Beijing, Hong Kong, New Delhi, London, Seoul, Buenos Aires, San Diego – December 18, 2020

5G connected car sales volume in China will jump to 7.1 million units in 2025, accounting for 40% of the country’s total connected car sales volume, according to the latest research by Counterpoint’s Smart Automotive service. Currently, 4G dominates China’s connected car market. The sales volume of 4G connected cars are expected to reach 7.8 million units in 2020 to account for 95% of the country’s total connected car sales volume. However, with 5G seeing a fast rollout in China and the automotive industry expected to grow faster starting 2021, the share of 5G connected car sales volume will show rapid growth. Government incentives such as a plan to issue US$535.6 billion (RMB 3.7 trillion) special-purpose bonds in 2020 to promote strategic sectors like 5G, Made in China 2025 will also drive 5G adoption by China’s automotive industry. The three state-owned telecom operators in China – China Mobile, China Unicom, and China Telecom – are expected to invest around $184 billion in 5G networks by 2025.

Commenting on the dynamics of China’s connected car market, Senior Analyst Aman Madhok said, ”Despite the impact of COVID-19, China’s connected car sales volume are expected to reach 8.2 million units in 2020, a slight increase of 0.8% YoY from the 8.1 million units shipped in 2019. In terms of the global share, China is expected to grab 26.8% of the sales volume in 2020, becoming the second-largest connected car market. With a projected share of 30%, the US will continue to lead the market while Europe will take the third spot, but with almost the same volume as China.

Exhibit 1: Global Connected Car Sales Volume Share by Country, 2020

Source: Counterpoint’s Smart Automotive Service

Looking from the brand perspective, Research Associate Alicia Gong said, “Foreign brands control almost three-quarters of China’s connected car sales volume. Volkswagen Group is the market leader with a 25% share, followed by General Motors and Mercedes Benz. Among local brands, which account for just 12% of the sales volume, Changan is the leader with a 4% share, followed by Geely and SAIC.”

Exhibit 2: Projection for China Connected Car Sales Volume Share by Brand, 2020

Source: Counterpoint’s Smart Automotive Service

Another point worth mentioning here is that luxury brands Mercedes Benz, BMW, and Audi have been offering 4G connectivity in most cars since Q1 2019. After Huawei released the world’s first 5G telematics module (MH5000) in April 2019, Audi quickly deployed it in its passenger cars and showcased it at the Beijing-Chongli Expressway demonstration in 2019-end. We expect Audi to launch these models soon, followed by other brands.

The comprehensive and in-depth ‘Global Connected Car Tracker 2020’ is now available for purchase at report.counterpointresearch.com. Feel free to reach out to us at press(at)counterpointresearch.com for further questions regarding our latest research and insights, or for press enquiries.

Background:

Counterpoint Technology Market Research is a global research firm specializing in technology products in the TMT industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

Analyst Contacts:

Alicia Gong

Aman Madhok

Counterpoint Research
press(at)counterpointresearch.com

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