Europe Automobile IoT Market Research Report By Technology (Telematics, Vehicle-to-Everything, Remote Diagnostics, Fleet Management), By Application (Navigation, Safety Security, Remote Vehicle Management, Infotainment), By End Use (Passenger Vehicles, Commercial Vehicles, Electric Vehicles), By Connectivity (Cellular Connectivity, Satellite Connectivity, Wi-Fi Connectivity), and By Regional (Germany, UK, France, Russia, Italy, Spain, Rest of Europe)-Forecast to 2035

Europe Automobile IoT Market Overview

As per MRFR analysis, the Europe Automobile IoT Market Size was estimated at 7.59 (USD Billion) in 2023.The Europe Automobile IoT Market is expected to grow from 9.6(USD Billion) in 2024 to 25 (USD Billion) by 2035. The Europe Automobile IoT Market CAGR (growth rate) is expected to be around 9.091% during the forecast period (2025 - 2035).

Key Europe Automobile IoT Market Trends Highlighted

The use of smart technology and sophisticated connectivity solutions in automobiles is propelling the European automotive IoT industry. Initiatives for linked vehicles have been actively supported by European governments, with a special emphasis on improving road safety and cutting emissions.

For instance, the European Commission has established challenging sustainability targets that promote the incorporation of IoT technologies into cars to improve overall vehicle performance and energy efficiency.

The field of smart transportation systems offers a lot of prospects, particularly as cities move toward putting smart traffic control technologies into place. More IoT applications in the automotive industry are also being made possible by the growing investments in infrastructure to enable smart charging stations and electric automobiles.

Additionally, automakers are using IoT technologies to provide tech-savvy consumers with features like real-time data analytics and vehicle diagnostics as consumer preferences evolve toward highly customized, immersive driving experiences.

As vehicle connection increases, recent developments in Europe indicate an increasing emphasis on data security and privacy. Automobile manufacturers are now putting a lot of effort into creating strong cybersecurity safeguards to safeguard consumer data due to growing worries about data breaches.

In an effort to provide customers with more integrated solutions, automotive businesses and tech companies are increasingly collaborating. Due to these changing trends and regulatory bodies' strong commitment to fostering innovation in the car sector, the European automobile IoT market is expected to grow significantly as the need for automated and connected mobility rises.

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

Europe Automobile IoT Market Drivers

Increasing Demand for Connected Vehicles

The increasing demand for connected vehicles in Europe is a prominent driver for the Europe Automobile Internet of Things (IoT) Market. As consumers seek enhanced connectivity in their vehicles, automakers such as Volkswagen AG and BMW AG are increasingly integrating advanced IoT technologies into their vehicles to meet these expectations.

According to the European Automobile Manufacturers Association (ACEA), connected car sales in the region have seen an annual increase of 20% over the past three years, reflecting the growing consumer preference for smart features.

This trend is further supported by the European Commission's initiatives aimed at promoting intelligent transport systems, contributing to a forecasted growth in the connected vehicle segment. Furthermore, the European market is moving towards stricter emission regulations, driving manufacturers to include IoT technologies that optimize fuel efficiency and reduce environmental impact.

Thus, the collective push for connectivity and compliance with regulatory mandates establishes a solid foundation for the growth of the Europe Automobile IoT Market.

Advancements in Automotive Technology

The rapid advancements in automotive technology, especially in the area of Internet of Things (IoT), significantly boost the Europe Automobile IoT Market. Major companies like Daimler AG and Ford Motor Company are investing heavily in Research and Development (R&D) for new vehicle technologies that leverage IoT capabilities.

In recent years, the European automotive industry has seen a 30% increase in investments focused on smart technologies and connectivity features, driven by evolving consumer expectations.

According to the European Commission’s Horizon 2020 program, support for innovative automotive technologies has resulted in a multitude of patents filed related to IoT applications in vehicles. This momentum creates a profound impact on the market, as advancements lead to safer, more efficient, and more user-friendly vehicles, contributing significantly to the overall growth outlook.

Government Policies Supporting Smart Mobility

Government policies across Europe that target smart mobility heavily influence the Europe Automobile IoT Market. Initiatives like the European Green Deal and the Mobility Strategy 2020 are designed to promote clean, smart, and connected transport systems.

