Automotive Digital Services Market Report 2026

The automotive digital services market size has grown strongly in recent years. It will grow from $3.92 billion in 2025 to $4.31 billion in 2026 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to smartphone integration in vehicles, navigation service adoption, growth of ride-hailing platforms, digital infotainment demand, connectivity infrastructure expansion.

The automotive digital services market size is expected to see strong growth in the next few years. It will grow to $6.3 billion in 2030 at a compound annual growth rate (CAGR) of 9.9%. The growth in the forecast period can be attributed to software-defined vehicles, autonomous mobility services, AI-driven personalization, data monetization strategies, connected ecosystem expansion. Major trends in the forecast period include growth of connected in-vehicle services, expansion of mobility-on-demand platforms, integration of infotainment and telematics, rising subscription-based models, demand for personalized user experience.

The increasing frequency and scale of cybersecurity incidents affecting connected and smart vehicles are expected to drive the growth of the automotive digital services market going forward. Cybersecurity threats include attacks targeting infotainment systems, telematics platforms, vehicle-to-everything (V2X) communications, and connected mobility ecosystems, posing serious risks to vehicle safety, data privacy, and operational reliability. Automotive digital services support both manufacturers and consumers by protecting vehicle data, ensuring regulatory compliance, and strengthening trust in connected vehicle technologies. For example, in February 2025, according to Upstream Security, a U.S.-based automotive cybersecurity and analytics company, 60% of cybersecurity incidents in the automotive and smart mobility sectors affected thousands to millions of assets, including vehicles, EV charging stations, smart mobility applications, and connected devices. Additionally, incidents impacting millions of vehicles more than tripled, rising from 5% in 2023 to 19% in 2024. Therefore, the growing prevalence of automotive cybersecurity threats is driving the expansion of the automotive digital services market.

Major companies in the automotive digital services market are concentrating on developing advanced solutions, such as digital chassis platforms, to improve vehicle connectivity, safety, and performance. A digital chassis is an integrated digital framework within a vehicle that combines hardware, software, and connectivity technologies to manage and enhance critical automotive functions, including safety systems, performance optimization, and user experience. For instance, in September 2023, Qualcomm Incorporated, a U.S.-based semiconductor company, introduced two new platforms - QWM2290 and QWS2290 - as part of its Snapdragon Digital Chassis portfolio, aimed at improving connectivity and safety across a range of vehicles, including motorcycles, e-bikes, and all-terrain vehicles. These platforms feature advanced smart clusters with personalized navigation, low-battery alerts, and maintenance notifications, along with robust 4G/5G connectivity and vehicle-to-everything (V2X) communication capabilities. They also support integrated services such as over-the-air software updates and remote diagnostics.

In January 2024, AUTOCRYPT, a South Korea-based provider of automotive digital services, partnered with Cohda Wireless to advance secure connected mobility for next-generation vehicles. This collaboration is intended to deliver a comprehensive, security-integrated V2X solution by combining AUTOCRYPT’s automotive cybersecurity platform with Cohda Wireless’s V2X communication technology, enabling robust and secure connected-car services. Cohda Wireless is an Australia-based developer specializing in V2X and autonomous vehicle communication solutions.

Major companies operating in the automotive digital services market report include Volkswagen AG, Toyota Motor Corporation, Ford Motor Company, Mercedes-Benz Group, General Motors Company, Bayerische Motoren Werke AG, Hyundai Motor Company, Tesla Inc., Nissan Motor Co. Ltd., Aurora Innovation Inc., Volvo AB, Qualcomm Incorporated, Continental AG, Tata Motors Limited, Uber Technologies Inc., NVIDIA Corporation, Aptiv PLC, Harman International Industries Incorporated, Lyft Inc., XPeng Inc., Rivian Automotive Inc., Waymo LLC, Cruise LLC, BlackBerry Limited, TomTom NV.

Asia-Pacific was the largest region in the automotive digital services market in 2025. The regions covered in the automotive digital services market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive digital services market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive digital services market consists of revenues earned by entities by providing services such as connected car solutions, telematics services, digital cockpit solutions, data analytics and insights, and cybersecurity solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive digital services market also includes sales of connected car devices, telematics unit tools, digital cockpit displays, fleet management software tools, and V2X communication devices. 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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