LTE is set to predominate the connected car landscape in 2025 — Report
Cars are increasingly shipping with connectivity baked in, providing an opportunity for automakers, fleet managers, and telecoms to augment their revenue streams by gathering and transmitting data from those cars. But the types of connections employed will shift over time, in tandem with the available and most prevalent networks.
New estimates from McKinsey offer a glimpse into how automotive connectivity will evolve over the next few years.
- The total number of in-vehicle antennas will increase sixfold, rising to almost 1.2 billion globally by 2025, up from 200 million in 2015. This growth will be driven by changes to the integration of connectivity by original equipment manufacturers (OEMs), which will increasingly integrate antennas and connectivity into hardware so that they can pull operational data directly from the vehicle.
- LTE is set to predominate the connected car landscape in 2025, far outpacing legacy networks that are often used today. these communications standards will enable more data to flow over wireless networks, removing some limits so that information from increasingly complex sensors — those that power systems like advanced driver assistance systems (ADAS), for instance — can be sent back to OEMs. It will also enable them to push out updates to vehicles via cellular, rather than requiring a trip to the service center or the use of Wi-Fi.
The increasing number of connected cars with built-in high-speed connectivity will provide an opportunity for telecoms to deepen their partnerships with automakers, which they should start doing now.
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