Cars with embedded connectivity to reach 200 million by 2025

The number of connected сars to double by 2025. Source: shutterstock.com

A new study from Juniper Research has found that the number of vehicles with embedded connectivity will reach 200 million globally by 2025; rising from 110 million in 2020. One of the main beneficiaries of this growth will be mobile operators. The incorporation of eSIMs (embedded SIM) into the vehicle will enable operators to leverage their existing network infrastructure to claim $3 billion of additional service revenue by 2025, by acting as an M2M (Machine-to-Machine) connectivity provider.

The study predicts that eSIMs will act as the catalyst for future operator service deployments in the connected car space. Smaller form factors and higher physical durability of eSIM modules will attract automotive OEMs to the new standard over existing traditional SIMs.

Juniper Research urges operators to leverage wholesale agreements with automotive OEMs to create steady revenue streams from the connected car market. However, operators must ensure the provision of management services, either directly, or via partnerships with established IoT platforms, to attract high spending automotive OEMs to their networks.

The research predicts that there will be 30 million vehicles globally with embedded 5G connectivity by 2025.

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