For instance, the European Union has outlined plans to reduce greenhouse gas emissions from transport by at least 90% by 2050, pushing for increased integration of IoT technologies to enhance vehicle-to-vehicle communication and traffic management systems.

Such regulations not only ensure compliance with environmental standards but also inspire investments in IoT solutions that improve the overall efficiency of transport networks. As European governments allocate considerable funding for smart transportation projects, the flow of resources accelerates market growth in the IoT sector.

Rise in Road Safety Concerns

The rise in road safety concerns is a critical driver for the growth of the Europe Automobile IoT Market. With thousands of fatalities occurring annually on European roads, as reported by the European Commission, there has been a continuous push for deploying advanced safety technologies powered by IoT.

Research indicates that IoT-enabled systems can potentially reduce road fatalities by 30% through real-time traffic updates and predictive analytics in vehicle features.

Major automotive players such as Volvo AB have made headlines by committing to integrating IoT technologies that enhance safety measures in their vehicles. This intensive focus on safety, backed by industry collaborations for shared data and technology transfer, further emphasizes the importance of IoT in promoting safer transport solutions across Europe.

Europe Automobile IoT Market Segment Insights

Automobile IoT Market Technology Insights

The Technology segment of the Europe Automobile IoT Market is experiencing robust growth, fueled by advancements in connectivity, data analytics, and cloud computing. Telematics is particularly significant within this segment as it provides real-time data collection and analysis, enhancing vehicle tracking and improving overall operational efficiency.

This capability not only benefits fleet operators in terms of logistics and fuel savings but also offers critical insights into driver behavior and vehicle diagnostics, making it an essential feature for many companies aiming to improve their services and reduce costs.

Vehicle-to-Everything technology plays a crucial role in integrating vehicles with their environment, enhancing communication with roads, infrastructure, and other vehicles. This interconnectedness is vital for improving safety, reducing traffic congestion, and enabling smart city initiatives across European countries.

Remote Diagnostics facilitates proactive vehicle maintenance, allowing manufacturers and service providers to identify issues before they lead to breakdowns. This capability not only enhances customer satisfaction but also increases the lifespan of vehicles, making it increasingly popular among manufacturers and consumers alike.

Fleet Management solutions support businesses in monitoring vehicle performance, optimizing routes, and reducing operational costs through data-driven decision-making. This is particularly vital as businesses strive to achieve sustainability goals by minimizing their carbon footprints.

As Europe continues to prioritize environmental regulations and the shift towards electric vehicles, these technologies are expected to align well with the continent's ambitious goals for reducing emissions and promoting greener alternatives in transportation.

Overall, the Technology segment encapsulates a dynamic shift in how automotive companies operate, driven by the need for efficiency, connectivity, and sustainability in an evolving market landscape.

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

Automobile IoT Market Application Insights

The Europe Automobile IoT Market is experiencing notable advancements within its Application segment, which plays a crucial role in enhancing vehicle functionality and user experience.

Among these applications, Navigation stands out as a vital element, integrating real-time traffic data for efficient route optimization, while Safety Security applications are pivotal in ensuring driver and passenger safety through vehicular surveillance systems and emergency response features.

Remote Vehicle Management facilitates real-time diagnostics and updates, allowing users to monitor vehicle health and performance remotely. Infotainment applications enhance in-car experiences through entertainment and connectivity features, contributing to a more engaging driving environment.

The increasing adoption of smart technologies in Europe, coupled with regulatory support for vehicle safety enhancements, drives growth in these applications. Furthermore, the trend towards automotive digitization and the rising consumer demand for enhanced connectivity and convenience showcase the significance of these applications in the overall landscape of the Europe Automobile IoT Market.

As the market evolves, leveraging data analytics and machine learning will unlock further innovations, presenting opportunities for market players to capitalize on emerging technologies that influence user engagement and safety.

Automobile IoT Market End Use Insights

The Europe Automobile IoT Market has been witnessing significant growth, driven by various end-use applications. Passenger vehicles represent a major segment in the market, emphasizing safety features and enhanced connectivity, reflecting consumer demand for smarter driving experiences.

