time, and highly secure network management solutions tailored to complex automotive environments. Automakers and manufacturers require advanced software platforms to orchestrate and control 5G networks within factories, test tracks, and Vehicle-to-Everything (V2X) ecosystems. Software-defined networking (SDN), network slicing, and edge computing software are enabling highly customizable and low-latency connectivity to support mission-critical applications such as real-time vehicle diagnostics, autonomous navigation, predictive maintenance, and automated production lines.

In addition, the increasing deployment of private 5G networks within automotive manufacturing plants necessitates robust software tools for network provisioning, traffic optimization, and security enforcement. For instance, Hyundai’s USD 7.6 billion Metaplant in America is dedicated to electric and hybrid vehicle production. It showcases several Industry 4.0 innovations that are largely driven by AI-powered vision systems and robotics operating on a private 5G network. The facility aims to manufacture 500,000 vehicles annually and create 8,500 full-time jobs by 2031.

Product Type Segment Insights and Analysis:

Based on product type, the private 5G in automotive market is segmented into vehicle connectivity solutions, autonomous driving systems, smart manufacturing systems, fleet management, and others. Vehicle connectivity solutions segment is further sub-segmented into V2X (Vehicle-to-Everything), in-vehicle infotainment, Advanced Driver Assistance Systems (ADAS) and others. V2X (Vehicle-to-Everything) segment is further sub segmented in V2V (Vehicle-to-Vehicle), V2I (Vehicle-to-Infrastructure), V2P (Vehicle-to-Pedestrian), V2N (Vehicle-to-Network) and others. Autonomous driving systems segment is further sub-segmented into remote control & teleoperation, real-time data processing, AI and machine learning integration, and others.

Vehicle connectivity solutions segment contributed the largest share in 2024 due to the increasing demand for high-speed, low-latency communication systems in modern vehicles. The need for seamless vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-network (V2N) communication is becoming critical in recent days, owing to the rising adoption of connected and autonomous vehicle technologies. Private 5G networks enable automakers to deploy secure, ultra-reliable connectivity platforms that support real-time data exchange for applications such as advanced driver assistance systems (ADAS), remote diagnostics, predictive maintenance, and over-the-air (OTA) updates.

On 05 April 2022, Cellnex Telecom, a specialist in 5G, providing high-performance connectivity layers, initiated a strategic collaboration with the automotive division of SEGULA Technologies. This partnership, carried out through Cellnex’s Edge Connectivity business unit EDZCOM. It marks a significant step in the company’s entry into the automotive space. It enables Cellnex to offer a distinct value proposition by delivering advanced private 5G network solutions specifically tailored to meet the evolving needs of the automotive industry.

Technology Segment Insights and Analysis:

Based on technology, the private 5G in automotive market is segmented into 5G New Radio (NR), network slicing, edge computing, AI integration and others.

5G New Radio (NR) segment is expected to register a fast revenue growth rate during the forecast period due the rising demand for ultra-reliable, low-latency communication. 5G NR supports Enhanced Mobile Broadband (eMBB), Ultra-Reliable Low-Latency Communication (URLLC), and Massive Machine-Type Communications (mMTC), all of which are essential for connected and autonomous vehicles. In addition, 5G NR enhances vehicular communication on smart roads and within urban mobility ecosystems. It ensures faster data exchange between vehicles and infrastructure. The segment is further benefiting from regulatory momentum and spectrum availability in major markets such as North America, Europe, and parts of Asia Pacific region.

In June 2025, LG Innotek introduced the world’s first 5G communication module for automotive applications that features satellite connectivity, allowing for high-speed data transmission. This module supports 5G broadband satellite communication (NR-NTN) with a bandwidth of around 30MHz. This innovation expands the practical use cases of 5G NR by bridging terrestrial and non-terrestrial networks (NTN) and drives revenue growth of this segment.

Geographical Outlook:

private 5G in automotive market is strategically segmented by geography to provide a comprehensive understanding of regional market dynamic. Discover demand analysis, emerging trends, and growth opportunities shaping market performance across different region and countries.

North America Private 5G In Automotive Market:

Market in North America accounted for largest revenue share in 2024 due to the strong governmental support, advanced digital infrastructure, and increasing investments by automotive OEMs and technology firms. The U.S. Department of Transportation’s allocation of USD 1.5 billion for smart infrastructure projects, including 5G-enabled V2X communication systems. It is catalyzing the deployment of private 5G networks across the region. Automakers such as Ford, General Motors, and Tesla are rapidly adopting connected and autonomous vehicle technologies that demand ultra-low latency and high-speed communication, which private 5G networks are uniquely equipped to deliver.  

Tech companies like Verizon, AT&T, and T-Mobile in the region are also collaborating with automotive OEMs to build customized 5G solutions. For instance, AT&T and Ford are pushing the boundaries of innovation by integrating built-in 5G connectivity into the 2023 Ford Super Duty, making it the first pickup truck in the U.S. to feature this technology. The inclusion of AT&T 5G enables quicker access to navigation, mapping, and music downloads, while also enhancing the speed and dependability of Ford Power-Up software updates delivered wirelessly. This ensures the vehicle continues to improve and evolve over time. The convergence of advanced manufacturing practices and connected vehicle technologies positions North America as a key growth hub for the Private 5G in Automotive market

Asia Pacific Private 5G In Automotive Market:

Asia Pacific is expected to register a fast revenue growth rate during the forecast period due to the rapid advancements in connected vehicle technologies, robust government support, and increasing investments by leading automakers and tech firms. Countries such as China, Japan, South Korea, and India are at the forefront of automotive innovation. These countries are heavily investing in smart factories, autonomous driving technologies, and V2X (vehicle-to-everything) communication systems. In August 2024, Huawei entered into an agreement with Chinese electric vehicle maker BYD to supply its autonomous driving technology for BYD’s Fangchengbao line of off-road electric vehicles. The favorable regulatory stance and strategic initiatives in the country support smart transportation and industrial 5G adoption.

