Connected Cars Market Report 2025

The connected cars market size has grown rapidly in recent years. It will grow from $91.38 billion in 2024 to $105.13 billion in 2025 at a compound annual growth rate (CAGR) of 15%. The growth in the historic period can be attributed to emerging markets growth, increased demand for enhanced user comfort, safety, and convenience, and increasing occurrences of vehicle theft in the connected cars industry.

The connected cars market size is expected to see rapid growth in the next few years. It will grow to $191.43 billion in 2029 at a compound annual growth rate (CAGR) of 16.2%. The growth in the forecast period can be attributed to a rise in global population, the emergence of various technologies such as 5g and ai, a rise in internet penetration, the internet of things (IoT), rising preference for in-car wi-fi hotspots and data services and increasing demand for smart solutions in mobility. Major trends in the forecast period include the adoption of 5g connectivity in connected cars, integration of AI in connected cars to enhance the features in connected car operating systems, installation of cybersecurity systems in connected cars to the risk of cyber-attacks, and design of hybrid personalized in-vehicle infotainment systems for connected cars.

Increased governmental initiatives aimed at the development of intelligent transportation systems will act as a driving force for the connected car market. Over the mentioned period, government initiatives were instrumental in fostering the growth of connected and autonomous cars, significantly impacting the connected car market. For example, in the UK, the government has allocated £40 million (US$50 million) toward schemes to initiate commercial autonomous vehicle (AV) services, including delivery vehicles and passenger shuttles. Furthermore, various trials have been conducted, accompanied by the introduction of new legislation aimed at encouraging the deployment of connected cars. By 2030, it is projected that the UK will yield an estimated £62 billion ($74.36 billion) in economic benefits from the integration of connected and autonomous vehicles.

The increasing prevalence of autonomous vehicles is anticipated to drive the expansion of the connected cars market in the forthcoming years. Autonomous vehicles, commonly known as self-driving or driverless cars, are equipped with advanced sensors, artificial intelligence (AI) systems, and other technologies enabling them to operate without direct human intervention. Connected cars serve as a pivotal infrastructure for the development and functionality of autonomous vehicles, facilitating data exchange, refining navigation, enhancing safety measures, and providing essential support for the effective and safe operation of self-driving cars on roads. As indicated in a 2023 report by the National Academies Press, self-driving vehicles are swiftly advancing toward commercialization in global markets. By 2035, an estimated 40% of new vehicles in the UK may possess self-driving capabilities. Thus, the proliferation of autonomous vehicles contributes to the growth of the connected cars market.

Connected car enterprises are increasingly focusing on the development of novel technologies such as autonomous vehicle map software to bolster their revenue streams and gain a competitive advantage in the market. For instance, in 2022, NVIDIA Corporation, an American technology company, introduced DRIVE Map, an autonomous vehicles map software. This software, designed as a multi-modal mapping engine, aims to expedite the deployment of autonomous Level-3 and Level-4 vehicles capable of functioning without human intervention. Following the acquisition of HD mapping startup DeepMap, NVIDIA swiftly progressed in developing DRIVE Map, integrating the acquired mapping technologies into its software. DRIVE Map amalgamates the precision of DeepMap survey mapping with AI-based crowdsourcing, offering enhanced mapping capabilities.

Leading entities in the connected cars market are actively investing in cutting-edge technologies such as Snapdragon Digital Chassis connected car solutions to stay ahead in the competitive landscape. The Snapdragon Digital Chassis represents an all-encompassing suite of cloud-connected automotive platforms catering to telematics, connectivity, computing, and driver assistance. For instance, in February 2022, Qualcomm, a US-based company specializing in connected car technologies, introduced novel Snapdragon Digital Chassis connected car technologies. These cloud-connected automotive platforms facilitate real-time communication between vehicles and the cloud, delivering vital data and insights to enhance safety, efficiency, and convenience for vehicle operations.

In April 2022, Qualcomm Incorporated, a U.S.-based semiconductor firm, acquired Arriver from SSW Partners for an undisclosed sum. This acquisition enhances Qualcomm’s capability to provide fully integrated Advanced Driver Assistance System (ADAS) solutions on a large scale. By incorporating Arriver’s assets, Qualcomm solidifies its role as a crucial technology partner for the automotive sector, expediting the advancement of connected and autonomous vehicle technologies. Arriver is a Sweden-based technology company that specializes in advanced driver assistance systems.

Major companies operating in the connected cars market include Volkswagen, Toyota Motor Corporation, General Motors, Daimler AG, BMW Group, Ford Motor Company, Honda Motor Co Ltd, Hyundai Motor Group, Tesla, Renault, Tata Motors Limited, Mahindra and Mahindra Ltd., NIO Inc., XPeng Inc., Geely Automobile Holdings Limited, Nissan Motor Co., Ltd., Mitsubishi Motor Corporation, Bavarian Motor Works AG, Audi AG, Fiat Chrysler Automobiles, Delphi, Denso, Mercedes-Benz, Continental, SAIC Motor, Dongfeng, FAW and Chang'an, Banma Network Technology, ECARX Technology, Zhidao Network Technology, AutoAI Geely, Beijing Automotive Group, Brilliance Automotive, Guangzhou Automobile Group, Chery and Jianghuai (JAC), Robert Bosch GmbH, Tomtom INC, Oxbotica, StreetDrone, Flourish, Zenzic AVs, GAZ Group, Yandex, Kamaz Livemap, Raxel Telematics, Stellantis, Airbiquity Inc., CloudMade, Intellias Ltd., LUXOFT, Qualcomm Technologies, Inc., Sierra Wireless, Telefonica S.A., Vodafone Group Plc, Verizon Communications, Samsung Electronics, AT&T, FCA South Africa, Jaguar Land Rover, Suzuki Auto South Africa.

Asia-Pacific was the largest region in the connected cars market share in 2024. Western Europe was the second largest region in the global connected cars market. The regions covered in the connected cars market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the connected cars market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Connected cars are vehicles equipped with internet access and a local area network, enabling communication with other vehicles. These cars feature a variety of sensors that transmit and receive signals, facilitating real-time interaction with manufacturers' services to enhance the consumer experience. They can connect with smartphones, enabling drivers to monitor the car's performance automatically.

Primary types in the connected car market include embedded, tethered, integrated, and others. Embedded refers to being fixed into the surface of something. The services offered encompass driver assistance, safety, entertainment, well-being, vehicle management, mobility management, and others. Applications involve functions related to applications, navigation, infotainment, and telematics.

The connected cars market research report is one of a series of new reports that provides connected car market statistics, including global market size, regional shares, competitors with a connected car market share, detailed connected car market segments, market trends and opportunities, and any further data you may need to thrive in the connected car industry. This connected car market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The connected cars market consists of sales of connected cars such as Vehicle to Vehicle (V2V), Vehicle to Infrastructure (V2I), Vehicle to Cloud (V2C), Vehicle to Pedestrians (V2P), and Vehicle to Everything (V2X). Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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