Connected Vehicles Market Report 2026

Connected Vehicles Market Overview

• Connected Vehicles market size has reached to $49.88 billion in 2025 • Expected to grow to $96.72 billion in 2030 at a compound annual growth rate (CAGR) of 14.1% • Growth Driver: The Increasing Deployment Of 5G Networks Driving The Growth Of The Market Due To Rising Demand For High-Speed Data Connectivity • Market Trend: Advancements In Real-Time Vehicle Communication Driving Intelligent Mobility • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Connected Vehicles Market?

Connected vehicles refer to vehicles that are equipped with internet connectivity and communication technologies that allow them to interact with other vehicles, infrastructure, devices, and cloud-based systems. This connectivity enables real-time data exchange to improve safety, traffic efficiency, navigation, and in-vehicle services. The main technologies of connected vehicles include embedded systems, tethered systems, and integrated systems. Embedded systems refer to vehicles equipped with built-in communication hardware and software that enable continuous connectivity, data exchange, and access to digital services without relying on external devices. These vehicles support connectivity types including vehicle-to-vehicle, vehicle-to-infrastructure, vehicle-to-cloud, vehicle-to-pedestrian, and vehicle-to-everything and are deployed across passenger vehicles, commercial vehicles, and motorcycles. The various applications involved are vehicle diagnostics, navigation and location based services, safety and security, infotainment, and fleet management and they are utilized by end users including individual consumers, fleet operators, public transport services, ride-sharing services, and logistics and transportation companies.

What Is The Connected Vehicles Market Growth Forecast?

The connected vehicles market size is expected to see rapid growth in the next few years. It will grow to $96.72 billion in 2030 at a compound annual growth rate (CAGR) of 14.1%. The growth in the forecast period can be attributed to increasing demand for real-time vehicle data exchange capabilities, rising adoption of connected mobility services, growing focus on improving road safety through vehicle communication systems, increasing implementation of smart transportation networks, expanding demand for personalized in-vehicle digital services. Major trends in the forecast period include increasing adoption of vehicle to everything (v2x) communication technologies, growing integration of advanced telematics and real time vehicle monitoring systems, rising development of cloud connected vehicle data platforms, increasing deployment of over the air software updates for connected vehicles, expanding use of predictive vehicle maintenance and remote diagnostics solutions.

What Is The Driver Of The Connected Vehicles Market?

The increasing deployment of 5G networks is expected to propel the growth of the connected vehicles market going forward. A 5G network refers to the fifth-generation mobile communication system that delivers ultra-low latency, high data throughput, and massive device connectivity through advanced radio access technologies and cloud-native core architecture. Increasing deployment of 5G networks is due to rising demand for high-speed data connectivity that enables faster downloads, seamless streaming, and reliable support for emerging technologies like IoT, cloud services, and real-time applications. Deployment of 5G networks enhances connected vehicles by enabling ultra-low latency communication, high-speed data exchange, and reliable vehicle-to-everything (V2X) connectivity, thereby improving real-time safety, traffic efficiency, and autonomous driving capabilities. For instance, in July 2024, according to 5G Americas, a US-based telecommunication company, global 5G connections neared 2 billion in the first quarter of 2024, with 185 million new subscriptions added, and are projected to reach about 7.7 billion by 2028. Therefore, the increasing deployment of 5G networks is expected to propel the growth of the connected vehicles industry.

Key Players In The Global Connected Vehicles Market

Major companies operating in the connected vehicles market are Qualcomm Technologies Inc., General Motors Company, Robert Bosch GmbH, AT&T Inc., Samsung Electronics Co. Ltd., Volkswagen AG, Toyota Motor Corporation, Ford Motor Company, Bayerische Motoren Werke AG, Mercedes-Benz Group AG, Honda Motor Co. Ltd., Hyundai Motor Company, BYD Company Limited, Tesla Inc., Nissan Motor Co. Ltd., Intel Corporation, Tata Motors Limited, DENSO Corporation, Continental AG, NVIDIA Corporation, Valeo SE, Geely Automobile Holdings Limited, LG Electronics Inc., NXP Semiconductors N.V., Telefonaktiebolaget LM Ericsson

Global Connected Vehicles Market Trends and Insights

Major companies operating in the connected vehicles market are focusing on the integration of internet connectivity, such as vehicle-to-everything (V2X) communication, to enable real-time data exchange, enhanced safety, and intelligent mobility services. Vehicle-to-everything (V2X) communication is a technology that allows a vehicle to exchange information in real time with other vehicles, infrastructure, pedestrians, and networks to improve safety, traffic efficiency, and driving automation. For instance, in February 2024, Harman International Industries Inc., a US-based connected vehicle technology and audio products company, partnered with QUALCOMM Incorporated, a US-based semiconductor and telecommunications equipment company, to launch the HARMAN Ready Connect 5G Telematics Control Unit (TCU) for connected cars. The solution enables ultra-fast in-vehicle connectivity, supporting real-time navigation, enhanced infotainment, and seamless over-the-air software updates. It also strengthens vehicle-to-cloud and vehicle-to-everything (V2X) communication, improving safety, efficiency, and driving experience. This development reflects the growing industry shift toward advanced 5G-enabled telematics systems to support next-generation connected and autonomous vehicles.

What Are Latest Mergers And Acquisitions In The Connected Vehicles Market?

In June 2025, NXP Semiconductors N.V., a Europe-based provider of automotive processing and networking solutions, acquired TTTech Auto GmbH for an undisclosed amount. This acquisition strengthens NXP’s position in software-defined vehicles, enhances its portfolio with safety-critical middleware and system software for connected and autonomous vehicles, and accelerates the company’s capabilities in developing next-generation automotive software architectures. TTTech Auto GmbH is an Austria-based company that specializes in providing safety-critical middleware, system software, and architectures for software-defined vehicles, enabling connected and autonomous mobility.

What Defines the Connected Vehicles Market?

The connected vehicles market consists of revenues earned by entities by providing services such as telematics and vehicle tracking services, infotainment and in-vehicle connectivity services, remote diagnostics and predictive maintenance services, and over-the-air (ota) software update services. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected vehicles market also includes sales of telematics control units (TCUs), advanced in-vehicle infotainment systems, vehicle-to-everything (V2X) communication modules, and automotive sensors. 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 Vehicles Market Report 2026?

The connected vehicles 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 vehicles 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.