Connected Cars Global Market Report 2025

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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are placing significant strain on the transport sector, especially in areas such as fleet maintenance and logistics. Increased duties on imported commercial vehicles, tires, and engine parts have driven up operating costs for trucking and freight firms, forcing them to either raise shipping rates or accept lower profit margins. Airlines and maritime operators are also under pressure, as tariffs on aircraft components and shipbuilding materials have pushed capital expenditures higher. Meanwhile, retaliatory tariffs in key export markets have weakened demand for U.S.-manufactured transportation equipment, further squeezing revenues. To cope, the industry is turning to fuel efficiency measures, alternative supply sources, and greater automation to manage rising costs while maintaining dependable service.

The connected cars market research report is one of a series of new reports from The Business Research Company 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 size has grown rapidly in recent years. It will grow from $92.59 billion in 2024 to $105.67 billion in 2025 at a compound annual growth rate (CAGR) of 14.1%. 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 $185.11 billion in 2029 at a compound annual growth rate (CAGR) of 15.0%. 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.

The forecast of 15.0% growth over the next five years reflects a modest reduction of 0.7% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through tariffs on embedded modems, infotainment systems, and cloud connectivity modules imported from China and Taiwan, increasing the cost of vehicle digitization and remote diagnostics.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

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

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.

Connected Cars Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on connected cars market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for connected cars ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The connected cars market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Product Type: Embedded, Tethered, Integrated
• 2) By Application: Navigation, Infotainment, Telematics, Combination
• 3) By Services: Driver Assistance, Safety and Well-Being, Entertainment, Vehicle Management, Mobility Management, Other Services
• Subsegments:
• 1) By Embedded: OEM Embedded Systems; Aftermarket Embedded Systems
• 2) By Tethered: Smartphone Tethering; Mobile Hotspot Tethering
• 3) By Integrated: Infotainment Systems; Advanced Driver-Assistance Systems (ADAS); Vehicle-to-Everything (V2X) Communication
• Companies Mentioned: 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
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.