As per MRFR analysis, the India Automobile IoT Market Size was estimated at 3.32 (USD Billion) in 2023.The India Automobile IoT Market is expected to grow from 3.72(USD Billion) in 2024 to 15 (USD Billion) by 2035. The India Automobile IoT Market CAGR (growth rate) is expected to be around 13.503% during the forecast period (2025 - 2035).
Key India Automobile IoT Market Trends Highlighted
A growing focus on connected cars and smart mobility solutions is driving major trends in the Indian automotive IoT market. The growing usage of cutting-edge technologies by Indian automakers, who want to improve vehicle efficiency, safety, and user experience, is one of the major market drivers.
This tendency is further amplified by government programs supporting electric vehicles and smart city efforts, which encourage the incorporation of IoT in automobiles. Furthermore, manufacturers and customers are moving toward IoT-enabled solutions that track vehicle performance and encourage safe driving practices due to growing concerns about environmental sustainability and road safety.
Partnerships between tech businesses and automakers are being used to investigate market opportunities. The development of state-of-the-art telematics solutions, which offer real-time data analytics for improved fleet management and predictive maintenance, is heavily prioritized.
An area that is ready for investment and innovation is the growing trend of shared mobility services, which is driving demand for IoT applications that improve user convenience and streamline logistics. India's growing interest in autonomous driving technologies in recent years has created a favorable environment for the growth of the automotive IoT market.
The IoT market in the automotive industry is expected to change as a result of the government's active proposals for rules that encourage the growth of smart infrastructures and connected vehicle networks.
All things considered, India's automotive technology and IoT convergence highlights a move toward a more intelligent and connected transportation ecosystem. This development is important because it supports India's larger objectives of technical advancement and modernization.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Automobile IoT Market Drivers
Growing Demand for Connected Vehicles in India
The increasing demand for connected vehicles significantly contributes to the growth of the India Automobile Internet of Things (IoT) Market. The Government of India has set a target to have 30% electric vehicles on the roads by 2030, driving manufacturers to integrate IoT solutions for enhanced connectivity, efficiency, and user experience.
This initiative is backed by the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which aims to provide subsidies and promote the adoption of clean transportation solutions.
Other industry organizations, such as the Society of Indian Automobile Manufacturers (SIAM), indicate that between 2023 and 2023, the connected car segment in India is expected to grow at a compound annual growth rate (CAGR) of 20%, which highlights the shift toward more technology-oriented vehicles.
This surge in demand for connectivity features like remote access, vehicle diagnostics, and real-time updates allows companies investing in IoT solutions to thrive. Premium vehicle manufacturers like Mahindra & Mahindra and Tata Motors are already exploring advancements in smart technologies, further propelling the India Automobile IoT Market.
Government Initiatives and Policies Supporting IoT Adoption
The Indian government has been proactive in fostering an ecosystem conducive to the development of IoT technologies in the automobile sector. With strategic initiatives like the Digital India campaign and Make in India initiative, there is a clear focus on harnessing technology for sustainable growth.
According to the National Association of Software and Service Companies (NASSCOM), the Indian IoT market is expected to reach USD 15 billion by 2025, driven by government policies encouraging Research and Development (R&D). This creates an environment where organizations can develop innovative IoT solutions aligned with the automotive sector.
Collaborations between public and private sectors, such as the partnership between the Ministry of Electronics and Information Technology and key automobile manufacturers, have fostered growth in IoT applications for vehicles, enhancing the overall landscape of the India Automobile IoT Market.
Rising Awareness of Vehicle Safety and Security
As road safety becomes increasingly paramount in India, the integration of IoT technologies in automobiles for enhancing safety is on the rise. The Ministry of Road Transport and Highways reported that India has an alarming accident rate, with over 150,000 fatalities due to road accidents annually.
In response, the push for advanced driver-assistance systems (ADAS) and safety features, supported by IoT solutions, is becoming a priority for both consumers and manufacturers.
Automakers like Hero MotoCorp and Honda are now incorporating IoT-based safety systems that provide real-time accident alerts and emergency services. This commitment to improving safety standards is likely to drive the growth of the India Automobile IoT Market, contributing to reducing road accidents and promoting safer driving environments.
Increased Integration of Smart Technologies in Personal Transportation
The surge in personal transportation, especially in urban settings, reinforces the significance of integrating smart technologies into vehicles. The rise of shared mobility services and ride-hailing applications like Ola and Uber has meant that vehicle owners and drivers alike are seeking smarter solutions for convenience and operational efficiency.
The Indian government is also promoting smart city initiatives, which include features like smart traffic management systems supported by IoT.
According to the Ministry of Housing and Urban Affairs, the Smart Cities Mission aims to enhance urban infrastructure by using technology, significantly influencing how citizens adapt to smart vehicles. This trend is expected to bolster the India Automobile IoT Market as more vehicles integrate IoT systems to support the demands of modern urban commuters.
Automobile IoT Market Technology Insights
The India Automobile IoT Market, particularly within the technology segment, plays a crucial role in redefining the landscape of the automotive industry in the country. As the automotive sector rapidly embraces digitization, technologies such as telematics, Vehicle-to-Everything (V2X), remote diagnostics, and fleet management have emerged as the driving forces behind this evolution.
