The Connected Car Market size was estimated at USD 65 billion in 2023 and is projected to reach USD 180 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 16.00% during the forecast period (2024-2030).

Connected Car Market

Market Summary

The connected car market represents a transformative segment within the automotive and transportation industry, fundamentally altering how vehicles interact with their environment, drivers, and broader digital ecosystems. This market encompasses vehicles equipped with internet access and a wide array of sensors and software that enable a suite of features, including advanced navigation, real-time traffic updates, vehicle health monitoring, and a host of infotainment services. The core of this evolution is the integration of telematics control units and sophisticated onboard computers that facilitate vehicle-to-everything communication. This technology enables a seamless flow of data, allowing for enhanced safety features, predictive maintenance, and personalized in-car experiences. The proliferation of 5G technology is further accelerating this market's growth by providing the high-speed, low-latency connectivity required for more complex and data-intensive applications. As consumer demand for smarter, safer, and more convenient driving experiences intensifies, automotive manufacturers, technology firms, and telecommunications providers are forming strategic alliances to develop and deploy next-generation connected solutions, positioning the connected car as a central node in the future of mobility and the Internet of Things.

Key Highlights

The connected car market is distinguished by several pivotal developments that underscore its dynamic nature and future potential. A primary highlight is the rapid integration of Artificial Intelligence and Machine Learning, which powers advanced driver-assistance systems and enables predictive analytics for maintenance and user behavior. The emergence of over-the-air update capabilities stands as another critical advancement, allowing manufacturers to remotely deploy software patches, introduce new features, and enhance vehicle security without requiring a physical dealership visit, thereby significantly improving the ownership experience and vehicle longevity. Furthermore, the convergence of connectivity with electric vehicle platforms is creating a new paradigm of smart, sustainable mobility, where energy management and charging logistics are optimized through real-time data. The competitive landscape is fiercely contested, with established automotive giants like General Motors, BMW, and Ford competing alongside technology leaders such as Google, Apple, and Qualcomm, each vying to define the standards and user experience for the connected car of the future.

Drivers, Opportunities & Restraints

The expansion of the connected car market is propelled by a confluence of powerful drivers, including escalating consumer expectations for enhanced in-vehicle experiences and heightened safety features. Government mandates in various regions promoting the incorporation of safety technologies like automatic emergency calling systems also serve as a significant catalyst for adoption. The opportunity landscape is vast and multifaceted, extending into new revenue streams through subscription-based services for features like live traffic, streaming media, and personalized insurance. The data generated by connected vehicles presents immense potential for monetization and the development of new smart city infrastructure and mobility-as-a-service models. However, this growth is not without considerable restraints. Paramount among these is the persistent and evolving threat of cybersecurity breaches, which could compromise vehicle systems and personal data. The high cost associated with developing and integrating advanced connectivity solutions also poses a challenge for mass-market adoption, while concerns over data privacy and the complexity of establishing robust global network coverage remain significant hurdles for industry stakeholders to overcome.

Concentration Insights

The competitive concentration within the connected car market reveals a complex and collaborative ecosystem rather than a simple hierarchy. The landscape is characterized by a high degree of fragmentation where traditional automotive original equipment manufacturers, tier-1 suppliers, specialized telematics service providers, and major technology corporations all hold significant influence. Key players such as Robert Bosch GmbH, Continental AG, and Harman International are instrumental in supplying the critical hardware and software components that enable connectivity. Simultaneously, technology behemoths including Google with its Android Automotive OS and Apple with CarPlay are aggressively competing to control the in-vehicle infotainment platform, a crucial touchpoint for the user experience. This has led to a market structure where success is increasingly dependent on strategic partnerships and alliances, as no single entity possesses all the requisite expertise in automotive engineering, cloud computing, data analytics, and cybersecurity, forcing collaboration to deliver a complete and competitive connected car solution.

