Connected Car Devices Market Report 2026

Connected Car Devices Market Overview

• Connected Car Devices market size has reached to $93.25 billion in 2025 • Expected to grow to $201.15 billion in 2030 at a compound annual growth rate (CAGR) of 16.6% • Growth Driver: Electric Vehicle Adoption Fueling Growth Of The Connected Car Devices Market • Market Trend: Advancement In Connected Vehicle Platforms Is Leading Innovation In The Connected Car Devices Market • Asia-Pacific was the largest region and fastest growing region.

The key promising market opportunities in the connected car devices market include: • Vehicle-To-Vehicle (V2V) (Segmentation By Communication) → Expected gain of $38.5 Billion • Vehicle-To-Infrastructure (V2I) (Segmentation By Communication) → Expected gain of $28.04 Billion • Other Modes Of Communication (Segmentation By Communication) → Expected gain of $21.28 Billion

What Is Covered Under Connected Car Devices Market?

Connected car devices refer to hardware components or systems installed in vehicles that enable connectivity and communication with external networks or devices. These devices enhance the driving experience by providing convenience, safety, and entertainment options. They also enable new services and applications, such as automatic crash notification, stolen vehicle tracking, and remote control functionalities. The main types of communication offered by connected car devices include vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian(V2P), and others. Vehicle-to-vehicle (V2V) technology refers to a technology that enables vehicles to communicate with each other wirelessly, exchanging information such as speed, position, and direction to enhance safety and prevent accidents. They offer various technologies, such as driver assistance systems, telematics, and others and connected though dedicated short-range communication (DSRC) and long range or cellular networks. They are used in several types of vehicle, such as passenger cars, light commercial vehicles, and heavy commercial vehicles, by various end-users, including original equipment manufacturer and aftermarket end-users.

What Is The Connected Car Devices Market Growth Forecast?

The connected car devices market size is expected to see rapid growth in the next few years. It will grow to $201.15 billion in 2030 at a compound annual growth rate (CAGR) of 16.6%. The growth in the forecast period can be attributed to autonomous driving development, smart city integration, 5G connectivity rollout, electric vehicle adoption, cybersecurity investments. Major trends in the forecast period include integration of advanced telematics devices, growth of v2x communication modules, rising demand for safety-focused connectivity, expansion of cloud-based vehicle services, adoption of over-the-air updates.

What Is The Driver Of The Connected Car Devices Market?

The rising adoption of electric vehicles is expected to propel the growth of connected car devices market going forward. Electric vehicles (EVs) are automobiles that are powered by one or more electric motors, using electrical energy stored in rechargeable batteries or generated by an onboard fuel cell. Electric vehicle adoption is on the rise due to several factors, including stringent emissions regulations, growing awareness of the environmental benefits, and cost efficiency. Connected car devices in electric vehicles facilitate remote monitoring of battery status, vehicle charging, and energy consumption, while also delivering real-time navigation updates customized for EVs, thereby improving overall efficiency and user satisfaction. For instance, in 2024, according to the International Energy Agency is a France-based autonomous intergovernmental organization, electric vehicle sales in 2023 rose by 3.5 million units compared to 2022, marking a 35% year-on-year growth. Therefore, the rising adoption of electric vehicles is driving the growth of the connected car devices industry.

How Will The Drivers Impact Growth In The Global Connected Car Devices Market?

• Increasing Demand For Vehicle Safety And Regulatory Mandates (Medium) – During the forecast period, the increasing demand for vehicle safety and regulatory mandates is expected to become a key growth driver for the connected car devices market by 2030. Governments and regulatory bodies are increasingly enforcing safety standards that require vehicles to be equipped with advanced communication systems capable of supporting real-time alerts, collision avoidance, and emergency response functionalities. Connected car devices enable seamless data sharing between vehicles, infrastructure, and traffic management systems, improving road safety outcomes. Automakers are therefore integrating advanced connectivity modules to comply with evolving safety frameworks and enhance vehicle intelligence. This shift toward safety-driven connectivity adoption is reinforcing steady market expansion. • Rising Adoption Of Electric Vehicles And Smart Mobility Solutions (High) – During the forecast period, the rising adoption of electric vehicles and smart mobility solutions is expected to emerge as a major factor driving the expansion of the connected car devices market by 2030. The transition toward electrified mobility is accelerating the integration of connected platforms that support energy management, remote monitoring, and intelligent routing capabilities. Smart mobility ecosystems, including shared transportation and autonomous driving frameworks, rely heavily on connected devices for seamless operation and coordination. This evolution is encouraging automakers to embed advanced connectivity features as a standard offering across vehicle segments. • Advancements In Connectivity Technologies Including 5G And V2X Communication (Low) – During the forecast period, advancements in connectivity technologies including 5G and V2X communication are expected to act as a key growth catalyst for the connected car devices market by 2030. The deployment of high-speed, low-latency communication networks is enabling real-time data transmission between vehicles and external environments, supporting applications such as autonomous driving and predictive maintenance. Enhanced network capabilities are also improving the reliability and scalability of connected vehicle ecosystems, encouraging widespread adoption across both passenger and commercial vehicles. Technology providers are continuously innovating communication protocols to support higher data volumes and secure connectivity frameworks.

