www.GeoActiveGroup.com

How Connected Cars Support Flexible Working Trends

It’s estimated there are over 1.1 billion personal vehicles currently in use globally. Juniper Research predicts steady growth for all eight key regions, with vehicles on the roads reaching 1.2 billion around the world in 2025. North America, West Europe, and the Far East & China have the highest number of vehicles in use per 1,000 persons of the population.

In recent years there have been changes in the market, with higher adoption of hybrid and fully electric cars which require more complex operational monitoring technology. Plus, with more people embracing remote and flexible working models, the car can become a mobile office with all the associated business requirements, including reliable broadband connectivity.

Connected vehicles can utilize several types of technology. Among those, existing mobile communications network infrastructure already plays a key role, in some cases, in tandem with short-range technology, such as Road-Side Units (RSUs).

Connected Vehicles Market Development

With greater synergy between vehicles, traffic management, and road infrastructure, mobile network operators must now be able to support Vehicle-to-Network-to-Infrastructure (V2NI) communication: indirect communication between a vehicle and roadside infrastructure via the cellular wireless network and IT infrastructure.

According to the latest market study by Juniper Research, the number of vehicles with embedded connectivity will reach 200 million globally by 2025 — rising from 110 million in 2020.

One of the main beneficiaries of this growth will be mobile service providers. The incorporation of embedded SIM (eSIM) into the vehicle will enable mobile operators to leverage their existing network infrastructure to claim $3 billion of additional service revenue by 2025, by acting as a Machine-to-Machine (M2M) connectivity provider.

Juniper analysts now predict that eSIMs will act as the catalyst for future mobile network operator service deployments in the connected car space. Smaller form factors and higher physical durability of eSIM modules will attract automotive OEMs to the new standard over existing traditional SIMs.

Juniper urges operators to leverage wholesale agreements with automotive OEMs to create steady revenue streams from the connected car market. However, mobile operators must ensure the provision of management services, either directly, or via partnerships with established IoT platforms, to attract high spending automotive OEMs to their networks.

“As the adoption of embedded SIMs increases, operators’ success in the market will be determined by which platforms can offer the most comprehensive value-added services to automotive OEMs,” said Sam Barker, lead analyst at Juniper Research.

Outlook for Connected Car Applications Growth

Juniper Research predicts that there will be 30 million vehicles globally with embedded 5G connectivity by 2025. As embedded 5G connectivity becomes more prevalent, it anticipates that 25 percent of cellular data generated by vehicles will be attributable to 5G-capable cars, despite representing only 14 percent of the installed base of vehicles with embedded connectivity.

As a result, mobile network service providers will need to charge a premium for 5G automotive connections, in order to account for the additional network traffic generated by 5G-based automotive traffic.

Furthermore, I can foresee a future where 5G mobile connectivity enables remote workers to explore new applications that further enhance their productivity, by securely performing more tasks that were once done in a traditional office environment. Truly, the possibilities for flexible working advancements are limited only by our imagination.

Originally published at https://blog.geoactivegroup.com.

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GeoActive Group | David H. Deans

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David H. Deans

David H. Deans

Technology, Media, Telecom analyst, consultant, columnist

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