Cars With 5G Networks Will Dominate 27 Percent Of The Market By 2025

The connected car market in the US survive the COVID-19 storm (photo: Evgeny Tchebotarev/Unsplash)

JAKARTA - Sales of connected cars in the world are claimed to reach 80 million units in the current period until 2025.

The report comes from Counterpoint's Smart Automotive Service, which VOI quoted from its official website, Monday, July 12, said that passenger cars with 5G networks will dominate a market share of up to 27 percent of the market by 2025 in the United States (US).

In fact, the connected car market in the US managed to weather the COVID-19 storm with a moderate decline of 6.8 percent year on year (YoY) in 2020. After a period of slumping sales in the first half of 2020, the automotive business in the US recovered in the second half of 2020.

At the same time, the US car industry is becoming more mature in preparing future plans, one of which is through electric and connected cars.

"GM (General Motors) has increased its budget for electric and self-driving vehicles from US$20 billion to US$27 billion and plans to launch 30 new electric cars globally in the next five years (more than 20 models for the North American market)," said a researcher from Counterpoint, Soumen Mandal.

It is known that in 2022, GM will launch 5G cars in China and the US, "Ford, on the other hand, plans to deploy connected vehicle technology (C-V2X) in the US from 2022," said Soumen.

Collaboration with telecommunications operators helps automakers develop connected cars more quickly, "(Like) AT&T has more than 30 automotive clients using its network, some of the most well-known are BMW, Ford, Chevrolet, Jaguar, and Honda. Verizon partners with Toyota, VW, and Mazda," said Research Associate, Fahad Siddiqui.

AT&T is the telecommunications operator of choice because of the diversity it offers in its data plans, customization for specific vehicle models, and its collaboration with manufacturers to accelerate research and development in the connected car ecosystem.

It is claimed that by 2025, 5G cars will account for more than a quarter of the connected car market, which will likely be led by traditional car brands such as GM, Ford, and BMW.