Cars with Embedded Connectivity to almost double by 2025

The number of vehicles with embedded connectivity is 110 million in 2020 and is expected to reach 200 million globally by 2025, according to a new study by Juniper Research.

The other points raised by the research:

  • Mobile operators to be main beneficiaries of this growth: One of the main beneficiaries of this growth will be mobile operators. The incorporation of eSIMs (embedded SIM) into the vehicle will enable operators to leverage their existing network infrastructure to claim $3 billion of additional service revenue by 2025, by acting as an M2M connectivity provider.

  • eSIMs to Benefit Operators and Automotive OEMs:  eSIMs will act as the catalyst for future operator service deployments in the connected car space. Smaller form factors and higher physical durability of eSIM modules will attract automotive OEMs to the new standard over existing traditional SIMs.

  • Mobile Operators can leverage agreements with automotive OEMs: The research urges operators to leverage wholesale agreements with automotive OEMs to create steady revenue streams from the connected car market. However, operators must ensure the provision of management services, either directly, or via partnerships with established IoT platforms, to attract high spending automotive OEMs to their networks.

  • 5G Networks to Provide Monetisation Challenges for Operators: According to the research, there will be 30 million vehicles globally with embedded 5G connectivity by 2025. As embedded 5G connectivity becomes more prevalent in vehicles, it anticipates that 25% of cellular data generated by vehicles will be attributable to 5G-capable vehicles by the same year, despite representing only 14% of the installed base of vehicles with embedded connectivity. As a result, operators will need to charge a premium for 5G automotive connections, in order to account for the additional network traffic generated by 5G-based automotive traffic.

    The full report can be read here

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