Telematics applications are widely adopted, providing valuable data insights that help in monitoring vehicle health, optimizing routes, and enhancing driver safety. This integration of connectivity not only boosts operational efficiency but also contributes to reduced operational costs, thereby attracting considerable investment.
Vehicle-to-Everything technology is gaining traction, emphasizing the need for vehicles to communicate with each other and their surroundings. This communication enhances traffic management, reduces accidents, and promotes intelligent transportation systems, aligning with India's vision for smart cities and cleaner urban environments.
Meanwhile, remote diagnostics capabilities have transformed how vehicle maintenance is approached. By enabling real-time monitoring and diagnostics, this technology ensures proactive maintenance interventions, which can significantly extend vehicle lifespan and improve safety, catering to the growing customer demands for reliability and efficiency.
Fleet management solutions are also pivotal in advancing the India Automobile IoT Market, with companies embracing data-driven strategies to enhance fleet utilization, reduce downtime, and ensure compliance with regulatory frameworks. This trend is largely propelled by the increasing focus on sustainability, cost-effectiveness, and operational transparency within transportation operations.
Given that India has one of the largest automotive markets globally, the integration of these technologies is not only imperative for enhancing competitiveness but also for supporting the government’s initiatives on electric vehicles and reducing carbon emissions.
As such, with a landscape constantly shaped by innovation, these technological advancements are set to dominate the India Automobile IoT Market, driving growth and evolution well into the foreseeable future.
The adaptive growth of these technologies points towards a future of seamless integration, where vehicles are much more than just means of transport, but smart interconnected entities within an evolving ecosystem.
As businesses and consumers continue to embrace these advancements, the relevance and utility of IoT in automobiles will only surge, positioning the technology segment as a critical player in shaping India's automotive narrative.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automobile IoT Market Application Insights
The Application segment of the India Automobile IoT Market plays a pivotal role in shaping the landscape of vehicle connectivity and efficiency. With the rise of smart technologies, navigation applications have become crucial as they enhance route optimization and reduce travel time, becoming integral for daily commuters.
Safety and security applications have seen significant development, particularly with India's stringent road safety regulations, driving demand for advanced safety features that can potentially save lives. Remote vehicle management is gaining traction as fleet operators seek real-time tracking and diagnostics to improve operational efficiency, a necessity in India's burgeoning logistics sector.
Infotainment systems are also evolving, catering to the growing consumer demand for integrated multimedia experiences within vehicles. Collectively, these applications significantly contribute to the overall growth of the India Automobile IoT Market, as increased connectivity leads to enhanced user experiences and operational benefits.
The convergence of these applications, driven by the expanding digital infrastructure in India, showcases the transformative impact of Internet of Things technologies in revolutionizing the automotive sector.
Automobile IoT Market End Use Insights
The India Automobile IoT Market is witnessing a significant shift driven by the rising adoption of smart technologies across various end-use applications. The Passenger Vehicles segment is experiencing robust growth, largely due to the increasing demand for connected cars that enhance user experience through navigation, vehicle health monitoring, and safety features.
Commercial Vehicles are also emerging as a vital segment, bolstered by advancements in fleet management technologies that optimize logistics and improve operational efficiency, thus enabling businesses to reduce costs.
Meanwhile, the Electric Vehicles segment stands out as a critical player in India's push towards sustainable mobility, with the government promoting initiatives to boost electric vehicle infrastructure and adoption.
This segment is characterized by its focus on innovations such as battery management systems and real-time tracking that enhance performance and customer satisfaction. Overall, these diverse segments contribute to the vibrant growth of the India Automobile IoT Market, showcasing the nation's commitment to integrating technology within its automotive landscape.
As India continues to enhance its digital infrastructure, these segments are expected to play pivotal roles in the market evolution.
Automobile IoT Market Connectivity Insights
The Connectivity segment within the India Automobile IoT Market plays a crucial role in enhancing communication between vehicles and their surroundings, thereby improving safety and efficiency. Cellular Connectivity dominates this segment by providing widespread network coverage and enabling real-time data transfer, which is vital for applications such as telematics and remote diagnostics.
Satellite Connectivity offers significant advantages in remote areas where cellular coverage is limited, ensuring that even the most isolated vehicles remain connected. Wi-Fi Connectivity serves as a complementary option, facilitating data transfer in urban environments and allowing for seamless integration with smart city infrastructures.
The rise of smart transportation initiatives in India, led by government programs aimed at modernization, is further driving demand for robust connectivity solutions. The increasing adoption of connected cars among consumers and the growing emphasis on vehicle-to-everything (V2X) communication underscore the significance of this segment within the larger India Automobile IoT Market.
Enhanced connectivity not only benefits vehicle manufacturers but also improves user experiences, making it a critical area of focus for industry stakeholders.
India Automobile IoT Market Key Players and Competitive Insights
The India Automobile IoT Market is witnessing significant growth, driven by advancements in technology and the increasing demand for connected vehicles. As the automotive industry embraces the Internet of Things, numerous companies are competing to provide innovative solutions that enhance vehicle performance, safety, and user experience.
