US Connected Car Market on Recovery Path After COVID-19; 5G Cars to Account for 27% of Market by 2025

  • In 2020, 92% of connected cars in the US were using 4G LTE networks.
  • 80 million new connected cars will be added in the US during 2020-2025.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – July 7, 2021

The US connected car market managed to weather the COVID-19 storm with a moderate decline of 6.8% YoY in 2020, according to the latest research from Counterpoint’s Smart Automotive Service. The cumulative connected car shipments in the US are expected to cross 80 million units during 2020-2025 with a CAGR of 10%. The connected car data here refers to only passenger cars with embedded connectivity.

H1 2020 proved to be painful for automakers worldwide, with most of them forced to shut down their manufacturing facilities to curb the spread of COVID-19. In the US specifically, from March onwards, most OEMs, including Ford, GM, Volvo, Toyota and Honda, suspended their production for nearly two months. Other factors that exacerbated the production delays included the semiconductor shortage, the storm in February that knocked US Gulf chemical plants offline, and massive blackouts due to cold weather that led to petrochemical shortages. US car sales continued to recover during H2 2020, declining 3% YoY compared to 21% YoY during H1 2020.

Commenting on the US connected car market, Research Associate Fahad Siddiqui said, “Connected car sales grew 2% YoY during H2 2020 mainly driven by a growing preference for connected services and late entrants like Toyota and FCA catching up with mainstream brands like GM and Ford. GM remained the market leader, accounting for a quarter of the market in H2 2020. In collaboration with AT&T, GM has been offering OnStar 4G LTE connectivity in its vehicles since 2015. Today, more than 95% of its cars offer embedded connectivity, with customers enjoying a host of services ranging from hotspot and navigation to vehicle diagnostics. It is the plethora of services that a connected car offers right at one’s fingertips that attracts customers towards it.”

Counterpoint Research US Connected Car Sales Market Share by Automotive Groups, H2 2020

He added, “Collaborations with telecom operators are helping automakers deploy cars with embedded connectivity faster than before. AT&T has more than 30 brands using its network, some notable ones being BMW, Ford, Chevrolet, Jaguar and Honda. Verizon’s connected car portfolio, on the other hand, has a handful of OEMs, including Toyota, VW and Mazda, with plans to add more soon. AT&T is the preferred telecom operator due to the variety it offers in its data plans, customizations for specific vehicle models, and its collaborations with manufacturers to speed up research and development in the connected car ecosystem.

Research Analyst Soumen Mandal said, “The US connected car market is becoming mature. OEMs’ electrification plans and push for driverless technology are helping speed up this process. GM has increased its budget for electric and automated vehicles from $20 billion to $27 billion and plans to launch 30 new EVs globally in the next five years (over 20 of these are planned for North America alone). In 2022, GM will launch 5G-enabled cars in China followed by the US region. Ford, on the other hand, plans to deploy cellular vehicle-to-everything technology (C-V2X) in its models in the US beginning 2022.”

Counterpoint Research US Connected Car Sales by Technology Share (in %)

Speaking from the connectivity perspective, Research Vice-president Neil Shah said, “In 2020, 4G LTE cellular connectivity had a mammoth share of 92%. Going forward, we can expect 4G penetration to increase, with 3G being phased out slowly. 5G-enabled cars entered the market in 2020 but they were limited to China only. The US will see 5G cars in the market from 2022 onwards with BMW and Ford leading the foray. By 2025, 5G cars will account for more than a quarter of the connected car market. With the growing adoption of 5G connectivity, there is a need to make use of C-V2X technology for improved safety features, better infotainment options and a greater capacity to process large amounts of real-time data. Automakers’ bullish sentiments toward electrification and aggressive plans for employing 5G technology will help TCU suppliers in expanding their 5G portfolios.”

The comprehensive and in-depth ‘Recovering Passenger Car Sales Drive Connected Cars Market’ report is now available for purchase at

Feel free to reach us at press(at) for further questions regarding our latest research and insights, or for press enquiries.


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:

Neil Shah

Fahad Siddiqui

Soumen Mandal

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


Understanding iPhone

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.