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. 5g car

“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, 5 G-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 automakers 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.” 5g car