As per MRFR Analysis, the Global Connected Car Market was valued at USD 28.1 Billion in 2023 and is projected to reach USD 170 Billion by 2032, growing at a CAGR of 21.76% from 2024 to 2032. Key drivers include the increased adoption of Advanced Driver Assistance Systems (ADAS) for enhanced safety and stringent safety regulations. The market is characterized by a growing demand for user comfort, safety, and convenience, alongside rising vehicle theft incidents prompting the need for monitoring systems. The North American region leads the market, driven by significant investments in connected car networks and rising vehicle sales.
The Connected Car Market is witnessing significant growth driven by technological advancements and consumer demand.
Key players include Morris Garage Motor India, Bosch, Maruti Suzuki, Payment24, Airbiguity, Harman International, Continental AG, Daimler AG, General Motors, Hyundai Motor Group, Volvo, Ford Motor Company, and Audi.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Growing demand for improved user comfort, safety, and convenience is driving the market growth.
Market CAGR for the connected cars is being driven by the growing demand for improved user comfort, safety, and convenience. The rising incidents of vehicle thefts are gaining the attention of car buyers to a monitoring system that can monitor their vehicles and send timely updates about their geographic locations. The growing adoption of ADAS is anticipated to boost the connected car market. The strict safety norms imposed by the government on automotive manufacturers to produce vehicles with ADAS features are owing to rising concern towards the safety and security of passengers.
The vehicles that are connected to tablets and smartphones and are equipped with internet access, and have the ability to increase their operations at regular intervals are connected cars. Through the network connection, they can share content with a series of devices within and outside the car environment. Radar, LiDAR, and advanced sensors help to share the vehicle's data. The popularity of connectivity has fueled manufacturers to adopt connectivity solutions in their vehicles to expand their automobile sales, and vehicles to perform their tasks similar to computers and smartphones are the expectation from consumers. The main aim for the manufacturers of the automobiles is to add connectivity solutions to vehicles. The embedded, tethered, or integrated connectivity solutions are the connectivity that can be provided by a car. There is a rise in the acquiring of cybersecurity solutions in-car safety systems, as data have become vital factors in the automotive industry. The car-owners have begun to equip their vehicles with devices like TravelEyes2, Lojack, and ProScout, to avoid data theft, as these systems send a notification to the owner of the mobile phones, allowing them to lock the car with a single touch. There is also an increase in the implementation of strict rules to reduce the increasing number of data theft instances.
The applicability of ADAS in vehicles has increased with the rapid adoption of software algorithms, cameras, sensors, processors, and advanced technologies in mapping road obstacles, thus minimizing road fatalities. Thus, driving the Connected Car market revenue.
The Connected Car Market segmentation, based on network type, includes 3G, 4G, 5G, and Satellite. The 5G segment is expected to dominate the connected car market during the forecast years as most of the telecommunication market players are developing advanced 5G networks for improved communication in connected vehicles and external devices. Road accidents of more than 60% can be avoided using the seamless 5 G network. The satellite segment market is expected to be popular at rapid rate during the forecast period.
The Connected Car Market segmentation, based on technology, includes Embedded, Tethered, and Integrated. The integrated segment of the technology is anticipated to dominate the market as this system offers unlimited data-sharing possibilities and is low-cost compared to embedded and tethered systems. Furthermore, the embedded segment is the second-fastest growing segment for reasons like cost optimization of service plans and cloud services.
Figure 1: Global Connected Car Market, by Technology, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Connected Car Market segmentation, based on application, includes Mobility Management, Telematics, Infotainment, and Driver Assistance. The driver assistance segment is expected to dominate the market as their advanced system includes technologically advanced features like adaptive cruise control, 360 view camera, park assist, etc. Further, the mobility management segment is the second-fastest growing segment of application in the connected car market.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Connected Car market dominates the market due to the growth of the connected car network. The investment by the key telecommunication companies in developing the capabilities of connected cars and the rising sales of vehicles throughout the region. The US is the largest contributor for the growth of the connected car market in the North American region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Connected Car Market SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Connected Car market accounts for the second-largest market share owing to the increase in investment to enable the adoption of cybersecurity in connected cars and the introduction of new advanced technology by the manufacturers. Further, the German Connected Car market held the largest market share, and the UK Connected Car market was the rapid-growing market in the European region.
