Connected Car Market Size, Share, Growth Report 2032

Connected Car Industry Prospective:

The global Connected Car market size was worth around USD 95.31 billion in 2023 and is predicted to grow to around USD 275.11 billion by 2032 with a compound annual growth rate (CAGR) of roughly 12.5% between 2024 and 2032.          

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Connected Car Market: Overview

A Connected Car refers to any vehicle or car that is connected to the internet. Typically, these cars connect to the internet via WLAN (Wireless Local Area Network). A connected car may share the internet with devices both inside and outside the vehicle, as well as exchange data with any external device/service. Connected cars may always connect to the internet to conduct activities and download data when the user requests it. The connected car market is driven by several factors including technological advancements, a rise in the production of vehicles, an increase in demand for luxury & comfort in vehicles and many others.

Key Insights

• As per the analysis shared by our research analyst, the global Connected Car market is estimated to grow annually at a CAGR of around 12.5% over the forecast period (2024-2032).
• In terms of revenue, the global Connected Car market size was valued at around USD 95.31 billion in 2023 and is projected to reach USD 275.11 billion, by 2032.
• The rising government initiatives are expected to drive market growth during the forecast period.
• Based on the technology, the 4G/LTE segment is expected to grow at the highest CAGR during the forecast period.
• Based on the application, the Driver Assistance segment is expected to lead the market during the forecast period.
• Based on the vehicle type, the passenger segment is expected to dominate the market during the forecast period.
• Based on region, North America is expected to dominate the market over the projected period.

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Connected Car Market: Growth Drivers

A greater focus on security and safety drives market growth

Security and safety concerns are major drivers driving the worldwide market for connected cars. Road safety is greatly improved by the combination of ADAS and vehicle-to-everything (V2X) connectivity. Sensors, cameras, and communication modules are used by connected automobiles to gather and send information about their environment, possible threats, and traffic patterns.

In addition to being used by the car to make smart judgments, this data is shared with infrastructure and other connected cars to establish a cooperative safety ecosystem. Furthermore, strong cybersecurity measures are frequently included in connected cars to guard against potential cyberattacks and guarantee the integrity and confidentiality of data sent between the vehicles and external networks.

Connected Car Market: Restraints

Data challenge with connected cars impeding market growth

Every year, there are more and more cars equipped with wireless network access. Massive volumes of data, ranging from engine performance to driving performance, may be generated by connected cars. The data produced by these cars has the potential to impact both the driving experience and the expansion of the automotive sector. Nevertheless, the creation and management of data present certain difficulties. The most significant difficulty that suppliers encounter is figuring out what information has to be gathered, how to use it, and how to secure it.

Understanding how to use the data to deliver more customized and improved customer experiences is another data problem related to connected automobiles. Thus, it is anticipated that these obstacles will limit vendors' space to develop in the market, which will have an impact on market expansion throughout the projection period.

Connected Car Market: Opportunities

Growing product launches provide an attractive opportunity for market growth

The growing product launch is expected to provide a lucrative opportunity for market growth during the forecast period. For instance, in January 2023, with a focus on creating consumer experiences at the automotive grade, HARMAN, an automotive technology company and a subsidiary of Samsung Electronics Co., Ltd., unveiled its newest road-ready products that can provide drivers, passengers, and other road users with real and meaningful automotive experiences.

The Virgin Hotel in Las Vegas is home to the HARMAN EXPLORE presentation during CES 2023. It includes live in-car demos of innovative devices that are ready for OEM integration and that are intended to improve safety, entertainment, and well-being in novel ways.

Connected Car Market: Challenges

Infrastructure limitation poses a major challenge to market expansion

The accessibility and reliability of supporting infrastructure, such as strong telecommunications networks, precise GPS systems, and roadside communication equipment, are crucial to the efficacy of connected automobile technologies. To fully realize the potential of connected car capabilities, infrastructure restrictions such as network coverage gaps, bandwidth limits, and latency concerns must be addressed.

