Connected Cars Global Market Report 2026

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.

Tariffs are affecting the connected cars market by increasing the cost of imported sensors, control units, infotainment processors, connectivity chipsets, and advanced driver assistance hardware. Automotive manufacturers in North America and Europe are most impacted due to heavy dependence on imported electronic systems, while Asia-Pacific exporters face competitive pricing challenges. These tariffs are raising vehicle prices and slowing adoption of advanced connectivity features. However, they are also accelerating localization of electronics manufacturing, platform consolidation, and innovation in software-defined connected vehicle architectures.

The connected cars market research report is one of a series of new reports from The Business Research Company that provides connected cars market statistics, including connected cars industry global market size, regional shares, competitors with a connected cars market share, detailed connected cars market segments, market trends and opportunities, and any further data you may need to thrive in the connected cars industry. This connected cars market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The connected cars market size has grown rapidly in recent years. It will grow from $105.67 billion in 2025 to $121.23 billion in 2026 at a compound annual growth rate (CAGR) of 14.7%. The growth in the historic period can be attributed to infotainment system adoption, smartphone integration demand, growth of vehicle sensors, telematics expansion, automotive digitization.

The connected cars market size is expected to see rapid growth in the next few years. It will grow to $214.42 billion in 2030 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period can be attributed to autonomous vehicle roadmap, smart mobility ecosystems, software-defined vehicles, electric vehicle connectivity needs, data-driven mobility services. Major trends in the forecast period include growth of embedded connectivity platforms, expansion of adas integration, demand for real-time vehicle diagnostics, rise of in-car digital services, adoption of v2x communication.

The increasing adoption of autonomous vehicles is expected to drive the growth of the connected cars market going forward. Autonomous vehicles, also known as self-driving or driverless cars, are equipped with advanced sensors, artificial intelligence (AI) systems, and other technologies that enable operation and navigation without direct human control. Connected cars form a critical foundation for autonomous vehicle functionality, facilitating data exchange, improving navigation, enhancing safety, and providing the necessary infrastructure for self-driving cars to operate effectively. For instance, in 2023, according to National Academies Press, a US-based government publisher, self-driving vehicles are approaching commercialization globally, and by 2035, 40% of new cars in the UK could feature autonomous capabilities. Therefore, the growth of autonomous vehicles is driving the connected cars market.

Major companies in the connected cars market are focusing on technological advancements such as comprehensive digital vehicle profiles to improve data transparency, ownership verification, and lifecycle management. Digital vehicle profiles are secure, centralized records storing a vehicle's complete history, including manufacturing information, maintenance records, accident history, and ownership transfers. For instance, in May 2025, Hyundai India, an India-based automotive manufacturer, launched a digital vehicle passport for its customers. The digital passport enhances vehicle data accessibility, ensures transparency in pre-owned vehicle transactions, improves aftersales service efficiency, and fosters trust between manufacturers, dealers, and owners, driving innovation and digital adoption in the automotive sector.

In June 2025, NXP Semiconductors, a Netherlands-based semiconductor manufacturer, acquired TTTech Auto for an undisclosed amount. This acquisition aims to accelerate the shift to software-defined vehicles, expand NXP's automotive product portfolio, strengthen capabilities in advanced vehicle control systems, and drive innovation and growth in the automotive semiconductor market. TTTech Auto, based in Austria, specializes in the development and commercialization of advanced automotive software and hardware solutions.

Major companies operating in the connected cars market report 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, Audi AG, Fiat Chrysler Automobiles, Mercedes-Benz, SAIC Motor, Dongfeng, FAW, Changan Automobile, Beijing Automotive Group, Brilliance Automotive, Guangzhou Automobile Group, Chery Automobile, Jianghuai Automobile Group (JAC), Stellantis, Jaguar Land Rover, Suzuki Auto South Africa, GAZ Group, Kamaz

Asia-Pacific was the largest region in the connected cars market share in 2025. Western Europe was the second largest region in the global connected cars market. The regions covered in the connected cars market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the connected cars market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, 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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, 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. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• 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 technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• 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.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• 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 company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

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; Audi AG; Fiat Chrysler Automobiles; Mercedes-Benz; SAIC Motor; Dongfeng; FAW; Changan Automobile; Beijing Automotive Group; Brilliance Automotive; Guangzhou Automobile Group; Chery Automobile; Jianghuai Automobile Group (JAC); Stellantis; Jaguar Land Rover; Suzuki Auto South Africa; GAZ Group; Kamaz
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; 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.
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