As per Intent Market Research, the Connected Vehicles Market was valued at USD 59.8 billion in 2023-e and will surpass USD 182.8 billion by 2030; growing at a CAGR of 17.3% during 2024 - 2030.

The global Connected Vehicle Market is experiencing rapid growth as the automotive industry embraces digital transformation. Connected vehicles integrate various technologies, including sensors, software, and connectivity systems, allowing vehicles to communicate with external devices and networks. These technologies enhance vehicle performance, improve safety, and create a seamless driving experience through advanced driver assistance systems (ADAS), infotainment systems, and vehicle-to-everything (V2X) communications.

Infotainment & Connectivity Segment is Largest Owing to Consumer Demand for In-Vehicle Experience

The infotainment and connectivity segment holds the largest market share within the connected vehicle market due to the increasing demand for in-vehicle entertainment systems and advanced connectivity features. These systems allow drivers and passengers to access navigation services, music streaming, voice-activated assistants, and real-time traffic information, enhancing the overall driving experience. The growing integration of smartphones with vehicles through Apple CarPlay and Android Auto has also driven consumer demand for more advanced infotainment systems.

Within this segment, the display systems subsegment is the largest, driven by the widespread use of touchscreens and interactive displays in modern vehicles. These systems serve as the central control for infotainment, offering a user-friendly interface for accessing various in-car services. As consumers prioritize comfort and entertainment during travel, automotive manufacturers are continuously innovating display systems to include larger, higher-resolution screens, augmented reality (AR), and gesture control technologies. This trend is expected to continue as vehicles become more connected, positioning display systems as a key driver of market growth.

Vehicle-to-Everything (V2X) Segment is Fastest Owing to the Push for Smart Cities

The Vehicle-to-Everything (V2X) segment is anticipated to be the fastest-growing segment in the connected vehicle market, driven by the global push toward the development of smart cities and the implementation of intelligent transportation systems. V2X technology enables vehicles to communicate with each other (V2V), with infrastructure (V2I), with pedestrians (V2P), and with networks (V2N). This connected ecosystem enhances road safety, reduces traffic congestion, and optimizes vehicle performance.

Among the various subsegments, the vehicle-to-infrastructure (V2I) subsegment is expected to grow the fastest. V2I communication allows vehicles to interact with traffic lights, road signs, and other roadside infrastructure, providing real-time data to both the driver and the vehicle’s control systems. This improves traffic flow management and safety by reducing accidents caused by human error. Governments across the globe are investing heavily in smart infrastructure, making V2I technology a critical component of future transportation systems. This segment’s rapid expansion is fueled by these investments, coupled with advancements in 5G technology that support high-speed, low-latency communication.

Autonomous Driving Segment is Largest Owing to Advancements in AI and ADAS

The autonomous driving segment is another major contributor to the growth of the connected vehicle market, primarily due to technological advancements in artificial intelligence (AI) and ADAS. Autonomous driving systems utilize a network of sensors, cameras, and algorithms to enable self-driving capabilities, which range from basic driver assistance to full autonomy. The increasing focus on reducing road accidents and improving driving efficiency has spurred the demand for autonomous driving technologies.

Within this segment, the level 2 automation subsegment (partial automation) holds the largest market share. Vehicles equipped with level 2 automation systems can handle tasks such as steering, acceleration, and braking under certain conditions, while the driver must remain alert and ready to take control if necessary. This level of automation is currently the most common, as it strikes a balance between enhancing safety and maintaining driver involvement. Major automakers are investing heavily in level 2 and level 3 automation systems, positioning this subsegment as a dominant force in the connected vehicle market.

Over-the-Air (OTA) Updates Segment is Fastest Owing to the Demand for Continuous Vehicle Upgrades

The Over-the-Air (OTA) updates segment is emerging as one of the fastest-growing areas in the connected vehicle market. OTA technology enables automakers to remotely update a vehicle’s software without requiring the vehicle to visit a service center. This capability allows manufacturers to quickly roll out new features, fix bugs, and enhance vehicle performance, which is becoming increasingly important as vehicles become more reliant on software.

