Connected Cars Surge as 5G Enters
Bristol, UK, March, 22, 2023 - Connected car revenues to quadruple by 2030 at US$ 244 Billion. Car connectivity will accelerate over the next 7 years and reach 828.7 million, triple the 279.3 million of 2022, as old models are retired and embedded mobile network access becomes standard on ever more vehicles rather than just luxury models.
Revenues derived from car connectivity will increase even more sharply and quadruple to $244 billion by 2030, as 5G access becomes increasingly prevalent to deliver added value services such as Ultra HD streaming and more ADAS (Advanced Driver Assistance System) features.
Car connectivity will accelerate over the next 7 years and reach 828.7 million, triple the 279.3 million of 2022, as old models are retired and embedded mobile network access becomes standard on ever more vehicles rather than just luxury models. Revenues derived from car connectivity will increase even more sharply and quadruple to $244 billion by 2030, as 5G access becomes increasingly prevalent to deliver added value services such as Ultra HD streaming and more ADAS (Advanced Driver Assistance System) features.
These findings come from the latest Wireless Watch Research report and forecast on the connected car market, exploring its evolution from now until 2030 by region with a drilldown into eight countries in the vanguard of this field, or where the most rapid growth will occur.
The report defines car connectivity as internet access over a public cellular network via an embedded SIM in the vehicle, rather than just a user’s smartphone tethered to satellite navigation system. A growing number of vehicles will also have local V2X (Vehicle to Everything) connectivity, which is increasingly the cellular variant C-V2X, rather than the earlier version derived from WiFi known as DSRC or ITS-G5.
Wireless Watch Research predicts that DSRC will be virtually extinguished in all leading markets by 2030, never having got off the ground at all in China.
Wireless Watch Research is careful to count only revenues directly attributable to car connectivity, rather than coincidental transactions such as online purchases that could be made anywhere. Yet as 5G access becomes more common from cars, more services will come on board to deliver incremental revenues.
The report identified insurance as one of the biggest revenue earners from car connectivity, tapping an already massive revenue base. With the global automotive insurance market worth around $800bn a year, the connected car only has to make a small difference to have a big impact both for insurers through reduced risk of paying out, and their consumer customers through lower premiums. Connectivity will also stimulate the already-growing field of usage based insurance with pay-as-you-drive (PAYD) and pay-how-you-drive (PHYD) models.
The report highlights how the progression of wireless car connectivity will differ a lot between regions. The cuts of the pie will change significantly between 2022 and 2030 with a swing in dominance from North America and Europe at the beginning, to Asia Pacific at the end, driven by rapid growth across the region led by the powerhouses of China and India, although timing will be different in each case.
