Top

Global Connected Car Market Remains Resilient; 5G Cars Deployed Globally

  • In 2021, 4G cars were 90% of total connected car shipments.
  • 5G cars are expected to be a quarter of connected cars by 2025.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – February 15, 2022

The global connected car[1] market remained resilient in 2021 despite ongoing problems such as semiconductor shortages, production losses, cost inflation, and freight disruption. According to the latest research from Counterpoint’s Smart Automotive Service, 4G-enabled cars are reaching maturity in developed countries like the US, China, Germany, and the UK, alongside the entrance of 5G TCUs, which make use of real-time data transfer and fast cloud-car communication, among other improvements.

The semiconductor supply problem proved to be detrimental to the entire auto industry. OEMs like General Motors and Ford suffered significantly with thousands of cars sitting idle in parking lots waiting for chips to arrive. Such automakers are using a “Build-Shy Strategy” whereby cars are produced with available components and then kept aside until the required resources are acquired to complete them. This can be useful in the short term as it keeps the operations running, but there is no guarantee for how long the cars will remain unutilized. The shortages forced automakers to resort to different ways to minimize losses and avoid disruptions, such as diverting chips/inventory to more profitable models, removing certain features, and increasing vehicle prices. For example, BMW and Renault were selling certain models without digital screens while Nissan and Ford were doing so without navigation systems.

Commenting on the global connected car market’s performance, Senior Analyst Soumen Mandal said, “The shift towards digitization in cars is increasing at a rapid pace and is visible as the global connected car penetration has been on a consistent rise. As countries worldwide further strengthen their 4G network coverage and embrace next-generation cellular technology, we can see more connected cars coming to market with advanced safety and comfort features.”

“The US connected car market grew 16% YoY in 2021 with almost all players except General Motors shipping more connected cars as compared to the previous year. We see a dip in GM’s connectivity penetration thanks to its low overall sales and the removal of certain smart features from its portfolio. GM temporarily halted its ‘Super Cruise’ feature that enabled hands-free driving on highways in its flagship Escalade SUV. Other features that were discarded included auto start-stop, fuel management software, wireless charging, heated seats, and HD Radio in models such as Chevrolet’s Silverado and GMC’s Sierra. Despite the supply chain constraints and chip shortages, GM reported a 3.7% and 47% YoY growth in revenues and profits respectively for 2021. Supply chain disruptions and low inventory forced GM to slip to second place with Toyota moving ahead and becoming the first-ever foreign automaker to lead the US vehicle market.”

 

Mandal added, “China overtook the US in connected car shipments in 2021 and will continue to dominate the market through 2025. Other notable regions seeing growth include Europe, namely Germany, UK, and France. The increasing new electric vehicle registrations in Europe are a good indicator of the increasing connected car penetration in the region. In 2021, the leading battery electric vehicle (BEV) producer in Europe was Tesla, followed by VW and Renault. As we move towards an electric future, other brands like Hyundai and Fiat, which already have top-selling BEV models in their portfolios, will make the EV market more fragmented by introducing more models.”

In 2021, the automotive industry saw the first global deployment of a 5G-enabled car, BMW’s iX model. It was launched first in Germany in November, followed by shipments worldwide. Commenting from the connectivity perspective, Research Vice-President Neil Shah said, “China, which is already the leader in 5G connected cars due to better network infrastructure and government support, will see new models enter the market in 2022 from brands including Chevrolet, Geely, Buick, Ford, and BMW. Furthermore, 5G car models such as the Arcfox Alpha T, Roewe Marvel R, and Great Walls 3rd Gen Haval H6, which were launched in 2020, will continue to gain traction. From 2023 onwards, we will see bigger players like SAIC and BAIC entering the market.”

Shah added, “By 2025, however, the 5G car market landscape will shift dramatically as the current global leaders will have penetrated the market with their next-generation offerings. We expect one in four cars to have 5G connectivity by 2025.”

[1]The connected car data here refers to only passenger cars with embedded connectivity.

The comprehensive and in-depth ‘Global Connected Car Tracker, 2019-2025F’ is now available for purchase at report.counterpointinsights.com. Feel free to reach out to us at press(at)counterpointresearch.com for questions regarding our latest research and insights, or press enquiries.

Background:

Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects, and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

Analyst Contacts:

Neil Shah

Soumen Mandal

Fahad Siddiqui

Counterpoint Research

Related Posts:

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Apple Snack Pack

PREMIUM

Understanding iPhone

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.