According to Counterpoint Research, reported by Circuit Digest, the global automotive connectivity landscape is undergoing a rapid transformation—fueled by the rise of 5G technology and the increasing demand for Software-Defined Vehicles (SDVs).
The report predicts that the market for automotive connectivity modules and chipsets will experience a remarkable 13% compound annual growth rate (CAGR) from 2020 to 2030. This surge is expected to propel shipments of Network Access Devices (NAD) modules to over 700 million by the decade’s end.
This growth trajectory is largely attributed to the emergence of “Automotive 2.0,” a paradigm shift in the automotive industry that encompasses electrification, autonomy, digital cockpits, and advanced infotainment systems. At the heart of this transformation lies connectivity, which serves as the backbone for these innovative features. 5G connectivity, in particular, is poised to revolutionize the automotive industry by offering enhanced bandwidth, capacity, and lower latency. These capabilities will pave the way for real-time battery management, high-definition mapping, immersive infotainment, and sophisticated autonomous driving systems.
While 4G currently holds a dominant position in the market, the report forecasts a gradual shift towards 5G as the preferred technology for advanced driver-assistance systems (ADAS) and autonomous vehicles. Qualcomm currently leads the automotive chipset market and is expected to maintain its dominance throughout the forecast period. However, MediaTek is rapidly gaining traction with its expanding portfolio of automotive solutions, including the Dimensity Auto platform and 5G RedCap technology.
The competitive landscape for NAD module vendors is also evolving, with Quectel, Rolling Wireless, and LG leading the pack. Other notable players like Continental, Harman, WNC, and AM Telecom are steadily carving out their niches through strategic partnerships and targeted customer engagement. As the automotive industry continues its journey toward a more connected and autonomous future, the demand for advanced connectivity solutions is set to soar, ushering in a new era of innovation and technological advancement.
The image above is credited to Techeconomy. That’s pretty cool stuff that awaits us in the future, isn’t it?