Additionally, regional governments are implementing favorable policies and infrastructure initiatives to support 5G deployment in automotive applications. In August 2024, Japanese automotive manufacturer Subaru implemented a local sub-6 GHz 5G standalone (SA) network at its Bifuka Proving Ground in Hokkaido, Japan. This infrastructure, operating on spectrum below 6GHz, provides full coverage of the circuit at Subaru’s Research and Experimentation Center. The company reports that this is the first instance of a Japanese automaker deploying a local 5G network across a test track. The network is currently being used to pilot cooperative driving automation technologies.

Europe Private 5G In Automotive Market:

Market in Europe accounted for a significant revenue share in 2024 due to government initiatives, growing demand for connected vehicle infrastructure, and rapid advancements in autonomous driving technologies. The European Union is actively supporting the deployment of intelligent transportation systems (ITS) and 5G-enabled vehicle-to-everything (V2X) communication through funding programs such as the Digital Europe Programme, which has earmarked Euro 7.5 billion (USD 8.6 billion) for immersive and connectivity-focused technologies.  

Moreover, leading automotive manufacturers and tech firms across Germany, France, and the Nordics are heavily investing in private 5G networks to enable real-time data exchange, improve factory automation, and enhance vehicle testing capabilities. On 22 February, for instance, Verizon Business and Audi AG have partnered to establish a private LTE/5G network at Audi’s test track in Neustadt, Germany. The network replicates global conditions, including Verizon’s U.S. public network, European networks, and Audi’s Asia-Pacific roaming setup, providing a flexible, secure, and high-performance testing environment.

Competition Analysis:

The private 5G in automotive market is characterized by a fragmented structure, with numerous players competing across various segments and regions. List of major players included in the Private 5G In Automotive market report are:

• Ericsson
• Nokia
• Qualcomm Technologies, Inc
• Huawei Technologies Co., Ltd
• Samsung Electronics
• Intel Corporation
• Cisco Systems, Inc
• Verizon Communications Inc
• AT&T
• ZTE Corporation
• Vodafone Group PLC
• NEC Corporation
• Parallel Wireless
• Sierra Wireless
• NTT DATA

Strategic Developments in Private 5G In Automotive Market:

• On 12 February 2025, Jaguar Land Rover implemented a private 5G network at its Solihull facility in the UK in collaboration with Swedish telecom provider Ericsson. The deployment is part of the West Midlands 5G Innovation Regions (5GIR) initiative, driven by WM5G Limited and supported by funding from the UK Department for Science, Innovation, and Technology (DSIT). The initiative aims to enhance economic growth within the manufacturing sector.
• On 29 August 2023, Amazon Web Services (AWS), Ericsson, and Hitachi America R&D collaborated to deploy a private 5G network at Hitachi’s electric vehicle component manufacturing facility in Berea, Kentucky. This setup, utilizing Ericsson’s Private 5G platform and AWS Snow Family hardware, supports machine learning model implementation within the recently expanded Hitachi Astemo Americas plant.
• On 28 June 2022, Czech automaker Škoda Auto, in collaboration with mobile operator Vodafone, introduced a mobile private 5G network at its Mladá Boleslav facility. The 5G pilot project aims to evaluate and advance the technology in real-world operational settings.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The Private 5G In Automotive Market Report:

The Private 5G In Automotive market report offers a detailed analysis of market size, including historical revenue (in USD Million) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Component (Revenue, USD Million; 2022-2032)
  • Hardware
    • Radio Access Network (RAN)
    • Core Network
    • Backhaul Equipment
    • Edge Devices
    • Others
  • Software
    • Network Management Software
    • Security Software
    • Orchestration & Virtualization
    • Others
  • Services
    • Consulting
    • Integration & Deployment
    • Managed Services

• Product Type Outlook (Revenue, USD Million; 2022-2032)
  • Vehicle Connectivity Solutions
    • V2X (Vehicle-to-Everything)
      • V2V (Vehicle-to-Vehicle)
      • V2I (Vehicle-to-Infrastructure)
      • V2P (Vehicle-to-Pedestrian)
      • V2N (Vehicle-to-Network)
      • Others
    • In-Vehicle Infotainment
    • Advanced Driver Assistance Systems (ADAS)
    • Others
  • Autonomous Driving Systems
    • Remote Control & Teleoperation
    • Real-Time Data Processing
    • AI and Machine Learning Integration
    • Others
  • Smart Manufacturing Systems
  • Fleet Management
  • Others

• Technology (Revenue, USD Million; 2022-2032)
  • 5G New Radio (NR)
  • Network Slicing
  • Edge Computing
  • AI Integration
  • Others

• Spectrum Outlook (Revenue, USD Million; 2022-2032)
  • Licensed Spectrum
  • Unlicensed Spectrum
  • Shared Spectrum

• End-Use Outlook (Revenue, USD Million; 2022-2032)
  • OEMs
  • Tier 1 Suppliers
  • Dealerships & Service Providers
  • Logistics & Transportation Providers
  • Technology Providers
  • Others

• Regional Outlook (Revenue, USD Million; 2022-2032)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

Frequently Asked Questions (FAQ) about the Private 5G In Automotive Market Report