The firmware updates subsegment within OTA updates is the fastest-growing due to its critical role in maintaining and improving vehicle systems. Firmware updates are essential for ensuring the security, reliability, and functionality of vehicle components such as infotainment systems, navigation, and driver assistance features. With the rise of electric vehicles (EVs) and autonomous driving, the need for frequent and seamless software updates has become paramount, driving the rapid adoption of OTA firmware updates.

Electric Vehicles Segment is Largest Owing to the Shift Toward Sustainable Mobility

The electric vehicle (EV) segment is another major contributor to the growth of the connected vehicle market, driven by the global shift toward sustainable mobility and stringent emissions regulations. The increasing adoption of EVs is creating a new demand for connected services, as these vehicles rely heavily on software and digital platforms for performance optimization and battery management.

Within this segment, the battery electric vehicles (BEV) subsegment holds the largest market share. BEVs, which run entirely on electricity, have become the preferred choice for consumers seeking zero-emission vehicles. Connected technologies play a crucial role in enhancing the driving experience of BEVs by providing real-time data on battery status, charging station availability, and range optimization. As governments around the world continue to incentivize the adoption of electric vehicles, the BEV subsegment is expected to remain a dominant force in the connected vehicle market.

North America is Largest Owing to Technological Advancements and Early Adoption

Geographically, North America holds the largest share of the connected vehicle market. The region’s dominance is attributed to the early adoption of advanced automotive technologies, a well-established automotive industry, and the presence of major technology companies driving innovation in the connected vehicle space. The United States, in particular, has been at the forefront of connected vehicle development, with significant investments in autonomous driving, V2X communication, and electric vehicles.

The region also benefits from supportive government initiatives aimed at improving transportation infrastructure and promoting the use of connected technologies. The ongoing rollout of 5G networks across North America is further accelerating the adoption of connected vehicle systems, as it enables faster, more reliable communication between vehicles and infrastructure. With continued advancements in smart city development and intelligent transportation systems, North America is expected to maintain its leadership position in the connected vehicle market.

Leading Companies and Competitive Landscape

The competitive landscape of the connected vehicle market is characterized by the presence of several key players, each striving to enhance their technological offerings and expand their market share. Some of the top companies in this space include:

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

These companies are leading the charge in developing advanced connected vehicle technologies, such as autonomous driving systems, V2X communication, and over-the-air updates. The competitive landscape is highly dynamic, with traditional automakers competing with technology companies and startups for dominance in the connected vehicle space. Collaboration between automotive manufacturers and tech giants is becoming increasingly common as companies seek to leverage each other’s expertise in software development, artificial intelligence, and hardware integration. As the market evolves, the ability to innovate and adapt to changing consumer preferences will be critical for maintaining a competitive edge.

Report Objectives

The report will help you answer some of the most critical questions in the Connected Vehicles 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 Vehicles Market?
  3. What is the size of the Connected Vehicles 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, and Middle East & Africa?
  5. What are the market opportunities for stakeholders after analysing 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:

Report Features

Description

Market Size (2023-e)

USD 59.8 billion

Forecasted Value (2030)

USD 182.8 billion

CAGR (2024-2030)

17.3%

Base Year for Estimation

2023-e

Historic Year

2022

Forecast Period

2024-2030

Report Coverage

Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments

Segments Covered

Connected Vehicles Market By Technology (5G, 4G, 3G & 2G), By Connectivity (Embedded, Tethered, Integrated), By Application (Infotainment, Telematics, Driving Assistance)

Regional Analysis

North America (US, Canada), Europe (Germany, France, UK, Spain, Italy & Rest of Europe), Asia Pacific (China, Japan, South Korea, India, and rest of Asia Pacific), Latin America (Brazil, Mexico, Argentina, & Rest of Latin America), Middle East & Africa (Saudi Arabia, South Africa, Turkey, UAE, & Rest of MEA)

