Connected Cars Market
Connected Cars Market Forecasts to 2032 – Global Analysis By Connectivity Type (Integrated, Embedded, and Tethered), Network (4G/LTE, 5G, 3G & 2G, and V2X (Vehicle-to-Everything), Propulsion Type, Vehicle Type, Application, End Market, and By Geography
According to Stratistics MRC, the Global Connected Cars Market is accounted for $109.4 billion in 2025 and is expected to reach $307.3 billion by 2032, growing at a CAGR of 15.9% during the forecast period. The connected cars market covers vehicles equipped with embedded connectivity or smartphone integration that enable data exchange with cloud platforms, other vehicles, and infrastructure. It supports infotainment, navigation, telematics, remote diagnostics, over-the-air updates, and safety services. Benefits include improved driver convenience, more accurate navigation and traffic avoidance, predictive maintenance, better fleet and insurance models, and a platform for new digital services and recurring revenue streams for automakers.
Market Dynamics:
Driver:
Consumer Demand for Connectivity
The primary market driver is the escalating consumer expectation for a seamless, integrated digital lifestyle within their vehicles. Modern buyers are no longer satisfied with basic transportation; they demand advanced infotainment, real-time navigation, and constant online access. This push for a cabin experience mirroring the convenience of home and office compels automakers to embed sophisticated connectivity solutions. Consequently, features like streaming music, voice assistants, and over-the-air updates are becoming standard, directly fueling market growth and innovation to meet these evolving preferences.
Restraint:
Legacy Vehicle Integration
A significant challenge hindering faster market expansion is the difficulty of integrating new connectivity technologies with legacy vehicle architectures. Many existing cars on the road have electronic systems not designed for modern software and data demands. Retrofitting these platforms is often prohibitively complex and expensive, creating a fragmented ecosystem. This technological mismatch slows the adoption rate across the entire vehicle fleet, acting as a major restraint by limiting the potential customer base for advanced connected services in the short to medium term.
Opportunity:
Advancement of V2X Technology
V2X moves beyond in-car entertainment to enable communication between vehicles, infrastructure, and pedestrians. This unlocks transformative applications in road safety, such as collision avoidance, and traffic efficiency through real-time congestion management. Moreover, it is a foundational technology for autonomous driving. As governments and cities invest in smart infrastructure, the demand for V2X-equipped vehicles will surge, creating a significant long-term opportunity for market players.
Threat:
Intense Competition from Tech Giants
The market faces a potent threat from the aggressive entry of large technology companies like Google, Apple, and Amazon. These firms possess vast resources, superior software expertise, and established ecosystem dominance. They compete with traditional car makers by providing voice assistants, operating systems, and self-driving technology. This intensifies competitive pressure, potentially forcing automakers into a supplier role and squeezing their profit margins. To remain relevant, OEMs must accelerate their software development capabilities to defend their brand identity and customer relationship.
Covid-19 Impact:
The pandemic initially disrupted the connected car market through factory shutdowns and supply chain bottlenecks, causing a sharp decline in new vehicle production and sales. However, it simultaneously accelerated the demand for touchless and digitally integrated experiences. Consumers showed increased preference for vehicles with features enabling remote diagnostics, over-the-air updates, and contactless services. This period underscored the value of connectivity, shifting it from a luxury to a near-essential feature and hastening the industry's digital transformation once supply chains stabilized.
The 4G/LTE segment is expected to be the largest during the forecast period
The 4G/LTE segment is expected to account for the largest market share during the forecast period, as it represents the current industry standard with widespread, reliable network coverage globally. 4G/LTE modules equip the vast majority of new connected vehicles currently rolling off production lines, ensuring a dominant installed base. Furthermore, the technology effectively supports a broad range of applications, from basic telematics to advanced infotainment, making it the most cost-effective and proven solution for mass-market adoption during this period.
The tethered segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the tethered segment is predicted to witness the highest growth rate due to its cost-effectiveness and ease of implementation, eliminating the need for an embedded modem. It provides an immediate path to connectivity for budget-conscious consumers and entry-level vehicle models. Additionally, it leverages the rapid upgrade cycle of smartphones, allowing cars to access the latest connectivity features without hardware changes, thus appealing to a broad demographic.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share, attributed to its robust technological infrastructure, high consumer adoption rate of advanced automotive technologies, and the presence of key industry players. Moreover, stringent government regulations regarding vehicle safety and emissions are pushing the integration of connected telematics systems. High disposable income and a strong presence of premium vehicle manufacturers further consolidate the region's dominant position in the global connected car landscape.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, fueled by the massive automotive production and sales volumes in countries like China, Japan, and India. Rapid urbanization, growing middle-class disposable income, and supportive government initiatives for smart transportation and electric vehicles are key contributors. Furthermore, local tech giants and automakers are aggressively investing in connected vehicle technologies, making the region a hotbed for innovation and the fastest-adopting market globally.
Key players in the market
Some of the key players in Connected Cars Market include Robert Bosch GmbH, Continental AG, Denso Corporation, Aptiv PLC, Qualcomm Incorporated, NVIDIA Corporation, NXP Semiconductors N.V., Intel Corporation, Harman International Industries, Inc., Ford Motor Company, General Motors Company, BMW AG, Toyota Motor Corporation, Volkswagen AG, ZF Friedrichshafen AG, Cisco Systems, Inc., Telefonaktiebolaget LM Ericsson, and Valeo SA.
Key Developments:
In September 2025, Qualcomm Incorporated announced a collaboration with HARMAN to advance Generative AI in the automotive cockpit, enabling smart, contextual, and intuitive in-car experiences..
In September 2025, Qualcomm announced a partnership with the BMW Group to unveil a groundbreaking automated driving system with a jointly developed software stack, which relies on a highly connected architecture.
In March 2025, Continental AG announced a digital tire monitoring integration with Samsara, the Connected Operations® Platform pioneer, enabling fleet services to leverage connectivity for operational efficiency.
Connectivity Types Covered:
• Integrated
• Embedded
• Tethered
Networks Covered:
• 4G/LTE
• 5G
• 3G & 2G
• V2X (Vehicle-to-Everything)
Propulsion Types Covered:
• Internal Combustion Engine (ICE)
• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
Vehicle Types Covered:
• Passenger Vehicles
• Commercial Vehicles
Applications Covered:
• Driver Assistance & Safety
• Vehicle Management
• Entertainment (Infotainment)
• Well-being & Comfort
• Mobility Management
• Dynamic Routing
• Other Applications
End Markets Covered:
• Original Equipment Manufacturer (OEM)-Fitted
• Aftermarket Solutions
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Connected Cars Market, By Connectivity Type