The Asia-Pacific Connected Car Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing manufacturing operations developments related to connected services and the adoption of the 5G network for connected cars. Moreover, China’s Connected Car market held the largest market share, and the Indian Connected Car market was the rapid-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Connected Car market grow even more. Market participants are also undertaking a various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Connected Car industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Connected Cars industry to benefit clients and increase the market sector. In recent years, the Connected Car industry has offered some of the most significant advantages to the automobile industry. Major players in the Connected Car market, including Morris Garage Motor India, Bosch, Maruti Suzuki, Payment24, Airbiguity, Harman International, Continental AG, Daimler AG, General Motors, Hyundai Motor Group, Volvo, Ford Motor Company, Audi, and others, are attempting to increase market demand by investing in research and development operations.
Airbiquity is a leader in automotive telematics and in the delivery of connected vehicle services. The company has developed new software technology and has been building and application of connected vehicle programs for 20 years. They provide commercial, automotive industry customers with a whole range of connected vehicle technologies and services, exceptional integration expertise, and solution hosting flexibility. In April 2022, Airbiquity launched DATAmatic, which is a suite of edge data management solutions to provide the rising demand for services and tools that assists automakers and monetize the data of the connected vehicle. Airbiquity also announced its collaboration with Renesas, which is the premier provider of advanced semiconductor solutions. The Renesas R-Car S4 system-on-chip and the Airbiquity OTAmatic software management platform are the extended technology integration involved.
Payment24 is an International Fuel Payment Solutions Provider which is based in Cape Town and Berlin. It emphasizes innovative IT research and development projects in the areas of fleet management systems, payment systems, retail solutions, and mobile solutions, providing its solution in over 5 continents. The company provides a bespoke, tailor-made solution for payment transactions that is sensitive to security, speed, accuracy, and real-time reporting. In June 2021, Vehicle Biometric was launched by the company for smart and rapid refueling solutions for connected cars. The system helps automate fuel approval and payment deduction as the registered vehicles enter the fuel station. This system is expected to significantly minimize the fueling fraud and wastage.
Bosch
Maruti Suzuki
Payment24
Airbiguity
Harman International
Continental AG
Daimler AG
General Motors
Hyundai Motor Group
Volvo
Ford Motor Company
Audi
June 2021: The launch of the new MEMS sensor, the SMI230, was announced by Bosch. This helps realistically visualize vehicle movements and ensures trouble-free navigation.
January 2020: The d ZS Connected Car was launched by Morris Garages Motor India, which is the first electric internet SUV in India; on a full charge, 340 km is its driving range.
February 2019: The largest car manufacturer in India, Maruti Suzuki, launched its Suzuki Connect, which is provided as an option for consumers to connect the car to their smartphone via the Nexa app. Emergency alerts, vehicle tracking, car assistance, driving analytics, preventive maintenance calls, and live vehicle status are some of the features that the owners can access through this system.
3G
4G
5G
Satellite
Embedded
Tethered
Integrated
Mobility Management
Telematics
Infotainment
Driver Assistance
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Attribute/Metric | Details |
| Market Size 2023 | USD 28.1 Billion |
| Market Size 2024 | USD 35.1812 Billion |
| Market Size 2032 | USD 170.0 Billion |
| Compound Annual Growth Rate (CAGR) | 21.76% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Network Type, Technology, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |  Morris Garage Motor India, Bosch, Maruti Suzuki, Payment24, Airbiguity, Harman International, Continental AG, Daimler AG, General Motors, Hyundai Motor Group, Volvo, Ford Motor Company, Audi  |
| Key Market Opportunities | Rising ADAS features in vehicles for ensuring improved safety levels. |
| Key Market Dynamics | Increased demand for advanced and modified cars. |
Connected Car Market Highlights:
Frequently Asked Questions (FAQ) :
The Connected Car Market size valued at USD 28.1 Billion in 2022.
The global market is foreseen to grow at a CAGR of 21.76% during the forecast period, 2024-2032.
North America had largest share of the global market
The key players in the market are Morris Garage Motor India, Bosch, Maruti Suzuki, Payment24, Airbiguity, Harman International, Continental AG, Daimler AG, General Motors, Hyundai Motor Group, Volvo, Ford Motor Company, and Audi.
The integrated category dominated the market in 2022.
Driver assistance had the largest share in the global market.
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Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
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