The global connected cars market is expected to grow 270% by 2022 to reach 125 million connected passenger cars with embedded connectivity to be shipped during 2018-2022 according to Counterpoint’s Internet of Things Tracker service.
The connected cars data only represents the global passenger car shipments with embedded connectivity and does not indicate number of active connections. In terms of number of units, the market will be primarily driven by EU’s eCall mandate and rising adoption in China.
In Europe, major car consuming economies such as Germany, UK, and France will provide the major thrust to the market.
Commenting on the findings, Hanish Bhatia, Senior Analyst, IoT & Mobility said, “In terms of overall penetration, Germany, UK and US are leading the market at present with highest percentage of total shipments with embedded connectivity sold in 2017. Europe’s eCall mandate is expected to change the market dynamics with higher penetration across European countries. The adoption of eCall in Europe is expected to create ripples across other geographies thereby catalyzing the overall car connectivity ecosystem.”
Discussing on the brands performance, Hanish Bhatia further highlighted, “General Motors is leading the market in terms of number of shipments, followed by BMW, Audi and Mercedes Benz, respectively. The connectivity platforms such as GM’s OnStar, BMW’s Connected Drive and Audi Connect are offering various services while creating new revenue streams and bridging the gap to stay connected with the consumers. Together, these brands account for more than 90% of the total connected passenger cars with embedded connectivity sold in 2017.”
“Also, much talked about US-based car maker – Tesla, continues to offer embedded connectivity across its’ portfolio,” added Bhatia.
Looking at the connectivity technology, Neil Shah, Research Director, Counterpoint Research said, “The market is more aligned towards 2G/3G networks as of now, however, it is moving swiftly towards 4G LTE connectivity and we expect 4G LTE network to account for nearly 90% of connected passenger cars with embedded connectivity by 2022. Further, we expect 5G connectivity in cars to kick-in from 2020 onwards, however, the overall penetration is likely to remain low till 2022. The progress on the levels of autonomous technology in a car will also dictate the usage of 4G or 5G technology embedded in the cars beyond 2022 when 5G coverage rollout becomes ubiquitous.”