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Add to CartConnected Cars Market
By Service;
Navigation, Remote Diagnostics, Multimedia Streaming, Social Media & Other Apps, OTA Updates, On-Road Assistance, E-Call & SOS Assistance, Cyber Security, Remote Operation, Collision Warning, Auto Parking/Connected Parking, Autopilot, Home Integration, Vehicle Management, and Asset TrackingBy Hardware Type;
Head Unit, Central Gateway, Intelligent Antenna, Electronic Control Unit, Telematic Control Unit, Keyless Entry Systems, and SensorsBy Form Type;
Embedded, Tethered, and IntegratedBy Transponder;
Onboard Unit and Roadside UnitBy Network;
DSRC and CellularBy End Market;
OEM and AftermarketBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Connected Car Market Overview
Connected Car Market (USD Million)
Connected Car Market was valued at USD 40,871.46 million in the year 2024. The size of this market is expected to increase to USD 134,900.32 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 18.6%.
Connected Cars Market
*Market size in USD million
CAGR 18.6 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 18.6 % |
| Market Size (2024) | USD 40,871.46 Million |
| Market Size (2031) | USD 134,900.32 Million |
| Market Concentration | Low |
| Report Pages | 313 |
Major Players
- Continental
- Bosch
- Harman
- Visteon
- Airbiquity
- Cloudmade
- Intellias
- Tesla
- Ford Motor Company
- Audi
- AT&T
- Qualcomm
- Verizon Communication
- Tomtom
- Sierra Wireless
- Panasonic
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Connected Cars Market
Fragmented - Highly competitive market without dominant players
The Connected Car Market is rapidly evolving due to breakthroughs in smart communication systems and digital mobility platforms. Over 68% of vehicles are now connected, offering real-time navigation, infotainment, and diagnostics. The surge in V2X communication is enhancing safety and convenience, making connected technologies a central feature in modern automotive design.
AI Integration and Edge Processing Empower Vehicles
Artificial intelligence and edge processing are transforming connected vehicles into self-optimizing platforms. Over 55% of manufacturers now deploy AI features that enable real-time decision-making and seamless integration of data. This supports a safer, more intuitive driving environment while minimizing reliance on external data centers.
Infotainment and Digital Interaction on the Rise
Consumer focus on interactive infotainment systems has intensified, with more than 70% preferring advanced in-car digital features. Smart dashboards, personalized voice commands, and remote connectivity are becoming pivotal in influencing purchase decisions and delivering an enhanced driving experience.
Industry Collaboration and Policy Advancements
The industry is benefiting from collaborative efforts and regulatory clarity. Over 50% of connected platforms now align with updated cybersecurity norms, ensuring reliable and secure data exchange. Strategic partnerships among cloud service providers, telecom firms, and OEMs are fostering ecosystem growth and accelerating innovation.
Connected Car Market Recent Developments
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In February 2021, Harman International (a subsidiary of Samsung Electronics) acquired nearly all assets of Savari, Inc., a leader in vehicle-to-everything (V2X) communication technology for connected vehicles, bolstering its connected car portfolio
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In July 2021, Toyota launched mobility services within its autonomous fleet. This was followed by Aurora, an autonomous vehicle startup, revealing its plans to go public through a SPAC merger, worth $11 billion. These moves reflect the industry's push toward connected, autonomous driving
Connected Car Market Segment Analysis
In this report, the Connected Car Market has been segmented by Service, Hardware Type, Form Type, End Market, Transponder, Network, End Market, and Geography.
Connected Car Market, Segmentation by Service
The Connected Car Market has been segmented by Service into Navigation, Remote Diagnostics, Multimedia Streaming, Social Media & Other Apps, OTA Updates, On-Road Assistance, eCall & SOS Assistance, Cyber Security, Remote Operation, Collision Warning, Auto Parking/Connected Parking, Autopilot, Home Integration, Vehicle Management, and Asset Tracking.
Navigation
The navigation segment is crucial for enhancing driver convenience and route efficiency, especially with real-time traffic and map updates. Over 30% of connected car users utilize GPS-based navigation as a primary service, aiding fuel efficiency and reducing commute time.
Remote Diagnostics
Remote diagnostics allows users and service providers to monitor vehicle health and performance in real-time. This segment is gaining traction, with around 25% of vehicles projected to include remote diagnostic capabilities by 2026.
Multimedia Streaming
The multimedia streaming segment caters to passenger entertainment demands, offering audio and video streaming through in-car systems. With rising infotainment expectations, over 35% of users engage with in-vehicle streaming services during travel.