Meanwhile, commercial vehicles are increasingly adopting IoT technologies to optimize fleet management and improve operational efficiency, contributing substantially to the market dynamics. Electric vehicles are also gaining traction, supported by an expanding infrastructure and a growing emphasis on sustainability, aligning with the European Union's environmental goals.

As the Europe Automobile IoT Market evolves, trends indicate a rising integration of IoT solutions across all vehicle types, enhancing vehicle performance, real-time data access, and user experience. The emphasis on reducing carbon footprints and enhancing transportation efficiency positions these end-use applications as pivotal in shaping the automotive landscape in Europe.

The market data indicates a favorable environment, with ongoing innovations and government initiatives promoting the adoption of IoT technologies across the automotive sector. Overall, this segment's growth is intertwined with technological advancements and a commitment to greener infrastructure within Europe.

Automobile IoT Market Connectivity Insights

The Connectivity segment within the Europe Automobile IoT Market holds significant importance as it enhances vehicle communication and data exchange capabilities.

As the automotive industry evolves towards smarter transportation solutions, Cellular Connectivity emerges as a key driver, enabling real-time vehicle monitoring and communication between vehicles and infrastructure, thereby improving public safety and traffic management.

Wi-Fi Connectivity is also important as it facilitates in-car internet access and supports various infotainment applications, enhancing the passenger experience. Meanwhile, Satellite Connectivity is crucial for vehicles operating in remote areas where other connectivity options may be weak, ensuring that communication remains intact regardless of location.

These connectivity types together contribute to an integrated ecosystem that supports advancements in autonomous driving, vehicle-to-everything (V2X) communication, and increased operational efficiency.

The growth of these connectivity solutions reflects the changing landscape of the automotive industry in Europe, where regulatory frameworks are increasingly promoting the deployment of IoT technologies to enhance road safety and reduce emissions through smarter logistics.

The demand for advanced connectivity solutions is expected to amplify as more consumers and businesses embrace the benefits of connected vehicles, driving further innovation and investment in this segment.

Automobile IoT Market Regional Insights

The Europe Automobile IoT Market is characterized by a rich tapestry of regional dynamics that drive its growth and development across various nations. Germany stands out as a central player, known for its advanced automotive technology and strong manufacturing base, significantly influencing the Europe Automobile IoT Market revenue.

The UK contributes robustly as well, driven by innovations in connected vehicle technologies and smart mobility solutions. France, with its focus on sustainability and electric vehicles, is enhancing the market by promoting integration of IoT systems for improved vehicle performance and efficiency.

Russia's expanding automotive market seeks to leverage IoT technologies for enhanced vehicle connectivity and safety measures. Italy embodies a unique blend of heritage and modernity, focusing on luxury vehicles integrated with cutting-edge IoT solutions. Spain demonstrates growth potential through emerging startups and initiatives aiming at improving transportation systems.

Meanwhile, the Rest of Europe presents diverse opportunities for collaboration and technological advancements, catering to varying consumer preferences and regulatory environments.

Such regional segmentation illuminates the varied and competitive landscape of the Europe Automobile IoT Market, showcasing each region's distinct contributions and strategic importance within the broader context of the industry’s growth.

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

Europe Automobile IoT Market Key Players and Competitive Insights

The Europe Automobile IoT Market presents a dynamic and rapidly evolving landscape characterized by the integration of advanced technologies in vehicle operations, including connectivity, data analytics, and enhanced user experiences. As vehicles become more intelligent and interconnected, the competition among key industry players intensifies, fostering innovation and investment in IoT capabilities.

Stakeholders within this market are not only focused on traditional automotive manufacturing but are also exploring partnerships with technology firms, telecommunications providers, and software developers to enhance their offering and meet the growing consumer demand for smart, connected vehicles.

With stringent regulations promoting safety, sustainability, and environmental considerations, companies are navigating complexities while capitalizing on opportunities to deliver value-added services that cater to diverse consumer needs.

Daimler is a prominent player in the Europe Automobile IoT Market, leveraging significant strengths that contribute to its competitive edge. The company’s investments in research and development have enabled it to innovate in areas such as autonomous driving, connectivity, and fleet management systems.

Daimler’s strong brand recognition and reputation for quality and reliability foster customer loyalty, while its extensive dealer and service network across Europe ensures effective distribution and maintenance capabilities. The company is also committed to sustainability, actively developing electric and hybrid vehicles integrated with IoT solutions that enhance performance and efficiency.

