5G connected cars to take 40% of China market by 2025

New Delhi: 5G connected car sales volume in China will reach 7.1 million units in 2025, accounting for 40 per cent of the country's total connected car sales volume, according to latest research.

The sales volume of 4G connected cars are expected to reach 7.8 million units in 2020 to account for 95per cent of the country's total connected car sales volume, according to Counterpoint Research's Smart Automotive service.

However, with 5G seeing a fast rollout in China and the automotive industry expected to grow faster starting 2021, the share of 5G connected car sales volume will show rapid growth.

"Despite the impact of COVID-19, China's connected car sales volume are expected to reach 8.2 million units in 2020, a slight increase of 0.8 per cent YoY from the 8.1 million units shipped in 2019," said Senior Analyst Aman Madhok.

In terms of the global share, China is expected to grab 26.8 per cent of the sales volume in 2020, becoming the second-largest connected car market.

With a projected share of 30 per cent, the US will continue to lead the market while Europe will take the third spot, but with almost the same volume as China.

The three state-owned telecom operators in China - China Mobile, China Unicom, and China Telecom - are expected to invest around $184 billion in 5G networks by 2025.

Luxury brands Mercedes Benz, BMW, and Audi have been offering 4G connectivity in most cars since Q1 2019.

After Huawei released the world's first 5G telematics module (MH5000) in April 2019, Audi quickly deployed it in its passenger cars and showcased it at the Beijing-Chongli Expressway demonstration in 2019-end.

"We expect Audi to launch these models soon, followed by other brands," the report said.