Connected Vehicle Market Research Report By Technology (Telematics, V2X Communication, In-Vehicle Infotainment, Advanced Driver-Assistance Systems, Cloud Computing), By Vehicle Type (Passenger Vehicles, Commercial Vehicles, Motorcycles, Buses), By Connectivity Type (Dedicated Short-Range Communication, Cellular Networks, Satellite Communication, Wi-Fi), By End Use (Personal, Fleet Management, Public Transportation, Ride-Sharing) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Connected Vehicle Market Overview:

As per MRFR analysis, the Connected Vehicle Market Size was estimated at 71.64 (USD Billion) in 2023. The Connected Vehicle Market Industry is expected to grow from 76.19 (USD Billion) in 2024 to 149.97 (USD Billion) by 2035. The Connected Vehicle Market CAGR (growth rate) is expected to be around 6.35% during the forecast period (2025 - 2035).

Key Connected Vehicle Market Trends Highlighted

Significant growth is being driven by a number of key market drivers in the Connected Vehicle Market. The growing demand for improved vehicle safety and security features is a significant factor. Automakers are investing in connected technologies that enhance vehicle monitoring and accident prevention as a result of the implementation of more stringent safety regulations by governments in a variety of regions. The increasing consumer preference for smart mobility solutions, which encompasses integrated multimedia options and navigation systems, is another factor. This change is partially attributable to the growing popularity of smartphones and IoT devices, which has motivated manufacturers to create vehicles that can communicate seamlessly with smart devices.

The potential for advancements in vehicle-to-everything (V2X) communication technology is among the opportunities to be investigated in this market. This novel method enables vehicles to communicate with one another and with infrastructure, thereby enhancing road safety and optimizing traffic management. Furthermore, the incorporation of artificial intelligence and machine learning into connected vehicles provides manufacturers with the opportunity to provide drivers and passengers with personalized experiences, thereby increasing user engagement and satisfaction. Additionally, recent developments suggest that sustainability is increasingly becoming a critical factor in the development of vehicles.

Connected vehicle technologies are becoming more closely aligned with these initiatives in order to improve energy efficiency and decrease carbon footprints, as governments worldwide advocate for electric vehicles and alternative modes of transportation. In general, the Connected Vehicle Market is poised for ongoing development as it adjusts to evolving consumer expectations and technological advancements.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Connected Vehicle Market Drivers

Increase in Demand for Intelligent Transportation Systems

The Connected Vehicle Market Industry is being driven by the increasing demand for Intelligent Transportation Systems (ITS), aimed at improving safety and efficiency on roadways. According to a report from the United Nations Economic Commission for Europe, the adoption of ITS is anticipated to enhance traffic flow by as much as 30% and significantly reduce accidents by up to 40% through better traffic management and vehicle-to-infrastructure communication.

With organizations like the European Telecommunications Standards Institute pioneering communication standards, the development of connected vehicles is critical to realizing these improvements. As governments across the globe, particularly in regions like Europe and North America, prioritize smart city initiatives, the evolution of intelligent and connected vehicles aligns perfectly with these broader objectives, making the sector ripe for growth.

Government Incentives for Electric and Connected Vehicles

Government incentives supporting electric and connected vehicles contribute significantly to the Connected Vehicle Market Industry growth. Programs introduced by various governments worldwide, such as tax rebates and grants, encourage consumers to switch to electric vehicles that are also equipped with advanced connectivity features. For example, in the United States, a report highlighted how federal tax credits could boost electric vehicle sales by 25% annually in certain states.

Organizations like the International Energy Agency promote the integration of connected services with electric vehicles, supporting the notion that governmental push can lead to an increase in the adoption of connected technologies, which enhances market prospects. Advancements in Automotive Connectivity Technologies

Continuous advancements in automotive connectivity technologies are shaping the Connected Vehicle Market Industry positively. With the introduction of 5G technology, vehicle-to-everything (V2X) communication is becoming more feasible, enhancing real-time data exchange between vehicles, infrastructure, and other road users. According to the Global System for Mobile Communications Association, it is expected that by 2030, there will be over 1.5 billion connected vehicles on the road globally due to enhanced connectivity features.

