Connected Car Market Size, Share, Trends, Industry Analysis, and Forecast (2024 – 2030)

Connected Car Market Size
The global connected car market size was valued at $40.27 billion in 2024 and is projected to reach $117.28 billion by 2030, growing at a CAGR of 19.5% during the forecast period.

Connected Car Market Overview
A connected car is a vehicle equipped with internet access and often a wireless local area network, allowing it to communicate with other devices both inside and outside the vehicle. This connectivity enables a range of advanced features such as real-time navigation, remote diagnostics, and enhanced safety measures. For instance, connected cars can receive updates about traffic conditions, weather, and road hazards, helping drivers make informed decisions. They can also communicate with other vehicles and infrastructure to improve traffic flow and reduce accidents. Additionally, connected cars often integrate with smartphones and other personal devices, offering seamless access to entertainment, navigation, and communication services, thereby enhancing the overall driving experience.

Connected Car Market Dynamics
• The connected car market is expected to witness significant growth in the future due to increasing demand for advanced safety features, growing adoption of internet of things (IoT) technology, and rising consumer demand for enhanced in-car connectivity and infotainment systems.
• Additionally, the government initiatives for intelligent transportation systems and advancements in automotive technology are the prominent factors driving the growth of the market.
• However, the high costs associated with connected car technology and concerns about data privacy are restraining the market growth.
• On the contrary, the expansion of 5G network infrastructure, development of smart cities and connected infrastructure, growing partnerships between automotive and technology companies, and the rising demand for electric and autonomous vehicles are creating opportunities for market growth.
  
By Transponder, the Onboard Unit Segment is anticipated to Hold Major Share in the Connected Car Market
The onboard unit segment is expected to dominate the market share during the forecast period. This OBU functions as the brain, facilitating communication among various vital systems. It gathers data from sensors across the vehicle, monitoring engine performance, tire pressure, and GPS location, and relays this information to a central server or cloud platform. This data enables essential features like remote diagnostics, emergency assistance, and stolen vehicle tracking. Beyond data collection, OBUs are the gateway to advanced connected car functionalities, providing real-time traffic updates, weather alerts, and in-car Wi-Fi hotspots for continuous connectivity. Additionally, OBUs are critical in Advanced Driver-Assistance Systems (ADAS), such as automatic emergency braking and lane departure warnings, by processing sensor data in real-time. 
• For instance, Tesla's Autopilot system utilizes OBUs to interpret camera and radar data, allowing precise control of steering and braking to enhance safety by avoiding collisions and maintaining lane integrity. This highlights the pivotal role OBUs play in driving technological advancements for safer journeys.

By Geography, Asia Pacific is expected to grow at a highest CAGR during the forecast period
Asia Pacific is anticipated to experience the highest compound annual growth rate during the forecast period due to the region's strong automotive industry, particularly in countries like China, Japan, and South Korea. Government initiatives promoting smart city projects and intelligent transportation systems further bolster the market, as they emphasize the need for enhanced connectivity and integration in urban mobility solutions. Furthermore, the widespread adoption of smartphones and the Internet of Things (IoT) technology in the Asia Pacific region drives consumer expectations for seamless connectivity and innovative features in their vehicles. This combination of economic growth, technological advancement, and supportive government policies creates a fertile ground for the connected car market to flourish in the Asia Pacific region.
• For instance, China, the world's largest automotive market, is experiencing a surge in connected car adoption. Companies like Geely and BYD are incorporating advanced connectivity features to meet consumer demands.

Key Target Audience:
• Automakers (OEMs)
• Technology and Software Providers
• Telecom and Network Operators
• Government and Regulatory Bodies
• Consumers and Vehicle Owners
• Insurance Companies
• Fleet Management Companies
• Automotive Component Suppliers
• Smart Infrastructure Developers
• Research and Development Organizations

List of the Key Players Profiled in the Report Includes: 
• Airbiquity
• AT&T
• Audi
• Cloudmade
• Continental AG
• Ford Motor Company
• Harman International
• Intellias
• Qualcomm Technologies, Inc
• Robert Bosch GmbH
• Sierra Wireless
• Tesla
• TomTom International BV.

Recent Developments:
• In February 2024, Harman International launched the HARMAN Ready Connect 5G Telematics Control Unit (TCU), a significant advancement in automotive connectivity leveraging Qualcomm Technologies' Snapdragon Digital Chassis. This 5G-enabled TCU is designed to deliver rich in-cabin experiences for consumers while reducing time to market and engineering efforts for automakers. It offers features such as enhanced traffic notifications, car-to-environment communication, and improved connected mobility experiences focused on entertainment, productivity, and situational awareness. The future-proof solution provides modular hardware upgradability and scalable software architecture to maximize reuse across product variants. This launch highlights the collaboration between Harman and Qualcomm to revolutionize automotive connectivity.
• In February 2024, Continental introduced a new digital tool for checking truck tires, called ContiConnect Lite. This tool bridges tire sensors and tire management, offering an accessible gateway to selected ContiConnect features via smartphone. It allows fleets and truck drivers to access tire data, manage up to five vehicles, and receive alerts for tire conditions, enhancing safety, reducing breakdowns and maintenance costs, and improving fuel efficiency. ContiConnect Lite is especially beneficial for smaller fleets using intelligent tires or Generation II sensors, requiring no additional hardware and providing convenience through the ContiConnect On-Site app, available on both iOS and Android.

