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Connected Car Market by Connectivity Technology (Embedded Connectivity, Integrated Connectivity, Tethered Connectivity), Component Type (Hardware, Services, Software), Communication Type, Network Type, Application, Vehicle Type, End User - Global Forecast

Publisher 360iResearch
Published Sep 30, 2025
Length 188 Pages
SKU # IRE20441621

Description

The Connected Car Market was valued at USD 13.21 billion in 2024 and is projected to grow to USD 15.51 billion in 2025, with a CAGR of 18.43%, reaching USD 51.15 billion by 2032.

Pioneering the Connected Car Revolution: Understanding the Intersection of Automotive Innovation and Future Digital Connectivity

The connected car landscape is ushering in a profound transformation that extends far beyond traditional notions of transportation. As vehicles evolve into dynamic, data-driven platforms, they offer rich ecosystems for improved safety, seamless infotainment, and advanced telematics services. This paradigm shift is propelled by the convergence of automotive engineering, information technology, and consumer electronics, uniting disparate disciplines around a singular objective: to deliver smarter, more responsive mobility solutions.

In recent years, continuous advancements in connectivity technologies such as 5G, edge computing, and vehicle-to-everything communication have enabled real-time data exchange between vehicles, infrastructure, and external devices. These breakthroughs are setting the stage for an era where predictive maintenance becomes routine, personalized user experiences enhance engagement, and over-the-air updates drive continuous innovation. Meanwhile, mounting investor interest and strategic partnerships are accelerating the pace of development across the entire value chain.

This introduction lays the foundation for an in-depth exploration of the forces reshaping the automotive sector. By examining the interplay of technical innovation, regulatory evolution, and shifting consumer expectations, this report aims to illuminate how organizations can harness the full potential of connected vehicle technologies. The analysis that follows is designed to equip decision-makers with the insights necessary to anticipate emerging trends, evaluate critical risks, and seize new opportunities in an increasingly interconnected mobility ecosystem.

Charting the Evolution of Connected Mobility Through Technological Disruption, Consumer Expectations, Infrastructure Modernization and Strategic Partnerships

The connected car market is experiencing a wave of transformative shifts driven by rapid technological progress and evolving user demands. At the core of this transformation lies the integration of artificial intelligence and machine learning algorithms, which are empowering vehicles to perceive their surroundings, optimize routing, and deliver predictive services based on real-time analytics. Additionally, the expansion of high-bandwidth networks has enhanced edge computing capabilities, reducing latency and enabling more reliable communication for safety-critical applications.

Moreover, consumer expectations are evolving in tandem with broader digital trends. Users now demand personalized infotainment experiences, seamless integration with mobile ecosystems, and enhanced security measures to protect sensitive data. In response, automakers and technology providers are forging strategic alliances to co-develop software platforms that accelerate time to market and deliver differentiated services.

Infrastructure modernization is also playing an instrumental role. Governments and private stakeholders are investing heavily in smart roadways, intelligent traffic management systems, and charging stations, creating an environment that supports advanced vehicle-to-infrastructure communication and electric vehicle adoption. Furthermore, regulatory frameworks are being updated to address data privacy, cybersecurity standards, and autonomous driving guidelines, ensuring a balance between innovation and public safety.

Consequently, the landscape of connected mobility is being reshaped by a blend of disruptive technologies, consumer-centric design principles, and collaborative ecosystems. These concurrent shifts are forging a new era of transportation where vehicles operate as integrated nodes within a broader digital network, offering unprecedented levels of efficiency, convenience, and safety.

Assessing the Ripple Effects of 2025 US Tariff Adjustments on Supply Chains, Component Costs, and Market Dynamics for Connected Vehicles

The implementation of new tariffs by the United States in 2025 has exerted a notable influence on global supply chains, particularly within the connected car sector. Manufacturers confronted rising import costs for critical electronic components, prompting many to reassess their sourcing strategies. As a result, companies accelerated efforts to diversify suppliers and shift production closer to end markets, mitigating risk and reducing lead times.

Furthermore, the tariff adjustments led to a cascade of operational changes. Tier 1 suppliers and original equipment manufacturers increased collaboration with local contract manufacturers, driving investments in domestic assembly lines and localized testing facilities. These shifts not only alleviated the immediate impact of elevated duties but also fostered stronger ties within regional ecosystems, supporting supply chain resilience in the face of future disruptions.

