What Transformation Has the Connected Cars Market Undergone?
The connected cars market has seen considerable growth due to a variety of factors.
• The market for connected cars has seen significant expansion in the recent past. This market is set to expand from a valuation of $91.38 billion in 2024 to reach a value of $105.13 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 15.0%.
The robust growth observed in previous periods is due to a combination of factors including the growth of emerging markets, a rising demand for improved comfort, safety, and convenience, and an increase in vehicle theft incidents within the connected cars market.
How Will The Connected Cars Market Size Evolve In The Foreseeable Future?
The connected cars market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for connected cars is predicted to experience swift expansion in the coming years, inflating to a size of $191.43 billion in 2029 with a compound annual growth rate (CAGR) of 16.2%.
The expansion during the forecast period is attributed to a surge in the global population, the advent of various technologies like 5g and AI, increased internet accessibility, the internet of things (IoT), an escalating preference for in-vehicle wi-fi hotspots and data services, and a growing demand for smart mobility solutions. Key trends during the forecast period involve the incorporation of 5g connectivity into connected cars, integration of AI to enhance features in connected car operating systems, implementation of cybersecurity systems in connected cars to mitigate cyber-attack risks, and the creation of hybrid personalized in-car infotainment systems for connected vehicles.
What Are The Key Drivers Fueling Growth In The Connected Cars Market?
The advancement of connected car technology is being propelled by heightened governmental endeavors to cultivate intelligent transportation infrastructures. In this regard, the connected car market has been revelations of governmental focus on the progression of connected and autonomous vehicles. For instance, the UK government's involvement in the development of connected vehicles is noteworthy, having committed £40 million (US$50 million) to initiatives that seek to stimulate commercial autonomous vehicle (AV) services, such as passenger shuttles and delivery vehicles. In addition to this, the government has initiated multiple trials and put forward new laws to encourage the roll-out of connected vehicles. The UK anticipates considerable economic gains of around £62 billion ($74.36 billion) by 2030 from the deployment of these autonomous and connected vehicles.
What Are The Core Segments Of The Globa Connected Cars Market?
The connected cars market covered in this report is segmented –
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
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Which Emerging Trends Are Reshaping The Connected Cars Market Size?
Companies specializing in connected cars are constantly introducing new technologies like autonomous vehicle map software to enhance their earnings and outdo their competitors. For example, in 2022, NVIDIA Corporation, a US-based tech firm, introduced an autonomous vehicles map software named DRIVE Map. This software is a multi-modal mapping engine developed to speed up the roll-out of autonomous Level-3 and Level-4 vehicles that can function independently without any human intervention. Nvidia managed to accelerate the development of DRIVE Map after its acquisition of the HD mapping startup, DeepMap, in the previous year. DeepMap's mapping techniques were infused into DRIVE Map. The Nvidia-developed DRIVE Map merges DeepMap's survey mapping precision with the massive scale of AI-powered crowdsourcing.
Who Are the Key Players in the Connected Cars Market?
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
What are the Regional Insights into the Connected Cars Market?
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
