Worldwide Connected Vehicle Shipments Forecast to Reach 76 Million Units by 2023, According to IDC

In its inaugural connected vehicle forecast, International Data
Corporation (IDC)
estimates that worldwide shipments of connected vehicles, which includes
options for embedded and aftermarket cellular connectivity, will reach
51.1 million units in 2019, an increase of 45.4% over 2018. By 2023, IDC
expects worldwide shipments to reach 76.3 million units with a five-year
compound annual growth rate of 16.8%.

IDC defines a connected vehicle as a light-duty vehicle or truck that
contains a dedicated cellular network wireless wide area connection that
interfaces with the vehicle data (e.g., gateways, software, or sensors).
Newer, recent model year vehicles are shipped with an embedded,
factory-installed connected vehicle system. Older vehicles typically
connect via an aftermarket device, which is a self-contained hardware
and software unit that is installed into a vehicle's OBDII port.

The commitment of mass market automotive brands to make embedded
cellular standard equipment in key markets was a major development in
the arrival of connected vehicles. By 2023, IDC predicts that nearly 70%
of worldwide new light-duty vehicles and trucks will be shipped with
embedded connectivity. Likewise, IDC expects that nearly 90% of new
vehicles in the United States will be shipped with embedded connectivity
by 2023.

The sustained growth of the connected vehicles market is being driven by
a multitude of factors, including consumer demand for a more immersive
vehicle experience, the ability of auto manufacturers to better utilize
connected vehicles for cost avoidance and revenue generation, evolving
government regulations, and mobile network operator investments in new
connections and services.

"The automotive ecosystem is positioning the vehicle as the next,
emerging digital platform," said Matt Arcaro, research manager,
Next-Generation Automotive Research at IDC. "Deploying embedded or
aftermarket connectivity at scale will be key to unlocking its
potential."

The IDC report, Worldwide
Connected Vehicle Forecast, 2019-2023 (IDC #US45050319),
examines the worldwide and U.S. connected vehicle market for the
2018–2023 period. A five-year growth forecast for this market is shown
for 2019–2023.

About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter at @IDC
and LinkedIn.

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