In addition, the redistribution of production footprints spurred innovation in component design and materials selection. R&D teams focused on developing modular, cost-efficient hardware architectures that maintain performance while reducing reliance on high-tariff imports. This approach enabled stakeholders to preserve profit margins and maintain competitive pricing without compromising on quality or functionality.

Ultimately, the cumulative effect of the 2025 tariff revisions has been to catalyze a reevaluation of conventional manufacturing paradigms. Supply chains are becoming more agile and regionally balanced. Companies that embraced proactive strategies to adjust their footprints and enhance collaboration emerged better positioned to navigate ongoing geopolitical uncertainties and sustain growth in the rapidly evolving connected vehicle market.

Unveiling Critical Segmentation Insights Across Service Types, Component Variations, Vehicle Categories and End User Profiles

A nuanced exploration of market segmentation reveals the diverse terrain of connected car offerings and customer demands. Within service types, infotainment solutions lead with integrated application download capabilities alongside audio streaming and video streaming features crafted for on-the-go engagement. Navigation services continue to evolve through real-time mapping and augmented reality overlays. Meanwhile, safety and security offerings drive consumer trust with advanced driver-assistance features, collision avoidance protocols, and remote monitoring services. Telematics platforms further differentiate through emergency response coordination, fleet management dashboards that provide operational visibility, and remote diagnostics tools that streamline maintenance workflows. Additionally, vehicle-to-everything communication unlocks peer-to-peer data exchange between cars, road infrastructure, and personal devices, enriching the overall mobility experience.

Component type segmentation underscores the interplay between hardware and software innovations. Communication modules form the backbone of connectivity, enabling stable links to cellular and satellite networks, while electronic control units orchestrate data flows between sensors and actuators. Speaking of which, sensor arrays-ranging from LiDAR and radar to ultrasonic configurations-deliver the situational awareness vehicles require. On the software side, autonomous driving algorithms interpret sensor inputs to execute safe navigation maneuvers, while specialized infotainment software curates multimedia content. Telematics software platforms aggregate vehicle health data and usage analytics to inform strategic decisions.

When evaluating vehicle types, commercial vehicles emphasize operational efficiency and remote asset monitoring, whereas passenger vehicles prioritize user experience, personalization, and advanced comfort features. Lastly, end user segmentation differentiates aftermarket channels, serving retrofit demands and customer-specific upgrades, from original equipment manufacturing partnerships that integrate solutions during initial assembly. This layered segmentation approach offers critical insights into where value is being generated and which areas hold the greatest potential for innovation and growth.

Delving into Distinct Regional Dynamics Shaping Connected Vehicle Adoption and Service Delivery Across the Americas, EMEA and Asia-Pacific Markets

Regional dynamics exert a powerful influence on connected car strategies, as stakeholders tailor their approaches to leverage local strengths and address unique challenges. In the Americas, the convergence of robust digital infrastructure and supportive regulatory policies has fostered rapid adoption of telematics and software-driven mobility services. North American markets showcase strong demand for advanced safety features, wireless connectivity, and over-the-air software updates, while Latin American regions concentrate on cost-effective telematics solutions that optimize logistics networks.

Europe, the Middle East & Africa present a mosaic of regulatory frameworks and infrastructure maturity. Western Europe leads with comprehensive 5G deployments and stringent data privacy regulations that shape service architectures. Regulatory harmonization efforts promote cross-border interoperability, while Middle Eastern initiatives emphasize smart city integration and autonomous mobility pilots. Across Africa, stakeholders prioritize foundational connectivity and value-driven fleet management offerings to enhance commercial vehicle efficiency.

Asia-Pacific markets stand out for their scale and innovation velocity. Collaborative ventures among automakers, telecom operators, and government entities accelerate 5G rollout and smart road initiatives. In developed markets such as Japan and South Korea, consumer demand for sophisticated infotainment and connectivity services drives premium feature adoption, whereas emerging economies like India focus on affordability and essential telematics to streamline transport operations.

These distinct regional characteristics create a complex tapestry of opportunities, where tailored strategies that align with local infrastructure, regulatory climates, and user preferences can unlock significant competitive advantages.

Highlighting Leading Industry Players Driving Innovation, Collaboration and Competitive Strategies in the Connected Car Ecosystem

Leading organizations in the connected car ecosystem exemplify a blend of automotive heritage and technology prowess. Traditional automakers have ramped up investments in software-defined architectures to support modular upgrades and ongoing feature enhancements. At the same time, semiconductor designers and network equipment manufacturers are forging partnerships with vehicle OEMs to co-develop custom communication chips and edge computing platforms that meet the stringent latency and reliability requirements of advanced driver assistance and autonomous driving systems.

