Analyzed the feasibility of 5 G in the Automotive Industry

1. Akanksha Pathak
Fifth Generation
Wireless Technology
(5G) in the Automotive
Industry
Chapter 2
AKANKSHA PATHAK 4/5/20 ISTM 643 - 603

2. ISTM 643 603 Team 5
1
The automotive industry is a technology-driven ecosystem. There are various ways in which this
sector is going to witness a change in the manufacturing process. Companies are working on
cutting edge technologies like autonomous driving, embryonic technology stack to change
hardware and software connectivity with its operating system, Data management platforms, and
edge computing power. Apart from the advancements in sensor technologies, major growth is
required in the telecom sector. This is because most of the use cases will depend on the
connectivity of systems and the establishment of reliable communication. Fifth-generation
wireless technology popularly known as 5G in short, has thus a crucial role to play in shaping the
future of the automotive industry.
Exhibit 1: Upcoming Trends in Automotive Industry
Introduction
According to a set of international standards, 5G or the fifth generation of mobile
communication is designed to be a hundred times faster and more reliable than the fourth-
generation Long Term Evolution (LTE) technology. This will eliminate any latency during data
transmission. With the advancement in this field, it is also important to consider other factors
like cost and time to implement. We shall study the current state of the automotive industry and
understand the impact of fifth generation wireless technology. We shall then be discussing the
advantages, impact, implementation challenges and the future of this technology. So, let us
understand the current landscape of the automotive industry and its dependency on technology
to contribute to its progress.

3. ISTM 643 603 Team 5
2
Current Industry Landscape
The automotive industry has recovered from the economic crisis because of the increase in
emerging markets and technologies. The crisis was mainly because of the reduction in the
number of customers buying a new car, but with advancements in cutting edge technology, this
trend is about to change in the year 2020. Being new to this world, the automotive industry is
currently facing challenges like complexity and cost pressures. It needs to cater to the digital
demand in order to enter the diverging markets. The major shift is witnessed with the other
equipment manufacturers who want their suppliers to deliver goods that match the future needs
and demands. Thus, it is important for car manufacturers to monitor and control this price-cost
gap. The use cases that will attract the customers will mainly be dependent on connectivity and
network availability.
To meet the growing demand of these industries, companies continue to expand their a fifth-
generation mobile communication. This network is now available in low-bandwidth frequency in
eighty cities. Devices like Samsung mobile phones are capable to support the fifth-generation
wireless technology and Sprint will be offering fifth generation network-enabled laptop this year.
Thus, with the connectivity in place, it is easy for the automotive industry to deliver better
Exhibit 2: Monitor Price-cost Gap

4. ISTM 643 603 Team 5
3Exhibit 3: Connectivity among autonomous vehicles
offerings to its customers. The automotive industry has seen advancements in technology and
more vehicles are connected through the internet. They are progressing towards automation
because of the same reason. In these scenarios, the next generation of mobile communication
can give more reliability, less latency, and better message transmissions. There are some
limitations because of the lack of maturity in this technology, but telecom sector and the
automotive industry can together bring a new level of innovation in this domain.
Advantages of the Fifth Generation of Mobile Communication
There are multiple advantages to using the fifth generation of wireless networking. If harnessed
in the right way, this could result in high-level automation and better safety vehicles. A few of
the most promising rewards this technology can offer to this world are:
• A Ubiquitous connectivity can create and better-automated cars: Methods like V2V
(Vehicle to Vehicle) and V2I (Vehicle to Infrastructure) communication are being used
today. With our new technology, the automotive industry is trying to make V2X (Vehicle
to Everything) communication that could support reduced latency of up to one
millisecond. This will help to meet almost 99.999 percent of reliable transmission of
signals.

5. ISTM 643 603 Team 5
4
• Support Automated Driving: There are various consortiums set up to get approval for a
fully automated driving on the road. This can be achieved only if use cases like automated
overtaking, collision avoidance and closely chained vehicles in traffic are successful. This
requires a high level of accuracy which can only be achieved with reliable and accurate
transmissions at very high bit rates.
• Traffic Efficiency Services: For vehicles to be efficient in traffic, they need to be able to
check their speed, accuracy, and acceleration with respect to other nearby objects. This
can be attained by the collective perception principle. The high network can enable the
vehicle to take a real-time action based on the fast data transmission signals. Moreover,
remote sensing and control can help in moving according to the traffic on the roads. The
Internet of Things enabled devices can help in bringing digitization and would aid in a
better quality of data transfer. This will enable the vehicles to take decisions intelligently
and thus, help avoid traffic and work in the most efficient way.
Exhibit 4:The Car-2-Car Communication Consortium applications roadmap

6. ISTM 643 603 Team 5
5
• Road Safety: This needs a bird’s eye view to be ready for continuously changing
situations. It should also be able to see through in case of sudden occurrences of the
incidents. The vehicle to vehicle transmission is one of the most beneficial
communications in this scenario. This detects a vulnerable road user that includes
pedestrians, cyclists, and anyone with a mobile device. The data can be transferred in
real-time using the local dynamic map and let know both parties simultaneously.
The Impact of the Fifth Generation of Mobile Communication
The impact of the fifth generation in wireless networking on the automotive industry is
significant. This would give a new direction of operation. Some of which are as follows:
• Digitization of Logistics: The computation of the vehicles will need communication with
remote servers along with using local units to enhance the processing power. Fifth-
generation networking would help to do that. Thus, there will be better remote sensing
and control for monitoring the vehicle information. The remote processing of the vehicles
will enable high ease of maintenance and shorter time-to-market
• Better navigation: High networking and data transmission capability will enable
intelligent navigation. It will be possible to use real-time video feedback and enhance the
experience by augmented reality. Low data latency can result in better usage of sensors,
both in-vehicle and outside object. This will optimize navigation decisions of the vehicles.
• A new automotive ecosystem: A new ecosystem will emerge due to a need to invest
highly in analytics, cloud-based systems, and machine learning technology. More efficient
location services, within car delivery channels and location-based advertisements, would
be few areas of focus. High-tech players will enter the market to impact the entire
automotive ecosystem.

