The company said, at the moment, the connected car market in China was dominated by 4G, with the sales volume expected to reach 7.8 million units this year or 95% of the total.
The growth in 5G connected cars was being driven by the fast rollout of the technology, government incentives like the issue of US$535.6 billion special-purpose bonds and the Made in China 2025 campaign, Counterpoint said.
Senior analyst Aman Madhok said: ”Despite the impact of COVID-19, China’s connected car sales volume are expected to reach 8.2 million units in 2020, a slight increase of 0.8% year-on-year from the 8.1 million units shipped in 2019.
From the brand perspective, research associate Alicia Gong said: "Foreign brands control almost three-quarters of China’s connected car sales volume. Volkswagen Group is the market leader with a 25% share, followed by General Motors and Mercedes Benz.
"Among local brands, which account for just 12% of the sales volume, Changan is the leader with a 4% share, followed by Geely and SAIC.”
Counterpoint said luxury brands like Mercedes Benz, BMW and Audi had been offering 4G connectivity since the first quarter of 2019.
"After Huawei released the world’s first 5G telematics module (MH5000) in April 2019, Audi quickly deployed it in its passenger cars and showcased it at the Beijing-Chongli Expressway demonstration in 2019-end," the company said. "We expect Audi to launch these models soon, followed by other brands."