Furthermore, tier 1 suppliers have evolved into full-stack mobility technology providers, integrating sensor suites, control units, and analytics software into cohesive packages. Meanwhile, pure-play software companies have cemented their roles by offering scalable infotainment ecosystems and over-the-air update services, ensuring vehicles stay current with the latest security patches and feature sets. Telecom operators have similarly positioned themselves as critical enablers of connected mobility, establishing dedicated automotive network slices and end-to-end service level agreements.

Collaboration models continue to diversify. Some participants opt for joint ventures that share R&D costs and intellectual property, while others pursue strategic alliances to accelerate standardization efforts and foster interoperability. In addition, emerging players from the cybersecurity domain are injecting specialized expertise to safeguard vehicle networks against evolving threats.

Together, these leading companies underscore the multidisciplinary nature of the connected car industry, demonstrating that success hinges on the ability to bridge mechanical engineering, digital design, regulatory compliance, and customer-centric service delivery.

Empowering Industry Leaders with Actionable Strategies to Navigate Technological Shifts, Regulatory Landscapes and Market Uncertainties in Connected Mobility

Industry leaders must adopt proactive approaches to capitalize on emerging trends and mitigate risks inherent to a rapidly evolving connected vehicle space. First, forging strategic partnerships across automotive, telecommunications, and technology sectors can accelerate time to market. By sharing R&D resources and co-developing standards for data exchange, organizations can establish interoperable frameworks that benefit the entire ecosystem. Moreover, investing in robust cybersecurity infrastructures-such as intrusion detection systems and secure hardware enclaves-will be indispensable to safeguard vehicle networks and maintain consumer trust.

Second, prioritizing modular software-defined platforms will enable agile feature deployment and continuous updates, ensuring that vehicles remain competitive throughout their lifecycle. This approach also lowers the cost of innovation by decoupling hardware constraints from software development cycles. Additionally, expanding edge computing capabilities and leveraging high-throughput communication channels can support latency-sensitive applications like collision avoidance and cooperative adaptive cruise control.

Third, leaders should explore opportunities to localize supply chains, reducing dependency on high-tariff imports and enhancing resilience against geopolitical fluctuations. Establishing regional production facilities and forging alliances with local suppliers can streamline logistics and shorten time to market. Finally, cultivating data-driven decision-making through advanced analytics and machine learning will unlock new revenue streams, from usage-based insurance and predictive maintenance services to personalized in-vehicle experiences.

By embracing these actionable strategies, industry leaders will be well-equipped to navigate technological disruptions, regulatory complexities, and shifting consumer expectations, ultimately driving sustained growth in the connected mobility landscape.

Detailing a Robust Research Methodology Combining Primary Interviews, Secondary Data Analysis and Quantitative Techniques for Connected Car Insights

The research methodology underpinning this analysis integrates multiple approaches to ensure comprehensive and reliable insights. Primary research was conducted through in-depth interviews with senior executives, technical experts, and engineers across the automotive and technology sectors. These interviews provided firsthand perspectives on strategic priorities, innovation roadmaps, and operational challenges.

Simultaneously, secondary data collection encompassed a thorough review of industry journals, white papers, patent filings, and regulatory publications. This phase enabled cross-validation of primary findings and the identification of historical trends and emerging patterns. Quantitative analysis was performed by aggregating data on technology adoption rates, infrastructure metrics, and partnership announcements, followed by statistical modeling to elucidate correlations and potential causal relationships.

Moreover, the methodology incorporated expert panel workshops and validation sessions, wherein preliminary conclusions were presented to a group of thought leaders for critique and refinement. This iterative process ensured that the final deliverables reflect a balanced synthesis of empirical evidence and practitioner insights. Throughout all stages, stringent quality control measures were applied, including source triangulation and consistency checks, to uphold the highest standards of analytical rigor and objectivity.

Synthesizing Key Findings and Strategic Implications to Chart the Future Path of Connected Vehicle Innovation and Market Development

This comprehensive analysis has illuminated the intricate interplay of technological innovation, regulatory evolution, and market dynamics defining the connected car industry. Key findings underscore the centrality of 5G and edge computing in unlocking latency-sensitive applications, while strategic partnerships are accelerating platform development and standardization efforts. Additionally, the reshaping of supply chains in response to tariff adjustments has highlighted the value of agility and regional diversification.

