Huawei has formed an alliance with 18 Chinese car manufacturers and service providers to accelerate adoption of 5G in automotive industry

India: Telecommunications major, Huawei announced its partnership with 18 leading vehicle manufacturers from China to develop 5G ecosystem for the commercial use of technology in automotive industry. 5G is recognized as a key link for implementation of self-driving or autonomous vehicles and entertainment capacities in automobiles, as it offers advantages such as high transmission speed, reliability, low latency, etc.

The automotive companies that have signed on to take part in the newly formed alliance include state-owned carmakers FAW Group, SAIC Motor, Dongfeng Motor, Chang’an Automobile, Beijing Automotive Industry Holding, Anhui Jianghuai Automobile, Nanjing Automobile and Chery Automobile, BYD, Great Wall Motors, Guangzhou Automobile Group and electric bus manufacturer Zhengzhou Yutong Group.

Chairman of Huawei, said, “Together with the deep convergence of automotive and ICT, intelligent connected vehicle emerges as a new revolutionary development engine of human society, with its impact goes far beyond the two industries themselves.”

According to TechSci Research, Huawei is the leading global provider of ICT related equipment and devices. Its alliance with automakers will help the company to strengthen its position as digital car-oriented component provider, globally. Several automakers have launched self-driven, intelligent network related services in the past few years which were based on Huawei’s products and services. Recent move on developing 5G infrastructure is expected to positively influence automotive Vehicle-to-everything (V2X) and autonomous vehicle market in the coming years.

According to the published report by TechSci Research, “Global Semi & Fully Autonomous Vehicle Market By Automation Level (Level 0, Level 1 & Others), By Component (Embedded Systems, Cameras & Others), By Vehicle Type, By Region, Competition Forecast & Opportunities, 2016–2030”, global semi & fully autonomous vehicle market is projected to exhibit a CAGR of over 21% to reach $ 64 billion by 2030. Growing focus of automotive OEMs on enhancing safety features and increasing government support for developing driverless vehicles are the major factors anticipated to aid the growth of global semi & fully autonomous vehicle market during the forecast period. Moreover, foray of technology giants such as Google and Intel, among others, into the global autonomous vehicle market is further encouraging adoption of autonomous vehicles, thereby positively influencing global semi & fully autonomous vehicle market.

According to the recently published report by TechSci Research, “Global V2X Market for Automotive Market By Communication Type (V2C, V2G, V2P, V2I, V2V, V2D), By Connectivity Type (DSRC Connectivity and Cellular Connectivity), By Offering Type (Hardware and Software), By Technology Type (Emergency Vehicle Notification, Automated Driver Assistance, Passenger Information System, Line of Sight and Others), By Propulsion Type (ICE Vehicles and Electric Vehicles), By Company and By Geography, Forecast & Opportunities, 2025”, global V2X market for automotive market is projected to reach USD99.48 billion by 2025 by growing at a CAGR of over 15%, until 2025 due to growing technological advancements, increasing demand for safety features in modern day vehicles, stringent government regulations for better traffic management and growing trend for connected vehicles. However, the market is anticipated to witness sluggish growth during 2020 due to low vehicles sales amidst the outbreak of global pandemic COVID-19.