Companies like Qualcomm and Ericsson are at the forefront of developing these technologies, actively partnering with automotive manufacturers to create seamless connectivity experiences, thus driving market growth.

Connected Vehicle Market Segment Insights:

Connected Vehicle Market Technology Insights

The Connected Vehicle Market, particularly within the Technology segment, showcases a robust landscape projected to reach a valuation of 76.19 USD Billion by 2024 and further escalate to 150.0 USD Billion by 2035, reflecting a compound annual growth rate (CAGR) of 6.35 from 2025 to 2035. As various solutions become integral to enhancing vehicle connectivity and safety, the sub-part of this market plays a crucial role in the overall growth trajectory. Telematics, valued at 15.0 USD Billion in 2024 and projected to double to 30.0 USD Billion by 2035, holds a majority position within the market, providing essential data transmission capabilities for vehicle tracking, diagnostics, and fleet management. Simultaneously, V2X Communication, valued at 10.0 USD Billion in 2024 and expected to reach 20.0 USD Billion by 2035, fosters interaction between vehicles and external environments, aiming to reduce accidents and traffic congestion, thereby driving advanced transportation solutions.

In-Vehicle Infotainment is another significant player, with a current valuation of 12.0 USD Billion in 2024, growing to 25.0 USD Billion by 2035. This technology enhances user experience by integrating entertainment, navigation, and information systems within the vehicle, which are increasingly becoming essential for luxury models and mainstream autos alike. Advanced Driver-Assistance Systems (ADAS) also dominate the technology segment, initially valued at 20.0 USD Billion in 2024 and set to reach 40.0 USD Billion by 2035; these systems are crucial for ensuring driver safety through features like adaptive cruise control, lane-keeping assistance, and automated parking, contributing to the rise of autonomous vehicle technology. On the technological frontier, Cloud Computing, with a current valuation of 19.19 USD Billion in 2024 growing to 35.0 USD Billion by 2035, supports the connected vehicle ecosystem by allowing real-time data processing and storage, which is fundamental for various applications in vehicle management and user service enhancements.

Each of these segments signifies a foundational pillar that supports the entire growth of the Connected Vehicle Market industry. The interplay among these technologies facilitates an integrated approach toward modern transportation solutions while addressing efficiency, safety, and user satisfaction. As the demand for connected vehicles escalates globally, these segments are positioned to experience substantial growth and prominence, highlighting their strategic importance within the larger scope of advancing automotive technologies. The Connected Vehicle Market statistics underscore a trend toward deeper connectivity and smarter technologies that are expected to significantly influence the future of mobility.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Connected Vehicle Market Vehicle Type Insights  

The Vehicle Type segment of the Connected Vehicle Market is poised for substantial growth, reflecting an overall market valuation of 76.19 USD Billion in 2024, with projections to expand significantly by 2035. This segment encompasses various categories, including Passenger Vehicles, Commercial Vehicles, Motorcycles, and Buses, each playing a vital role in enhancing connectivity and safety on the roads. Passenger Vehicles dominate the market, making significant advancements in infotainment, navigation, and vehicle-to-everything (V2X) communication technologies, contributing to their broad consumer adoption.

Commercial Vehicles are increasingly integrating connected technologies to optimize logistics, reduce costs, and improve fleet management efficiency, creating vital opportunities for operators. Motorcycles, while a smaller segment, are witnessing innovations that enhance rider safety and connectivity, tapping into a growing market in urban mobility solutions. Buses, often a key component of public transportation, are embracing connectivity to improve passenger experience, manage operations effectively, and promote sustainability. Collectively, these vehicle types contribute to the Connected Vehicle Market revenue, driven by trends such as increasing demand for safer and more efficient transport solutions.

The continuous evolution of technologies is presenting challenges, such as cybersecurity concerns, while also offering vast opportunities for innovation and improved connectivity.