By focusing on smart mobility solutions, Daimler is positioned to lead in the evolution of intelligent transportation systems, paving the way for new business models and advanced in-car services that are expected to reshape user experiences.

TomTom operates distinctly within the Europe Automobile IoT Market, recognized for its strong presence in navigation and mapping services, contributing significantly to IoT applications in the automotive sector.

The company offers a range of key products related to real-time traffic information, fleet management solutions, and location-based services tailored for automotive manufacturers and service providers. TomTom's strengths lie in its advanced data analytics capabilities and partnerships with automotive OEMs that facilitate the integration of its technologies into vehicles.

Mergers and acquisitions have bolstered its service offerings, allowing it to enhance its product portfolio and expand its market reach effectively. By focusing on smart mobility solutions, TomTom aims to meet the evolving demands of consumers and enterprises in Europe, providing critical insights that support safer and more efficient transportation systems.

Key Companies in the Europe Automobile IoT Market Include

• Daimler
• TomTom
• Bosch
• BMW
• Cisco
• Stellantis
• Volkswagen
• Ford
• Ericsson
• Nokia
• Harman
• Continental
• Android
• Renault

Europe Automobile IoT Market Developments

In order to enable teleoperated, autonomous operations in military-use vehicles, Daimler Truck and ARX Robotics signed a statement of intent in March 2025 to incorporate ARX's Mithra OS, an advanced robotics middleware, into Daimler's Special Trucks (Unimog, Zetros).

Bosch's CUBE-C ("Cyber-Physical Systems Cloud Continuum") project was introduced earlier in the year in March 2024. The project worked with EU organizations to provide edge-cloud infrastructure for software-defined vehicles (SdV) that supports safety-critical IoT capabilities across vehicle fleets.

At IAA Transportation 2024, Bosch also highlighted its electronic horizon and Retrofit Efficiency systems, which provide fleet IoT features like route optimization and predictive maintenance, and announced a 2025 restructure of its commercial-vehicle division.

In April 2025, TomTom announced that the premium EV brand Smart had chosen it to provide improved full-stack navigation for the smart #1, #3, and #5 vehicles. This includes ADAS maps that are in line with European ISA and Euro NCAP standards.

In the meantime, Bosch stated in June 2025 that it will invest €2.5 billion in AI development by 2027, with a focus on linked technologies and AI-based help in the automotive industry.

Throughout 2024–2025, middleware innovation, navigation leadership, cloud-based vehicle infrastructure, and agile organizational alignment will all be hallmarks of the IoT integration boom in European automotive, which is reflected in these strategic measures.

Europe Automobile IoT Market Segmentation Insights

• Automobile IoT Market Technology Outlook
  • Telematics
  • Vehicle-to-Everything
  • Remote Diagnostics
  • Fleet Management
• Automobile IoT Market Application Outlook
  • Navigation
  • Safety Security
  • Remote Vehicle Management
  • Infotainment
• Automobile IoT Market End Use Outlook
  • Passenger Vehicles
  • Commercial Vehicles
  • Electric Vehicles
• Automobile IoT Market Connectivity Outlook
  • Cellular Connectivity
  • Satellite Connectivity
  • Wi-Fi Connectivity
• Automobile IoT Market Regional Outlook
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Spain
  • Rest of Europe

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	7.59(USD Billion)
MARKET SIZE 2024	9.6(USD Billion)
MARKET SIZE 2035	25.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	9.091% (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	Daimler, TomTom, Bosch, BMW, Cisco, Stellantis, Volkswagen, Ford, Ericsson, Nokia, Harman, Continental, Android, Renault
SEGMENTS COVERED	Technology, Application, End Use, Connectivity, Regional
KEY MARKET OPPORTUNITIES	Connected vehicle services, Autonomous driving technology, Vehicle health monitoring systems, Smart logistics and fleet management, Enhanced driver safety solutions
KEY MARKET DYNAMICS	Connectivity advancements, Growing data security concerns, Rising demand for fleet management, Increasing consumer adoption, Enhancements in vehicle safety features
COUNTRIES COVERED	Germany, UK, France, Russia, Italy, Spain, Rest of Europe