The competitive landscape is marked by the presence of both established players and emerging startups, all striving to capture a share of this expanding market. Key factors influencing competition include technological advancements, customer demand for smart features, regulatory changes, and partnerships with technology providers.
Businesses in this sector are leveraging data analytics, artificial intelligence, and real-time connectivity to transform traditional vehicles into intelligent systems, and this transformation is shaping the competitive dynamics in the market.
Ashok Leyland has carved a significant niche in the India Automobile IoT Market by focusing on innovation and smart manufacturing technologies. The company is recognized for its strong product portfolio, which includes commercial vehicles and an increasing range of IoT-enabled solutions aimed at improving operational efficiency for its customers.
The strengths of Ashok Leyland lie in its extensive distribution network across India, its commitment to research and development, and its strategic partnerships with tech firms to enhance connectivity features in vehicles.
As a player in the IoT sphere, Ashok Leyland is utilizing advanced telematics and vehicle tracking systems that augment fleet management, thereby appealing to logistics and transportation companies keen on optimizing their operations.
TVS Motor Company is also a prominent player in the India Automobile IoT Market, known for its comprehensive range of two-wheelers and three-wheelers that integrate IoT capabilities. The company focuses on key products such as smart scooters and motorcycles equipped with connected features that enhance rider safety and convenience.
TVS Motor Company has built a reputation for innovation and quality, which strengthens its market presence. The organization actively engages in strategic collaborations and partnerships to develop cutting-edge IoT solutions in its vehicles.
A significant strength of TVS is its ability to quickly adapt to market trends and consumer preferences, implementing visionary technology to ensure that new product offerings meet the demands of an evolving market.
Mergers and acquisitions further bolster its position, enabling the company to integrate diverse technologies and expertise, allowing it to remain competitive in the rapidly advancing IoT landscape in India.
Key Companies in the India Automobile IoT Market Include
India Automobile IoT Market Developments
Using platforms like iAlert, ION, and FOTA, Ashok Leyland deployed AI- and IoT-powered connected trucks throughout its commercial fleet in May 2025. These trucks generate and process over 3.2 million data points per hour, allowing for predictive gear shift advice, driver behavior analytics, and efficiency gains of up to 10%.
In the meantime, reports highlight Mahindra & Mahindra's significant R&D investment in autonomous and connected platform technologies, which could position the company as India's strongest engineering innovator in automotive connectivity. In late 2024, the company continued to grow its engineering-led IoT and EV development capabilities.
Additionally, Techarc's India linked Consumer Report from November 2024 predicted that by 2025, Indian passenger cars will have cloud integration, on-device GenAI, and 5G M2M connection, ushering in the "smartphone era" of linked automobiles.
With a focus on AI-based user interfaces, digital clusters, entertainment, and navigation systems specifically designed for the Indian market, Spark Minda and Qualcomm announced an advanced cockpit alliance in July 2025.
All of these innovations, like Spark Minda's state-of-the-art cockpit technology, Mahindra's R&D engine, Ashok Leyland's real-time fleet analytics, and a statewide connected vehicle prediction, highlight India's progress toward intelligent, connected cars.
India Automobile IoT Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 3.32(USD Billion) |
| MARKET SIZE 2024 | 3.72(USD Billion) |
| MARKET SIZE 2035 | 15.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.503% (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 | Ashok Leyland, TVS Motor Company, Siemens, Hero MotoCorp, Sierra Wireless, NXP Semiconductors, Bosch, Continental Automotive, Honda Cars India, Force Motors, Harman International, Bajaj Auto, Tata Motors, Mahindra & Mahindra, Maruti Suzuki |
| SEGMENTS COVERED | Technology, Application, End Use, Connectivity |
| KEY MARKET OPPORTUNITIES | Smart fleet management solutions, Connected vehicle analytics platforms, Vehicle health monitoring systems, Enhanced driver safety technologies, Real-time traffic management systems |
| KEY MARKET DYNAMICS | growing demand for connected vehicles, increasing focus on vehicle safety, advancements in sensor technology, supportive government regulations, rising need for data analytics |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ):
The India Automobile IoT Market is expected to be valued at 3.72 USD Billion in 2024.
The market is projected to reach a size of 15.0 USD Billion by 2035.
The expected CAGR for the India Automobile IoT Market during this period is 13.503%.
The Telematics segment is expected to be valued at 4.794 USD Billion in 2035.
The Fleet Management segment is expected to reach 3.395 USD Billion in 2035.
Key players include Ashok Leyland, TVS Motor Company, Siemens, and Tata Motors among others.
Remote Diagnostics is expected to grow from 0.709 USD Billion in 2024 to 3.595 USD Billion in 2035.
Major growth opportunities lie in the segments of Telematics and Vehicle-to-Everything.
The Vehicle-to-Everything segment is expected to reach 3.196 USD Billion in 2035.
Emerging trends include increased connectivity, enhanced fleet management solutions, and real-time diagnostics.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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