Global Connected Car Market Size, Share & Industry Analysis Report By Technology (Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I)), By Sales Channel (OEM and Aftermarket), By Connectivity Solution (Integrated, Embedded and Tethered), By Techn

The Global Connected Car Market size is expected to reach USD 396.71 billion by 2032, rising at a market growth of 19.3% CAGR during the forecast period.

Key Highlights:

• The North America market dominated the Global Market in 2024, accounting for a 32.90% revenue share in 2024.
• The US AI server market is expected to continue its dominance in North America region thereby reaching a market size of 87.63 billion by 2032.
• Among the various Application segments, the Vehicle Management dominated the global market contributing a revenue share of 26.78% in 2024.
• In terms of Technology segmentation, the 4G/LTE segment is projected to dominate the global market with the projected revenue share of 28.28% in 2032.
• Integrated led the Connectivity Solution segments in 2024, capturing a 44.76% revenue share and is projected to continue its dominance during projected period.

From early telematics systems that concentrated on basic navigation and emergency assistance, the global connected car market has developed into an advanced, data-driven mobility ecosystem. The foundation for vehicle connectivity was laid by early innovations like General Motors' OnStar in the middle of the 1990s, and it grew dramatically with the development of mobile networks, including 3G, 4G/LTE, and now 5G. In order to provide services like over-the-air software updates, sophisticated driver-assistance systems, infotainment, predictive maintenance, and vehicle-to-everything (V2X) communication, connected cars now combine computing, sensors, cloud platforms, and real-time communication. By encouraging interoperability, safety procedures, and next-generation connectivity frameworks, governments, standards organizations, and business partners have aided this development and positioned connected cars as crucial parts of smart cities and intelligent transportation systems.

Major trends like software-defined cars, increased V2X communication, and consumer-focused digital services are currently influencing the market. In order to enable ongoing feature upgrades and subscription-based revenue models, automakers are increasingly integrating connectivity at the center of vehicle architecture. Beyond traditional OEMs, there is competition from tech firms, telecom providers, cloud service providers, and specialized software companies, all of which contribute to a highly competitive yet cooperative ecosystem. Partnerships, cybersecurity, regulatory compliance, and scalable cloud-based platforms are now strategic priorities. Overall, connected cars have transitioned from optional innovations to integral mobility platforms, reflecting the convergence of automotive engineering, telecommunications, and information technology in shaping the future of transportation.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In, February2024, General Motors Co. unveiled OnStar in Bahrain, offering connected vehicle services for enhanced safety, security, and convenience. The platform provides real-time assistance, navigation, and emergency response, ensuring a smarter driving experience. This expansion aligns with GM’s commitment to innovation and customer-centric mobility solutions in the Middle East. Additionally, In October, 2024, Tesla, Inc. unveiled DIMO connected car app, allowing owners to access real-time vehicle data, enhance diagnostics, and optimize performance. This collaboration enables Tesla users to track efficiency, battery health, and driving habits, providing a seamless experience for monitoring and managing their vehicles through DIMO’s platform.

COVID 19 Impact Analysis

The COVID-19 pandemic negatively impacted the connected car market by disrupting global automotive production through lockdowns, factory shutdowns, and delayed vehicle launches. Since connected technologies are integrated during manufacturing, reduced vehicle output directly limited the deployment of telematics, infotainment, and driver assistance systems. Severe supply chain disruptions, particularly semiconductor shortages and logistics delays, further constrained production and increased costs. Automakers postponed or simplified connected features as they prioritized operational stability. Consumer and fleet demand declined amid economic uncertainty and reduced mobility needs. Investment in connected fleet and mobility solutions slowed significantly. Additionally, R&D activities and smart mobility pilot projects were delayed, temporarily weakening innovation and market momentum. Thus, the COVID-19 pandemic had a Negative impact on the market.

Communication Technology Outlook

Based on communication technology, the Connected Car Market is characterized into  Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I). The Vehicle-to-Infrastructure (V2I) segment attained 43% revenue share in the Connected Car Market in 2024.  The Vehicle-to-Infrastructure (V2I) communication segment plays an essential role in the global Connected Car Market by enabling interaction between vehicles and roadway infrastructure. V2I technology allows vehicles to communicate with traffic signals, road sensors, tolling systems, parking facilities, and traffic management platforms.

Sales channel Outlook

On the basis of sales channel, the Connected Car Market is classified into OEM and aftermarket. The aftermarket segment recorded 31% revenue share in the Connected Car Market in 2024.  The aftermarket segment holds a significant position in the global Connected Car Market, supported by the vast number of vehicles already in operation that were not originally equipped with connected features. Aftermarket solutions allow vehicle owners and fleet operators to adopt connectivity through plug-in telematics devices, infotainment upgrades, tracking systems, and diagnostic tools.

