North America 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 (US, Canada)-Forecast to 2035

North America Automobile IoT Market Overview

As per MRFR analysis, the North America Automobile IoT Market Size was estimated at 11.38 (USD Billion) in 2023.The North America Automobile IoT Market is expected to grow from 12.77(USD Billion) in 2024 to 45 (USD Billion) by 2035. The North America Automobile IoT Market CAGR (growth rate) is expected to be around 12.132% during the forecast period (2025 - 2035).

Key North America Automobile IoT Market Trends Highlighted

The growing incorporation of smart technology in automobiles is propelling the North American automotive IoT market's notable expansion. Since connected cars may provide features like real-time traffic updates, remote diagnostics, and enhanced safety measures, consumer demand for increased connectivity and usefulness is a major driver of this development.

Additionally, North American regulatory frameworks that aim to improve car emissions and decrease accidents are pressuring automakers to implement IoT technologies. The advent of autonomous driving technologies and vehicle-to-everything (V2X) communication systems presents clear prospects for enabling smooth interactions between users, infrastructure, and cars.

The need for sophisticated automotive IoT applications like fleet management and predictive maintenance is anticipated to increase as public and private sectors start funding smart city projects. As a symbol of a cooperative strategy to advance the market, major automakers are also looking into joint ventures with tech businesses to develop and deploy smarter technology.

As cyber risks increase, manufacturers and users alike are becoming increasingly concerned about improving cybersecurity safeguards in connected automobiles. Furthermore, as sustainability gains more attention, manufacturers are including IoT technologies that encourage energy efficiency and lower the carbon footprint of automobiles.

Data analytics is also advancing in North America, where gathering and analyzing data from linked cars can result in improved customer experiences and maximum organizational efficiencies. These variables' convergence is influencing the future of the North American automotive IoT market and fostering a vibrant atmosphere for development and innovation.

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

North America Automobile IoT Market Drivers

Increased Adoption of Connected Vehicles

The rapid adoption of connected vehicles in North America is a significant driver for the North America Automobile Internet of Things Market. According to statistics from the U.S. Department of Transportation, connected vehicles will encompass over 50% of the car fleet in North America by 2025, thereby accelerating the integration of Internet of Things technologies into vehicles.

Major automobile manufacturers such as General Motors and Ford are investing heavily in connected vehicle technologies, enhancing features like real-time traffic updates, diagnostics, and driver-assistance systems.

Furthermore, advancements in cellular technologies, particularly the rollout of 5G, are projected to provide seamless connectivity, allowing vehicles to communicate with one another and with infrastructure. This transition not only improves road safety but also enhances the driving experience, positioning the North America Automobile IoT Market for significant growth.

Government Initiatives and Support

Government initiatives focusing on smart transportation and sustainable urban development are acting as significant catalysts for the North America Automobile Internet of Things Market. For instance, the U.S. Federal Highway Administration has allocated billions of dollars in funding for intelligent transportation systems which integrate IoT technologies for improved traffic management.

In addition, the U.S. Department of Energy has been promoting research and development efforts in smart grid technologies and electric vehicles, contributing to the convergence of IoT and automotive sectors.

The introduction of favorable regulations and incentive programs encourages manufacturers to integrate IoT into their offerings, thereby increasing market potential. This supportive regulatory environment is vital for strengthening the adoption of IoT technologies within the automotive sector, as it drives innovation and investment.

Rising Consumer Demand for Advanced Safety Features

The increasing consumer demand for advanced safety features in vehicles is driving growth within the North America Automobile Internet of Things Market. According to the National Highway Traffic Safety Administration, approximately 36,000 fatalities were reported in the U.S. due to motor vehicle accidents in 2020, highlighting the urgent need for innovative safety solutions.

IoT technologies facilitate features such as automatic emergency braking, lane-keeping assistance, and adaptive cruise control, which significantly reduce accident rates.

Automakers like Toyota and BMW are at the forefront of integrating these technologies into their vehicles, responding to consumer demand for enhanced safety and convenience. The growing awareness around vehicle safety and accident reduction is, therefore, a crucial factor propelling the market forward as consumers seek vehicles that incorporate the latest IoT advancements.

Growth of Fleet Management Solutions

The expansion of fleet management solutions is a vital contributor to the growth of the North America Automobile Internet of Things Market. According to the American Trucking Associations, the trucking industry in the U.S. alone generates more than $700 billion in revenue annually, indicating a high potential for IoT applications in logistics and fleet management.

IoT technologies offer real-time vehicle tracking, predictive maintenance, and route optimization capabilities which enhance operational efficiency and reduce costs for fleet operators.

Companies such as Verizon Connect and Geotab are leading the charge by providing sophisticated fleet management solutions that leverage IoT data to improve performance and reduce fuel consumption. The increasing need for efficiency in logistics and transportation directly correlates with the rising adoption of IoT solutions, thus increasing the market’s growth potential.