Connected Vehicle Market Connectivity Type Insights

The Connected Vehicle Market is rapidly evolving, and the Connectivity Type segment plays a crucial role in its overall dynamics. By 2024, this segment will significantly contribute to the overall market value, which is projected to reach 76.19 USD Billion. Among various connectivity options, Dedicated Short-Range Communication is becoming essential for enabling vehicle-to-vehicle and vehicle-to-infrastructure communications, enhancing traffic safety and efficiency. Cellular Networks, which include 4G and emerging 5G technologies, are pivotal in delivering high-speed data transmission, enhancing navigation, infotainment, and real-time updates to vehicles.

Satellite Communication offers vast coverage, ensuring connectivity in remote areas, which is particularly valuable for fleet management and agricultural vehicles. Wi-Fi technology supports in-car entertainment and provides a seamless connection for passengers, creating a more engaging travel experience. The market is driven by increasing demand for advanced safety features, regulatory mandates, and the proliferation of Internet of Things applications in vehicles. However, challenges such as cybersecurity threats and lack of standardization in connected vehicle technologies might hinder growth.

Nevertheless, the opportunities presented by advancements in connectivity promise continued expansion within the Connected Vehicle Market.

Connected Vehicle Market End Use Insights  

The Connected Vehicle Market, valued at 76.19 USD Billion in 2024, showcases a robust framework shaped by various end use applications. Personal vehicles emerge as a critical segment, contributing significantly to the adoption of connectivity features that enhance convenience and safety for individual users. Meanwhile, Fleet Management is gaining traction, as businesses prioritize efficiency and cost reduction through real-time data analysis and vehicle tracking. Public Transportation also plays a pivotal role, improving operational efficiency and passenger experiences through integrated systems.

Ride-Sharing services are rapidly evolving, driven by urbanization and the shift toward shared mobility, reflecting changing consumer preferences towards sustainable transportation options. The growth across these segments underscores a broader trend where technological advancements and increasing demands for safety, sustainability, and flexibility are propelling the Connected Vehicle Market forward. Collectively, these factors cultivate opportunities for innovation and investment, making the connected vehicle landscape increasingly dynamic and complex, contributing to the overall Connected Vehicle Market revenue.

The consistent development within these sectors reflects the evolving mobility paradigm and emphasizes the importance of connectivity in enhancing transportation systems globally.

Connected Vehicle Market Regional Insights  

The Connected Vehicle Market exhibits significant regional diversification, reflecting a variety of market dynamics across different continents. In 2024, North America is projected to dominate the market with a valuation of 30.0 USD Billion, contributing to its leading role due to advanced infrastructure and high vehicle connectivity adoption rates. Europe follows closely with a valuation of 25.0 USD Billion in the same year, as stringent regulations and a focus on sustainability drive market growth. The Asia Pacific region, valued at 12.0 USD Billion, is gaining traction as rapid urbanization and increasing vehicle production bolster the connected vehicle presence.

South America's market stands at 5.0 USD Billion, mainly fueled by a growing interest in automotive technology, while the Middle East and Africa show a modest valuation of 4.19 USD Billion, with potential growth driven by improving vehicle technology and infrastructure investments. With these trends, North America and Europe collectively hold the majority share, reflecting their strategic importance in the Connected Vehicle Market revenue and showcasing a clear segmentation in terms of development and technological advancement.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Connected Vehicle Market Key Players and Competitive Insights:

The Connected Vehicle Market is characterized by rapid technological advancements and increasing demand for automotive connectivity solutions. As vehicles become more integrated with digital ecosystems, connectivity features such as in-car communication, navigation assistance, automated driving systems and vehicle-to-everything technology are becoming cornerstones of modern automotive design. This growing trend has intensified competition among various automotive manufacturers, tech companies, and service providers striving to enhance their connected vehicle offerings. In this landscape, companies are increasingly leveraging partnerships with software developers, telecommunications firms, and other stakeholders to enrich their services and improve user experiences. As consumers become more tech-savvy, the expectation for seamless connectivity and advanced features will be paramount, making competitive insights crucial for manufacturers to stay ahead in this lucrative market.

