- The US overtook China in Q2 2022 to guide the worldwide related automotive market.
- The highest 5 teams – Volkswagen, Toyota, GM, Stellantis and Hyundai – captured half of the market.
- 5G automotive gross sales surpassed half one million, although 4G accounted for 90% of related automotive gross sales.
London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – September 29, 2022
International related automotive gross sales* remained flat YoY in Q2 2022 regardless of ongoing turbulence within the automotive business, in response to the most recent analysis from Counterpoint’s Linked Automotive Companies. The US led adopted by China and Europe. The highest three areas accounted for practically 80% of related automotive gross sales within the quarter.
The related automotive penetration surpassed that of non-connected vehicles for the primary time ever, capturing nearly 50.5% share in Q2. Non-connected vehicles have been steadily declining as automakers favor to improve their portfolio with factory-fitted embedded connectivity even in base mannequin variants. Luxurious manufacturers like BMW, Mercedes and Audi have been the primary to introduce related vehicles with inbuilt Wi-Fi, even earlier than the preliminary push in direction of related automobiles got here from authorities mandates like eCall.
Commenting on the regional dynamics, Senior Analyst Soumen Mandal stated, “The US market trailed China by way of related automotive gross sales within the first quarter of this yr. Nonetheless, with the resurgence of COVID-19 and plant shutdowns in China from March onwards, the US overtook China. China was the primary nation to introduce 5G vehicles again in 2020 with fashions just like the Arcfox Alpha-T, Roewe Marvel R and Nice Wall Motors Haval HG. Main automakers comparable to Audi and BMW entered the market in 2021 and 2022 by launching fashions just like the Audi A7L/A6L and BMW iX respectively. Authorities initiatives together with a push from state-owned telecom operators concerning the deployment of 5G networks have given China the first-mover benefit.”
Mandal added, “Europe, together with main nations like Germany, UK and France, noticed its general gross sales dip within the first half of the yr because of persistent issues just like the Russia-Ukraine conflict and provide chain disruptions. Nonetheless, the area managed to extend its related automotive penetration to nearly 60% within the second quarter owing to rising related automotive know-how within the portfolios of incumbent gamers like Stellantis, Volkswagen, BMW and Mercedes. From a world perspective, Volkswagen, Toyota and Basic Motors teams lead the market because of massive volumes and excessive connectivity penetration inside their portfolios.”
The automotive business goes via a number of simultaneous transitions comparable to related mobility, electrification, autonomous driving, and software-based providers. And connectivity is prime for all. Nonetheless, it’s creating stress on provide chains to assist these transitions.
Linked vehicles surpassing non-connected vehicles is a big milestone towards attaining success within the automotive business transformation. Now the use instances of connectivity inside vehicles are increasing from telematic providers to turning into extra software-centric, delivering options like digital cockpit via to autonomous driving. Because of this, automakers are specializing in utilizing highly effective on-board computer systems for next-generation related mobility. At the moment, related vehicles sometimes use a single NAD module to offer infotainment and predictive analytics. However some Chinese language manufacturers and luxurious automakers are utilizing two NADs in a know-how known as Twin SIM Twin Energetic (DSDA) to offer, for instance, uninterrupted infotainment to passengers whereas concurrently importing essential automobile information on to the cloud for analytics.
Maintaining the know-how evolution in thoughts, Analysis Vice-President Peter Richardson added, “4G vehicles nonetheless dominate the worldwide related automotive market, capturing 90% of shipments in Q2 2022, whereas 5G vehicles accounted for round 7%. Though 5G’s share will proceed to extend, 4G will see elevated gross sales on a yearly foundation till 2027. There are a number of elements hindering the proliferation of 5G for vehicles, comparable to excessive costs of 5G NAD/TCU, and patchy community protection even the place 5G has been launched, which in flip means restricted availability of 5G succesful vehicles. Moreover, there may be solely nascent adoption of ADAS/AD ranges – at present, there are few Degree 3 succesful fashions and all use 4G. We anticipate that mass adoption of 5G connectivity will solely happen after 2025, when most of those points could have been resolved”.
*Gross sales right here discuss with wholesale figures, i.e. deliveries out of factories by respective manufacturers, and contemplate solely passenger vehicles with embedded connectivity.
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Counterpoint tracks and forecasts on a quarterly foundation round 50 automakers’ gross sales in key geographies like China, US, UK, Germany, France, Japan, South Korea, Remainder of Europe and Remainder of World, and by know-how/connectivity – 2G, 3G, 4G and 5G.
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Counterpoint Expertise Market Analysis is a world analysis agency specializing in merchandise within the TMT (know-how, media and telecom) business. It providers main know-how and monetary corporations with a mixture of month-to-month stories, custom-made initiatives and detailed analyses of the cellular and know-how markets. Its key analysts are seasoned consultants within the high-tech business.