North America Automobile IoT Market Segment Insights

Automobile IoT Market Technology Insights

The Technology segment of the North America Automobile IoT Market is shaped by advancements that significantly enhance vehicle connectivity, operational efficiency, and user experience. One of the main contributors within this space is Telematics, which plays a critical role in vehicle tracking, driver behavior analysis, and data analytics, ultimately bolstering fleet efficiency and safety.

As the automotive landscape evolves, Vehicle-to-Everything technology is becoming increasingly crucial, facilitating communication among vehicles, infrastructure, and networks. This interconnectivity not only ensures a smoother traffic flow but also contributes to improved safety protocols, illustrating the importance of this technology in smart city initiatives across North America.

Furthermore, Remote Diagnostics has emerged as a game-changer by enabling real-time vehicle health monitoring and preventive maintenance, thereby reducing the risk of breakdowns and enhancing customer satisfaction. Lastly, Fleet Management solutions leverage IoT technology to optimize route planning and monitor fuel consumption, resulting in substantial cost savings for businesses.

Collectively, these elements reflect a robust interplay within the North America Automobile IoT Market, showcasing a proactive approach to both emerging technologies and operational enhancements in the automotive sector.

As this market continues to grow, the increasing demand for integrated technology solutions is evident, driven by the need for improved efficiency, safety, and sustainability within North America's vast automotive ecosystem.

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

Automobile IoT Market Application Insights

The North America Automobile IoT Market, particularly within the Application segment, showcases significant growth potential across various areas such as Navigation, Safety Security, Remote Vehicle Management, and Infotainment. Navigation applications are vital for enhancing route efficiency and user experience, leveraging real-time data to assist drivers in avoiding congestion and ensuring timely arrivals.

Safety Security applications are equally crucial, as they utilize IoT technologies to offer advanced vehicle tracking, theft prevention, and accident response systems, which are increasingly valued among consumers looking for added peace of mind.

Remote Vehicle Management plays a key role in fleet operations and individual vehicle monitoring, providing insights into performance metrics, maintenance needs, and diagnostics. Finally, Infotainment systems underline the shift towards a connected driving experience, integrating entertainment, information, and communication services to meet the growing demands of consumers.

The diverse applications within the North America Automobile IoT Market segmentation are instrumental in shaping a safer, more efficient, and enjoyable driving experience as the industry adapts to increasing technological advancements and consumer expectations. The collective impact of these applications is expected to drive considerable market growth in the coming years.

Automobile IoT Market End Use Insights

The North America Automobile IoT Market is experiencing significant growth across its End Use segments, which include Passenger Vehicles, Commercial Vehicles, and Electric Vehicles. Passenger Vehicles hold a crucial position in the market due to their widespread adoption and integration of IoT technologies aimed at enhancing safety, navigation, and user experience.

The Commercial Vehicles segment is also growing as businesses increasingly seek IoT solutions for fleet management, logistics efficiency, and real-time tracking, which optimize operations and reduce costs. Meanwhile, Electric Vehicles are rapidly gaining traction, bolstered by a rising demand for sustainable transportation solutions and advancements in battery technology.

This segment is pivotal for the market as it combines IoT capabilities with electric mobility, paving the way for smart city integration and better energy management.

Collectively, the performance of these segments highlights the diverse applications of IoT in the automotive industry, addressing consumer needs for efficiency, sustainability, and enhanced connectivity, ultimately driving the North America Automobile IoT Market forward.

Automobile IoT Market Connectivity Insights

The Connectivity segment within the North America Automobile IoT Market is experiencing considerable growth, driven by the increasing need for seamless communication and data transfer among vehicles and external systems.

This segment encompasses various types of connectivity, including Cellular Connectivity, Satellite Connectivity, and Wi-Fi Connectivity, each playing a crucial role in enhancing vehicle functionality and user experience.

Cellular Connectivity is prominent for its ability to provide robust internet access and enable real-time data exchange, essential for applications such as navigation, telematics, and remote diagnostics. Meanwhile, Satellite Connectivity ensures dependable communication in remote areas where traditional networks may falter, thus maintaining critical systems in vehicles operating in less accessible regions.

Wi-Fi Connectivity, on the other hand, facilitates high-speed data transfer within vehicles, empowering infotainment systems and allowing passengers to connect their devices effortlessly.

Overall, the Connectivity segment is fundamental in supporting the ongoing trend of vehicle automation and heightened consumer expectations regarding connected services, ultimately shaping the future of transportation in North America.

The market dynamics are further influenced by technological advancements, growing concerns for safety, and the rising demand for smart mobility solutions, indicating a promising future for this segment.

Automobile IoT Market Regional Insights

The North America Automobile IoT Market is experiencing robust growth, driven by increasing connectivity and the adoption of advanced technologies in the automotive sector. Within this regional framework, the United States and Canada represent significant players, showcasing strong demand for innovative solutions that enhance vehicle safety, efficiency, and user experience.

The U.S. continues to dominate, fueled by its substantial automotive manufacturing base and a high rate of technology adoption among consumers. Meanwhile, Canada is witnessing a growing interest in IoT applications, highlighting its commitment to smart transportation initiatives.

