Connected cars report: 125 million vehicles by 2022, 5G coming
Samsung pledges to make all products IoT ready by 2020
Samsung's Digital Cockpit for connected cars (Credit: Samsung)

Connected cars report: 125 million vehicles by 2022, 5G coming

The global market for connected cars is expected to grow by 270 percent by 2022, according to a new report. More than 125 million passenger cars with embedded connectivity are forecast to ship worldwide between 2018 and 2022, it says.

The latest findings from Counterpoint Research’s Internet of Things Tracker service say that major European economies, including Germany, France, and the UK, are expected to hit nearly 100 percent connected car penetration by 2020.

The booming market in Europe will partly be driven by the EU’s eCall mandate, according to Hanish Bhatia, senior analyst for IoT and Mobility at Counterpoint.

“Europe’s eCall mandate is expected to change the market dynamics with higher penetration across European countries,” he explained. “The adoption of eCall in Europe is expected to create ripples across other geographies, thereby catalysing the overall car connectivity ecosystem.”

The eCall regulation compels all new cars to be equipped with the technology from April this year. In the event of a serious accident, it automatically dials 112, Europe’s single emergency number.

Market movers

In terms of overall connected car penetration, Germany, the UK, and the US are leading the market, with the highest percentage of shipments in 2017. However, China accounted for 32 percent of total shipments, due to booming demand within the country for new passenger vehicles.

Among the leading marques, General Motors, BMW, Audi, and Mercedes Benz dominate, according to 2017 figures. Among these, General Motors’ OnStar platform has proved to be the most popular system, offering connectivity across all regions.

Platforms such as this, together with BMW’s Connected Drive and Audi Connect, are creating new revenue streams and forging closer connections with consumers, explained Bhatia. “Together, these brands account for more than 90 per cent of the total connected passenger cars with embedded connectivity sold in 2017”.

Growing 5G connectivity

At present, the connected car market is strongly aligned with 2G/3G networks, according to Neil Shah, research director at Counterpoint. However, he said that it is “moving swiftly” to 4G LTE connectivity, with the technology forecast to be installed in nearly 90 per cent of connected cars by 2022.

“We expect 5G connectivity in cars to kick in from 2020 onwards,” he added. “However, the overall penetration is likely to remain low until 2022. The progress on the levels of autonomous technology in a car will also dictate the usage of 4G or 5G technology embedded in cars beyond 2022, when 5G coverage becomes ubiquitous.

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“Further, 5G NR – standalone or SA – mode rollout, which promises lower latencies, will be critical for creating an inflection point in the commercialisation of autonomous cars later in the next decade.”

Internet of Business says

So far, 2018 has seen an unusual number of connected car IoT partnerships announced, along with a series of new applications aimed at resource management and helping drivers with a range of new services, especially for electric vehicles.

This, then, is the new normal: cars are getting smarter – as is transport generally. Smart, connected services, and the data that results from them, will be one of the major battlegrounds over the next few years, both among car makers and their technology partners.

Cars are massive data points, in terms of how they’re performing, how they’re being used, and how they relate to the organisations that manage them – and to the world around them.

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