1 in every 4 cars will have 5G connectivity by 2025, says Report
One in 4 cars will have 5G connectivity by 2025 that will make better use of real-time data transfer and fast cloud-car communication, among other improvements, a new report has shown.
In 2021, 4G cars were 90 per cent of total connected car shipments but 5G cars are expected to be a quarter of connected cars by 2025, according to Counterpoint Research.
“By 2025, the 5G car market landscape will shift dramatically as the current global leaders will have penetrated the market with their next-generation offerings,” said Research Vice-President Neil Shah.
The global connected car market remained resilient in 2021 despite ongoing problems such as semiconductor shortages, production losses, cost inflation, and freight disruption.
According to research from Counterpoint’s Smart Automotive Service that came out late on Tuesday, 4G-enabled cars are reaching maturity in developed countries like the US, China, Germany, and the UK, alongside the entrance of 5G telematics control units (TCUs).
The shift towards digitization in cars is increasing at a rapid pace and is visible as the global connected car penetration has been on a consistent rise.
“As countries worldwide further strengthen their 4G network coverage and embrace next-generation cellular technology, we can see more connected cars coming to market with advanced safety and comfort features,” said senior analyst Soumen Mandal.
China overtook the US in connected car shipments in 2021 and will continue to dominate the market through 2025.
Other notable regions seeing growth include Europe, namely Germany, the UK and France.
“As we move towards an electric future, other brands like Hyundai and Fiat, which already have top-selling BEV models in their portfolios, will make the EV market more fragmented by introducing more models,” said Mandal.
In 2021, the automotive industry saw the first global deployment of a 5G-enabled car, BMW’s iX model.
It was launched first in Germany in November, followed by shipments worldwide.
“China, which is already the leader in 5G connected cars due to better network infrastructure and government support, will see new models enter the market in 2022 from brands including Chevrolet, Geely, Buick, Ford, and BMW,” said Shah.
–IANS
na/
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
