Automotive IOT Market Report 2026

Automotive IOT Market Overview

• Automotive IOT market size has reached to $176.66 billion in 2025 • Expected to grow to $330.38 billion in 2030 at a compound annual growth rate (CAGR) of 13.2% • Growth Driver: Rising Demand For Autonomous Vehicles Fuels Growth In The Automotive IOT Market • Market Trend: Advanced Autonomous Vehicle Safety Enhance Automotive IOT Market Growth • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Automotive IOT Market?

Automotive IoT is an integration of sensors, gadgets, software applications, and others in automotive that are designed to perform a specific or wide range of activities, such as fleet management, predictive diagnostics, and others. The main types of offerings in the automotive IOT market are hardware, software, and services. The hardware market consists of sales of automotive IoT hardware by entities (organizations, sole proprietors, partnerships), which includes remote dashboard, devices for control, servers, routing or bridge device, and sensors. The automotive IoT market is divided by connectivity into embedded, tethered, and integrated. The automotive IoT market is divided by application into infotainment, fleet management, predictive maintenance, vehicle security, automotive driver assistance system, and traffic management. Lastly, the automotive IoT market is divided by end users into original equipment manufacturers and aftermarket.

What Is The Automotive IOT Market Growth Forecast?

The automotive iot market size is expected to see rapid growth in the next few years. It will grow to $330.38 billion in 2030 at a compound annual growth rate (CAGR) of 13.2%. The growth in the forecast period can be attributed to increasing adoption of smart mobility solutions, rising demand for real-time vehicle diagnostics, expansion of autonomous and electric vehicle connectivity, growing focus on automotive data security, advancements in automotive iot platforms. Major trends in the forecast period include growing deployment of connected vehicle platforms, rising adoption of predictive maintenance solutions, expansion of fleet management iot systems, increasing integration of v2x communication, enhanced focus on vehicle cybersecurity.

Global Automotive IOT Market Segmentation

1) By Offering: Hardware, Software, Services 2) By Connectivity: Embedded, Tethered, Integrated 3) By Application: Infotainment, Fleet Management, Predictive Maintenance, Vehicle Security, Other Applications 4) By End User: Original Equipment Manufacturers, Aftermarket Subsegments: 1) By Hardware: IoT Sensors, Connectivity Devices, On-Board Units (OBUs), Vehicle Telematics Devices 2) By Software: Fleet Management Software, Vehicle Tracking Software, Predictive Maintenance Software, Data Analytics Platforms, Vehicle-To-Everything (V2X) Communication Software 3) By Services: Consulting Services, Integration Services, Maintenance And Support Services, Cloud Services, Data Management Services

What Is The Driver Of The Automotive IOT Market?

The increasing demand for autonomous vehicles is expected to propel the growth of the automotive IoT market going forward. Autonomous vehicles refer to self-driving vehicles that perform various functions and can operate on their own using various technologies. The Internet of things enables autonomous vehicles to connect wirelessly on a cloud system through multiple devices and provides vehicle-to-vehicle interaction, as a result, increasing demand for autonomous vehicles increases the demand for the automotive IoT market. For instance, in June 2024, according to the a Us-based open-access repository reported that 18.43 million new cars will feature hands-free driving automation in 2024, with 95% of new vehicles expected to have high or full automation by 2030. Therefore, increasing demand for autonomous vehicles drives the automotive IoT industry growth.

Key Players In The Global Automotive IOT Market

Major companies operating in the automotive iot market are Texas Instruments Incorporated; NXP Semiconductors N. V.; Intel Corporation; TomTom N. V.; Cisco Systems Inc.; Microsoft Corporation; International Business Machines Corporation; Google LLC; AT&T Inc.; Apple Inc.; Robert Bosch GmbH; Harman International Industries Inc.; Infineon Technologies AG; Octo Group S. p. A.; Alibaba Group Holding Limited; Huawei Technologies Co. Ltd.; Orange SA; Aeris Communications Inc.; KORE Wireless Group Inc.; Eurotech S. p. A.; STMicroelectronics N. V.; Sierra Wireless Inc.; Verizon Communications Inc.; Telefónica S. A.; Mitsubishi Electric Corporation; Tech Mahindra Ltd.

Global Automotive IOT Market Trends and Insights

Major companies operating in the automotive IoT industry are adopting a strategic partnership approach to provide essential communication services to individuals, businesses, and governments. Strategic partnerships refer to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. For instance, in August 2023, HyundAI Mobis Co., a South Korea-based car parts company, partnered with Autotalks Ltd., an Israel-based chipset maker company. With this partnership, they aim to develop innovative 5G network-based vehicle-to-everything (V2X) integrated control technology to bolster the safety of autonomous vehicles. 5G V2X is vital for self-driving, enabling unmanned vehicles to perceive their surroundings and control motion.

What Are Latest Mergers And Acquisitions In The Automotive IOT Market?

In November 2024, HERE Technologies, a Netherlands-based location intelligence company, partnered with Pioneer Corporation through a Memorandum of Understanding. Through this partnership, they aim to co-develop connected hardware and services for the global two wheeler market, including crash-detection, eCall, real-time tracking, and EV transition support. Pioneer Corporation a Japan-based specializes in consumer and automotive electronics, while HERE Technologies provides advanced mapping and location-based services.

Regional Insights

North America was the largest region in the automotive IoT market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Automotive IOT Market?

The automotive IoT market includes revenues earned by entities by providing hardware, software, and services that can be used to create new applications to make vehicles smarter and more intelligent to offer more safe, more efficient,-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-everything (V2X) communication including connected car solutions, Advanced Driver-Assistance Systems (ADAS), in-vehicle infotainment systems, navigation & telematics solutions, and predictive maintenance solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the Automotive IOT Market Report 2026?

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