Connected Cars: Wi-Fi vs 5G
It’s a debate that is currently dividing the automotive industry. Which is the best medium for transmitting data between connected cars? Wi-Fi or 5G? On both sides of the argument, there are motor manufacturing giants, tech innovators and telcos. There are advantages and disadvantages to both methods.
One of the reasons this is such a hot topic in the industry is that the EU was planning on creating an industry standard. However, this manoeuvre has been delayed and thwarted by member states. Choosing one method or the other will have a significant effect on the connected car sector, affecting capability and coverage, as well as costs.
The innovator vs the incumbent
Observers have cast the battle between 5G and Wi-Fi as the exciting new kid in town against the tried-and-tested established player. However, both mediums have a great deal of industrial might behind them. Names such as BMW, Daimler, Ford, Huawei, Intel, Qualcomm and Samsung back 5G, while GM, Toyota, Volvo and Volkswagen support Wi-Fi.
Both mediums perform the same function for connected cars, the transfer of data between connected vehicles and connected infrastructure such as traffic lights and control hubs. This real-time communication will initially boost safety, eventually leading to full-scale autonomous driving. For a while, it looked like Wi-Fi would win the decision by default because 5G wasn’t ready yet, but 5G technology is improving rapidly.
Advantages of 5G
The primary advantage of employing 5G as the medium for data transfer in connected cars is its speed. The tech companies behind 5G say it can transmit data at 10 gigabits per second, which is one hundred times faster than the current mobile standard, 4G.
With such quick data transfer in connected cars, you have real-time data availability. This will lead to more features, solutions and services becoming available for connected vehicles. Hewlett Packard Enterprises (HPE) and Continental have created a data-sharing platform to harness the power of the data collected by connected car manufacturers with the aim of improving road safety. This initiative is dependent on 5G technology.
Proponents of 5G say that their favoured technology will be extremely reliable. If the tech works using 4G, as tests claim to show, it will be even better when they use 5G.
When you combine these advantages, it all leads to a safer, better-connected driving experience.
Disadvantages of 5G
The main disadvantage of 5G, and where it compares unfavourably to Wi-Fi, is cost. Because it is a new technology, when 5G data transmission becomes available, it will be much more expensive than the current 4G option, and more expensive than Wi-Fi.
This could have a far-reaching effect on the connected car industry. If consumers decide connected car technology is too expensive and not worth the outlay, it could become a novelty rather than a necessity. For at least the first couple of years after launch, this price premium must be reflected in each business case.
The question is, how important is data transfer speed to the connected car driver? Manufacturers and dealers regard it as essential, but will drivers think the extra speed is worth the extra outlay? It’s certainly possible that the average consumer would be happy with 4G or Wi-Fi speeds to keep the costs down.
Another drawback to 5G is coverage. In most parts of the world, 5G is not available yet. Consumers can utilise 5G in certain cities in the US, Europe, South America, Asia, Australia and South Africa, but outside of those areas, it is not possible yet.
Finally, there could be a problem with adapting existing connected car technology to operate on 5G networks. Currently, older Wi-Fi-connected car systems would not be able to work. This was a problem highlighted by the Finnish delegation to the EU when this was being discussed at the European Commission.
The debate rages on
At the moment, it does not look like this debate will be settled soon. There are too many big names too heavily invested for them to back down now. The EU may decide to allow both mediums, which could hold back the industry which needs a single industry standard that everyone can use.
At Remoto, we see the enormous potential in 5G. It is the number one choice from a technology perspective. However, we are bearing in mind the costs involved.
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