Connected Cars Market Report 2026

Connected Cars Market Overview

• Connected Cars market size has reached to $105.67 billion in 2025 • Expected to grow to $214.42 billion in 2030 at a compound annual growth rate (CAGR) of 15.3% • Growth Driver: Autonomous Vehicles Fueling The Expansion Of The Connected Cars Industry • Market Trend: Increasing Focus On Digital Connected Car Technologies To Gain A Competitive Edge In The Market • Asia-Pacific was the largest region in 2025 and Western Europe is the fastest growing region.

What Is Covered Under Connected Cars Market?

Connected cars are cars empowered with internet access and a local area network that helps to communicate with other vehicles. These cars have a wide range of sensors that transmit and receive signals from the manufacturers in conjunction with the services to enhance the consumer experience with the real-time interaction of the vehicles. These cars can be connected with smartphones or other mobile phones and allow the driver to mechanically monitor the performance of the car. The main types in the connected car market are embedded, tethered, integrated, and other types. Embedded means fixed into the surface of something. The services involved are driver assistance, safety, entertainment, well-being, vehicle management, mobility management, and other services. The applications involved are applications, navigation, infotainment, and telematics.

What Is The Connected Cars Market Growth Forecast?

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.

Global Connected Cars Market Segmentation

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

What Is The Driver Of The Connected Cars Market?

Increasing autonomous vehicles are expected to propel the growth of the connected cars market going forward. Autonomous vehicles often referred to as self-driving cars or driverless vehicles are automobiles equipped with advanced sensors, artificial intelligence (AI) systems, and other technologies that enable them to operate and navigate without direct human control. Connected cars serve as an essential foundation for the development and operation of autonomous vehicles that facilitate data exchange, improve navigation, enhance safety, and provide essential support and infrastructure for self-driving cars to operate effectively and safely on the road. For instance, in 2023, according to National Academies Press, a US-based government press, self-driving vehicles are fast approaching commercialization in markets across the world and by 2035, 40% of new cars in the UK could have self-driving capabilities. Therefore, increasing autonomous vehicles drives the connected cars industry.

What Is The Driver Of The Connected Cars Market?

Increasing autonomous vehicles are expected to propel the growth of the connected cars market going forward. Autonomous vehicles often referred to as self-driving cars or driverless vehicles are automobiles equipped with advanced sensors, artificial intelligence (AI) systems, and other technologies that enable them to operate and navigate without direct human control. Connected cars serve as an essential foundation for the development and operation of autonomous vehicles that facilitate data exchange, improve navigation, enhance safety, and provide essential support and infrastructure for self-driving cars to operate effectively and safely on the road. For instance, in 2023, according to National Academies Press, a US-based government press, self-driving vehicles are fast approaching commercialization in markets across the world and by 2035, 40% of new cars in the UK could have self-driving capabilities. Therefore, increasing autonomous vehicles drives the connected cars industry.

Global Connected Cars Market Trends and Insights

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

What Are Latest Mergers And Acquisitions In The Connected Cars 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.

Regional Outlook

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 this market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Connected Cars Market?

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.

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 Cars Market Report 2026?

The connected cars 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 cars 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.