Regional Outlook

Region-wise, the Connected Car Market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 33% revenue share in the Connected Car Market in 2024. In North America and Europe, the connected car market is quite advanced. It has a high adoption rate of connectivity features, strong government oversight, and solid digital infrastructure. North America has embraced embedded telematics, over-the-air software updates, and subscription-based connected services. This has happened largely due to cooperation between car manufacturers, tech companies, and telecom providers. The region focuses on innovation in software-defined vehicles, advanced driver-assistance systems, and communication between vehicles and everything around them. Safety, cybersecurity, and making money from data are top priorities. In Europe, there is a heavy focus on meeting regulations, ensuring devices work well together, and promoting sustainability. Strict data protection laws, vehicle safety rules, and emissions standards have influenced how connected car platforms are developed. These regulations encourage manufacturers to adopt secure, standardized, and compatible connectivity solutions. Additionally, smart city projects and intelligent transportation systems are enhancing connected vehicle integration in urban areas in both regions.

The present scenario for the connected car industry in the Asia Pacific and LAMEA regions represents various stages of adoption and development, with a focus on rapid urbanization and growth in vehicle numbers. The Asia Pacific region encompasses fast growth in the use of connected vehicles, driven by the manufacture of a large volume of vehicles, the emergence of consumer demand for digital services, and initiatives by governments in the development of smart and telecom revolution. The region is led by China, Japan, and South Korea for the development of connected and intelligent vehicles, and cost-effective methods of connectivity gain popularity in the emerging Asian markets. In contrast, the LAMEA region exhibits stable growth and various stages of use for the connected car segment, which gets driven by applications that include vehicle management, safety, and tracking services for optimal use of the connected car. The telecom infrastructure development in the Middle East and the need for smart services and commercial mobility in Latin America and Africa encourage growth in the use of connected cars.

Recent Strategies Deployed in the Market

• May-2024: Continental AG teamed up with Qualcomm Technologies to integrate a cross-domain High-Performance Computer (HPC) into a vehicle, combining cockpit functions with driving safety features. This initiative, in collaboration with Qualcomm Technologies, utilizes the Snapdragon Ride Flex System-on-Chip and Continental's CAEdge framework, showcasing advancements in software-defined vehicle development.
• Mar-2024: Ford Motor Company teamed up with Cisco and launched the Webex App for seamless productivity on the go. This collaboration enhances in-vehicle connectivity, allowing users to stay connected through secure meetings, calls, and messaging while traveling. The integration aims to improve remote work efficiency and communication for professionals on the move.
• Feb-2024: Harman International Industries, Inc. teamed up with Qualcomm to Drive Automotive Innovation with New Ready Connect 5G TCU for Connected Cars. The Ready Connect 5G TCU, powered by the Snapdragon Modem-RF Gen 2 system, delivers outstanding connectivity performance, ensuring upgradability, scalability, and usability to meet the automotive market's evolving needs.
• Jan-2024: Robert Bosch GmbH unveiled a new system-on-a-chip (SoC) designed for automotive applications. This advanced chip aims to enhance vehicle performance, efficiency, and safety by integrating AI and edge computing capabilities. Bosch’s innovation supports next-generation mobility solutions, reinforcing its position in the evolving automotive technology landscape.
• Jan-2024: TomTom N.V. unveiled its Access-powered digital cockpit enhancing in-vehicle experiences with seamless connectivity, navigation, and infotainment. The system integrates real-time data, voice control, and personalization, aiming to revolutionize driver interaction. This innovation highlights TomTom’s commitment to smarter, more intuitive automotive technology for next-generation vehicles.

List of Key Companies Profiled

• Continental AG
• AT&T, Inc.
• HARMAN International Industries, Inc. (Samsung Electronics Co., Ltd.)
• Robert Bosch GmbH
• TomTom N.V.
• Ford Motor Company
• Mercedes-Benz Group AG
• Visteon Corporation
• Tesla, Inc.
• General Motors Co.

Global Connected Car Market Report Segmentation

By Communication Technology

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)

By Sales Channel

• OEM
• Aftermarket

By Connectivity Solution

• Integrated
• Embedded
• Tethered

By Technology

• 4G/LTE
• 5G
• Satellite
• Other Technology

By Application

• Vehicle Management
• Driver Assistance
• Safety
• Mobility Management
• Entertainment
• Other Application

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

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