Type Insights

The connected car market is broadly segmented by the type of connectivity solutions embedded within vehicles, primarily categorized into integrated, tethered, and embedded systems. Embedded systems are factory-installed units that feature a built-in cellular modem and antenna, offering a seamless and reliable always-on connection independent of a driver's smartphone. This type is increasingly favored by premium automakers for delivering a unified and high-performance user experience directly from the vehicle's dashboard. Tethered systems, in contrast, utilize a driver's smartphone as the connectivity hub, projecting applications and services like Apple CarPlay and Android Auto onto the vehicle's display. This offers a cost-effective solution that leverages familiar mobile ecosystems. Integrated systems represent a hybrid approach, combining elements of both embedded and tethered solutions to provide a more flexible connectivity option. The industry is witnessing a steady trend towards embedded solutions as the costs of cellular modems decrease and consumers demand more integrated and vehicle-specific functionalities that are not reliant on a external device.

Application Insights

Connected car technologies enable a diverse range of applications that significantly enhance vehicle functionality, safety, and convenience. Driver assistance and safety applications form a critical segment, encompassing features like automatic crash notification, emergency call services, real-time alerts for hazardous road conditions, and advanced driver-assistance systems that rely on continuous data exchange. Navigation and infotainment applications represent another major category, providing users with dynamic routing, points-of-interest search, music and video streaming, and voice-activated assistants, all designed to improve the in-cabin experience. Vehicle management and telematics applications are crucial for both individual owners and fleet operators, offering remote diagnostics, maintenance scheduling, fuel efficiency monitoring, and theft tracking. Furthermore, mobility management applications are emerging, which include usage-based insurance, parking spot locators, and integration with broader smart city infrastructure to optimize traffic flow and reduce congestion, showcasing the expanding role of the connected car beyond the vehicle itself.

Regional Insights

The adoption and development of connected car technologies exhibit distinct regional patterns influenced by infrastructure, consumer preferences, and regulatory environments. North America, particularly the United States, is a frontrunner in this market, characterized by high consumer tech adoption rates, strong presence of key technology firms, and supportive regulations for telematics and safety features. Europe demonstrates robust growth driven by stringent regulatory mandates from bodies like the European Union, which has enacted laws requiring the implementation of eCall emergency response systems in all new vehicles, creating a strong foundational demand for connectivity. The Asia-Pacific region is anticipated to witness the most accelerated growth, fueled by the massive automotive production and sales volumes in China, Japan, and South Korea. Investments in smart city initiatives and 5G network infrastructure in countries like China and India are further propelling the market forward, although the pace of adoption varies significantly across different countries within the region based on economic development and digital readiness.

Company Insights

The connected car ecosystem is populated by a diverse array of companies, each contributing specialized expertise. Leading automotive manufacturers such as Tesla, General Motors, and BMW are at the forefront, integrating sophisticated connectivity into their vehicles as a key brand differentiator. Tesla, for instance, is renowned for its deep integration of connectivity for over-the-air updates and advanced autopilot features. Major automotive suppliers play an equally critical role; companies like Robert Bosch GmbH and Continental AG develop essential components including sensor systems, control units, and connectivity modules that form the hardware backbone of connected cars. On the software and platform side, technology giants are formidable players. Google's Android Automotive OS is being adopted by several automakers to power native infotainment systems, while Apple's CarPlay and Baidu's CarLife dominate the smartphone projection segment. Telecommunications providers, including Verizon and AT&T, are also key enablers, providing the necessary network infrastructure and data plans required for constant vehicle connectivity.

Recent Developments

The connected car market is characterized by relentless innovation and strategic movements. A prominent recent trend is the accelerated rollout of 5G-capable vehicles and telematics control units, promising to unlock new applications in autonomous driving and enhanced vehicle-to-everything communication through vastly improved bandwidth and reduced latency. Strategic partnerships continue to reshape the competitive landscape, such as collaborations between automakers and cloud computing providers like Amazon Web Services and Microsoft Azure to develop powerful cloud platforms for managing vehicle data and deploying services at scale. There is also a significant industry-wide focus on bolstering cybersecurity frameworks, with companies investing heavily in developing more secure software architectures and intrusion detection systems to protect against sophisticated threats. Furthermore, the integration of biometric sensors for driver monitoring and personalization is gaining traction, and the development of standardized platforms and APIs is progressing to ensure interoperability between different vehicles and smart city ecosystems, facilitating a more cohesive connected mobility environment.

