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Strategy Analytics: 5G Will Transform Vehicle Value to Benefit Consumers, Dealers, and Car Makers

12/14/2021

5G Will Alter Consumer Attitudes Toward Car Connectivity

A new study, conducted by Strategy Analytics for Avanci, identifies transformative value propositions deriving from the introduction of 5G technology. This is especially important now that nearly all cars sold in Europe, the U.S., and China come equipped with connectivity.

Figure 1. Estimated Impact of 5G Technology on 5G-equipped Cars (Graphic: Business Wire)

Figure 1. Estimated Impact of 5G Technology on 5G-equipped Cars (Graphic: Business Wire)

“5G connectivity will allow automakers to preserve or enhance the value of vehicles post-sale in a manner that will alter the calculation of residual vehicle values,” said Roger Lanctot, Director of Connected Mobility at Strategy Analytics. “This, in turn, will influence the economics of leasing and the market value of both new and used cars.”

At the same time, 5G connectivity will directly assist and support the development of advanced driver assist systems capable of helping cars avoid collisions while facilitating self-driving vehicle operation. Over time, 5G connected cars will capture an increasing share of unit volume with an even faster capture of sales revenue.

Once all cars are equipped with 5G, the report says that auto makers will be able to tap into $40B in annual warranty cost avoidance; consumers will see $32B in annual lease/loan savings; and dealers will see a $24B annual enhancement in revenue at the point of sale. These savings are above and beyond the societal gains expected from reductions in collisions and emissions, which will also be in the billions of dollars globally.

“Until now, car connectivity was a take it or leave it value proposition for consumers,” said Roger Lanctot, Director of Connected Mobility for Strategy Analytics. “5G will change all that.”

The full report is available for download here: “5G Connected Cars: A Transformative Value Proposition”

Source: Strategy Analytics, Inc.

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About Strategy Analytics

Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.

About Avanci

Avanci’s one-stop marketplace has transformed the way companies share technology by licensing intellectual property from many different patent holders in a single transaction, at a fixed cost, paid once for the lifetime of the vehicle. By streamlining the technology sharing process, Avanci provides automotive manufacturers with an efficient and transparent way to access the wireless technology needed to bring their products online. www.avanci.com

Report contacts:
US Contact: Roger Lanctot, +1 617 614 0741, rlanctot@strategyanalytics.com

Source: Strategy Analytics

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