Customization Scope

Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements

1.Introduction

1.1.Market Definition

1.2.Scope of the Study

1.3.Research Assumptions

1.4.Study Limitations

2.   Research Methodology

2.1.Research Approach

2.1.1.Top-Down Method

2.1.2.Bottom-Up Method

2.1.3.Factor Impact Analysis

2.2.Insights & Data Collection Process

2.2.1.Secondary Research

2.2.2.Primary Research

2.3.Data Mining Process

2.3.1.Data Analysis

2.3.2.Data Validation and Revalidation

2.3.3.Data Triangulation

3.   Executive Summary

3.1.Major Markets & Segments

3.2.Highest Growing Regions and Respective Countries

3.3.Impact of Growth Drivers & Inhibitors

3.4.Regulatory Overview by Country 

4.   Connected Vehicles Market, by Technology (Market Size & Forecast: USD Billion, 2024 – 2030)

4.1. 2G & 3G

4.2.4G

4.3.5G

5.   Connected Vehicles Market, by Connectivity (Market Size & Forecast: USD Billion, 2024 – 2030)

5.1.Embedded

5.2.Tethered

5.3.Integrated

6.   Connected Vehicles Market, by Application (Market Size & Forecast: USD Billion, 2024 – 2030)

6.1.Driving Assistance

6.2.Telematics 

6.3.Infotainment

6.4.Other

7.   Regional Analysis (Market Size & Forecast: USD Billion, 2024 – 2030)

7.1.Regional Overview

7.2.North America

7.2.1.Regional Trends & Growth Drivers

7.2.2.Barriers & Challenges

7.2.3.Opportunities

7.2.4.Factor Impact Analysis

7.2.5.Technology Trends

7.2.6.North America Connected Vehicles Market, by Technology

7.2.7.North America Connected Vehicles Market, by Connectivity

7.2.8.North America Connected Vehicles Market, by Application

               *Similar Segmentation will be provided at each regional level

7.3.By Country

7.3.1.US

7.3.1.1.US Connected Vehicles Market, by Technology

7.3.1.2.US Connected Vehicles Market, by Connectivity

7.3.1.3.US Connected Vehicles Market, by Application

7.3.2.Canada

                        *Similar Segmentation will be provided at each country level

7.4.Europe

7.5.APAC

7.6.Latin America

7.7.Middle East & Africa

8.   Competitive Landscape

8.1.Overview of the Key Players

8.2.Competitive Ecosystem

8.2.1.Platform Manufacturers

8.2.2.Subsystem Manufacturers

8.2.3.Service Providers

8.2.4.Software Providers

8.3.Company Share Analysis

8.4.Company Benchmarking Matrix

8.4.1.Strategic Overview

8.4.2.Product Innovations

8.5.Start-up Ecosystem

8.6.Strategic Competitive Insights/ Customer Imperatives

8.7.ESG Matrix/ Sustainability Matrix

8.8.Manufacturing Network

8.8.1.Locations

8.8.2.Supply Chain and Logistics

8.8.3.Product Flexibility/Customization

8.8.4.Digital Transformation and Connectivity

8.8.5.Environmental and Regulatory Compliance

8.9.Technology Readiness Level Matrix

8.10.Technology Maturity Curve

8.11.Buying Criteria

9.Company Profiles

9.1.Bosch

9.1.1.Company Overview

9.1.2.Company Financials

9.1.3.Product/Service Portfolio

9.1.4.Recent Developments

9.1.5.IMR Analysis

*Similar information will be provided for other companies 

9.2.AT&T

9.3.BMW

9.4.Audi

9.5.Tesla

9.6.Vodafone

9.7.General Motors

9.8.Visteon

9.9.Continental

9.10.Harman

10.Appendix

A comprehensive market research approach was employed to gather and analyse data on the Connected Vehicles Market. In the process, the analysis was also done to estimate the parent market and relevant adjacencies to major the impact of them on the Connected Vehicles Market. The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.

Research Approach - Connected Vehicles Market

Secondary Research

Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.

Primary Research

Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the automotive sensors ecosystem. The primary research objectives included:

  • Validating findings and assumptions derived from secondary research
  • Gathering qualitative and quantitative data on market trends, drivers, and challenges
  • Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
  • Assessing the supply-side landscape, including technological advancements and recent developments

Market Size Estimation

A combination of top-down and bottom-up approaches was utilized to estimate the overall size of the Connected Vehicles Market. These methods were also employed to estimate the size of various subsegments within the market. The market size estimation methodology encompassed the following steps:

  1. Identification of key industry players and relevant revenues through extensive secondary research
  2. Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
  3. Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources

Bottom Up and Top Down - Connected Vehicles Market

Data Triangulation

To ensure the accuracy and reliability of the market size estimates, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size estimates.

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