Electronics and Semiconductors

Embedded connectivity in vehicles to reach 200 million by 2025

03 September 2020

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

Juniper said the beneficiaries of the growth will mostly be mobile operators as the incorporation of embedded SIMs (eSIMs) into the vehicle will enable operators to leverage existing network infrastructure to claim $3 billion of additional revenue by 2025.

Juniper forecasts that eSIMs will act as a launching point for future operator service deployments in the connected car space. Smaller form factors and higher durability of eSIM modules will attract automotive OEMs over standard over existing traditional SIMs.

In order to create steady revenue streams from the connected car market, Juniper said automotive OEMs should leverage wholesale agreements.

“As the adoption of embedded SIMs increases, operators’ success in the market will be determined by which platforms can offer the most comprehensive value-added services to automotive OEMs,” said Sam Barker, analyst at Juniper.

The research predicts 30 million vehicles globally with embedded 5G connectivity by 2025 as embedded 5G becomes more prevalent in vehicles. Juniper forecasts that 25% of cellular data generated by vehicles will be attributable to 5G-capable vehicles by the same year. As a result, operators will need to charge a premium for 5G automotive services to account for additional traffic generated by 5G-based traffic in cars.

Learn more about Juniper’s findings with its Operator Connected Car Strategies report.

To contact the author of this article, email PBrown@globalspec.com


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