The global connected car market is set for remarkable growth, expanding from USD 37,223 million in 2024 to USD 118,352 million by 2034, registering a CAGR of 12.3%. With AI, IoT, and 5G driving adoption, connected vehicles are becoming central to the automotive ecosystem, offering improved safety, seamless connectivity, and enhanced driving experiences.
With rapid advancements in AI, IoT, and 5G networks, connected cars are transforming the global mobility landscape. Automakers are leveraging cloud-based analytics and real-time communication to enhance safety, convenience, and sustainability. Rising government support for smart city initiatives and fuel-free vehicles further accelerates adoption worldwide.
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Report Coverage & Deliverable
The report offers a detailed assessment of the global connected car market across the forecast period (2024–2034), covering:
- Market size estimations and forecasts by value.
- In-depth analysis of network technologies, communication types, and applications.
- Evaluation of key drivers, restraints, and opportunities shaping the market.
- Country-level insights with growth projections for major markets.
- Competitive landscape profiling leading players, recent innovations, and strategic developments.
Key Factors Shaping Market Dynamics
- Clamor for Safety and Security Features
Rising accident rates—about USD 118,352 million by 2034 global fatalities annually (WHO)—have accelerated demand for connected cars with advanced safety systems. Automakers are integrating ADAS features like lane departure warnings, automatic braking, and pedestrian detection. Simultaneously, cybersecurity solutions for connected vehicles are gaining traction as IoT and cloud technologies expand.
- Demand for Comfort and Convenience
Consumers increasingly expect vehicles to provide connectivity and entertainment on the go. Infotainment systems, smartphone integration, and voice recognition are enhancing in-car experiences. AI-powered personalization—such as automatic climate control or seat adjustment—has strengthened consumer demand.
- Rise of Ride-sharing and Mobility-as-a-Service (MaaS)
With growing ride-sharing trends, automakers are designing solutions focused on real-time communication, predictive maintenance, and OTA software updates. This shift is driving innovation in connected car applications.
- Shift Toward Smart Cities and Sustainability
Governments are promoting fuel-free, intelligent transportation systems. With initiatives in EV adoption, 5G rollout, and smart city infrastructure, connected cars are playing a pivotal role in next-gen mobility ecosystems.
Key Takeaways
- Market Size: USD 37,223 million in 2024; projected to reach USD 118,352 million by 2034.
- Growth Rate: CAGR of 12.3% over the forecast period.
- 5G Leadership: 5G dominates with a 62.8% share in 2024, thanks to its low latency and high reliability.
- V2V Dominance: Vehicle-to-Vehicle (V2V) communication holds 67.2% market share in 2024, crucial for safety and platooning applications.
- Top Markets: Germany leads with the highest CAGR of 13.5%; followed by Italy (12.9%), UK (12.5%), and the U.S. (12.3%).
- Innovation Hotspots: AI integration, smart infotainment, cybersecurity, and autonomous driving tech are major focus areas.
Regional Analysis
- Germany & Europe: Germany stands out with a CAGR of 13.5%, powered by world-class R&D, OEM presence, and innovations like Bosch’s MEMS sensors. Italy and the UK are also key contributors, with ADAS mandates and investments in automotive software.
- North America: The U.S. market thrives on IoT adoption, advanced research units, and stringent safety norms. Ford’s Atlanta Research and Innovation Center is an example of the region’s push for digital mobility.
- Asia Pacific: Japan leads in connected car penetration, while China shows rapid adoption. South Korea (CAGR 11.8%) benefits from government smart city projects and collaborations like LG Uplus with Hyundai Motor Group.
- Rest of World: Emerging economies are gradually integrating connected mobility, with rising consumer awareness and government-backed digital infrastructure projects.
Leading Connected Car Brands by Market Share
- Morris Garage Motor India
- Bosch
- Maruti Suzuki
- Payment24
- Airbiguity
- Harman International
- Continental AG
- Daimler AG
- General Motors
- Hyundai Motor Group
- Volvo
- Ford Motor Company
- Audi
Top Investment Segments Studied in the Connected Car Market
By Network Technology:
Network technology present in the industry are 3G, 4G, and 5G.
By Communication Type:
V2V, V2I, and V2P are categorized as communication types in this sector.
By Application:
Connected car finds application in to driver assistance, vehicle safety and security, infotainment, telematics, and navigation applications.
By Vehicle Type:
ICE and electric are two vehicle types in this industry.
By Region:
A regional analysis has been carried out in key countries of North America, Latin America, Asia Pacific, Middle East and Africa (MEA), and Europe.
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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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