Europe to add 69 million connected cars during 2020-25: Report
New Delhi: Europe connected car shipments have been increasing rapidly during the last five years. According to the latest research from Counterpoint’s Smart Automotive service, the shipments are expected to grow at a CAGR of 12% with a total of 69 million units to be added during 2020-2025.
The top three automotive groups – Volkswagen, PSA and Renault Nissan Alliance – account for almost half of the connected car shipments in Europe, primarily because they have been leading the passenger car sales in the region.
Research Vice-President Peter Richardson underlined, “Volkswagen’s Golf and Tiguan are the best-selling cars in Germany and PSA’s Peugeot 208 and Citroen C3 are among the top three bestsellers in France. Moreover, luxury automakers like Daimler and BMW have been actively providing connectivity in their cars much before the eCall mandate was put in place” which gave them the lead.
In Q2 2020, 4 out of 5 connected cars were using 4G LTE connectivity in Europe.Counterpoint Research
Commenting on the adoption of advanced connectivity in cars across the region, Research Associate Fahad Siddiqui said, “European market witnessed a decline of 41% YoY in Q2 2020 due to the impact of COVID-19. Germany was at the forefront in terms of connected car shipments, followed by France and the UK. The implementation of eCall regulation in the EU to reduce the response time for car accidents has led to significant growth of embedded TCUs in the region during the last few years.”
In Q2 2020, 4G LTE was the primary choice for connectivity, representing four out of five connected cars shipped during the quarter. However, 2G/3G connectivity is still prevalent in some parts of developing Europe, with original equipment manufacturers (OEMs) just complying with the basic eCall mandate, it added.
Senior Analyst Aman Madhok said, “5G development continues to gain traction in Europe with leading automakers conducting C-V2X trials. By 2025, one out of five connected cars sold in the region will be 5G compatible.”