Connected Car Market: Segmentation

The global Connected Car industry is segmented based on Technology, Application, Connectivity, Vehicle Connectivity, Vehicle Type and region.

Based on the technology, the global Connected Car market is bifurcated into 2G, 3G and 4G/LTE. The 4G/LTE segment is expected to grow at the highest CAGR during the forecast period. The segment expansion is attributed to the rising investment in 4G/LTE infrastructure. For instance, according to a Nokia estimate, India is anticipated to invest close to $250 million in private wireless networks by 2027.

Based on the application, the global Connected Car industry is segmented into Telematics, Driver Assistance, Infotainment and Others. The Driver Assistance segment is expected to lead the market during the forecast period owing to the growing partnership for product innovation. For instance, in September 2023, Mobileye and Valeo formed an alliance to provide software-defined, best-in-class imaging radars for next-generation driver assistance and autonomous driving capabilities. By collaborating, Mobileye and Valeo can swiftly introduce a promising new technology to manufacturers globally, enabling more intelligent automobiles. Imaging radar, as a critical component of automated driving sensing systems, will enable more advanced hands-off ADAS solutions as well as eyes-off automated driving features on highways and city streets.

Based on the connectivity, the global Connected Car market is segmented into Embedded, Integrated and Tethered.

Based on vehicle connectivity, the global Connected Car industry is segmented into Vehicle to Vehicle (V2V), Vehicle to Infrastructure (V2I) and Vehicle to Pedestrian (V2P).

Based on the vehicle type, the global Connected Car market is segmented into Commercial and Passenger. The passenger segment is expected to dominate the market over the forecast period. The segment expansion is attributed to the increasing sales of passenger cars across the globe. According to industry estimates, around 4.1 million passenger vehicles were sold in the Indian local market last calendar year, representing an 8.2% rise over sales of 3.79 million units in 2022. Thus, the aforementioned stats drive the segment growth.

Connected Car Market: Report Scope

Regional Analysis

North America is expected to dominate the market over the projected period

North America is expected to dominate the market over the projected period. The presence of major vehicle manufacturers and technology suppliers has propelled North America to the forefront of the industry. To compete with technical giants like Apple Inc. and Google Inc., automakers must create creative skills and cultural transformations. Furthermore, the robust infrastructure for wireless connection and the broad availability of high-speed internet in North America have aided the emergence of connected cars. These technological improvements allow for smooth communication and data transmission between automobiles and external networks, easing the operation of numerous connected car functions.

On the other hand, the Asia Pacific is expected to grow at the highest CAGR during the forecast period. Increased smartphone adoption, the implementation of high-speed internet connections, and the region's dropping average selling price are all projected to drive sales of such smart automobiles. Furthermore, increased consumer disposable incomes are likely to drive market demand. Middle-class households and growing incomes have raised total disposable income in emerging nations. It has increased expenditure on advanced high-end and luxury vehicles, which might boost demand in the coming years.

Connected Car Market: Competitive Analysis

The global Connected Car market is dominated by players like:

• Qualcomm Technologies Inc.
• Visteon Corporation
• Continental AG
• Robert Bosch GmbH
• Denso Corporation
• Harman International
• AT&T Inc.
• TomTom N.V.
• Airbiquity Inc.
• Sierra Wireless
• Infineon Technologies
• Magna International
• ZF Friedrichshafen AG

The Global Connected Car market is segmented as follows:

By Technology

• 2G
• 3G
• 4G/LTE

By Application

• Telematics
• Driver Assistance
• Infotainment
• Others

By Connectivity

• Embedded
• Integrated
• Tethered

By Vehicle Connectivity

• Vehicle to Vehicle (V2V)
• Vehicle to Infrastructure (V2I)
• Vehicle to Pedestrian (V2P)

By Vehicle Type

• Commercial
• Passenger

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa