Connected Car Market By Component (Hardware, Software, Services {Connectivity Services, Maintenance & Support}), By Technology (Embedded, Tethered, Integrated), By Application (Safety & Security, Navigation & Infotainment, Fleet Management, Autonomous Driving), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Connected Car Market was valued at USD 12.1 billion in 2023 and will surpass USD 25.8 billion by 2030; growing at a CAGR of 11.4% during 2024 - 2030.

The Connected Car Market is rapidly transforming the automotive industry by integrating advanced communication technologies into vehicles. These cars offer seamless connectivity, enabling vehicle-to-vehicle (V2V) and vehicle-to-everything (V2X) communication, enhancing safety, efficiency, and user experience. The market is expected to witness significant growth due to increasing demand for connected services, safety features, and autonomous driving capabilities.

Telematics Segment is the Largest Owing to Enhanced Fleet Management

Telematics, which encompasses a wide range of services including navigation, remote diagnostics, and vehicle tracking, forms the largest segment in the connected car market. This growth is driven by rising demand for real-time monitoring and advanced data analysis, particularly among fleet operators who benefit from improved vehicle management and predictive maintenance. Telematics solutions are essential for optimizing fuel efficiency, reducing downtime, and enhancing driver behavior analysis.

Within the telematics segment, fleet management solutions are the dominant subsegment. Fleet management systems are vital for commercial vehicles, enabling businesses to manage large fleets by monitoring vehicle location, speed, fuel consumption, and maintenance needs in real-time. As global trade and logistics continue to expand, the need for these solutions is growing, particularly in industries like transportation and delivery services, where efficiency and cost-saving measures are crucial.

Infotainment Segment is the Fastest Growing Owing to Rising Consumer Demand for In-Car Experience

The infotainment segment is experiencing rapid growth due to rising consumer demand for immersive in-car experiences. As vehicles become extensions of the digital world, customers increasingly expect access to streaming services, personalized media, and seamless integration with smartphones and other devices. In addition to enhancing the driving experience, infotainment systems improve convenience through features like voice recognition and navigation assistance.

Within this segment, smartphone integration is the fastest-growing subsegment. With the proliferation of smartphone ownership and the increasing need for connectivity, automakers are prioritizing seamless integration between mobile devices and car systems. Features like Apple CarPlay and Android Auto allow drivers to access navigation, calls, and media without compromising safety, contributing to the growing adoption of connected infotainment systems.

V2X Communication Segment is the Largest Owing to Safety and Autonomous Driving Advancements

Vehicle-to-everything (V2X) communication plays a critical role in enhancing road safety and enabling autonomous driving technologies. This segment is set to dominate the market as it facilitates real-time communication between vehicles, infrastructure, and pedestrians. The integration of V2X technologies reduces accident risks, optimizes traffic flow, and supports smart city initiatives, making it essential for the future of mobility.

Within the V2X communication segment, vehicle-to-vehicle (V2V) communication is the largest subsegment. V2V communication enables cars to share information such as speed, position, and direction, helping prevent collisions and reduce traffic congestion. Governments and regulatory bodies are increasingly supporting the implementation of V2V technologies as part of broader road safety initiatives, further driving the growth of this subsegment.

Autonomous Driving Segment is the Fastest Growing Owing to Technological Advancements

Autonomous driving is one of the most promising segments in the connected car market, with rapid technological advancements accelerating its adoption. As companies continue to develop AI-driven algorithms and sensor technologies, autonomous vehicles are gradually moving from concept to reality. The demand for autonomous driving solutions is driven by the potential to reduce accidents, optimize fuel efficiency, and offer seamless mobility experiences.

Within the autonomous driving segment, the Level 3 autonomy subsegment is the fastest growing. Level 3 autonomous vehicles can manage most driving tasks but still require human intervention in certain situations. As automakers move closer to achieving fully autonomous vehicles (Level 5), Level 3 cars represent a key transitional phase, providing a glimpse of future mobility while ensuring safety and control remain paramount.