Social Media & Other Apps
This segment integrates popular social media platforms and mobile applications into the vehicle ecosystem. It supports driver connectivity and personalized experiences, with a growing adoption rate among tech-savvy consumers.
OTA Updates
Over-the-air (OTA) updates ensure vehicles remain updated with the latest software enhancements and security patches. By 2026, over 40% of vehicles are expected to support OTA functionality, reducing the need for dealership visits.
On-Road Assistance
This service includes features like emergency towing, flat tire help, and battery jump-starts. It adds value through immediate support, and adoption is growing among subscription-based connected car services.
eCall & SOS Assistance
eCall and SOS systems automatically notify emergency services in case of severe accidents. Mandated in many regions, especially the EU, eCall-equipped vehicles account for over 20% of new car registrations globally.
Cyber Security
Cyber security ensures protection against unauthorized access to vehicle systems. With increasing vehicle connectivity, over 50% of OEMs prioritize integrating vehicle cybersecurity frameworks by 2025.
Remote Operation
Remote operation enables control of vehicle functions like engine start, climate control, or locking via smartphones. This feature is growing in popularity, especially in premium vehicle segments.
Collision Warning
Collision warning systems use sensors to detect imminent crashes and alert drivers. These systems have shown potential to reduce rear-end collisions by up to 27%, enhancing vehicle safety.
Auto Parking/Connected Parking
Auto parking and connected parking assist in locating available parking spaces and performing automatic parking maneuvers. Adoption is increasing, particularly in urban areas where parking is limited.
Autopilot
Autopilot refers to semi-autonomous driving features, including lane keeping and adaptive cruise control. Currently, about 15% of new vehicles come equipped with some level of autopilot capabilities.
Home Integration
This service connects the car to smart home devices, enabling functions like controlling lights or thermostats from the vehicle. It enhances user convenience and is being adopted by leading OEMs.
Vehicle Management
Vehicle management systems help monitor fuel levels, tire pressure, and maintenance schedules. These services improve fleet efficiency and reduce vehicle downtime.
Asset Tracking
Asset tracking leverages GPS and telematics to monitor vehicle location and usage. It is widely adopted in fleet management and logistics operations, with increasing implementation across commercial vehicles.
Connected Car Market, Segmentation by Hardware Type
The Connected Car Market has been segmented by Hardware Type into Head Unit, Central Gateway, Intelligent Antenna, Electronic Control Unit, Telematic Control Unit, Keyless Entry Systems, and Sensors.
Head Unit
The head unit is the central interface for infotainment, enabling access to navigation, media, and communication systems. With increasing demand for in-car entertainment, over 45% of connected cars now come equipped with advanced head units.
Central Gateway
The central gateway acts as the communication hub, connecting multiple electronic control modules and managing data exchange. It ensures secure, real-time data flow across systems and is critical for vehicle network integration.
Intelligent Antenna
An intelligent antenna combines multiple functions such as GPS, cellular, and Wi-Fi connectivity into a single module. These antennas enhance signal reception and are becoming standard in over 30% of connected vehicles.
Electronic Control Unit
Electronic control units (ECUs) manage specific vehicle functions such as engine control, transmission, and braking systems. With vehicles incorporating more ECUs, their number per vehicle is expected to exceed 80 units in premium models.
Telematic Control Unit
The telematic control unit enables real-time vehicle tracking, diagnostics, and remote services. With over 50% of new vehicles expected to include telematics by 2026, this segment is growing rapidly.
Keyless Entry Systems
Keyless entry systems provide secure, convenient access through RFID or smartphone authentication. They are increasingly common in mid and high-end vehicles, with adoption rates exceeding 35%.
Sensors
Sensors such as LIDAR, radar, and camera-based modules are essential for enabling ADAS features and autonomous driving. Their integration is projected to grow at over 20% CAGR due to safety and automation trends.
Connected Car Market, Segmentation by Form Type
The Connected Car Market has been segmented by Form Type into Embedded, Tethered, and Integrated.
Embedded
Embedded systems have built-in connectivity modules such as SIM cards and antennas directly within the vehicle. These are highly reliable and used in over 50% of connected cars due to their consistent network performance and security benefits.
Tethered
Tethered systems rely on external devices like smartphones or dongles to provide connectivity. Though cost-effective, their usage is declining as OEMs shift toward embedded and integrated solutions. Still, they remain relevant in entry-level vehicle segments.
Integrated
Integrated systems combine the best of both worlds by allowing the vehicle to use both embedded connectivity and the driver’s smartphone. This hybrid model supports flexibility and is growing rapidly, with over 35% adoption in newer connected vehicles.
Connected Car Market, Segmentation by End Market
The Connected Car Market has been segmented by End Market into OEM and Aftermarket.
OEM
The OEM segment includes connected car solutions that are factory-installed by original equipment manufacturers. With growing demand for built-in connectivity, over 60% of new vehicles now feature OEM-installed telematics and infotainment systems as standard offerings.
Aftermarket
The aftermarket segment caters to vehicles retrofitted with connected devices post-purchase. This includes GPS trackers, infotainment upgrades, and diagnostic tools. It holds a strong presence in emerging markets and contributes to nearly 40% of the overall connected car hardware upgrades.
Connected Car Market, Segmentation by Transponder
The Connected Car Market has been segmented by Transponder into Onboard unit and Roadside unit.
Onboard Unit
The onboard unit (OBU) is installed within the vehicle and enables two-way communication with external systems such as tolling infrastructure or traffic management centers. OBUs are found in over 55% of connected cars, supporting services like V2X communication and real-time updates.
Roadside Unit
The roadside unit (RSU) is a stationary device placed along roads to communicate with OBUs in vehicles. RSUs play a vital role in enabling smart traffic systems, incident alerts, and infrastructure-to-vehicle (I2V) communication, with growing deployments in urban and highway corridors.
Connected Car Market, Segmentation by Network
The Connected Car Market has been segmented by Network into DSRC and Cellular.
DSRC
Dedicated Short Range Communication (DSRC) is a wireless communication technology that enables low-latency vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) interactions. Though its adoption is region-specific, DSRC powers over 20% of current V2X-enabled vehicles, especially in North America and Europe.
Cellular
Cellular networks, particularly 4G LTE and 5G, support a wide range of connected car functions including infotainment, navigation, and autonomous driving. With rapid 5G rollout, cellular connectivity now supports over 70% of all connected vehicle services worldwide.
Connected Car Market, Segmentation by End Market
The Connected Car Market has been segmented by End Market into OEM and Aftermarket.
OEM
The OEM segment involves connected car technologies that are factory-installed by original equipment manufacturers. With rising consumer demand for in-built connectivity, over 60% of newly manufactured vehicles are equipped with OEM-integrated telematics and infotainment systems.
Aftermarket
The aftermarket segment offers retrofitted connected solutions installed after the vehicle is sold. These include navigation devices, diagnostic tools, and connected infotainment systems. The aftermarket caters to older vehicle models and contributes to around 40% of connected car upgrades globally.
Connected Car Market, Segmentation by Geography
In this report, the Connected Car Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
Connected Car Market Share (%), by Geographical Region
North America
North America holds a significant share of the connected car market, driven by high technology adoption, strong OEM presence, and government support for smart mobility. The region accounts for over 30% of global market revenue, with the U.S. leading in V2X integration and autonomous vehicle testing.
Europe
Europe emphasizes regulatory mandates and safety standards, fostering rapid adoption of connected vehicle technologies. Countries like Germany and the UK are key contributors, with the region representing approximately 25% of the global market, especially in OEM-fitted telematics and ADAS features.
Asia Pacific
Asia Pacific is the fastest-growing region due to the expanding automotive sector and large-scale investments in 5G infrastructure. China, Japan, and South Korea are leading markets, contributing to more than 35% of the market, particularly in OEM connectivity and infotainment services.
Middle East and Africa
Middle East and Africa are emerging markets, with increasing focus on smart city initiatives and luxury vehicle penetration. Though the market share remains modest, growing urbanization and digital infrastructure are expected to boost adoption in coming years.
Latin America
Latin America is witnessing gradual growth in connected car adoption, driven by rising consumer demand for safety and infotainment features. Brazil and Mexico are the key markets, contributing to regional expansion through aftermarket connectivity solutions.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Connected Car Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
| Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
|---|---|---|---|---|---|
| Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
| Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
| Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers
- Increasing Consumer Demand for Advanced Features
- Government Regulations and Initiatives Promoting Safety
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Technological Advancements in IoT and Cloud Computing - Technological advancements in IoT and cloud computing are driving transformative growth in the global connected car market. The integration of Internet of Things (IoT) technologies enables real-time communication between vehicles, infrastructure, and external systems, allowing for enhanced navigation, predictive maintenance, and improved driver safety. IoT sensors collect and transmit data continuously, providing a foundation for smart functionalities such as collision avoidance, remote diagnostics, and vehicle-to-everything (V2X) connectivity.
Simultaneously, cloud computing plays a vital role in processing and storing massive volumes of vehicle data, supporting over-the-air updates, personalized infotainment, and advanced fleet management solutions. Cloud-based platforms offer scalable infrastructure that supports seamless software integration, helping automakers deliver real-time services and connected experiences to drivers. Together, IoT and cloud innovations are reshaping the automotive landscape, enabling the shift toward autonomous and smart mobility ecosystems.
