5G to offer $2.4 trillion economic output to automotive sector

Volvo new cars to get AT&T connectivity
The 5G technology that is integral to the future of connected cars will enable over $2.4 trillion in total economic output across the automotive sector in 2035, a new study revealed on Thursday.

The study released by US chip manufacturer Qualcomm Technologies noted that 5G technology will be at the core of accelerating the benefits of autonomous vehicles.

It stated that 5G will help increase productivity and sales value, improve environmental quality and reduce traffic collisions and fatality rates.

“The 5G-enabled evolution of the ‘connected car’ will provide opportunities and challenges for the traditional automotive sector players, for content developers, and software and technology firms,” it noted.

A connected car is a car that is equipped with internet access, and usually also with a wireless local area network. This allows the car to share internet access with other devices both inside as well as outside the vehicle.

Mobile in the 5G era will transition into a true “General Purpose Technology” — a technology that finds economy-wide use, drives complementary innovations in other sectors and becomes a driver of economy-wide innovation and productivity.

According to the research, with the 5G technology, there will be acceleration in on-demand transportation services and Mobility-as-a-Service and the shift from conventional modes of ownership of passenger vehicles.

However, the 5G-enabled automated car environment would require policy measures, like co-installation of fibre and power as part of road repair works, and lanes and parking spaces for autonomous vehicles.