Global connected cars market to see 270% growth by 2022

There is expected to be more than 125 million passenger cars with embedded connectivity on the roads within the next four years, a new report has shown.

The global connected cars market is expected to grow 270% by 2022 – image courtesy of Depositphotos.

General Motors, BMW, Audi and Mercedes Benz are leading globally in the connected car market as of 2017, according to Counterpoint Research’s Internet of Things Tracker Service.

And the market is expected to get a major boost with EU’s ‘eCall’ mandate, a European initiative intended to bring rapid assistance to motorists involved in a collision anywhere in the European Union.

‘eCall’ was made mandatory in all new cars sold within the EU from April 2018

Hanish Bhatia, senior analyst for IoT and Mobility at Counterpoint, said: “In terms of overall penetration, Germany, the UK, and the US are leading the market at present with the highest percentage of total shipments with embedded connectivity sold in 2017.

“The adoption of ‘eCall’ in Europe is expected to create ripples across other geographies, thereby catalysing the overall car connectivity ecosystem.”

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.

Bhatia said: “Also, much talked about US-based car maker Tesla continues to offer embedded connectivity across its portfolio.

Neil Shah, research director at 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.

Shah added: “Further, we expect 5G connectivity in cars to kick-in from 2020 onwards.”

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