Connected cars and the role of telecoms

Data is the new fuel powering modern cars, and networks are the pipelines. While fully autonomous vehicles may still be years away, car connectivity is increasingly critical for exchanging data with external systems for infotainment, automated safety features, over-the-air (OTA) software updates, and other connected services.

In fact, connected car sales overtook non-connected cars for the first time ever in 2022. The market is expected to grow at a CAGR of nearly 17% with the number of connected vehicles in service projected to reach 367 million globally by 2027. That will add up to a tremendous amount of data.

Consider this scenario: if just 20% of the world’s 1.5 billion cars become highly autonomous, meaning many driving functions are automated, they would generate around 300 zettabytes of data.

Then factor in data from the surging electric vehicle market and its charging infrastructure connectivity needs, as well as the thriving connected car application market. Just as drivers use apps on their mobile phones, they can use apps on their car to manage maintenance, find inexpensive fuel or available charging stations, log mileage, map routes, and choose music.

Future of mobility: Connected vehicles leverage advanced telematics and internet-based services to enhance the driving experience.

The resulting massive volumes of vehicle data will flood telecommunications networks. And as autonomous driving increases, network performance, cybersecurity, and data reliability become a safety imperative for vehicle-to-vehicle (V2V) and vehicle-to-everything (V2X) communication with intelligent traffic systems, pedestrians, and other Internet of Things (IoT) devices.

The data-driven applications and telematics in the modern vehicle depend on reliable, high-throughput, low-latency network connections.

The automotive industry is forging ahead with a revolutionary digital transformation, leveraging connectivity solutions—5G and private 5G networks, fiber, wifi, and edge—at every stage of the product lifecycle from the drawing board to disposal. Use of artificial intelligence (AI) in design, manufacturing, and maintenance will fuel even greater data demands.

The implications for telecoms are monumental—and underappreciated. Are they prepared to work with an ecosystem of OEMs, government policy makers, industry associations, and cloud service providers to handle the impending deluge of data stemming from vehicle connectivity? Are they anticipating and ready to take advantage of emerging use cases that leverage the newfound connected car data?

Experts from Jaguar Land Rover, China Mobile, and IBM take a look under the hood at three key requirements for the telecom industry—coverage expansion, data trust, and collaborative partnerships—as the transition to more connected and more autonomous cars accelerates. The industry leaders of tomorrow will exploit opportunities for a potential competitive edge. Those who are caught by surprise will find themselves in the rearview mirror of their rivals.

Download the report, co-sponsored by GSMA Intelligence, to explore how telecoms can work with automakers to get ahead of the flood of connected car data. An action guide suggests steps leaders for telecoms, vehicle manufacturers, and government can take to advance connected car technology solutions.