Report Segmentation

This comprehensive market report on the connected car industry provides a detailed and structured analysis segmented across multiple dimensions to offer granular insights. The segmentation by type typically includes integrated, tethered, and embedded connectivity solutions, analyzing the adoption trends, technological capabilities, and market share of each. Application-wise, the report delves into key areas such as driver assistance, safety and security, infotainment, vehicle management, and telematics, assessing the demand and growth potential for each application segment. The market is also segmented by technology, covering critical aspects like 4G LTE, 5G, dedicated short-range communication, and Wi-Fi. A regional breakdown offers a geographical perspective, covering key markets including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa, highlighting regional trends, regulatory impacts, and competitive dynamics. Furthermore, the report includes a detailed company landscape, profiling major players across the value chain, from automotive OEMs and tier-1 suppliers to software and network service providers, providing insights into their market strategies, product portfolios, and recent developments.

FAQs

What is a connected car? A connected car is a vehicle equipped with internet connectivity, often via an embedded SIM card, enabling it to share data with other devices both inside and outside the vehicle. This facilitates a wide range of features including real-time navigation, remote diagnostics, emergency services, and streaming entertainment, effectively turning the car into a node on the Internet of Things.

How does connected car technology work? Connected car technology operates through a telematics control unit installed in the vehicle, which contains a cellular modem, GPS receiver, and various interfaces. This unit connects to cellular networks to transmit vehicle data to cloud-based platforms and receive information back. This data exchange enables functionalities like remote commands, over-the-air updates, and access to online services directly through the vehicle's infotainment system.

What are the benefits of connected cars? The benefits are multifaceted, encompassing enhanced safety through features like automatic crash notification and emergency assistance, improved convenience via real-time traffic and remote vehicle controls, greater efficiency through predictive maintenance and optimized routing, and personalized in-car experiences with tailored infotainment and comfort settings.

What is the difference between V2V and V2I communication? Vehicle-to-vehicle communication involves the wireless exchange of data between nearby vehicles regarding their speed, position, and direction to prevent collisions. Vehicle-to-infrastructure communication, conversely, involves data exchange between a vehicle and roadside infrastructure like traffic lights, lane markers, and parking meters to improve traffic management and provide hazard warnings.

Are connected cars secure from hacking? While manufacturers and technology providers invest heavily in robust cybersecurity measures including encryption, secure boot processes, and intrusion detection systems, the increased connectivity inherently expands the potential attack surface. The industry continuously works to identify and patch vulnerabilities, but the risk of sophisticated cyber attacks remains a persistent challenge that requires ongoing vigilance and advancement in security protocols.

What is the role of 5G in connected cars? 5G technology is pivotal for the next evolution of connected cars due to its ultra-high speed, very low latency, and capacity to connect a massive number of devices. It is essential for supporting advanced applications that require instantaneous data transfer, such as real-time high-definition mapping for autonomous driving, enhanced vehicle-to-everything communication for improved safety, and seamless cloud-based entertainment and services.

Citius Research has developed a research report titled “Connected Car Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Connected Car Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Connected Car Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Connected Car Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Connected Car Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Connected Car Market
• Research Methodology
• Executive Summary
• Market Dynamics of Connected Car Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Connected Car Market
• Cost and Gross Margin Analysis of Connected Car Market
• Connected Car Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Connected Car Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Connected Car Market Key Stakeholders

Below are the key stakeholders for the Connected Car Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Connected Car Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Connected Car Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Connected Car Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Connected Car Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

Citius Research provides free customization of reports as per your need. This report can be personalized to meet your requirements. Get in touch with our sales team, who will guarantee you to get a report that suits your necessities.

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