Vehicle Networking Market

The Vehicle Networking Market is segmented by Network Connectivity into Cellular Vehicle-to-Everything (C-V2X), Dedicated Short Range Communications (DSRC), Wi-Fi, and Bluetooth. Cellular Vehicle-to-Everything (C-V2X) is a technology that allows vehicles to communicate with each other and with roadside infrastructure. It is expected to be a major driver of growth in the Vehicle Networking Market, with a market size of USD 4.5 billion by 2024. Dedicated Short Range Communications (DSRC) is a technology that allows vehicles to communicate with each other over short distances.It is currently used in some vehicle safety systems, such as lane departure warning and blind spot monitoring.

The DSRC market is expected to grow to USD 1.5 billion by 2024. Wi-Fi is a technology that allows vehicles to connect to the internet and to each other. It is expected to be used in a variety of applications, such as infotainment, navigation, and vehicle diagnostics. The Wi-Fi market is expected to grow to USD 1.0 billion by 2024. Bluetooth is a technology that allows vehicles to connect to each other and to other devices, such as smartphones and tablets.It is expected to be used in a variety of applications, such as hands-free calling, music streaming, and vehicle diagnostics.

Passenger Cars is the most prominent market sharing segment. The increased demand for connected cars and advanced driver-assistance systems is primarily responsible for the growth of this segment. The rising popularity of ride-sharing services with infotainment systems integration is also fuelling growth in this segment. The Passenger Cars segment was valued at USD 1.45 billion in 2023 and is expected to exceed USD 3.78 billion by 2032, with a CAGR of 11.2% for the 2023 and 2032 cumulative period.

The sale of vehicles such as trucks, buses, and vans, known as Commercial Vehicles, is another prominent market-sharing segment.The high number of data obtained by commercial vehicles for fleet management and driver and passenger safety implementations results in increasing vehicle networking. The Commercial Vehicles segment increases from USD 1.02 billion in 2023 to USD 2.67 billion in 2032, with a CAGR of 11.5%. Vehicles for public transit, such as buses and trains, are also experiencing increased exposure to vehicle networking technologies.

The Vehicle Networking Market revenue is segmented based on Application Area into Traffic Management, Fleet Management, Predictive Maintenance, Automated Driving, and others. Among these segments, Traffic Management is expected to hold the largest market share during the forecast period. The growth of this segment can be attributed to the increasing demand for real-time traffic information and the need to improve traffic efficiency. Fleet Management is another major segment, and its growth is driven by the growing adoption of telematics solutions by fleet operators.Predictive Maintenance is a promising segment, as it has the potential to reduce vehicle downtime and maintenance costs.

Automated Driving is a relatively new segment, but it is expected to grow rapidly in the coming years as self-driving cars become more common. The Vehicle Networking Market segmentation data and statistics provide valuable insights into the market dynamics and help stakeholders make informed decisions.

The Vehicle Networking Market segmentation by Deployment Model is broadly divided into On-Board Unit (OBU) Based, Smartphone Based, and Cloud Based. The On-Board Unit (OBU) Based segment is projected to hold the largest market share during the forecast period due to growing demand for advanced driver assistance systems (ADAS) and increasing adoption of vehicle-to-everything (V2X) communication systems.

The Smartphone Based segment is expected to witness substantial growth owing to the rising penetration of smartphones and the availability of various vehicle networking applications.The Cloud Based segment is anticipated to gain traction in the coming years due to the increasing adoption of cloud computing services and the growing need for data storage and processing in vehicle networking systems.

The Vehicle Networking Market is segmented by Service Type into Data Communication, Geolocation Tracking, Vehicle Diagnostics, and Safety Alerts. Among these segments, Data Communication holds the largest market share and is projected to maintain its dominance throughout the forecast period. The growth of this segment is attributed to the increasing adoption of connected vehicles and the rising demand for real-time data exchange between vehicles and infrastructure.

Geolocation Tracking is another significant segment, driven by the growing popularity of location-based services and the need for efficient fleet management.Vehicle Diagnostics is expected to witness substantial growth due to the increasing adoption of predictive maintenance and remote diagnostics solutions. Safety Alerts is a rapidly growing segment, driven by regulatory mandates and the increasing focus on road safety. The Vehicle Networking Market revenue is expected to reach USD 10.41 billion by 2032, exhibiting a CAGR of 11.67% during the forecast period (2024-2032).