Global Connected Car Market - Forecasts from 2025 to 2030

The connected car market is estimated to grow at a CAGR of 19.23% to reach US$359.146 billion in 2030 from US$149.026 billion in 2025.Technological advancements, increased auto manufacturing, and rising consumer desire for luxury and comfort in cars are different key factors projected to contribute to the connected car market's expansion. The development of improved suspension systems and the rise in demand for lightweight suspension systems, however, are anticipated to offer the market a greater potential for expansion.Collaborations and product innovations by manufacturers are propelling the connected cars market. For instance, Cisco and TELUS announced the launching of new 5G capabilities in North America to serve IoT use cases across industry verticals. The network would serve as a foundation to support drive testing by a major North American automotive manufacturer’s 5G Connected Car in February 2024.

What are the drivers of the Connected Car Market?

Growing adoption of ADAS features in carsThe increasing de Consumer interest in autonomous and connected cars is growing, and throughout the projected period, these technologies are expected to become more widely accepted. Consumer behavior is significantly impacted by ADAS features like collision warning, lane assistance, blind spot recognition, etc. These features are intended to improve the performance of automobiles by decreasing vehicle downtime by advising the owner of any problems with the vehicle. End customers are willing to spend more money on the newest technologies like automated driver assistance systems (ADAS) that improve driving experiences and raise driver and passenger safety as a result of the growing technical breakthroughs in the automobile sector.

What are the key geographical trends shaping the Connected Car Market?

By geography, the connected car market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific.
The United States is the dominant market in the North American region. The rising adoption of Advanced Driver Assistance Systems (ADAS) comprising features like adaptive cruise control, lane departure warning, and collision avoidance systems has emerged as a significant driver of the demand for connected car technologies. These systems enhance safety, prompting the need for connectivity to support their functionality and facilitate real-time communication and data exchange between vehicles and infrastructure.

The safety application segment of the connected car dominates the market.

Connected cars are enabled with multiple functional, informational, and behavioral safety measures. Connected cars provide emergency call service during accidents, roadside assistance, and other onboard safety measures. More vehicles are coming with 5g connectivity, improving car-to-car communication and enhancing safety measures.The governments of most of the nations are implementing safety regulatory standards in the automotive industry. For instance, ISO-26262 is a functional safety standard certification that must be adhered to by every automotive manufacturer worldwide for the development of automotive systems-on-chip (SoCs) used in autonomous driving and advanced driver assistance programs (ADAS) applications. Connected and intelligent cars significantly reduce accidents in terms of passive safety. The rising road accidents and fatalities worldwide are pushing the demand for connected cars for enhanced security and reduced accidents.

Recent Developments in the Connected Car Market:

The market leaders for the Connected Car Market are Land Rover Limited, HARMAN International, Verizon, Daimler AG, AT&T, Vodafone Group, Telefónica S.A, BMW AG, and Audi of America. The key players in the market implement growth strategies such as product launches, mergers, acquisitions, etc. to gain a competitive advantage over their competitors. For Instance,
In August 2024, Salesforce launched Connected Vehicle, a new Automotive Cloud application that gives automakers an easier way to build and deliver personalized driver experiences. The technology is a low-code/no-code development tool, the application helps automakers roll out new services and features to drivers faster with bidirectional, over-the-air (OTA) capabilities.
In June 2023, Hyundai Motor Group’s connected car services reached 10 million subscribers. They were expected to reach 20 million by the end of 2026. The overseas subscribers grow as connected car services, such as Bluelink, Kia Connect, and Genesis Connected Services, expanded globally.

Connected Car Market is analyzed into the following segments:

By Services

Driver assistance
Safety
Vehicle and Mobility Management
Others

By Application

Safety
Telematics
Infotainment
Navigation

By End-User

OEM
Aftermarket

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Rest of South America
Europe
United Kingdom
Germany
France
Italy
Spain
Rest of Europe
Middle East and Africa
Saudi Arabia
UAE
Rest of the Middle East and Africa
Asia Pacific
China
India
Japan
South Korea
Taiwan
Thailand
Indonesia
Rest of Asia-Pacific