What are
connected vehicles,
and why do we
need them?

A growing number of consumers want their connected vehicles to function as a Wi-Fi hotspot. They want to be seamlessly connected to the internet while they are in their vehicles, making the car an extension of their homes or offices.

This might explain accelerating demand. By 2022, the world is projected to see more than 125 million connected cars, a 270% increase since 2018. But what exactly are connected cars, and what are their benefits? And how can you access Wi-Fi in a car, also known as a car hotspot? Here's what to know.

A connected car is a vehicle that can communicate with the internet, road infrastructure, or even other vehicles or pedestrians through a wireless network. A connected vehicle also allows passengers to access a car hotspot. Through this hotspot, passengers can then connect multiple devices to the internet just like they would at home.

At the same time, these smart vehicles can communicate with other connected vehicles (V2V) over the public/federally-owned dedicated short-range communication spectrum (DSRC),   through cellular-based communications technology (C-V2X) and with smart city infrastructure (V2I) through machine-to-machine or Internet of Things protocols. They're an important part of a larger connected future, and customers will begin to expect these types of connected capabilities more often moving forward.

Connected cars can deliver a variety of advantages. Here are three that are likely to pique the interest of those who seek a connected experience.

Passengers can access a variety of "infotainment" options through embedded hardware and communication protocols. For example, they can stream media through popular applications, such as Pandora for music, making the car an extension of a personal playlist. You can also expect movies and gaming to move to the car, too. Connected vehicles with a hotspot could allow multiple devices to access a Wi-Fi connection. Meaning passengers could not only access entertainment but personalize it for a superior car experience.

The ability of connected vehicles to relay information about their location and speed is critical in decreasing the number of collisions. Information relayed to communication infrastructure can form the basis for crowdsourced data about how traffic is flowing. In turn, this information can be relayed back to vehicles, so drivers can be rerouted to less congested roads during times of high volumes. Connected cars can also sense the speed and acceleration of other cars and slow down in response, thereby decreasing the number of accidents.

A vehicle that is connected with city and private infrastructure can find an empty parking spot faster instead of endlessly circling around the block, wasting time. Traffic can also be more easily managed—with less braking—when the location of all traffic is known. Optimized routes can help everyone reach destinations faster and with less wasted fuel, too.

These are just a few of the benefits of connected vehicles, but it's clear that this technology could be a game-changer for everything from long road trips to the daily commute for drivers around the world.

By 2025, it's estimated that about 70% of U.S. drivers will be driving a connected vehicle. Having so many connected cars on the road will require a network that can speedily and reliably accommodate high internet traffic volumes. 5G will help, as it can deliver low latency, massive capacity and ultra-fast speeds at scale. As its coverage expands, it will empower more vehicles to enjoy high-performance hotspots than ever before.

Consumers looking to set up a car hotspot will need to contact their wireless service provider to see what plans they can use or add on. The ability to set up a connected vehicle will also depend on the car make and model, so it is best to check with the dealer and see what additional hardware, if any, might be needed.