IMARC Group, a leading market research company, has recently released a report titled “Connected Car Market Size, Share, Trends and Forecast by Technology, Connectivity Solution, Service, End Market and Region, 2025-2033”. The study provides a detailed analysis of the industry, including the connected car market share, growth, size, and industry growth forecast. The report also includes competitor and regional analysis and highlights the latest advancements in the market.
Report Highlights:
How Big Is the global connected car market?
The global connected car market size was valued at USD 96.2 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 284.0 Billion by 2033, exhibiting a CAGR of 12.8% from 2025-2033. North America currently dominates the market, holding a market share of over 39.8% in 2024.
Growing Demand for Advanced Vehicle Connectivity
The connected car market is experiencing substantial growth, with the consumer demand for enhanced vehicle connectivity and the provision of smart features being the primary drivers. This is due to the fact that today's consumers seek the facilitation and smooth link-up of their smartphones, infotainment systems, and navigation tools, all of which enable instant traffic updates, vehicle remote monitoring, and adapting the trip to their own taste and requirements. The infusion of telematics and cloud services facilitates access to vehicle diagnostics, safety notifications, and over-the-air software updates, thus giving more comfort and better vehicle performance to the users. Car manufacturers are constantly combining connectivity solutions more and more to cater to the needs of their customers who expect the best experience in the car and want their brands to stand out in this competitive market. Besides, the development of urban mobility solutions like ride-sharing and fleet management has propelled the use of connected car technologies, which enable functions such as vehicle tracking, predictive maintenance, and optimizing fleets of vehicles. The demand for the connected car market is, therefore, forecasted to remain strong and stable until 2025 as automotive OEMs persist in pursuing their smart and connected vehicle strategies, thereby indicating the evolution of transport ecosystems into those that are data-driven and tech-enabled.
Regulatory Push and Safety Standards
Government requirements and safety criteria are just as essential factors contributing to the car market that is linked. Government and transport officials around the globe focus more on vehicle safety, emission control, and road traffic monitoring, which makes the original equipment manufacturers cheek by jowl to come up with upgraded but compatible technologies that would not only meet the standards but also provide solutions for the problems. Some of the features that are going to be included soon in car safety systems are collision warning, emergency call, vehicle-to-everything (V2X), and many others all of which would ultimately reduce the number of accidents. The legislation requiring the sharing of telematics data, emission reporting, and the use of automated driving systems make the automakers comply with regulations through the integration of connected solutions. Besides, the governments of Europe, North America, and the Asia-Pacific region are committing huge sums to the building of smart infrastructure that will enable the connection of the mobility network and this will further balloon the market. It is therefore expected that as regulations and safety requirements reach a crescendo, connected vehicle will see an ever increased foothold in the market, driven by 2025, thus propelling the development of novel technologies, and fostering the participation of intelligent transport systems in tandem with improved vehicle safety.
Expansion of Autonomous and Electric Vehicles
The growing number of EVs and AVs is the major factor influencing the demand for connected car technologies. EVs depend on software-enabled platforms, V2G communication, and real-time data analytics for battery management steps, charging infrastructure integration, and predictive maintenance. Autonomous vehicles must have the cutting-edge connectivity, sensors, and telematics that will allow them to safely travel, guide them through traffic, and avoid collision. The ever-increasing concern about cutting carbon emissions and embracing green transportation is ensuing in EV acceptance which will consecutively force EV-related connected solutions for energy efficiency, route optimization, and the driver assistance system to be adopted. OEMs and technology providers have joined hands in the integration of IoT, 5G, and AI-powered analytics in vehicles in order to support the functionalities of AVs and connected ecosystems. With the growing consumer interest in EVs and autonomous driving, the demand for connected car technologies is expected to increase steadily through 2025, and this will be critical in achieving the goal of innovation in mobility that is smarter, safer and more energy-efficient.
Connected Car Market Trends 2025
The connected car market is to see its trends shape around 5G integration, autonomous driving and data monetization in 2025. Real-time vehicle communication, advanced telematics, and seamless cloud connectivity, which are all enabled by ultra-fast 5G networks, allow for the implementation of features like over-the-air updates, remote diagnostics, and predictive maintenance. The use of connected car solutions in conjunction with the advent of autonomous driving technologies is becoming increasingly widespread and includes advanced driver assistance systems (ADAS), sensor fusion, and vehicle-to-everything (V2X) communication, thus ushering in the safety and navigation efficiency improvements. One of the main trends in the near future will be the emergence of data monetization and subscription-based services, i.e., the OEMs and service providers will be able to provide personalized infotainment, navigation, and vehicle management solutions that will be paid for by the consumers. Furthermore, the prominence of cybersecurity and privacy issues is becoming more and more pronounced, which will guarantee that vehicle data is safeguarded against any form of intrusion and unauthorized access. Also, electric vehicle connectivity is becoming more popular for instance smart charging, energy management, and route optimization are among the features that will be necessary from now on. Moreover, these trends will be the source of significant growth in the connected car market for the entire 2025, as the wide-spread adoption of smart, autonomous, and electric vehicles will position connected technologies as the cornerstone of modern mobility ecosystems.
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Industry Segmentation:
Segmentation by Technology:
- 3G
- 4G/LTE
- 5G
Segmentation by Connectivity Solution:
- Integrated
- Embedded
- Tethered
Segmentation by Service:
- Driver Assistance
- Safety
- Entertainment
- Vehicle Management
- Mobility Management
- Others
Segmentation by End Market:
- Original Equipment Manufacturer (OEMs)
- Aftermarket
Regional Insights:
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- Latin America
Who are the key players operating in the industry?
The report covers the major market players including:
- ATT Inc.
- Audi AG
- BMW AG
- Continental AG
- Ford Motor Company
- Mercedes-Benz Group AG
- Qualcomm Incorporated
- Robert Bosch GmbH
- Samsung Semiconductor, Inc
- Sierra Wireless
- Tesla Inc.
- TomTom International BV.
- Valeo
- Verizon Communications Inc.
- Vodafone Limited
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