Connected Car Apps Market Size, Share, Trends, Growth and Forecast 2032

Connected Car Apps Industry Prospective:

The global connected car apps market size was evaluated at $66 billion in 2023 and is slated to hit $370 billion by the end of 2032 with a CAGR of nearly 18.5% between 2024 and 2032.

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Connected Car Apps Market: Overview

Connected car apps are predicted to bring a paradigm shift in the automotive sector by improving vehicle operations and customer experience with the help of advanced connectivity. Moreover, these apps influence IoT by offering a slew of services, including vehicle diagnostics and navigation assistance. Some of the major connected car apps include Dash, Zubie, and Navdy.

Key Insights

• As per the analysis shared by our research analyst, the global connected car apps market is projected to expand annually at the annual growth rate of around 18.5% over the forecast timespan (2024-2032)
• In terms of revenue, the global connected car apps market size was evaluated at nearly $66 billion in 2023 and is expected to reach $370 billion by 2032.
• The global connected car apps market is anticipated to grow rapidly over the forecast timespan owing to the escalating security concerns along with the need for improving wireless communication infrastructure.
•  In terms of vehicle type, the passenger cars segment is slated to register the highest CAGR over the forecast period.
• Based on application, the driver assistance segment is predicted to contribute majorly towards segmental space in the upcoming years.
• Based on connectivity type, the healthcare segment is expected to dominate the segmental growth in the ensuing years.
• Region-wise, the Asia-Pacific connected car apps industry is projected to register the fastest CAGR during the projected timespan.

Connected Car Apps Market: Growth Factors

Need for improved connectivity is anticipated to prop up the growth of the global market over 2024-2032

Surging customer demand for good connectivity along with technological breakthroughs is likely to aid the expansion of the global connected car apps market. Furthermore, escalating security concerns along with the need for improving wireless communication infrastructure is likely to pave the way for the growth of the global market.

In addition to this, the introduction of self-driven cars and bikes along with the demand for shared mobility services are likely to augment the expansion of the global market. Need for remote vehicle monitoring and control is likely to drive the global market trends. Growing demand for personalization is projected to help the growth graph of the market towards the positive axis in the upcoming years. Need for enhancing customer engagement will further proliferate the growth rate of the global market in the coming years.

Connected Car Apps Market: Restraints

An increase in cyber-attacks is projected to obstruct the global industry expansion by 2032

Surging development costs, disruptions in internet streaming, and scalability issues are anticipated to obstruct the global connected car apps industry. Furthermore, cyber-security risks and compatibility problems can deter the expansion of the global industry. Moreover, an increase in subscription charges and hardware prices can put brakes on the global industry.

Connected Car Apps Market: Opportunities

Introduction of 5G network & increase in the use of autonomous cars can open new growth avenues for the global market

The launch of the 5G network and the large-scale penetration of artificial intelligence across various end-use sectors will open new growth avenues for the global connected car apps market. Furthermore, an increase in the purchase of self-driven vehicles is anticipated to prop up the market space in the upcoming years.

Connected Car Apps Market: Challenges

Huge data security concerns & interoperability issues can challenge the growth of the global industry

Infrastructural issues and less availability of charging stations for electric vehicles can severely impact the expansion of the global connected car apps industry. Surging data security issues and interoperability challenges can pose a threat to the expansion of the global connected car apps industry.

Connected Car Apps Market: Segmentation

The global connected car apps market is divided into vehicle type, application, connectivity type, and region.                                          

In terms of vehicle type, the connected car apps market across the globe is segmented into passenger cars, electric vehicles, and commercial vehicles segments. Apparently, the passenger cars segment, which accumulated nearly three-fourths of the global market share in 2023, is projected to account for the fastest CAGR during the ensuing years as a result of a rise in the demand for passenger cars along with the availability of a slew of features in the passenger cars such as navigation, vehicle health monitoring, and entertainment.

Based on the application, the global connected car apps industry is segmented into mobility management, vehicle management, entertainment, and driver assistance segments. Apparently, the driver assistance segment, which led the global industry in 2023, is likely to contribute significantly toward the segmental surge in the ensuing years. This can be a result of a surge in customer demand for advanced vehicle performance along with their safety features.   

On the basis of connectivity type, the global connected car apps market is sectored into tethered, embedded, and integrated segments. Moreover, the integrated segment is anticipated to dominate the segmental space over the forecast timeline. Furthermore, the segmental surge can be due to the seamless connection offered by integrated connections as well as its affordability. Apart from this, a surge in data sharing along with a rise in the adoption of integrated connectivity by automakers is likely to prop up the segmental surge.

Connected Car Apps Market: Report Scope

Connected Car Apps Market: Regional Insights

North American is likely to maintain leadership position in the global market over the projected timespan

North America, which contributed about 47% of the global connected car apps market size in 2023, is set to establish a number one position in the global market in the upcoming years. In addition, the regional market progression in the next eight years can be credited to technological breakthroughs along with a prominent demand for electric & autonomous cars in countries such as Canada and the U.S. Huge focus on developing strong infrastructure for enhancing wireless connectivity along with easy access to high-speed internet connection is anticipated to boost the regional market trends.      

The Asia-Pacific connected car apps industry is expected to record the fastest CAGR annually in the coming few years. The expansion of the industry in the sub-continent can be owing to swift urbanization in India, China, Thailand, and Indonesia. In addition to this, technological innovations such as the installation of 5G network systems in Japan, China, South Korea, and India will spearhead the expansion of the regional industry surge in the upcoming years.

Connected Car Apps Market: Competitive Space

The global connected car apps market profiles key players such as:

• Airbiquity Inc.
• Qualcomm Technologies Inc.
• General Motors
• Ford Motor Company
• Toyota Motor Corporation
• Stellantis N.V.
• Continental AG
• Robert Bosch GmbH
• Sierra Wireless
• Harman International
• Denso Corporation
• Magna International
• AT&T Inc.

The global connected car apps market is segmented as follows:

By Vehicle Type

• Passenger Cars
• Electric Vehicles
• Commercial Vehicles

By Application

• Mobility Management
• Vehicle Management
• Entertainment
• Driver Assistance

By Connectivity Type

• Tethered
• Embedded
•  Integrated

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