WIth the growth of 5G infrastructure globally and the resultant growth of the Internet of Things (IoT), the automotive industry can expect more and more connected cars on the road.
According to Business Wire, “The global market for 5G infrastructure should grow from $12.9 billion in 2021 to $115.4 billion by 2026, at a compound annual growth rate (CAGR) of 55.0% for the period of 2021-2026.”
With the performance and efficiency enhancements offered by 5G, the Internet of Things — the network of physical objects that have software and other technologies allowing them to connect and exchange data with other devices and systems over the internet — is expected to grow significantly over the next few years. According to Oracle, “With more than 7 billion connected IoT devices today, experts are expecting this number to grow to 10 billion by 2020 and 22 billion by 2025.”
It’s no surprise then that in addition to many household appliances and industrial technologies, cars are becoming even more connected than ever before.
According to ExplodingTopics.com searches for “connected car” have risen by 188% over the last decade. They also shared the following figures:
- There were roughly 47.5 million connected cars sold in 2020 and the global connected car market was worth roughly $55.56 billion in 2020.
- The connected car market is expected to grow to $191.83 billion by 2028.
The Leading Pioneers
Some of the biggest names in technology are taking an interest in the connected vehicle market. For example, according to PYMNTS.com, Google and Ford announced a six-year partnership intended to speed up connected car advances, including new retail experiences, data-based ownership offers, and a larger service offering for drivers.
“Starting in 2023, Ford and Lincoln vehicles will be equipped with built-in Google apps and services powered by the mobile Android operating system. Ford has also named Google Cloud as its preferred cloud provider. The in-car Android operating system is designed to be open enough that both Ford and third-party developers will have the ability to develop apps that provide a personalized car ownership experience.”
In addition, Google CEO Sundar Pichai announced that Google will be utilizing artificial intelligence (AI), data analytics, and cloud computing platforms to help Ford “revamp its business around the future of ‘automotive technologies.’”
Apple has had an automotive project in the works known as Project Titan since 2014. The big tech company also made the news in automotive tech earlier this year when it announced that it might invest $3.6 billion in Kia to manufacture the new electric Apple cars. Production was reported to begin 2024 with the stated goal of producing around 100,000 cars per year.
Not only that, companies like Car IQ are bringing banking to connected vehicles. In 2020, Car IQ announced a partnership with Discover to use its payment technology in business-owned automotive gleets, which allows vehicles to automatically pay for vehicle-related expenses such as insurance, gas, repairs, parking, and tolls.
There are a lot of exciting advancements underway in the automotive industry that will take the world by storm in the coming years, and with the opportunities afforded by 5G technologies, connected vehicles are sure to be among them.