How Will The Restraints Impact Growth In The Global Connected Car Devices Market?

• Lack Of Standardization And Supporting Infrastructure Across Regions (Medium) – During the forecast period, lack of standardization and supporting infrastructure across regions acts as a restraint on the connected car devices market by creating inconsistencies in how technologies are deployed and operated. Different countries follow varying communication protocols, regulatory frameworks, and network capabilities, making it difficult for manufacturers to design universally compatible solutions. This fragmentation increases development and integration costs while slowing down large-scale adoption. In addition, inadequate infrastructure, such as limited 5G coverage or smart road systems, restricts the full functionality of connected devices. As a result, these challenges hinder seamless expansion and limit overall market growth. • High Implementation Costs And Integration Complexity (High) – During the forecast period, high implementation costs and integration complexity act as a restraint on the connected car devices market by increasing the financial and technical burden on manufacturers. Developing and integrating advanced hardware, software, and connectivity systems requires significant investment, which can raise overall vehicle production costs. This makes it challenging for automakers to offer connected features at competitive prices, especially in cost-sensitive markets. Additionally, integrating multiple technologies into a single platform involves compatibility issues and longer development cycles. As a result, these factors can slow down adoption and limit the widespread deployment of connected car devices. • Data Privacy And Cybersecurity Concerns In Connected Ecosystems (Low) – During the forecast period, data privacy and cybersecurity concerns in connected ecosystems act as a major restraint on the connected car devices market by raising risks associated with unauthorized access and data breaches. Connected vehicles continuously collect and transmit sensitive user and vehicle data, making them potential targets for cyberattacks. This creates hesitation among consumers and increases the need for robust security frameworks, which add to development costs and complexity. Regulatory requirements around data protection further intensify compliance burdens for manufacturers. As a result, these concerns can slow adoption and limit trust in connected vehicle technologies.

Key Players In The Global Connected Car Devices Market

Major companies operating in the connected car devices market report include Volkswagen AG, Toyota Motor Corporation, General Motors Company, Robert Bosch GmbH, Tesla Inc., Intel Corporation, Panasonic Corporation, Denso Corporation, Nvidia Corporation, Qualcomm Incorporated, Continental AG, Porsche AG, Magna International Inc., Valeo SA, Infineon Technologies AG, Autoliv Inc., Harman International Industries Incorporated, Garmin Ltd., Visteon Corporation, TomTom N.V., Sierra Wireless Inc., Delphi Technologies, Autotalks Ltd.

Global Connected Car Devices Market Trends and Insights

Major companies operating in the connected car devices market are focusing on developing technological advancements such as intelligent vehicle communication platforms to enhance road safety, traffic efficiency, and connectivity. These platforms enable vehicles to exchange data with other vehicles, infrastructure, pedestrians, and networks to optimize driving conditions and reduce accidents. For instance, in April 2025, Verizon Business, a US-based telecommunications and networking company, launched a Vehicle-to-Everything connected-driving platform with multiple customers. The platform integrates advanced connectivity, real-time analytics, and security features to enable safer, more efficient, and connected driving experiences. By leveraging its network infrastructure and cloud capabilities, Verizon’s solution supports scalable deployment across fleet operators, smart cities, and automotive OEMs, accelerating the adoption of connected mobility solutions globally.

What Are Latest Mergers And Acquisitions In The Connected Car Devices Market?

In June 2025, NXP Semiconductors, a Netherlands-based semiconductor manufacturer, completed the acquisition of TTTech Auto, for an undisclosed amount. With this acquisition, NXP aims to accelerate the transformation to software-defined vehicles, enhance its automotive product portfolio, strengthen technological capabilities in advanced vehicle control systems, and drive innovation and growth in the automotive semiconductor market. TTTech Auto is an Austria-based automotive technology company specializing in the development and commercialization of advanced automotive software and hardware solutions.

What Defines the Connected Car Devices Market?

The connected car devices market consists of revenues earned by entities by providing services such as infotainment solutions, safety and security, vehicle-to-everything (V2X), remote control, data analytics and fleet management. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected car devices market also includes sales of telematics devices, on-board diagnostics devices, embedded communication modules, dashcams and security systems. 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.

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 Connected Car Devices Market Report 2026?

The connected car devices 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 connected car devices 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.