Connected Vehicles to Account for 12% of Global Sales by 2024

May 16, 2019 at 4:43 PM

Global production of passenger vehicles with some form of connectivity capability will soar from about 15,000 units this year to more than 11.2 million in 2024, according to a forecast by IHS Markit.

At that volume, vehicles with so-called vehicle-to-everything (V2X) telematics systems will account for 12% of the global market by 2024. IHS bases its forecast on planned production rates and sourcing strategies.

Applications initially will be split between existing dedicated short-range communication (DSRC) systems and emerging cellular V2X (C-V2X) technologies. But the latter should begin to win out by as early as next year, according to the firm.

China is expected to lead the way, with an estimated 629,000 light vehicles with C-V2X produced in the region in 2020. In North America, production of C-V2X equipped models is due to start in 2021 at a rate of about 56,000 vehicles.

Production of factory-installed V2X vehicles in Europe will total 411,000, IHS says, but the bulk of these applications likely will be DSRC. Significant C-V2X growth is projected throughout the region in 2023.

Japan and Korea also are likely to favor DSRC initially, with a combined 61,000 vehicles equipped with such applications in 2021. IHS doesn’t expect V2X to be deployed in India and South America until the end of the forecast horizon.

Launches in all countries could be impacted by local regulations, IHS cautions. It notes that a proposed European standard could delay the rollout of C-V2x there, while the status of a DSRC standard in the U.S. remains in limbo.