In the ever-evolving landscape of automotive technology, the latest research from Counterpoint’s Global Connected Car Sales Tracker unveils a significant surge in global connected car sales during Q3 2023. With the rise of electric vehicles and autonomous driving, connectivity penetration within vehicles is on the rise.
According to the report, global connected car sales experienced a remarkable 28% year-over-year growth in Q3 2023. Notably, two out of every three cars sold during this period were equipped with embedded connectivity features. Leading the charge, China claimed a substantial 33% share in global connected car sales, followed closely by the United States and Europe. Together, these top three regions accounted for over 75% of global connected car sales in Q3.
Senior Analyst Soumen Mandal shed light on the market dynamics, highlighting Germany’s leading share of connected cars in its passenger car sales, attributed to governmental initiatives like eCall mandates. Following Germany, the United States, France, and the United Kingdom emerged as key players with significant shares of connected cars in their respective markets.
Despite the dominance of 4G connectivity, accounting for over 95% of sales, the adoption of 5G technology is slower than previously projected. Mandal identified reasons such as inadequate 5G infrastructure along highways, limited unique use cases within vehicles, and supply chain challenges hindering the faster adoption of 5G in passenger cars.
Looking ahead, Vice President of Research Neil Shah predicts a continued rise in connectivity preference, even in developing economies, where it is becoming a pivotal market differentiator. Shah forecasts that by 2030, more than 95% of all new passenger cars will feature embedded connectivity, with 4G remaining dominant while 5G gradually gains traction, particularly with the introduction of more advanced autonomous driving systems.
Neil Shah anticipates an inflexion point around 2026 for widespread adoption of 5G in automotive applications, projecting that by 2030, over 90% of connected cars sold will boast embedded 5G connectivity, marking a transformative shift in the automotive industry’s technological landscape.