Segmentation insights reveal pronounced differences in service type adoption, component preferences, and end user requirements, underscoring the importance of targeted strategies for commercial and passenger segments alike. Regional analysis further demonstrates that local infrastructure maturity and regulatory environments significantly influence deployment priorities. Leading companies are distinguishing themselves through integrated hardware-software solutions, software-defined vehicle architectures, and cybersecurity investments.

Moving forward, industry participants that embrace modular design, foster collaborative ecosystems, and leverage data-driven decision-making will be best positioned to capture emerging opportunities and address potential disruptions. These strategic imperatives provide a roadmap for organizations seeking to maintain a competitive edge as vehicles continue to transform into sophisticated mobility platforms.

Market Segmentation & Coverage

This research report categorizes to forecast the revenues and analyze trends in each of the following sub-segmentations:

Connectivity Technology
Embedded Connectivity
Integrated Connectivity
Tethered Connectivity
Component Type
Hardware
Communication Module
Electronic Control Unit
Sensors
Services
Managed Services
Professional Services
Consulting
Integration
Software
Autonomous Driving Software
Infotainment Software
Telematics Software
Communication Type
Vehicle-to-Cloud (V2C)
Vehicle-to-Grid (V2G)
Vehicle-to-Infrastructure (V2I)
Vehicle-to-Pedestrian (V2P)
Vehicle-to-Vehicle (V2V)
Network Type
Cellular
Dedicated Short-Range Communication (DSRC)
Satellite Communication
Wi-Fi & Bluetooth
Application
Autonomous Driving Support
Infotainment
In-Car Entertainment
Voice Assistants
Navigation
Safety & Security
Collision Avoidance Systems
Emergency Calling
Real-time Traffic Alerts
Telematics & Diagnostics
Fleet Management
Predictive Maintenance
Remote Vehicle Diagnostics
Vehicle Type
Commercial Vehicle
Heavy Commercial Vehicle
Light Commercial Vehicle
Passenger Vehicle
Hatchbacks
Sedans
SUVs
End User
Aftermarket
OEM

This research report categorizes to forecast the revenues and analyze trends in each of the following sub-regions:

Americas
North America
United States
Canada
Mexico
Latin America
Brazil
Argentina
Chile
Colombia
Peru
Europe, Middle East & Africa
Europe
United Kingdom
Germany
France
Russia
Italy
Spain
Netherlands
Sweden
Poland
Switzerland
Middle East
United Arab Emirates
Saudi Arabia
Qatar
Turkey
Israel
Africa
South Africa
Nigeria
Egypt
Kenya
Asia-Pacific
China
India
Japan
Australia
South Korea
Indonesia
Thailand
Malaysia
Singapore
Taiwan

This research report categorizes to delves into recent significant developments and analyze trends in each of the following companies:

Continental AG
Robert Bosch GmbH
Airbiquity Inc.
AISIN CORPORATION
Aptiv PLC
Autoliv Inc.
Denso Corporation
Harman International by Samsung Electronics Co., Ltd.
Forvia SE
Infineon Technologies AG
Intellias LLC
NXP Semiconductors N.V.
Qualcomm Technologies, Inc.
TomTom International B.V.
Valeo
Verizon Communications Inc.
Visteon Corporation
ZF Friedrichshafen AG
Zubie, Inc.
Mercedes-Benz Group AG
Smartcar, Inc.
AT&T Inc.
Telefonaktiebolaget LM Ericsson

