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.
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