Most light-duty vehicles in the US to have embedded connectivity by 2023

A recent study has predicted that 90% of the light-duty vehicles and trucks in the US will have embedded connectivity within the next four years. Globally, around 70% of the new vehicles are projected to have options for embedded or aftermarket cellular connectivity, an IDC study has found.

A connected vehicle is one that has a dedicated wireless wide area connection that interfaces with its sensors, software or other data. In short, connected vehicles have the ability to interact with devices, located inside or outside it.

Though the earlier models used network connectivity through aftermarket devices, most of the newer vehicles come with inbuilt ones.

According to IDC, the number of connected vehicles will rise over 45% this year to 51.1 million units. By recording an estimated compound annual growth rate of 16.8%, connected vehicles shipments are forecast to touch as much as 76.3 million units by 2023.

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

IDC attributes a number of factors for the sustained growth of connected vehicles. These include higher customer demand for a more immersive vehicle experience, progressive government regulations, higher investments into connected services and automakers’ ability to better utilize them for revenue generation.

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