| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 92.34 Billion |
| 2025 Market Size | USD 107.42 Billion |
| 2032 Forecast | USD 328.45 Billion |
| Growth Rate (CAGR) | 17.31% |
| Largest Region | North America |
| Fastest Growing Region | APAC |
| Nature of the Market | Consolidated |
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The global connected car market size stood at USD 92.34 billion in 2024, and it is expected to advance at a compound annual growth rate of 17.31% during 2025–2032, to reach USD 328.45 billion by 2032.
This growth can be primarily ascribed to the increasing demand for high-end luxury cars, surging adoption of the internet of things in the automotive industry, surging preference for automatic parking, autonomous vehicles, and integrated connectivity; 5G penetration, and growing concerns over vehicular safety and security.
The emergence of AI interfaces is playing an important role in the market. Building upon this technology, automakers are providing cutting-edge in-vehicle infotainment systems, which serve as virtual personal assistants with the ability to respond to voice commands and proactively guide the driver with the help of the navigation system. Moreover, AI radically guides the automotive industry toward innovation, thereby increasing customer satisfaction and enhancing the driving experience. Various automotive OEMs are collaborating with technology vendors to offer their consumers the latest connectivity solutions.
The growing concerns for safety and security among OEMs, end users, and governments are one of the major factors driving the global connected car market. Technologies such as ADAS, anti-lock braking systems, and lane assist significantly enhance the driving experience, making the journey safer than ever. Such technologies help in reducing traffic rule violations, in turn, causing a decline in road accidents. The penetration of security and safety solutions in new vehicles is growing. The stringent safety regulations, coupled with a high-end user preference for safety features, is expected to drive the ADAS and IoT demand, thereby driving the connected car industry in the coming years.
The driver assistance service category held the largest share in 2024, of 40%. This dominance is mainly due to the large-scale integration of advanced driver assistance systems in automobiles, which reduce car accident possibilities. Moreover, people’s concerns over vehicular safety is boosting the market. In addition, in various countries, the government has made the installation of the ADAS system mandatory in all upcoming vehicles. Key ADAS applications are automatic emergency braking, pedestrian detection, surround view, and parking assist. For instance, in India, the Union Ministry for Road Transport and Highways has mandated advanced driver assist systems in all cars from 2022 onward.
During the forecast period, the mobility management category is expected to observe the fastest growth. This is attributed to the increasing adoption of shared mobility services, including ride-hailing, ride-sharing, carsharing, and two-wheeler sharing. These services require vehicles with greater operational efficiency, greater usage of internet of things (IoT)-based services, improved vehicle tracking and road safety features, and enhanced vehicle management capabilities, which are highly reliant on connected car solutions.
These services are covered:
The 4G/LTE category dominates the market as this is the most-widely available telecommunication technology around the world. Although many developing countries are still using 3G for most applications, it does not offer the required speed and a low enough latency to enable in-vehicle connectivity on the go. Further, even in countries where 5G is available, less than half the population is connected to this network, which is why most connected cars still use 4G/LTE. Additionally, an ideal combination of speed, latency, and prices is provided by 4G/LTE, which is why it continues to be preferred.
The 5G category is expected to grow at the highest CAGR during the projection period, of 18.67%. Many telecommunication enterprises are focused on the development of 5G connectivity for enhanced communication between connected automobiles and external gadgets. The growth can be primarily ascribed to the increasing demand for information in the vehicle, where 5G reduces the latency time, and surging focus to enhance the driver’s experience by providing real-time traffic coverage. Nowadays, 5G technology is increasingly being used in every automobile manufacturing operation, such as automated factory parking, in which automobiles are automatically moved across production areas and logistics hubs.
Additionally, 5G technology permits consumers to quickly download files over a wireless network and provides enhanced high voice quality, ease in usage of IM, social networks, streaming media, and video calling and higher bandwidth.
These technologies are covered:
The OEM category held the largest market share in 2024, of 70%. This is because of the elevating requirement for these solutions by the OEMs on account of the implementation of strict government rules regarding automobile and passenger safety. In addition, the demand for advanced technologies, such as integrated connectivity, cybersecurity, and self-drive cars, is rapidly growing.
In the forecast period, the aftermarket category is expected to exhibit the faster growth owing to higher demand for retrofitting the connected car solutions in the existing vehicles along with the increase in demand for replacement in the coming years.
These end users are covered:
The navigation application category holds the larger share, and it is expected to grow at the highest CAGR, of 19.86%. The main growth elements for the category are the growing requirement for real-time in-vehicle navigation and improved optimization with proper route planning features, for a hassle-free journey. Along with this, many people use their mobile phones as a navigator, and sometimes, phone calls divert the attention of the driver, which could cause an accident.
Moreover, many automobile manufacturers offer pre-installed navigation systems in their cars, which use GPS to track the current position of the user on the road. However, vehicles without GPS navigation systems may install a custom navigation device.
These applications are covered:
The integrated connectivity category is the largest, with 55% share in 2024, and it is expected to witness the highest CAGR during the forecast period. The market for this category is predicted to grow owing to factors, such as increasing demand for high resolution human machine interface (HMI) used in smartphones for connected cars, improved vehicle management system, and better internal communication with the vehicle. In May 2018, London based Laird launched its first completely integrated ‘‘connected car’’ platform for the automakers globally. This integrated platform is expected to improve its consumer experience, permitting an array of services, diagnostics for maintenance, theft protection, OTA updates, vehicle location, and increased operational efficiencies for the automakers.
These categories are covered:
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North America is the largest market for connected car, contributing 35% revenue to the global connected car market in 2024. This is due to the rising integration of advanced technologies in passenger cars. Connected cars include smartphone connectivity, roadside assistance, traffic and collision warnings, automobile diagnostics, and real-time traffic updates. Furthermore, the increasing demand for an efficient and safe driving option, increasing research and development (R&D) activities for advanced vehicles, and support from the federal and state governments for the evolution of advanced driving technologies are the major factors fueling the growth of the North American market.
Moreover, the region is the home to several major automobile manufacturers, including General Motors Co., Ford Motor Co., and Tesla Inc., which are proactively involved in the R&D process for the evolution of advanced automotive technology, which further contributes to the region’s domination on the market.
The APAC region is expected to grow at the highest CAGR, of 20.45%, throughout the projection period. This is because of the surging demand for cost-effective, integrated connected systems in cars and the growing popularity of digital services, such as cybersecurity and 5G. This is buoyed by the technological advancements being carried out in countries such as China, Japan, and South Korea. China is one of the leading producers of connected cars in the world, owing to its new technology development initiatives aimed at connected cars, change of government safety rules and regulations for vehicles, and increasing production capacity of passenger car manufacturers.
In addition, India is the fastest-growing car market in APAC region. The Indian automobile industry has seen a major shift from household brands, such as Fiat Padmini Premium, HM Ambassador, and Maruti 800, to those of international OEMs.
These regions and countries are covered:
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