Please Note: PDF & Excel + Online Access - 1 Year

Table of Contents

188 Pages
1. Preface
1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders
2. Research Methodology
3. Executive Summary
4. Market Overview
5. Market Insights
5.1. Evaluation of 5G mmWave network deployments enabling real-time vehicle-to-everything communication and autonomous navigation
5.2. Analysis of AI-driven predictive maintenance platforms integrating telematics and sensor data to reduce vehicle downtime and costs
5.3. Assessment of secure over-the-air software update frameworks enhancing vehicle lifecycle management and cybersecurity resilience
5.4. Investigation of blockchain-enabled data exchange systems for secure vehicle-to-infrastructure and vehicle-to-vehicle connectivity
5.5. Study of in-car biometric authentication and driver monitoring systems improving personalized security and safety measures
5.6. Market outlook for vehicle-to-grid integration solutions optimizing electric vehicle battery performance and grid stability
5.7. Trends in edge computing architectures within connected cars enabling real-time sensor fusion and collision avoidance
5.8. Growth projections for subscription-based in-car infotainment and digital services leveraging personalized content streaming
6. Cumulative Impact of United States Tariffs 2025
7. Cumulative Impact of Artificial Intelligence 2025
8. Connected Car Market, by Connectivity Technology
8.1. Embedded Connectivity
8.2. Integrated Connectivity
8.3. Tethered Connectivity
9. Connected Car Market, by Component Type
9.1. Hardware
9.1.1. Communication Module
9.1.2. Electronic Control Unit
9.1.3. Sensors
9.2. Services
9.2.1. Managed Services
9.2.2. Professional Services
9.2.2.1. Consulting
9.2.2.2. Integration
9.3. Software
9.3.1. Autonomous Driving Software
9.3.2. Infotainment Software
9.3.3. Telematics Software
10. Connected Car Market, by Communication Type
10.1. Vehicle-to-Cloud (V2C)
10.2. Vehicle-to-Grid (V2G)
10.3. Vehicle-to-Infrastructure (V2I)
10.4. Vehicle-to-Pedestrian (V2P)
10.5. Vehicle-to-Vehicle (V2V)
11. Connected Car Market, by Network Type
11.1. Cellular
11.2. Dedicated Short-Range Communication (DSRC)
11.3. Satellite Communication
11.4. Wi-Fi & Bluetooth
12. Connected Car Market, by Application
12.1. Autonomous Driving Support
12.2. Infotainment
12.2.1. In-Car Entertainment
12.2.2. Voice Assistants
12.3. Navigation
12.4. Safety & Security
12.4.1. Collision Avoidance Systems
12.4.2. Emergency Calling
12.4.3. Real-time Traffic Alerts
12.5. Telematics & Diagnostics
12.5.1. Fleet Management
12.5.2. Predictive Maintenance
12.5.3. Remote Vehicle Diagnostics
13. Connected Car Market, by Vehicle Type
13.1. Commercial Vehicle
13.1.1. Heavy Commercial Vehicle
13.1.2. Light Commercial Vehicle
13.2. Passenger Vehicle
13.2.1. Hatchbacks
13.2.2. Sedans
13.2.3. SUVs
14. Connected Car Market, by End User
14.1. Aftermarket
14.2. OEM
15. Connected Car Market, by Region
15.1. Americas
15.1.1. North America
15.1.2. Latin America
15.2. Europe, Middle East & Africa
15.2.1. Europe
15.2.2. Middle East
15.2.3. Africa
15.3. Asia-Pacific
16. Connected Car Market, by Group
16.1. ASEAN
16.2. GCC
16.3. European Union
16.4. BRICS
16.5. G7
16.6. NATO
17. Connected Car Market, by Country
17.1. United States
17.2. Canada
17.3. Mexico
17.4. Brazil
17.5. United Kingdom
17.6. Germany
17.7. France
17.8. Russia
17.9. Italy
17.10. Spain
17.11. China
17.12. India
17.13. Japan
17.14. Australia
17.15. South Korea
18. Competitive Landscape
18.1. Market Share Analysis, 2024
18.2. FPNV Positioning Matrix, 2024
18.3. Competitive Analysis
18.3.1. Continental AG
18.3.2. Robert Bosch GmbH
18.3.3. Airbiquity Inc.
18.3.4. AISIN CORPORATION
18.3.5. Aptiv PLC
18.3.6. Autoliv Inc.
18.3.7. Denso Corporation
18.3.8. Harman International by Samsung Electronics Co., Ltd.
18.3.9. Forvia SE
18.3.10. Infineon Technologies AG
18.3.11. Intellias LLC
18.3.12. NXP Semiconductors N.V.
18.3.13. Qualcomm Technologies, Inc.
18.3.14. TomTom International B.V.
18.3.15. Valeo
18.3.16. Verizon Communications Inc.
18.3.17. Visteon Corporation
18.3.18. ZF Friedrichshafen AG
18.3.19. Zubie, Inc.
18.3.20. Mercedes-Benz Group AG
18.3.21. Smartcar, Inc.
18.3.22. AT&T Inc.
18.3.23. Telefonaktiebolaget LM Ericsson
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