The number of vehicles with embedded connectivity will reach 200 million globally by 2025; rising from 110 million in 2020, according to the new Juniper Research study, Operator Connected Car Strategies: Future Opportunities & Market Forecasts 2020-2025m
One of the main beneficiaries of this growth will be mobile operators. The incorporation of eSIMs (embedded SIM) into the vehicle will enable operators to leverage their existing network infrastructure to claim $3 billion of additional service revenue by 2025, by acting as an M2M (Machine-to-Machine) connectivity provider.
The study predicts that eSIMs will act as the catalyst for future 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.
The research urges operators to leverage wholesale agreements with automotive OEMs to create steady revenue streams from the connected car market. However, 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.
Research co-author Sam Barker remarked , “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.”