Tuesday, 01 September 2020 22:29

Benefits for mobile operators as connected cars forecast to reach 200 million by 2025 Featured

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The number of cars with embedded connectivity will reach 200 million globally by 2025, rising from 110 million in 2020, with one of the main beneficiaries of the growth being mobile operators, according to new research.

The new research - Operator Connected Car Strategies: Future Opportunities & Market Forecasts 2020-2025 - by Juniper predicts that eSIMs will act as the catalyst for future operator service deployments in the connected car space, and smaller form factors and higher physical durability of eSIM modules will attract automotive OEMs to the new standard over existing traditional SIMs.

The research urges operators to leverage wholesale agreements with automotive OEMs to create steady revenue streams from the connected car market - but cautions that operators must ensure the provision of management services, either directly, or via partnerships with established IoT platforms, to attract high spending automotive OEMs to their networks.

According to research co-author Sam Barker “As the adoption of embedded SIMs increases, operators’ success in the market will be determined by which platforms can offer the most comprehensive value-added services to automotive OEMs.”

The research report predicts that there will be 30 million vehicles globally with embedded 5G connectivity by 2025 - and as embedded 5G connectivity becomes more prevalent in vehicles, its anticipated that 25% of cellular data generated by vehicles will be attributable to 5G-capable vehicles by the same year - despite representing only 14% of the installed base of vehicles with embedded connectivity.

As a result of this, Juniper says operators will need to charge a premium for 5G automotive connections, in order to account for the additional network traffic generated by 5G-based automotive traffic.

Juniper also says that the incorporation of eSIMs (embedded SIM) into the vehicles will enable operators to leverage their existing network infrastructure to claim $3 billion of additional service revenue by 2025, by acting as an M2M (Machine-to-Machine) connectivity provider.


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