- The US overtook China in Q2 2022 to steer the worldwide linked 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 linked automotive gross sales.
London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – September 29, 2022
International linked automotive gross sales* remained flat YoY in Q2 2022 regardless of ongoing turbulence within the automotive trade, in accordance with the newest analysis from Counterpoint’s Related Automobile Companies. The US led adopted by China and Europe. The highest three areas accounted for practically 80% of linked automotive gross sales within the quarter.
The linked 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 desire 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 linked vehicles with inbuilt Wi-Fi, even earlier than the preliminary push in the direction of linked automobiles got here from authorities mandates like eCall.
Commenting on the regional dynamics, Senior Analyst Soumen Mandal mentioned, “The US market trailed China when it comes to linked 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 similar 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 relating to the deployment of 5G networks have given China the first-mover benefit.”
Mandal added, “Europe, together with main international locations like Germany, UK and France, noticed its general gross sales dip within the first half of the yr on account of persistent issues just like the Russia-Ukraine warfare and provide chain disruptions. Nonetheless, the area managed to extend its linked automotive penetration to nearly 60% within the second quarter owing to rising linked automotive expertise within the portfolios of incumbent gamers like Stellantis, Volkswagen, BMW and Mercedes. From a world perspective, Volkswagen, Toyota and Normal Motors teams lead the market on account of giant volumes and excessive connectivity penetration inside their portfolios.”
The automotive trade goes via a number of simultaneous transitions similar to linked mobility, electrification, autonomous driving, and software-based companies. And connectivity is prime for all. Nonetheless, it’s creating stress on provide chains to assist these transitions.
Related vehicles surpassing non-connected vehicles is a major milestone towards attaining success within the automotive trade transformation. Now the use instances of connectivity inside vehicles are increasing from telematic companies to turning into extra software-centric, delivering options like digital cockpit via to autonomous driving. Consequently, automakers are specializing in utilizing highly effective on-board computer systems for next-generation linked mobility. At the moment, linked 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 expertise 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.
Protecting the expertise evolution in thoughts, Analysis Vice-President Peter Richardson added, “4G vehicles nonetheless dominate the worldwide linked 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 components hindering the proliferation of 5G for vehicles, similar 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 Stage 3 succesful fashions and all use 4G. We count on 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 take into account 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 expertise/connectivity – 2G, 3G, 4G and 5G.
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Counterpoint Know-how Market Analysis is a world analysis agency specializing in merchandise within the TMT (expertise, media and telecom) trade. It companies main expertise and monetary corporations with a mixture of month-to-month stories, personalized initiatives and detailed analyses of the cellular and expertise markets. Its key analysts are seasoned specialists within the high-tech trade.