Global Connected Vehicle Services Market Growth, Size, Trends Analysis- By Service, By Connectivity, By Vehicle, By End Use- Regional Outlook, Competitive Strategies and Segment Forecast to 2034

According to SPER Market Research, the Global Connected Vehicle Services Market is estimated to reach USD 59.9 billion by 2034 with a CAGR 11.05%.

Introduction and Overview

The report includes an in-depth analysis of the Global Connected Vehicle Services Market, including market size and trends, product mix, Applications, and supplier analysis.

The global Connected Vehicle Services Market was valued at around USD 21 billion in 2024 and is projected to grow at a CAGR of over 11.05% from 2025 to 2034. The market is experiencing strong growth due to the rapid shift toward software-defined vehicles and increasing integration of cloud computing, telematics, and advanced connectivity solutions. These services enable real-time diagnostics, over-the-air updates, navigation, infotainment, and enhanced safety features. Expanding deployment of 4G, 5G, and V2X connectivity, rising demand for fleet management solutions, and growing emphasis on vehicle safety and efficiency are further accelerating adoption across passenger and commercial vehicle segments.

By Service:

The navigation and infotainment segment accounts for the largest share of the connected vehicle services market due to rising consumer expectations for enhanced in-vehicle digital experiences. Real-time navigation, traffic updates, music streaming, voice assistants, and smartphone integration have become essential features in modern vehicles. Automakers increasingly bundle these services to improve customer satisfaction and brand differentiation. Continuous software updates and personalization capabilities further strengthen adoption. As drivers seek convenience, entertainment, and seamless connectivity during travel, navigation and infotainment services continue to play a central role in connected vehicle ecosystems across passenger and commercial segments.

By Connectivity:

Embedded connectivity represents the largest share of the connected vehicle services market, as it enables continuous, reliable communication between vehicles, cloud platforms, and infrastructure. Built-in connectivity supports critical functions such as emergency assistance, remote diagnostics, over-the-air updates, and vehicle tracking without dependence on external devices. Compared to tethered and integrated solutions, embedded systems provide higher reliability, improved data security, and consistent performance. Automakers increasingly prefer embedded connectivity to support advanced driver assistance features and future-ready mobility solutions, making it a key contributor to market expansion.

By Vehicle:

Passenger vehicles hold the largest share of the connected vehicle services market, with sedans and SUVs leading adoption. High global production volumes, strong consumer demand for safety, convenience, and entertainment features, and rapid integration of digital technologies support this trend. Connected services enhance navigation, driver assistance, and vehicle monitoring, making them attractive to private vehicle owners. Commercial vehicles, including light, medium, and heavy-duty trucks, are increasingly adopting connected services for fleet management, while two- and three-wheelers and off-highway vehicles represent emerging segments.

By End Use:

The OEM segment accounts for the largest share of the connected vehicle services market, driven by automakers integrating connectivity solutions during vehicle manufacturing. OEM integration ensures seamless system performance, regulatory compliance, and compatibility with vehicle electronics. It also enables automakers to offer subscription-based services, software updates, and data-driven features throughout the vehicle lifecycle. While the aftermarket segment is growing through upgrades and retrofitting solutions, OEM-based deployment remains the primary channel due to its reliability and long-term value proposition for manufacturers and consumers.

Regional Insights:

The connected vehicle services market demonstrates diverse regional performance across major global regions. North America holds a leading position due to strong penetration of advanced vehicle technologies, widespread use of telematics, and early adoption of connected safety and infotainment systems. Europe follows, supported by strict vehicle safety norms, emphasis on emission reduction, and growing investment in intelligent transportation systems. Asia Pacific is witnessing rapid expansion, driven by increasing vehicle production, improving digital infrastructure, and rising demand for smart mobility solutions in emerging economies. Latin America shows steady progress, mainly led by fleet management and logistics applications. The Middle East and Africa region is gradually gaining traction as governments invest in smart mobility, connected infrastructure, and enhanced road safety solutions.

Market Competitive Landscape:

The Connected Vehicle Services Market is highly consolidated. Some of the market key players are AT&T, BMW, Bosch, Continental, Ford, General Motors, Geotab, Harman International, HERE Technologies, Verizon Connect

Recent Developments:

In March 2025, Tele2 and Turkcell banded to offer connected vehicle services in Turkiye, incorporating Tele2's managed IoT connectivity with Turkcell's advanced network. This cooperation focuses on heavy vehicles retailed in Turkiye, furnishing an IoT result which is nonsupervisory biddable and supports a comprehensive compass of operations including automotive, healthcare, security, and asset shadowing.

In February 2025, Thales partnered with Boxy to launch new e SIM features designed for the easier use and heightened security of worldwide automotive connectivity. As a leader in software- centered vehicle (SDV) results, Cubic is incorporating Thales's e SIM operation platform into its global connectivity ecosystem, which now meets compliance with the rearmost GSMA SGP.32 standard for IoT.

In January 2025, AiDEN Automotive and Then Technologies created a strategic cooperation to enhance in- vehicle services by applying advanced sequestration features to connected motorcars worldwide. AiDEN's in- vehicle platform now employs Then's situational road and business alert data, delivering optimized routes along with hazard updates and acclimatized announcements directly and laboriously to motorists.

In January 2025, Qualcomm partnered with MapMyIndia to produce indigenous technologies related to connected vehicles that are both affordable and specifically designed for the Indian request. This collaboration specifically integrates Qualcomm's Snapdragon Digital Chassis, Auto Connectivity, and Auto- to- pall platforms with MapMyIndia sophisticated digital charts and localized data, so that complete telematics and connectivity results can be developed for two- wheel and four- wheel vehicles.

Scope of the report:

Report Metric Details

Market size available for years 2021-2034

Base year considered 2024

Forecast period 2025-2034

Segments covered By Service, By Connectivity, By Vehicle, By End Use

Regions covered North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa

Companies Covered AT&T, BMW, Bosch, Continental, Ford, General Motors, Geotab, Harman International, HERE Technologies, Verizon Connect

Key Topics Covered in the Report

Global Connected Vehicle Services Market Size (FY'2021-FY'2034)

Overview of Global Connected Vehicle Services Market

Segmentation of Global Connected Vehicle Services Market by Service (Safety and security, Remote operations, Navigation and infotainment, Vehicle management, Driver assistance, Others)

Segmentation of Global Connected Vehicle Services Market by Connectivity (Embedded, Tethered, Integrated)

Segmentation of Global Connected Vehicle Services Market by Vehicle (Passenger vehicle, Commercial vehicle, Two and three wheelers, Off-highway vehicles)

Segmentation of Global Connected Vehicle Services Market by End Use (OEM, Aftermarket)

Statistical Snap of Global Connected Vehicle Services Market

Expansion Analysis of Global Connected Vehicle Services Market

Problems and Obstacles in Global Connected Vehicle Services Market

Competitive Landscape in the Global Connected Vehicle Services Market

Details on Current Investment in Global Connected Vehicle Services Market

Competitive Analysis of Global Connected Vehicle Services Market

Prominent Players in the Global Connected Vehicle Services Market

SWOT Analysis of Global Connected Vehicle Services Market

Global Connected Vehicle Services Market Future Outlook and Projections (FY'2025-FY'2034)

Recommendations from Analyst