5G-AI Connected Cars Poised to Dominate India’s Smart Device Market in 2025
Image Credit: Malhar Garud | Splash
As India gears up for a technological leap in its automotive sector, connected cars equipped with 5G and artificial intelligence are poised to become the nation’s most coveted smart devices by 2025. A recent report by Techarc, titled the India Connected Consumer Report 2025, highlights this emerging trend, signalling a significant shift in consumer preferences and automotive strategies.
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Shifting Consumer Dynamics in Smart Device Usage
Despite the growing popularity of smart home appliances and speakers among Indian consumers, sustained usage remains a challenge. The Techarc report reveals that 27% of respondents have either discontinued or reduced their use of at least one smart device. The primary reasons cited include subpar user experiences and a perceived lack of value for money.
However, this trend is set to change as consumers show a heightened interest in devices that deliver superior features, quality, and overall experience. Connected cars emerge as a frontrunner in this category, promising enhanced value and functionality that resonate with the evolving needs of Indian buyers.
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OEMs Embrace 5G and AI as Core Strategies
The automotive industry in India is witnessing a paradigm shift, with all 22 major automobile Original Equipment Manufacturers (OEMs) aligning their core strategies around connected car technologies. Starting next year, new passenger cars introduced in the Indian market will standardize features such as 5G IoT connectivity, onboard Generative AI (GenAI), cloud connectivity, and multiple displays, catering to various price segments.
Notably, vehicles priced at INR 2 million (approximately US$23,700) and above will come equipped with 5G connectivity and GenAI as standard offerings. This move underscores the industry's commitment to integrating advanced technologies that enhance the driving and passenger experience.
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Key Features and Early Use Cases of Connected Cars
Techarc anticipates that several applications will drive the initial adoption of connected cars in India. Telematics, vehicle maintenance, audio/video conferencing, and infotainment apps are identified as the primary use cases gaining traction. “With connectivity and the technologies it brings to the cars, the future of automobile sector will be fundamentally determined by the auto-technologies that will influence the overall experience, performance, comfort, safety and entertainment available to the drivers as well as the passengers”, stated Sadat Ahanger, Techarc’s auto-tech sector analyst. “So far, such features were seen as luxury or high-end experiences. But starting 2025, many of these will become mainstream for cars in India”.
Telecom Industry Poised for New Monetization Opportunities
The surge in connected car adoption presents lucrative opportunities for telecom companies seeking to monetize 5G services. With India potentially becoming the world’s largest 5G IoT market within the next two to three years, the local automotive sector’s preference for 5G over 4G is a strategic advantage. The widespread availability of 5G in India’s most populated regions further bolsters this outlook.
A testament to this synergy is the recent partnership between Bharti Airtel’s B2B division, Airtel Business, and Kia India. Together, they launched Kia Connect 2.0, a next-generation connected-car platform powered by Airtel’s IoT connectivity solutions. This collaboration exemplifies how telecom providers are capitalizing on the connected car boom to expand their service offerings and revenue streams.
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About Techarc
Techarc – Technology Analytics, Research & Consulting is a forward-thinking technology market research firm dedicated to providing neutral and unbiased insights to decision-makers. Specializing in areas such as Consumer Tech, Deep Tech, Digi Tech, Edu Tech, Auto Tech, and Assistive Tech, Techarc offers both subscription-based services and ad-hoc research projects. By leveraging advanced research technologies (Restech), Techarc delivers comprehensive market analyses swiftly, aiding businesses in formulating effective growth strategies. Serving a diverse clientele—including large Tier 1 enterprises, SMEs, start-ups, and leading advocacy/trade bodies—Techarc stands out as the only technology market research group in India with ESOMAR (European Society for Opinion and Marketing Research) membership, underscoring its commitment to industry standards and excellence.
Source: Developing Telecoms, Techarc
