AceTel

A Better Life in the Connected Car

A Better Life in the Connected Car

Rising car ownership and increasing congestion mean 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 infrastructure.

The Operator Opportunity

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 was in 2016:

  • Infotainment and telematics services - mobile data traffic, web-based entertainment, call center support and remote diagnostic services - are estimated to reach US$ 92.3 billion by 2022, up from US$ 27.3 billion in 2016.
  • Fleet management for enterprise customers is estimated at US$ 21 billion, up from US$ 8.7 billion in 2016.
  • V2X services, which enable vehicles to communicate with other vehicles and infrastructure, are estimated to be worth US$ 31.5 billion in 2022.

Standards body 3GPP has introduced the C-V2X (Cellular Vehicle-to-Everything) 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.

AceTel supports this ecosystem with in-vehicle connectivity hardware such as our 4G LTE OBD WiFi hotspot GPS tracker.