Software Solutions Segment is the Largest Owing to Digital Transformation of the Automotive Industry

The software solutions segment plays a pivotal role in the connected car ecosystem, encompassing a broad range of applications from telematics to infotainment to cybersecurity. As vehicles become increasingly reliant on software to manage everything from navigation to engine performance, this segment is set to lead the market. Automakers are investing heavily in software development to enable real-time updates, optimize vehicle performance, and ensure the seamless functioning of connected features.

Within this segment, cybersecurity solutions represent the largest subsegment. With the growing threat of cyberattacks targeting connected vehicles, ensuring the security of data and vehicle control systems has become a top priority for manufacturers. Robust cybersecurity frameworks are essential to protect against potential breaches, ensuring consumer trust and compliance with stringent regulatory standards.

5G Connectivity Segment is the Fastest Growing Owing to High-Speed Data Transfer and Low Latency

As connected cars become more advanced, the demand for high-speed, low-latency connectivity is driving the growth of the 5G segment. 5G technology is essential for enabling real-time data transfer, supporting V2X communication, and facilitating the deployment of autonomous vehicles. The ability to transmit large amounts of data instantly enhances safety, improves traffic management, and allows for more sophisticated in-car experiences.

Within the 5G connectivity segment, the automotive telematics subsegment is witnessing the fastest growth. The integration of 5G in telematics enables faster and more reliable communication between vehicles and infrastructure, improving navigation, traffic monitoring, and fleet management. As global 5G networks expand, the automotive industry is poised to capitalize on these advancements to deliver a safer and more efficient driving experience.

North America is the Largest Market Owing to High Adoption of Advanced Technologies

North America leads the global connected car market, driven by the high adoption of advanced automotive technologies and a strong presence of leading automakers. The region’s focus on innovation, along with supportive government regulations aimed at enhancing vehicle safety and reducing emissions, has contributed to the widespread deployment of connected vehicle solutions. Additionally, the growing demand for electric vehicles (EVs) in North America is accelerating the integration of connected technologies, particularly in the United States and Canada.

The largest submarket in North America is the United States, where major automakers such as General Motors, Ford, and Tesla are investing heavily in the development of connected and autonomous vehicles. The country’s advanced infrastructure, coupled with consumer demand for innovative in-car experiences, positions it as a key driver of the connected car market. As the U.S. continues to push for improvements in smart city infrastructure and autonomous driving technology, its dominance in the market is expected to persist.

Leading Companies and Competitive Landscape

The connected car market is highly competitive, with leading automakers and technology companies vying for market share. Key players are focused on developing cutting-edge solutions, such as telematics, infotainment systems, and autonomous driving technologies, to stay ahead in this rapidly evolving market. The competitive landscape is characterized by strategic partnerships, mergers and acquisitions, and continuous investment in research and development to enhance connected car capabilities.

The top 10 companies leading the connected car market are:

1. General Motors
2. Ford Motor Company
3. Tesla, Inc.
4. BMW Group
5. Daimler AG (Mercedes-Benz)
6. Toyota Motor Corporation
7. Volkswagen Group
8. Hyundai Motor Company
9. Nissan Motor Co., Ltd.
10. Continental AG

These companies are at the forefront of technological advancements in the connected car ecosystem, leveraging their expertise in both automotive manufacturing and digital technologies. The competition is fierce, with companies not only racing to improve the in-car experience but also developing robust cybersecurity measures and autonomous driving features. Strategic collaborations with technology firms, such as those between automakers and software providers, are expected to play a critical role in shaping the future of the connected car market.

Report Objectives:

The report will help you answer some of the most critical questions in the Connected Car Market. A few of them are as follows:

1. What are the key drivers, restraints, opportunities, and challenges influencing the market growth?
2. What are the prevailing technology trends in the Connected Car Market?
3. What is the size of the Connected Car Market based on segments, sub-segments, and regions?
4. What is the size of different market segments across key regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa?
5. What are the market opportunities for stakeholders after analyzing key market trends?
6. Who are the leading market players and what are their market share and core competencies?
7. What is the degree of competition in the market and what are the key growth strategies adopted by leading players?
8. What is the competitive landscape of the market, including market share analysis, revenue analysis, and a ranking of key players?

Report Scope: