Rising car ownership and increasing congestion means that people spend a growing amount of time in their vehicles. For example, people spend an average of 52 minutes a day in their cars in Beijing and 48 minutes in Guangzhou and Shanghai. During these journeys, drivers and passengers want access to information, communications and entertainment services delivered via wireless services. Connectivity can enable on-demand music, navigation and real-time traffic status, usage-based insurance, remote diagnostics, automated emergency calls, driver assistance systems and many other services that can make car journeys easier, safer and more enjoyable.
There are several different dimensions to the connected car. Firstly, a connected car needs continual Internet access to stream entertainment and to access real-time information services, such as traffic data. Secondly, a connected car will communicate with other vehicles in the vicinity and nearby.
For mobile operators, the connected car market opens up multiple business opportunities, which will grow over time. In revenue terms, It is estimated the addressable market for mobile operators will be three to four times larger in 2022 than it is in 2016. There is the potential to earn US$ 92.3 billion from infotainment and telematics services, such as mobile data traffic, web-based entertainment, call center support and remote diagnostic services, by 2022 (up from US$27.3 billion in 2016) and US$ 21 billion from fleet management for enterprise customers (up from US$8.7 billion in 2016). It is estimated the addressable market for V2X services, which enable vehicles to communicate with other vehicles and infrastructure, will be worth US$ 31.5 billion in 2022 (see Figure 12). Standards body 3GPP has introduced the C-V2X (Cellular Vehicle to X) standard, which will evolve further with the deployment of 5G communication networks. Moreover, the establishment of the 5G Automotive.
Association is likely to speed up the development of V2X solutions.
The growth of the global connected car market – 4G LTE OBD WiFi Hotspot GPS Tracker.