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Total Sales of Connected Cars Projected to Reach 74 Million Units in 2025 as Companies Rush to Seize Commercial Opportunities in 5G V2X, Says TrendForce



The share of connected cars is steadily rising in the new car market, owing to the rapid development of V2X in recent years, according to TrendForce’s latest investigations. As well, 3GPP, the standards-setting organization for telecommunications protocols, announced on July 3rd that it had approved Stage 3 of 5G Release 16 (R16). This marks the completion of 5G Phase 2, after which the industry will see a rising number of supported 5G applications, including autonomous driving. This represents a further expansion of V2X applications. As such, the number of connected cars sold in the new car market is projected to reach about 74 million units in 2025, an 80% penetration rate.

TrendForce analyst Caroline Chen indicates that the rapid surge in the penetration rate of connected cars likely takes place because various governments are aligning V2X, connected cars, and smart vehicles as vital national development priorities by officially supporting the growth of the V2X industry. Another factor is that automakers, telecom operators, and third-party service providers have all set their sights on the potential profitability of the massive data and related commercial applications that accompany the widespread adoption of V2X.

Global auto sales volume is projected to plummet by 20.6% in 2020, with 5G V2X applications as a potential highlight for the industry

In addition to improving the V2X user experience, 5G integration also extends V2X functionalities from existing emergency assistance and media entertainment functions to driver safety. 5G-based V2X enables ADAS- and ADS-based driver safety by interconnecting various driving-related data points, including vehicle telemetry, road conditions, and driver conditions, with the cloud. Furthermore, self-driving logistics vehicles, which are highly dependent on long-range remote driving, and self-driving truck fleets can both enter commercial applications sooner than expected thanks to 5G-based V2X.

According to TrendForce, 5G is an indispensable part of smart vehicle development, as it serves as the main driver for commercial opportunities in the automotive software and hardware sectors, although practical issues, including infrastructure (such as base stations and RSU), cost, vehicle design, and testing/certification, still need to be resolved. Since the COVID-19 pandemic has yet to be successfully contained, global auto sales volume in 2020 is projected to decrease by a massive 20.6%. At the same time, the market is placing high hopes on 5G V2X. This technology, along with its emergent applications, will likely become the driving force revitalizing the automotive industry.


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