367m connected vehicles in service by 2027 – report
- Monday, January 9th, 2023
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The number of connected vehicles in service will reach 367m globally in 2027, from 192m in 2023, according to a new study from Juniper Research. The growth will be driven by the advancement of both ADAS (Advanced Driver Assistance Systems) and increasing capabilities of in-vehicle infotainment systems. The research identified 5G’s high speed and low-latency capabilities as transformative to these goals, requiring effective collaborations between automotive OEMs and operators to realise.
Connected vehicles are equipped with communication technologies that allow the exchange of information between the various elements of the transport system and third-party services.
The research found that operators are critical to unlocking new use cases, such as autonomous driving and data-heavy infotainment via 5G, representing a $3.6bn (£3bn) opportunity for providing 5G connectivity enablement in 2027 globally.
“5G can allow automotive OEMs to upgrade the in-vehicle experience,” said Research Co-author, Nick Maynard. “In a vehicle market transitioning to electric vehicles, improving the user experience is key. Operators hold the critical role in enabling this in a reliable way, making them the partners of choice as their 5G networks rapidly expand.”
The research predicts that, by 2027, commercial vehicles will account for just 20 per cent of connected vehicles worldwide, representing a small increase from 16 per cent by the end of 2023. The research found that commercial vehicle design is not leveraging connectivity beyond simple emergency call features and basic connected infotainment systems, although this is changing, as businesses prioritise tracking and logistics capabilities. Accordingly, the research recommended that automotive OEMs prioritise integrations with common fleet tracking systems out of the factory to maximise the benefits of connectivity, and to enable commercial fleet owners to maximise efficiency in their processes.