When examining BMW's position in the Connected Vehicle Market, the company is recognized for its innovative approach and strong brand reputation. BMW has successfully integrated advanced connected technologies into its vehicles, providing consumers with features like real-time traffic updates, remote vehicle access, and intuitive infotainment systems. The company's focus on luxury and performance allows it to position connected features as part of an upscale driving experience. BMW's investments in research and development, coupled with strategic collaborations, ensure its connected vehicles remain at the forefront of technology. The brand’s emphasis on high-quality manufacturing and strong customer loyalty further solidifies its competitive edge, making it a prominent player in the global market landscape.

Audi, which is also a significant competitor in the Connected Vehicle Market, emphasizes enhancing the driving experience through innovation and cutting-edge technology. The company has launched services such as the Audi connect, which provides internet connectivity through cloud-based solutions, enabling features like traffic assistance and remote control of vehicle functions. Audi’s commitment to electrification and autonomous driving technologies further strengthens its position in the connected vehicle segment. The company has actively pursued strategic mergers and acquisitions to supplement its technology capabilities, thus expanding its network and service offerings. Audi’s global presence is marked by a commitment to quality, performance, and sustainability, enhancing its appeal to consumers who seek modern and connected automotive solutions.

Key Companies in the Connected Vehicle Market Include:

• BMW


• Audi


• Hyundai


• Volvo


• Porsche


• Toyota


• Tesla


• FCA


• Honda


• Volkswagen


• Nissan


• Ford


• Daimler


• General Motors

Connected Vehicle Market Industry Developments

The Connected Vehicle Market has seen significant advancements recently. In March 2023, BMW announced a partnership with a leading technology firm to enhance its vehicle connectivity features, thereby improving driver experience and vehicle safety. Hyundai has also been making strides with its advancements in autonomous driving technologies, which rely heavily on connected vehicle systems. In terms of mergers and acquisitions, Ford and Google jointly announced in February 2023 a significant collaboration aimed at integrating advanced data analytics into Ford's vehicle systems, enhancing personalization and efficiency in their offerings. Toyota continues to invest heavily in Research and Development to increase their connected vehicle capabilities, aiming for a substantial market share by 2025. Over the last few years, Volkswagen has committed to investing billions in connected vehicle technology, reinforcing its position as a leader in this rapidly evolving market.

Connected Vehicle Market Segmentation Insights

Connected Vehicle Market Technology Outlook

• Telematics


• V2X Communication


• In-Vehicle Infotainment


• Advanced Driver-Assistance Systems


• Cloud Computing

Connected Vehicle Market Vehicle Type Outlook

• Passenger Vehicles


• Commercial Vehicles


• Motorcycles


• Buses

Connected Vehicle Market Connectivity Type Outlook

• Dedicated Short-Range Communication


• Cellular Networks


• Satellite Communication


• Wi-Fi

Connected Vehicle Market End Use Outlook

• Personal


• Fleet Management


• Public Transportation


• Ride-Sharing

Connected Vehicle Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric	Details
Market Size 2023	71.64(USD Billion)
Market Size 2024	76.19(USD Billion)
Market Size 2035	149.97 (USD Billion)
Compound Annual Growth Rate (CAGR)	6.35% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	BMW, Audi, Hyundai, Volvo, Porsche, Toyota, Tesla, FCA, Honda, Volkswagen, Nissan, Ford, Daimler, General Motors
Segments Covered	Technology, Vehicle Type, Connectivity Type, End Use, Regional
Key Market Opportunities	Autonomous vehicle integration, V2X communication growth, Enhanced cybersecurity solutions, Increased consumer demand for connectivity, Smart city partnerships
Key Market Dynamics	technological advancements, increasing safety regulations, growing demand for connectivity, rise of autonomous vehicles, expansion of smart city initiatives
Countries Covered	North America, Europe, APAC, South America, MEA