New research by Strategy Analytics for Avanci shows that the introduction of 5G technology will change the cost of cars. Let’s clarify that we are not talking about retail prices, but about the winnings that will be received by consumers, dealers and manufacturers.
“5G connectivity will allow automakers to maintain or increase the value of vehicles after the sale, which will change the calculation of the residual value of vehicles,” said Roger Lanctot, director of connected mobility at Strategy Analytics. “This, in turn, will affect the leasing economy and the market value of both new and used cars.”
5G connectivity will directly contribute to the development of advanced driver assistance systems to help avoid collisions and facilitate the transition to self-driving, analysts said. Over time, cars connected to 5G will occupy an increasing share of sales in volume terms, and even more so in monetary terms.
The report says that once all cars are equipped with 5G, automakers will be able to save $ 40 billion in annual warranties, consumers will receive $ 32 billion in annual savings in rent and leasing, and dealers will see $ 24 billion in annual revenue growth at the point of sale. … And that’s not counting the societal benefits expected from the reduction in collisions and emissions, which will also amount to billions of dollars.