Restraints
- Data Security and Privacy Concerns
- High Cost of Implementation and Infrastructure
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Lack of Standardization in Communication Protocols - Lack of standardization in communication protocols presents a significant restraint for the global connected car market. Connected vehicles rely on seamless data exchange between components, systems, and external infrastructure, but the absence of uniform communication standards leads to interoperability issues across different manufacturers and platforms. This fragmentation hampers the deployment of key technologies like V2X communication, over-the-air updates, and cross-brand compatibility, ultimately slowing innovation and consumer adoption.
Automakers, telecom providers, and software developers often implement proprietary protocols, making it challenging to achieve consistency in data security, latency management, and network reliability. Without a unified framework, integrating connected car features across regions and networks becomes complex and costly. This lack of standardization increases development overheads and complicates regulatory compliance, making it a critical bottleneck in realizing the full potential of connected vehicle ecosystems.
Opportunities
- Growth in Autonomous and Semi-Autonomous Vehicles
- Expansion of 5G Connectivity for Enhanced Car Connectivity
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Integration with Smart City Infrastructure and Services - Integration with smart city infrastructure and services presents a significant opportunity for the global connected car market. As urban environments become more digitized, connected cars can interact with intelligent traffic systems, automated tolling, and real-time traffic monitoring platforms to enhance driving efficiency and reduce congestion. This connectivity supports features like dynamic route optimization, smart parking solutions, and adaptive traffic signal control, offering drivers greater convenience while contributing to citywide mobility goals.
Furthermore, connected vehicles can play a crucial role in enabling multi-modal transport systems and vehicle-to-infrastructure (V2I) communication, facilitating smoother integration with public transit, emergency services, and utility management. These synergies help cities achieve goals related to carbon reduction, road safety, and infrastructure utilization. As governments invest in smart city development, the integration of connected car technologies will unlock new service models and revenue streams for automakers, technology providers, and urban planners.
Competitive Landscape Analysis
Key players in Global Connected Car Market include:
- Continental
- Bosch
- Harman
- Visteon
- Airbiquity
- Cloudmade
- Intellias
- Tesla
- Ford Motor Company
- Audi
- AT&T
- Qualcomm
- Verizon Communication
- Tomtom
- Sierra Wireless
- Panasonic
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Service
- Market Snapshot, By Hardware Type
- Market Snapshot, By Form Type
- Market Snapshot, By Transponder
- Market Snapshot, By Network
- Market Snapshot, By End Market
- Market Snapshot, By Region
- Connected Car Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Increasing Consumer Demand for Advanced Features
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Government Regulations and Initiatives Promoting Safety
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Technological Advancements in IoT and Cloud Computing
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- Restraints
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Data Security and Privacy Concerns
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High Cost of Implementation and Infrastructure
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Lack of Standardization in Communication Protocols
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- Opportunities
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Growth in Autonomous and Semi-Autonomous Vehicles
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Expansion of 5G Connectivity for Enhanced Car Connectivity
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Integration with Smart City Infrastructure and Services
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Connected Car Market, By Service, 2021 - 2031 (USD Million)
- Navigation
- Remote Diagnostics
- Multimedia Streaming
- Social Media & Other Apps
- OTA Updates
- On-Road Assistance
- eCall & SOS Assistance
- Cyber Security
- Remote Operation
- Collision Warning
- Auto Parking/Connected Parking
- Autopilot
- Home Integration
- Vehicle Management
- Asset Tracking
- Connected Car Market, By Hardware Type, 2021 - 2031 (USD Million)
- Head Unit
- Central Gateway
- Intelligent Antenna
- Electronic Control Unit
- Telematic Control Unit
- Keyless Entry Systems
- Sensors
- Connected Car Market, By Form Type, 2021 - 2031 (USD Million)
- Embedded
- Tethered
- Integrated
- Connected Car Market, By Transponder, 2021 - 2031 (USD Million)
- Onboard unit
- Roadside unit
- Connected Car Market, By Network, 2021 - 2031 (USD Million)
- DSRC
- Cellular
- Connected Car Market, By End Market, 2021 - 2031 (USD Million)
- OEM
- Aftermarket
- Connected Car Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Connected Car Market, By Service, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Continental
- Bosch
- Harman
- Visteon
- Airbiquity
- Cloudmade
- Intellias
- Tesla
- Ford Motor Company
- Audi
- AT&T
- Qualcomm
- Verizon Communication
- Tomtom
- Sierra Wireless
- Panasonic
- Company Profiles
- Analyst Views
- Future Outlook of the Market