Market Segmentation:
The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Vehicle Type: 
• Battery Electric Vehicle (BEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

Market by, Network:
• Cellular
• Dedicated Short-Range Communications (DSRC)

Market by, Service: 
• Auto Parking/Connected Parking
• Autopilot
• Ecall & SOS Assistance
• Home Integration
• Multimedia Streaming
• Navigation
• On-Road Assistance
• OTA Updates
• Remote Diagnostics
• Remote Operation
• Social Media & Other Apps
• Stolen Vehicle Recovery/Warning

Market by, Form Type:
• Embedded
• Integrated

Market by, Transponder: 
• Roadside Unit
• Onboard Unit

Market by, Hardware:
• Central Gateway
• Electronic Control Unit
• Head Unit
• Intelligent Antenna
• Keyless Entry System
• Sensor
• Telematics Control Unit

Market by, Sales Channel: 
• Original Equipment Manufacturer (OEM)
• Aftermarket

Market by, Geography:
The connected car market report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:
• North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis
• Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis
• Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis
• South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis
• Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

The report offers insights into the following aspects:
• Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.
• Analysis of the market structure by identifying various segments and sub-segments of the market.
• Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
• Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.
• Understand major player profiles in the market and analyze their business strategies.
• Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.

Table Of Content

1 Market Introduction             
    1.1 Market Definition          
    1.2 Research Scope and Segmentation        
    1.3 Stakeholders          
    1.4 List of Abbreviations         
                
2 Executive Summary              
                
3 Research Methodology             
    3.1 Identification of Data         
    3.2 Data Analysis          
    3.3 Verification          
    3.4 Data Sources          
    3.5 Assumptions          
                
4 Market Dynamics              
    4.1 Market Drivers          
    4.2 Market Restraints          
    4.3 Market Opportunities         
    4.4 Market Challenges          
                
5 Porter's Five Force Analysis             
    5.1 Bargaining Power of Suppliers         
    5.2 Bargaining Power of Buyers         
    5.3 Threat of New Entrants         
    5.4 Threat of Substitutes         
    5.5 Competitive Rivalry in the Market        
                
6 Global Connected Car Market by, Vehicle Type           
    6.1 Overview          
    6.2 Battery Electric Vehicle (BEV)         
    6.3 Plug-In Hybrid Electric Vehicle (PHEV)        
    6.4 Fuel Cell Electric Vehicle (FCEV)        
                
7 Global Connected Car Market by, Network           
    7.1 Overview          
    7.2 Cellular           
             7.2.1 4G  
             7.2.2 5G  
    7.3 Dedicated Short-Range Communications (DSRC)       
                
8 Global Connected Car Market by, Service           
    8.1 Overview          
    8.2 Auto Parking/Connected Parking        
    8.3 Autopilot           
    8.4 Ecall & SOS Assistance         
    8.5 Home Integration          
    8.6 Multimedia Streaming         
    8.7 Navigation          
    8.8 On-Road Assistance          
    8.9 OTA Updates          
    8.10 Remote Diagnostics          
    8.11 Remote Operation          
    8.12 Social Media & Other Apps         
    8.13 Stolen Vehicle Recovery/Warning        
                
9 Global Connected Car Market by, Form Type           
    9.1 Overview          
    9.2 Embedded          
    9.3 Integrated          
                
10 Global Connected Car Market by, Transponder           
    10.1 Overview          
    10.2 Roadside Unit          
    10.3 Onboard Unit          
                
11 Global Connected Car Market by, Hardware           
    11.1 Overview          
    11.2 Central Gateway          
    11.3 Electronic Control Unit         
    11.4 Head Unit          
    11.5 Intelligent Antenna          
    11.6 Keyless Entry System         
    11.7 Sensor           
    11.8 Telematics Control Unit         
                
12 Global Connected Car Market by, Sales Channel           
    12.1 Overview          
    12.2 Original Equipment Manufacturer (OEM)        
    12.3 Aftermarket          
                
13 Global Connected Car Market by, Geography           
    13.1 Overview          
    13.2 North America          
             13.2.1 US  
             13.2.2 Canada  
             13.2.3 Mexico  
    13.3 Europe           
             13.3.1 Germany  
             13.3.2 France  
             13.3.3 UK  
             13.3.4 Italy  
             13.3.5 Spain  
             13.3.6 Rest of Europe 
    13.4 Asia Pacific          
             13.4.1 China  
             13.4.2 Japan  
             13.4.3 India  
             13.4.4 South Korea 
             13.4.5 Australia  
             13.4.6 New Zealand 
             13.4.7 Rest of Asia Pacific 
    13.5 South America          
             13.5.1 Brazil  
             13.5.2 Argentina 
             13.5.3 Chile  
             13.5.4 Rest of South America
    13.6 Middle East & Africa         
             13.6.1 UAE  
             13.6.2 Saudi Arabia 
             13.6.3 Qatar  
             13.6.4 Iran  
             13.6.5 South Africa 
             13.6.6 Rest of Middle East & Africa
                
14 Key Developments              
                
15 Company Profiling              
    15.1 Airbiquity          
             15.1.1 Business Overview 
             15.1.2 Product/Service Offering
             15.1.3 Financial Overview 
             15.1.4 SWOT Analysis 
             15.1.5 Key Activities 
    15.2 AT&T           
    15.3 Audi           
    15.4 Cloudmade          
    15.5 Continental AG          
    15.6 Ford Motor Company         
    15.7 Harman International         
    15.8 Intellias           
    15.9 Qualcomm Technologies, Inc         
    15.10 Robert Bosch GmbH          
    15.11 Sierra Wireless          
    15.12 Tesla           
    15.13 TomTom International BV.