Both countries are focusing on integrating IoT solutions for vehicle diagnostics, fleet management, and real-time data exchange, positioning themselves as leaders in enhancing automotive functionality. Additionally, government initiatives that promote smart city developments and sustainable transport solutions further bolster the North America Automobile IoT Market growth.

With an emphasis on Research and Development, both nations are carving a path for innovation in the automotive space, thereby creating ample opportunities for industry stakeholders and fostering a competitive market landscape. As the need for connected vehicles rises, the automobile IoT ecosystem is expected to evolve, creating significant growth potential in the years to come.

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

North America Automobile IoT Market Key Players and Competitive Insights

The North America Automobile IoT Market represents a rapidly evolving sector where connectivity and smart technologies fuse seamlessly with vehicle functionalities to enhance driver safety, vehicle efficiency, and overall user experience.

As the automotive industry transitions toward smart vehicles and connected infrastructure, manufacturers are increasingly adopting IoT solutions to leverage data analytics, remote diagnostics, and real-time monitoring.

The market dynamics are driven by technological advancements in communication systems, as well as significantly growing consumer expectations for innovative features and sustainability in vehicles.

This competitive landscape has intensified as traditional automakers, tech companies, and startups vie for market share, positioning themselves with unique offerings and strategic partnerships that cater to the diverse needs of consumers and businesses alike.

Oracle has established a noteworthy presence in the North America Automobile IoT Market, capitalizing on its robust cloud and data analytics capabilities to offer solutions that enhance automotive operations.

The company is recognized for its strength in providing comprehensive data management and integration capabilities, empowering automotive manufacturers to optimize their vehicle performance through IoT applications.

With its strong emphasis on cybersecurity measures and compliance standards, Oracle's solutions ensure that connected vehicles maintain high safety and security standards while leveraging data for improved functionality.

Additionally, Oracle's collaborative approaches and strategic alliances with other tech leaders allow it to continuously innovate and tailor solutions to meet the dynamic needs of the automotive market in North America.

Hyundai is actively engaged in the North America Automobile IoT Market, promoting an array of connected car services designed to enhance the overall driving experience. The company’s key products include advanced telematics systems and integrated infotainment platforms that utilize IoT technology to ensure seamless connectivity between vehicles and mobile devices.

Hyundai's strengths lie in its commitment to innovation and sustainability, with a particular focus on developing eco-friendly vehicles that integrate advanced connectivity features. The company has made significant investments in developing smart mobility solutions, which align with its strategic vision for the future of transportation.

Moreover, Hyundai has pursued various strategic mergers and acquisitions that strengthen its position in the market, enhancing its capabilities in smart technology and IoT applications specifically tailored to consumer preferences and regulatory requirements in North America.

Key Companies in the North America Automobile IoT Market Include

• Oracle
• Hyundai
• Daimler
• Nissan
• BMW
• Cisco
• Honda
• Volkswagen
• Ford
• Tesla
• Microsoft
• General Motors
• IBM
• Qualcomm
• Toyota

North America Automobile IoT Market Developments

Toyota and NTT announced a broad partnership in October 2024, with plans to invest 500 billion yen by 2030 to create a Mobility AI Platform that will connect cars, infrastructure, and cloud AI capabilities. Pilot systems are anticipated to be operational by 2025. This is a significant step for autonomous and IoT projects around the world.

By releasing a firmware upgrade in March 2025 that enabled in-car AI-driven energy management features including scheduled charging, adaptive routing depending on grid demand, and smart microgrid integration for Model S and Model 3 drivers, Tesla created a stir in North America.

In order to improve uptime and operational efficiency, Microsoft Azure IoT announced earlier in April 2025 that it would be partnering with Ford to build an edge-cloud platform that would enable real-time car diagnostics and predictive maintenance throughout the North American fleet.

In the meanwhile, Honda announced in July 2025 that its North American models with HondaLink 2025 will come with linked car dashboards that integrated AI-based voice assistants, live traffic updates, and over-the-air trial software. These advancements show how infrastructure, cloud connection, and autonomous technology interact dynamically to accelerate IoT capabilities in the automotive sector in North America.

North America 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
  • US
  • Canada

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	11.38(USD Billion)
MARKET SIZE 2024	12.77(USD Billion)
MARKET SIZE 2035	45.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	12.132% (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	Oracle, Hyundai, Daimler, Nissan, BMW, Cisco, Honda, Volkswagen, Ford, Tesla, Microsoft, General Motors, IBM, Qualcomm, Toyota
SEGMENTS COVERED	Technology, Application, End Use, Connectivity, Regional
KEY MARKET OPPORTUNITIES	Connected vehicle services expansion, Autonomous vehicle integration advancements, Fleet management IoT solutions, Enhanced vehicle-to-everything communication, Smart traffic management systems
KEY MARKET DYNAMICS	Technological advancements, Increasing demand for connectivity, Rising focus on vehicle safety, Government regulations and standards, Growing adoption of electric vehicles
COUNTRIES COVERED	US, Canada