As autonomous vehicle (AV) development accelerates globally, Europe and the US face a crucial inflection point. While engineering innovation remains strong in both markets, the path to mass deployment of truly connected and AVs is proving slower and more fragmented than in China—a country that is rapidly emerging as the global benchmark for integrated vehicle connectivity, infrastructure deployment, and strategic alignment.

According to the GSMA, China has already achieved over 80% Cellular Vehicle-to-Everything (C-V2X) penetration in new passenger cars as of 2024, with 5G V2X adoption accelerating at pace. It is forecast that 95% of Chinese passenger cars will be equipped with 5G modules by 2030, powered by a combination of national policy, ecosystem alignment, and industry-scale investment. In comparison, C-V2X deployment in Europe and the US is still largely confined to pilots and small-scale testbeds.

This adoption gap is not just a result of technology, it also comes down to strategic alignment. China’s automotive and telecoms sectors have successfully synchronised development through a unified ecosystem model. Automakers, mobile operators, cloud providers, government stakeholders, system integrators, specialist vendors, and more, are all operating under a single, coordinated roadmap that includes mandatory standards, which require full vehicle connectivity by 2027.

The results are already visible on Chinese roads. Connected vehicles are delivering sophisticated real-time applications, such as non-line-of-sight hazard alerts, collaborative emergency braking, and digital twin technology where a live cloud-based replica of the vehicle is constantly updated via 5G to support predictive maintenance and remote diagnostics. These features are largely still at the proof-of-concept stage across Western markets.

EU and US lack auto and telecom interoperability

In contrast, Europe and the US continue to wrestle with spectrum allocation issues, fragmented regulatory environments, and a lack of interoperable standards between auto and telecom players. Without clarity and coordination, scaling autonomous driving features beyond controlled test environments will remain a challenge.

GSMA data underscores the macro impact of China’s digital connectivity drive. 5G now accounts for over half of all mobile connections in the country, with over one billion connections reached in 2024. By 2030, 5G will represent 88% of all mobile connections – providing the backbone for intelligent transportation systems, smart cities, and the digital economy.

The country has deployed over 4.2 million 5G base stations as of early 2025, with coverage reaching more than 95% of the population. This ubiquitous network density enables reliable vehicle-cloud communication at scale. This is a prerequisite for the high-bandwidth, low-latency demands of autonomous driving.

While Europe and the US may take a more decentralised approach, timely coordination, clear policy signals, and aligned incentives are still needed to ensure spectrum is fully leveraged to support connected mobility.

GSMA data reveals a fragmented landscape. Despite promising opportunities, significant challenges remain, including those related to connectivity technologies, spectrum allocation, safety, privacy and security. Addressing these issues will require the development of regulatory frameworks, incentivising cross-sector trials, and codifying interoperability standards across borders and industries.

International connectivity standards are key

When it comes to standardisation and interoperability, the emergence of initiatives like GSMA Open Gateway framework presents a major opportunity. Open Gateway provides common APIs across mobile networks, allowing automakers to access capabilities such as quality on demand, location, and edge compute in a standardised way. Many global car manufacturers have actively called for such frameworks to support global scalability and avoid vendor lock-in.

In China, all mobile operators are supporting the Open Gateway initiative and already developing interesting automotive services that deliver societal benefit. European and US players must ensure they integrate these evolving platforms and automotive industry requirements into their network development roadmaps.

Business model innovation also plays a crucial role. In China, telecom operators are not just infrastructure providers; they are actively co-developing services with automakers, offering cloud platforms, AI-based vehicle diagnostics, and even entertainment services for connected cockpits. This vertical integration helps ensure that connectivity is not just a feature, but a core part of the value proposition for consumers.

In Western markets, however, the monetisation model for vehicle connectivity remains underdeveloped. Operators and automakers have yet to establish shared value frameworks or service platforms that incentivise scale. Without this, investment in connectivity infrastructure risks stagnating. GSMA Fusion is designed to help mobile operators better understand and support the needs of automotive manufacturers, to ensure both industries can drive better innovation and monetisation.

The good news? These gaps can be overcome. The Chinese model shows what’s possible when the ecosystem moves in lockstep. For Europe and the US to catch up, three priorities stand out: cross sector alignment, regulatory clarity and a commitment to interoperability.

China has effectively turned connected mobility into a strategic national advantage. If Europe and the US are to remain competitive in the global race for autonomous transportation, they need to look east and learn fast.