7. ISTM 643 603 Team 5
6
Implementation Challenges
Fifth generation promises a lot of advantages but implementing it in the current stage poses its
own set of challenges that make it difficult to be implemented. They are:
• Cost related to investment: The cost associated with developing this new technology is
high and which partner should bear this cost creates major hurdles in its development.
Both the telecom and automotive sector needs this technology, but the revenue model
can only decide who wants to invest more in this field. This will not only include network
quality but also the coverage requirements.
• The Immature ecosystem makes it difficult to communicate data: The devices do not
support the right antenna positioning to find the beam forming gain and loss that is
essential for transferring the fifth-generation networking signals. The transmission
requires a high-frequency spectrum that requires high site density. This is a challenge to
meet because of the lack of bandwidth in the present ecosystem.
Exhibit 5: New Automotive Ecosystem

8. ISTM 643 603 Team 5
7
• Dependency on cross domains’ business partners: Once this technology is in place, the
industry who will be able to monetize this data will be in the most advantageous position.
This cause creates another track race because it is unclear that the customer information
will be used by equipment manufacturers or intermediary parties in the ecosystem. It
would create a cross dependency on both public and private sectors, making it more
challenging for the government to regulate, manage and control.
• Strict regulations and compliance rules: Automated vehicles will open a new set of
opportunities and will have a significant impact on society. There are strict regulations on
the amount of personal data that can be shared. With huge data transmission, there
might be security-related issues. Thus, regulators will impose strict rules on the network
operators, creating further implementation challenges.
Readiness for Adoption
The standard organization with their fourteenth release launched a technology that enabled
vehicles to communicate with all other devices in the network. This helps to improve safety-
related applications using fifth-generation data communication. Semiconductor suppliers like
Qualcomm have already started working on this technology. This has a high dependency on third
parties’ resources. The automotive sector, telecom industry, and semiconductor suppliers are
working closely to help make fifth-generation networking mature. The Fifth Generation
Automotive Association (5GAA) has already developed a timeline to deploy the cellular vehicle to
everything technology. On the other hand, according to forecasts by companies like Ericsson, by
2025 more than sixty-five percent of the population will be using the fifth-generation networking
technology. This promises its high readiness for adoption.

9. ISTM 643 603 Team 5
8
Future Predictions and Recommendations
Fifth generation is certain to impact the automotive industry. Here are a few predictions and
recommendations provided by some of the strategic analysts:
• Produce wirelessly connected production robots: They can be used for body car
construction saving a lot of manual effort and labor cost. It will also improve the overall
telematics’ system. Overall customer service can be improved using these robots.
• Enable vehicle interaction: Just like a human to human interaction, the vehicles will also
be able to chat and communicate. This is important to reduce accidents and will push
down the maintenance and insurance costs. The Interaction will also help to improve
navigation providing a better customer experience.
• The progression of In-Vehicle Infotainment Industry: With automation vehicles,
infotainment markets like in-vehicle retail, vehicle-to-vehicle gaming, personalized voice
assistant and high streaming video and audio services, will have new opportunities for
business.
Exhibit 6: Cellular-Vehicle to Everything technology deployment timeline

10. ISTM 643 603 Team 5
9
Thus, various domains should try to contribute to the developing development of the fifth-
generation wireless technology to reap the greatest benefits, once it is functional. This will not
only help them stay ahead in the game but also gain the largest market attracting all the first
customers.
References
1. (Heineke, 2019)https://www.mckinsey.com/industries/automotive-and-assembly/our-
insights/development-in-the-mobility-technology-ecosystem-how-can-5g-help
2. (Clifford Holiday, 2019)https://www.researchandmarkets.com/reports/4846833/united-
states-5g-market-report-2019-the-real
3. (Mckinsey,2020)https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/A
utomotive%20and%20Assembly/PDFs/McK_The_road_to_2020_and_beyond.ashx
4. (McGarry, 2020) https://www.tomsguide.com/us/5g-release-date,review-5063.html
5. (5G-PPP, 2015) https://5g-ppp.eu/wp-content/uploads/2014/02/5G-PPP-White-Paper-
on-Automotive-Vertical-Sectors.pdf
6. (Cotanis, 2019) https://www.infovista.com/blog/5g-network-deployment-challenges
7. (Ron DiGiuseppe, 2020) https://www.synopsys.com/designware-ip/technical-
bulletin/adoption-5g-automotive-applications.html
8. (PEGORARO, 2019) https://www.fastcompany.com/90437800/get-ready-for-5g-to-make-
your-phone-even-more-addictive
9. (AMON, 2020) https://fortune.com/2020/02/23/5g-manufacturing-automotive-health-
care-industries/
10. (Automotive Tech Blog , 2019) https://www.fpt-software.com/automotive-tech-blog/5-
predictions-for-how-the-in-vehicle-infotainment-industry-will-develop-2/