Car connectivity will accelerate over the rest of the decade driven by two factors, a higher proportion of new cars having embedded 4G or 5G, and replacement of old cars under the characteristic 12-to-16-year cycle, according to a report by ReThink Technology Research. As a result, the global number of connected cars will hit 829 million in 2030, almost half of the existing car fleet.
This is good news for carriers, which are projected to see connectivity revenues quadruple up to $244 billion by 2030. The revenue per connected car will be slightly higher for 5G connectivity because it adds more applications than 4G LTE, especially with cellular vehicle-to-everything communications. “We define these as additional revenues enabled by connectivity, such as insurance services and infotainment paid for specifically by the consumer,” the report said.
In more good news, growth in North America will accelerate rapidly first, followed closely by Europe. Asia Pacific operators have yet to align themselves to gain revenues in this space, according to the report. “If operators are not partnered with or strategically aligned with a connected car offering, your business should accelerate into this space now,” the report advised.
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