Connected Car Sales Overtake Non-connected Cars in Q2 2022

  • The US overtook China in Q2 2022 to lead the global connected car market.
  • The top five groups – Volkswagen, Toyota, GM, Stellantis and Hyundai – captured half of the market.
  • 5G car sales surpassed half a million, though 4G accounted for 90% of connected car sales.

London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – September 29, 2022

Global connected car sales* remained flat YoY in Q2 2022 despite ongoing turbulence in the automotive industry, according to the latest research from Counterpoint’s Connected Car Services. The US led followed by China and Europe. The top three regions accounted for nearly 80% of connected car sales in the quarter.

The connected car penetration surpassed that of non-connected cars for the first time ever, capturing almost 50.5% share in Q2. Non-connected cars have been steadily declining as automakers prefer to upgrade their portfolio with factory-fitted embedded connectivity even in base model variants. Luxury brands like BMW, Mercedes and Audi were the first to introduce connected cars with inbuilt Wi-Fi, even before the initial push towards connected vehicles came from government mandates like eCall.

Commenting on the regional dynamics, Senior Analyst Soumen Mandal said, “The US market trailed China in terms of connected car sales in the first quarter of this year. However, with the resurgence of COVID-19 and plant shutdowns in China from March onwards, the US overtook China. China was the first country to introduce 5G cars back in 2020 with models like the Arcfox Alpha-T, Roewe Marvel R and Great Wall Motors Haval HG. Major automakers such as Audi and BMW entered the market in 2021 and 2022 by launching models like the Audi A7L/A6L and BMW iX respectively. Government initiatives along with a push from state-owned telecom operators regarding the deployment of 5G networks have given China the first-mover advantage.”

Mandal added, “Europe, including major countries like Germany, UK and France, saw its overall sales dip in the first half of the year due to persistent problems like the Russia-Ukraine war and supply chain disruptions. However, the region managed to increase its connected car penetration to almost 60% in the second quarter owing to growing connected car technology in the portfolios of incumbent players like Stellantis, Volkswagen, BMW and Mercedes. From a global perspective, Volkswagen, Toyota and General Motors groups lead the market due to large volumes and high connectivity penetration within their portfolios.”

Global Connected Car Market Counterpoint Research

The automotive industry is going through multiple simultaneous transitions such as connected mobility, electrification, autonomous driving, and software-based services. And connectivity is fundamental for all. However, it is creating pressure on supply chains to support these transitions.

Connected cars surpassing non-connected cars is a significant milestone toward achieving success in the automotive industry transformation. Now the use cases of connectivity within cars are expanding from telematic services to becoming more software-centric, delivering features like digital cockpit through to autonomous driving. As a result, automakers are focusing on using powerful on-board computers for next-generation connected mobility. Currently, connected cars typically use a single NAD module to provide infotainment and predictive analytics. But some Chinese brands and luxury automakers are using two NADs in a technology called Dual SIM Dual Active (DSDA) to provide, for example, uninterrupted infotainment to passengers while simultaneously uploading critical vehicle data on to the cloud for analytics.

Keeping the technology evolution in mind, Research Vice-President Peter Richardson added, “4G cars still dominate the global connected car market, capturing 90% of shipments in Q2 2022, whereas 5G cars accounted for around 7%. Although 5G’s share will continue to increase, 4G will see increased sales on a yearly basis until 2027. There are several factors hindering the proliferation of 5G for cars, such as high prices of 5G NAD/TCU, and patchy network coverage even where 5G has been launched, which in turn means limited availability of 5G capable cars. Furthermore, there is only nascent adoption of ADAS/AD levels – currently, there are few Level 3 capable models and all use 4G. We expect that mass adoption of 5G connectivity will only occur after 2025, when most of these issues will have been resolved”.

*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.

For detailed research, refer to the following reports available for subscribing clients and individuals:

Counterpoint tracks and forecasts on a quarterly basis around 50 automakers’ sales in key geographies like China, US, UK, Germany, France, Japan, South Korea, Rest of Europe and Rest of World, and by technology/connectivity – 2G, 3G, 4G and 5G.

Feel free to reach us at for questions regarding our latest research and insights.


Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Peter Richardson

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.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited


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.