By: Natasha Taylor
The number of connected vehicles on roads is expected to reach 367 million globally by 2027, data from Juniper Research has suggested.
The 91% growth from 192 million in 2023 will be driven by the advancement of both Advanced Driver Assistance Systems (ADAS) and increasing the capabilities of in-vehicle infotainment systems.
Connected vehicles are those that utilize vehicle-to-everything (V2X) technology to communicate information with one another, roadside infrastructure, and network communication to increase safety and improve efficiency.
The whitepaper published by Juniper Research highlights that the high speed and low-latency capabilities of 5G will be crucial to the advancements and subsequent market growth.
However, emphasis has been placed on the need for strong collaboration between automotive manufacturers and network operators for advancements to be realized successfully.
Operators are regarded as being critical in unlocking new use cases for connected vehicles, for example, autonomous driving and data-heavy infotainment, via 5G network connections.
This is expected to represent a $3.6 billion opportunity for network providers in 2027.
The enablement of 5G connectivity will allow automotive OEMs to upgrade the in-vehicle experience, something which is seen as key as the market transitions to electric vehicles.
By 2027, the majority of connected vehicles will be passenger vehicles, with the Far East and China predicted to have the largest number of vehicles with embedded connectivity, followed by North America and Europe.
It is expected that commercial vehicles will only account for 20% of connected vehicles worldwide, representing a small increase from 16% by the end of 2023.
Commercial vehicle design will not leverage connectivity beyond simple emergency call features and basic connected infotainment systems, although this is changing as businesses prioritize tracking and logistics capabilities.
You can access the full report here.