What Factors Triggered the Historical and Current Growth of the Automotive IoT Market?
The market for Automotive IoT has experienced remarkable progress in recent times, powered by cutting-edge innovations and technologies.
• The market size inflated from $157.1 billion in 2024 to an impressive $178.07 billion in 2025, marking a substantial CAGR of 13.4%.
This leap in growth can be primarily contributed to the introduction of connected car technologies, advanced driver assistance systems (ADAS), vehicle-to-everything (v2x) communication, telematics adoption, and heightened safety and security features.
What Size is the Automotive IoT Market Expected to Reach and What will Drive this Growth?
The Automotive IoT market is set for robust expansion in the upcoming years.
• The market is anticipated to magnify to $300.82 billion in 2029 at an outstanding CAGR of 14.0%.
The propulsion behind this surge is anticipated to be 5G connectivity in vehicles, developments in edge computing and artificial intelligence in automotive, and the advent of autonomous vehicles. Forecasted trends include in-car infotainment systems, smart parking solutions, fleet management optimization, the inclusion of blockchain in automotive IoT, and vehicle health monitoring.
What are the Principal Drivers Pushing the Automotive IoT Market Forward?
The accelerating demand for autonomous vehicles is a major driver propelling forward the automotive IoT market. Autonomous vehicles, capable of functioning and operating independently using diverse technologies, imply a high market demand for IoT. Wireless connectivity via cloud systems facilitated by the Internet of Things provides vehicle-to-vehicle interaction. For instance, the National Highway Traffic Safety Administration (NHTSA) expects nearly 4.5 million autonomous vehicles to be on U. S. roads by 2030, substantially pushing the demand for the automotive IoT market.
Segments of the Automotive IoT Market:
The automotive IoT market is broken down into the following segments:
1) By Offering: Hardware, Software, Services
2) By Connectivity: Embedded, Tethered, Integrated
3) By Application: Infotainment, Fleet Management, Predictive Maintenance, Vehicle Security, Automatic Driver Assistance System, Other Applications
4) By End User: Original Equipment Manufacturers, Aftermarket
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Which Trends are Likely to Influence the Automotive IoT Market Going Forward?
Automotive predictive diagnostics solutions are transforming the automotive IoT market. Auto companies are partnering with technologists to integrate predictive diagnostics into their existing models, minimizing reactive maintenance costs and preventing excessive preventive maintenance. For example, in February 2022, Ashok Leyland partnered with Syncron, to incorporate predictive vehicle maintenance solutions into their Condition Monitoring Systems (CMS).
Who are the Leaders in the Automotive IoT Market?
Prominent companies paving the way forward in the automotive IoT market include:
• Texas Instruments Incorporated
• NXP Semiconductors N. V.
• Intel Corporation
• TomTom N. V.
• Cisco Systems Inc.
• Microsoft Corporation
• International Business Machines Corporation (IBM)
• Google LLC
• AT&T Inc.
Which Region Dominates the Automotive IoT Market?
Back in 2024, North America boasted the biggest share in the automotive IoT market. However, Asia-Pacific holds the hopeful expectation of being the fastest-growing region in the forecast period. The report covers the following regions: Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
