Global Connected Car Market Size, Share, Opportunities, And Trends By Service (Driver Assistance, Safety, Vehicle And Mobility Management, Others), By Application (Safety, Telematics, Infotainment, Navigation), By End-Market (OEM, Aftermarket), And By Geography - 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.

There has been a significant change in the Indian automotive market away from well-known brands like the Fiat Padmini Premium, HM Ambassador, and Maruti 800 towards those produced by foreign OEMs. The Federation of Automobile Dealers Associations (FADA) estimates that Maruti Suzuki held a 39.17% share in the nation in 2022 and sold 98,318 units at retail, while Hyundai constituted for 15.96% market share in the same year with 40,056 units. Additionally, Tata Motors declared intentions to invest US$3.08 billion in its passenger car over the following five years in April 2022.

Collaborations and product innovation by manufacturers are propelling the 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.

Additionally, HARMAN announced the launch of the HARMAN Ready Connect 5G Telematics Control Unit (TCU) in February 2024, leveraging state-of-the-art Snapdragon Digital Chassis connected car technologies from Qualcomm Technologies, Inc.  Based on the Snapdragon Auto 5G Modem-RF Gen 2, HARMAN Ready Connect 5G TCU represented a significant advancement in automotive connectivity. Also, in February 2022, an Ultra Low-Latency Edge-Based Compute Platform for Turn-Key Connectivity, called HARMAN Savari MECWAVE, was introduced by HARMAN. Hazard alerts and other vehicle-to-everything (2X) communications, as well as high-throughput connection activities like interactive infotainment and video streaming, are deployed more quickly thanks to MECWAVE.

OEMs are creating software solutions for a more connected, individualized customer experience in addition to making cars. OEMs have the potential to develop new revenue streams and more continuing, direct interactions with their customers emerging from the auto industry's constant evolution.

What are the drivers of the connected car market?

• Growing adoption of ADAS features in cars

The 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.

According to the Highway Loss Data Institute, by 2026, at least half of all registered vehicles will only have two ADAS systems. Around 71% of registered vehicles will have rear cameras by 2026, and 60% will have back parking sensors. However, just 17% of registered cars are projected to have adaptive cruise control with lane centering by 2026, and only 13% are likely to have adaptive lighting.

To overcome the challenges of creating advanced driver-assistance systems (ADAS), several technological firms are collaborating on the market. For instance, the cooperation between PATEO Corporation and Qualcomm Technologies, Inc. (Qualcomm) was expanded in June 2022 to include the development of solutions for vehicle intelligence, smart car connection, Service-Oriented Architecture (SOA), intelligent cockpits, and multi-domain fusion based on central controllers. Veoneer Inc., a leading provider of safety technology, will be acquired by Magna International Inc. in July 2021. To purchase Veoneer Inc., a major provider of automotive safety technologies, Magna International Inc. entered into a binding merger agreement with the firm. Magna sought to improve and expand its ADAS portfolio and sector position with this acquisition.

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 development and deployment of 5G networks have introduced significant advancements in connectivity, offering faster speeds and enhanced reliability. This has led to real-time data exchange and improved communication between vehicles and infrastructure in the context of connected cars. With the United States emerging as a leader in 5G deployment. The region has a significant 59% population coverage of 5G, and the potential for leveraging this technology in the connected car market is substantial. The widespread availability of 5G services fuels the growth and implementation of advanced connected car technologies in the United States.

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 government of most of the nation is implementing the safety regulatory standard 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.

Key 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.
• In February 2022, Ultra Low-Latency Edge-Based Compute Platform for Turn-Key Connectivity, called HARMAN Savari MECWAVE, was introduced by HARMAN. Hazard alerts and other vehicle-to-everything (2X) communications and high-throughput connection activities like interactive infotainment and video streaming are deployed more quickly due to MECWAVE.

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-market
  • 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

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

2.3. Data Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Supplier

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4.  Industry Value Chain Analysis

5. CONNECTED CAR MARKET BY SERVICES

5.1. Introduction

5.2. Driver assistance

5.3. Safety

5.4. Vehicle and mobility management

5.5. Others

6. CONNECTED CAR MARKET BY APPLICATION

6.1. Introduction

6.2. Safety

6.3. Telematics

6.4. Infotainment

6.5. Navigation

7. CONNECTED CAR MARKET BY END-MARKET

7.1. Introduction

7.2. OEM

7.3. Aftermarket

8. CONNECTED CAR MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Services

8.2.2. By Application

8.2.3. By End-market

8.2.4. By Country

8.2.4.1. United States

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Services

8.3.2. By Application

8.3.3. By End-market

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Rest of South America

8.4. Europe

8.4.1. By Services

8.4.2. By Application

8.4.3. By End-market

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Italy

8.4.4.5. Spain

8.4.4.6. Rest of Europe

8.5. Middle East and Africa

8.5.1. By Services

8.5.2. By Application

8.5.3. By End-market

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. United Arab Emirates

8.5.4.3. Rest of Middle East and Africa

8.6. Asia-Pacific

8.6.1. By Services

8.6.2. By Application

8.6.3. By End-market

8.6.4. By Country

8.6.4.1. China

8.6.4.2. India

8.6.4.3. Japan

8.6.4.4. South Korea

8.6.4.5. Taiwan

8.6.4.6. Thailand

8.6.4.7. Indonesia

8.6.4.8. Rest of Asia-Pacific

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Land Rover Limited

10.2. HARMAN International

10.3. Verizon

10.4. Daimler AG

10.5. AT&T

10.6. Vodafone Group

10.7. Telefónica S.A

10.8. BMW AG

10.9. Audi of America

Land Rover Limited

HARMAN International

Verizon

Daimler AG

AT&T

Vodafone Group

Telefónica S.A

BMW AG

Audi of America