BOSTON – (BUSINESS WIRE) – December 14, 2021–
A new study, conducted by Strategy Analytics for Avanci, identifies transformative value propositions arising from the introduction of 5G technology. This is especially important now that almost all cars sold in Europe, the United States and China come with connectivity.
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Figure 1. Estimated impact of 5G technology on cars equipped with 5G (Graphic: Business Wire)
“5G connectivity will allow automakers to preserve or enhance the value of vehicles after sale in a way that will alter the calculation of vehicle residuals,” said Roger Lanctot, director of connected mobility at Strategy Analytics. “This, in turn, will influence the rental economy and the market value of new and used cars.”
At the same time, 5G connectivity will directly assist and support the development of advanced driver assistance systems capable of helping cars avoid collisions while facilitating the operation of autonomous vehicles. Over time, 5G connected cars will capture an increasing share of unit volume with even faster revenue capture.
Once all cars are equipped with 5G, the report says automakers will enjoy $ 40 billion in annual warranty cost avoidance; consumers will see $ 32 billion in annual savings on rentals / loans; and dealers will see a $ 24 billion annual increase in point-of-sale revenue. These savings go beyond the societal gains expected from collision and emission reductions, which will also run into billions of dollars globally.
“Until now, automotive connectivity has been a take-it-or-leave-it-it-yourself value proposition for consumers,” said Roger Lanctot, Director of Connected Mobility for Strategy Analytics. “5G will change all of that. “
The full report is available for download here: “5G Connected Cars: A Transformative Value Proposition”
Source: Strategy Analytics, Inc.
# SA — Automotive
About strategic analysis
Strategy Analytics, Inc. is a global leader in supporting businesses throughout their planning lifecycle with a range of customized market research solutions. Our multidisciplinary capabilities include: industrial research consulting services, customer insight, user experience design and innovation expertise, mobile consumer tracking on devices, and business-to-business consulting skills. With expertise in the following areas: smart devices, connected cars, smart home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning needs. For more information, visit our website www.strategyanalytics.com.
Avanci’s one-stop-shop has transformed the way companies share technology by licensing intellectual property to many different patent holders in a single transaction, at a fixed cost, paid once for the lifetime of the vehicle. By streamlining the process of sharing technology, Avanci offers automakers an efficient and transparent way to access the wireless technology needed to bring their products online. www.avanci.com
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211214005317/en/
CONTACT: Report contacts:
American contact: Roger Lanctot, +1 617 614 0741, [email protected]
KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: AUTOMOTIVE MANUFACTURING TECHNOLOGY TELECOMMUNICATIONS MANUFACTURING
SOURCE: Strategic analysis
Copyright Business Wire 2021.
PUB: 12/14/2021 9:26 a.m. / DISC: 12/14/2021 9:26 a.m.
Copyright Business Wire 2021.