5.1 Introduction
5.2 Integrated
5.3 Embedded
5.4 Tethered
6 Global Connected Cars Market, By Network
6.1 Introduction
6.2 4G/LTE
6.3 5G
6.4 3G & 2G
6.5 V2X (Vehicle-to-Everything)
6.5.1 DSRC (Dedicated Short-Range Communications)
6.5.2 C-V2X (Cellular Vehicle-to-Everything)
7 Global Connected Cars Market, By Propulsion Type
7.1 Introduction
7.2 Internal Combustion Engine (ICE)
7.3 Battery Electric Vehicle (BEV)
7.4 Hybrid Electric Vehicle (HEV)
7.5 Plug-in Hybrid Electric Vehicle (PHEV)
8 Global Connected Cars Market, By Vehicle Type
8.1 Introduction
8.2 Passenger Vehicles
8.3 Commercial Vehicles
8.3.1 Light Commercial Vehicles
8.3.2 Heavy Commercial Vehicles
9 Global Connected Cars Market, By Application
9.1 Introduction
9.2 Driver Assistance & Safety
9.3 Vehicle Management
9.4 Entertainment (Infotainment)
9.5 Well-being & Comfort
9.6 Mobility Management
9.7 Dynamic Routing
9.8 Other Applications
10 Global Connected Cars Market, By End Market
10.1 Introduction
10.2 Original Equipment Manufacturer (OEM)-Fitted
10.3 Aftermarket Solutions
11 Global Connected Cars Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Robert Bosch GmbH
13.2 Continental AG
13.3 Denso Corporation
13.4 Aptiv PLC
13.5 Qualcomm Incorporated
13.6 NVIDIA Corporation
13.7 NXP Semiconductors N.V.
13.8 Intel Corporation
13.9 Harman International Industries, Inc.
13.10 Ford Motor Company
13.11 General Motors Company
13.12 BMW AG
13.13 Toyota Motor Corporation
13.14 Volkswagen AG
13.15 ZF Friedrichshafen AG
13.16 Cisco Systems, Inc.
13.17 Telefonaktiebolaget LM Ericsson
13.18 Valeo SA
List of Tables
1 Global Connected Cars Market Outlook, By Region (2024–2032) ($MN)
2 Global Connected Cars Market Outlook, By Connectivity Type (2024–2032) ($MN)
3 Global Connected Cars Market Outlook, By Integrated (2024–2032) ($MN)
4 Global Connected Cars Market Outlook, By Embedded (2024–2032) ($MN)
5 Global Connected Cars Market Outlook, By Tethered (2024–2032) ($MN)
6 Global Connected Cars Market Outlook, By Network (2024–2032) ($MN)
7 Global Connected Cars Market Outlook, By 4G/LTE (2024–2032) ($MN)
8 Global Connected Cars Market Outlook, By 5G (2024–2032) ($MN)
9 Global Connected Cars Market Outlook, By 3G & 2G (2024–2032) ($MN)
10 Global Connected Cars Market Outlook, By V2X (Vehicle-to-Everything) (2024–2032) ($MN)
11 Global Connected Cars Market Outlook, By DSRC (Dedicated Short-Range Communications) (2024–2032) ($MN)
12 Global Connected Cars Market Outlook, By C-V2X (Cellular Vehicle-to-Everything) (2024–2032) ($MN)
13 Global Connected Cars Market Outlook, By Propulsion Type (2024–2032) ($MN)
14 Global Connected Cars Market Outlook, By Internal Combustion Engine (ICE) (2024–2032) ($MN)
15 Global Connected Cars Market Outlook, By Battery Electric Vehicle (BEV) (2024–2032) ($MN)
16 Global Connected Cars Market Outlook, By Hybrid Electric Vehicle (HEV) (2024–2032) ($MN)
17 Global Connected Cars Market Outlook, By Plug-in Hybrid Electric Vehicle (PHEV) (2024–2032) ($MN)
18 Global Connected Cars Market Outlook, By Vehicle Type (2024–2032) ($MN)
19 Global Connected Cars Market Outlook, By Passenger Vehicles (2024–2032) ($MN)
20 Global Connected Cars Market Outlook, By Commercial Vehicles (2024–2032) ($MN)
21 Global Connected Cars Market Outlook, By Light Commercial Vehicles (2024–2032) ($MN)
22 Global Connected Cars Market Outlook, By Heavy Commercial Vehicles (2024–2032) ($MN)
23 Global Connected Cars Market Outlook, By Application (2024–2032) ($MN)
24 Global Connected Cars Market Outlook, By Driver Assistance & Safety (2024–2032) ($MN)
25 Global Connected Cars Market Outlook, By Vehicle Management (2024–2032) ($MN)
26 Global Connected Cars Market Outlook, By Entertainment (Infotainment) (2024–2032) ($MN)
27 Global Connected Cars Market Outlook, By Well-being & Comfort (2024–2032) ($MN)
28 Global Connected Cars Market Outlook, By Mobility Management (2024–2032) ($MN)
29 Global Connected Cars Market Outlook, By Dynamic Routing (2024–2032) ($MN)
30 Global Connected Cars Market Outlook, By Other Applications (2024–2032) ($MN)
31 Global Connected Cars Market Outlook, By End Market (2024–2032) ($MN)
32 Global Connected Cars Market Outlook, By Original Equipment Manufacturer (OEM)-Fitted (2024–2032) ($MN)
33 Global Connected Cars Market Outlook, By Aftermarket Solutions (2024–2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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