Thursday, 12 November 2020 06:43

Three-quarters of cars sold in next five years expected to be connected

Three-quarters of cars sold in next five years expected to be connected Pixabay

About 75% of all new cars that are sold in the next five years are expected to be connected, the technology analyst firm Counterpoint Research says, adding that roughly 270 million vehicles will be shipped between 2020 and 2025.

The company said in a statement that this total represented global passenger car shipments and did not include vehicles which were connected by smartphone.

Senior analyst Aman Madhok said: “The market saw a healthy growth of 18% year-on-year in the second quarter of 2020 with connected car shipments reaching close to seven million units during the period. The penetration of connectivity in cars continues to increase, and 2020 will see half of all cars sold worldwide having embedded connectivity in them.

“While the market witnessed year-on-year growth, shipments declined by 5% when compared to 1Q 2020 due to the subdued passenger car sales following the COVID-19 pandemic, even though rebounding car sales in China helped in market recovery to some extent.”

Research associate Fahad Siddique said car manufacturers were continuing to adopt the latest technology, with 4G LTE-based connected cars making up about 88% of shipments in the second quarter of 2020.

connected one"5G connected cars will enter mass production next year," he said. "By 2025, one out of every five connected cars will have 5G embedded connectivity. China and the US will together account for the majority of 5G connected cars sold in the next five years.”

Regarding market trends, research director Peter Richardson said: "While the E-call regulation has been driving connected car shipments in Europe, increasing cockpit digitisation, coupled with customer preference for connected services, is driving the growth in the US and China.

"Both countries together accounted for close to two-thirds of connected car shipments in 2Q 2020. Automakers, too, are promoting connected services to attract buyers and earn additional revenue through subscriptions.”

connected twoRichardson added that mainstream brands had now begun to take connectivity seriously. "A few years back, luxury cars like Mercedes-Benz and BMW accounted for most of the embedded-connectivity cars sold, along with some mainstream brands like GM," he said.

"But now more mainstream brands, like Volkswagen and Toyota, have started to take connectivity seriously, giving a huge push to connected car shipments.”

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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