The number of connected vehicles globally is set to grow from 192 million this year to more than 367 million in 2027, with 5G connectivity set to play a key role in the development of the market, according to a new report from Juniper Research.  The company’s new Connected Vehicles research report provides an independent analysis of the future evolution of this fast-paced market and advanced connectivity solutions within the automotive industry. It provides a comprehensive study of the increase in constant connectivity technology features in cars being adopted by automotive original equipment manufacturers, how the rise of 5G is impacting the connected cars market expansion, and the key role mobile network operators have in driving the market forward in order to offer advanced connectivity and an enhanced driving experience.

The analyst firm believes the growth will be driven by improvements in both advanced driver assistance systems (ADAS), the attraction of enhanced in-vehicle infotainment systems, and the transformative potential of 5G’s high-speed and low-latency capabilities. However, maximizing 5G’s potential impact will require “effective collaborations between automotive OEMs and [mobile network] operators,” according to the authors of the report, who believe the 5G connectivity opportunity presented to telcos by the connected vehicle sector will be worth US$3.6bn in 2027.

According to the co-author of the research, Nick Maynard, “5G can allow automotive OEMs [original equipment manufacturers] to upgrade the in-vehicle experience. In a vehicle market transitioning to electric vehicles, improving the user experience is key. Operators hold the critical role in enabling this in a reliable way, making them the partners of choice as their 5G networks rapidly expand.” Connected vehicles utilising 5G will be able to exchange information “between the various elements of the transport system and third-party services.”