Connected Car Sales to Exceed 500 Million by 2030

The automotive industry is ripe for disruption with the marriage of various advanced capabilities from electric drive trains and AI-driven autonomous driving to advanced HMI, real-time HD maps, and infotainment systems, according to Counterpoint Research. All of these capabilities require active, stable, low latency, and high-bandwidth cellular connectivity. This is where 5G steps in, adding another technology dimension to tie these capabilities together.

Over the last decade, 4G was the major cellular connectivity embedded in cars via NAD modules focusing on telematics, safety, and emergency call use cases. However, the use cases for the cars rolling out over the next decade will warrant 5G connectivity to satisfy the new advanced mobility use cases. The cumulative sales of 5G embedded cars will account for almost half of the total connected cars sold between 2024 and 2030.

At present, Germany leads in terms of connectivity penetration, but China is expected to achieve 100% connectivity penetration by 2028. This development positions China to lead the global connected car sales market by 2030, with the USA, India, Japan, and Germany following suit. These top five countries are projected to collectively account for over two-thirds of global connected car sales by 2030.

“China is poised to dominate the connected car market, fueled by the rapid adoption of EVs, C-V2X, and other connected infotainment features. Domestic EV manufacturers such as BYD, NIO, Xpeng, and Li Auto are striving to differentiate their offerings from traditional players and expand into international markets,” said Soumen Mandal, Senior Analyst at Counterpoint Research.

Mandal added, “In the US, the world’s second-largest connected car market, growth will be driven primarily by the adoption of advanced safety features such as Vehicle-to-Everything (V2X) communication and Level 2+ autonomy. Telecom giants like AT&T are at the forefront of the connected car space, while competitors like Verizon and T-Mobile are striving to capitalize on revenue opportunities through features like predictive maintenance, service scheduling, remote diagnostics, live maps, and content platforms.”

“India is set to experience the fastest growth in connected car sales between 2023 and 2030. Indian automakers are gradually catching up with their international counterparts and enhancing their digital offerings to improve the driving experience,” Mandal said.