Ericsson Mobility Report projects 3 billion IoT connections in North America by 2021
Connected cars and attendant in-vehicle services are a major driver of “internet of things” adoption in North America, according to the most recent Ericsson Mobility Report. Further, connected cars, which currently rely on 3G and LTE connections, will get a major boost once “5G” mobile networks are commercialized.
“The connected vehicle IoT application continues to gain traction in the U.S. and Canada,” the report notes. “The major operators in these countries have established relationships with auto manufacturers, and nearly every major auto manufacturer is represented. The primary service offered by auto manufacturers is emergency assist services, followed by vehicle diagnostics.”
Ericsson surveys reveal that 95% of service providers in the U.S. and Canada expect to conduct 5G technology trials by 2018. So what does that mean for connected cars?
“The lower latency of 5G means a connected car could report an accident before the airbags were fully inflated, and 70% of U.S. and Canadian public safety organizations surveyed believe faster arrival at incidents is a key use case for 5G,” the report found.
The report also tracks the growth in mobile connections in the U.S. and Canada, which are expected to grow at a compounded annual growth rate of 2% between now and 2021. Ericsson projects 450 million mobile subscriptions in the U.S. and Canada by 2021, up from the 2015 tally of 390 million.
“The region’s total mobile data usage will grow by 35% annually through to 2021, requiring operators to focus their expenditures on expanding mobile broadband to increase its coverage, speed and capacity,” the report authors wrote.
