PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1684282
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1684282
Connected Vehicle Technology Market size was valued at US$ 35,994.42 Million in 2024, expanding at a CAGR of 10.99% from 2025 to 2032.
The Connected Vehicle Technology Market is growing rapidly as automotive manufacturers integrate advanced communication systems into vehicles. This technology enables real-time data exchange between vehicles, infrastructure, and cloud networks, enhancing safety, efficiency, and driving experience. Features like vehicle-to-vehicle (V2V) and vehicle-to-everything (V2X) communication support traffic management, accident prevention, and autonomous driving advancements. With increasing demand for smart mobility solutions, connected vehicle technology is shaping the future of transportation, driving innovations in automotive and telematics industries.
Connected Vehicle Technology Market- Market Dynamics
Increasing awareness about road safety, advancements in 5G and IoT integration to propel market demand
The Connected Vehicle Technology Market is growing rapidly due to advancements in 5G and IoT integration, enabling seamless communication between vehicles, infrastructure, and networks. One major driver is the increasing demand for road safety and traffic efficiency, as governments and automotive companies invest in intelligent transportation systems. Connected vehicles enhance real-time data sharing, improving navigation, accident prevention, and fuel efficiency. With automakers integrating V2X (Vehicle-to-Everything) communication, the market is set for significant expansion, shaping the future of smart mobility.
Connected Vehicle Technology Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 10.99% over the forecast period (2025-2032)
Based on Connectivity segmentation, Embedded was predicted to show maximum market share in the year 2024
Based on application segmentation, Telematics was the leading application in 2024
Based on Vehicle Connectivity segmentation, V2V was the leading Vehicle Connectivity in 2024
Based on technology segmentation, 4G/LTE was the leading technology in 2024
Based on Vehicle segmentation, Passenger car was the leading Vehicle in 2024
On the basis of region, North America was the leading revenue generator in 2024
The Global Connected Vehicle Technology Market is segmented on the basis of Connectivity, Application, Vehicle Connectivity, Technology, Vehicle, and Region. The Connected Vehicle Technology Market is segmented by technology type into 2G, 3G, and 4G/LTE. Among these, 4G/LTE dominates the market, offering high-speed connectivity, real-time data transmission, and seamless integration with advanced telematics systems. The growing adoption of smart infotainment, vehicle-to-everything (V2X) communication, and autonomous driving features is driving the demand for 4G/LTE technology. Automakers increasingly prefer 4G-based telematics solutions due to their reliability and wide network coverage. While 5G is emerging, 4G/LTE remains the preferred choice for most connected vehicle applications due to its established infrastructure and cost-effectiveness.
The Connected Vehicle Technology Market is segmented by application into Driver Assistance, Telematics, Infotainment, and Others. Among these, Telematics dominates due to its widespread adoption in fleet management, navigation, and real-time vehicle diagnostics. The growing integration of telematics systems in passenger and commercial vehicles enhances vehicle tracking, fuel efficiency, and predictive maintenance. Additionally, government regulations mandating vehicle connectivity for safety and emissions monitoring further drive demand. While infotainment and driver assistance systems are also growing, telematics remains the key revenue-generating segment, driven by advancements in IoT, 5G connectivity, and cloud-based analytics.
The Connected Vehicle Technology Market is segmented by connectivity into Integrated, Embedded, Tethered, and Others. Among these, the Embedded segment dominates due to regulatory mandates and increasing adoption by automakers. Embedded connectivity allows vehicles to communicate with infrastructure, other vehicles, and cloud services without requiring external devices. It enhances real-time data transmission, improving safety, navigation, and remote diagnostics. Automakers are integrating embedded solutions to comply with safety regulations and enhance vehicle intelligence. The rise of 5G networks and advancements in V2X (Vehicle-to-Everything) communication further boost the embedded segment's growth, making it the industry leader.
The Connected Vehicle Technology Market is categorized by vehicle connectivity into Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), and Others. Among these, V2V dominates due to its crucial role in enhancing road safety and traffic management. The growing adoption of advanced driver-assistance systems (ADAS) and government regulations promoting V2V communication further drive its market leadership.
The Connected Vehicle Technology Market is segmented by vehicle type into Passenger Cars, Commercial Vehicles, and Others. Among these, Passenger Cars dominate the market, driven by increasing consumer demand for advanced driver assistance systems (ADAS), infotainment, and telematics solutions. Growing smart mobility initiatives, government regulations on vehicle safety, and integration of IoT and 5G further propel the adoption of connected technologies in passenger vehicles worldwide.
Connected Vehicle Technology Market- Geographical Insights
The Connected Vehicle Technology Market is growing rapidly, with North America leading due to strong infrastructure, government initiatives, and key industry players. Europe follows closely, driven by smart mobility projects, while Asia-Pacific is expanding due to high automotive production and increasing digitalization. The Vehicle-to-Everything (V2X) communication segment dominates, enhancing road safety and traffic efficiency. Rising demand for real-time data, autonomous driving, and smart transportation systems is fueling market growth across regions.
The Connected Vehicle Technology Market is expanding due to advancements in IoT, AI, and 5G integration. The Vehicle-to-Everything (V2X) segment dominates, enabling real-time communication between vehicles, infrastructure, and pedestrians, enhancing safety and efficiency. Automakers and tech firms are investing in connected solutions to improve navigation, remote diagnostics, and autonomous driving capabilities. Key players shaping the market include Robert Bosch GmbH, Continental AG, Qualcomm Technologies, Intel Corporation, Harman International, and ZF Friedrichshafen AG. Growing smart mobility initiatives are driving further innovation and adoption.
In May 2022, Toyota Connected North America unveiled its Cabin Awareness Concept, incorporating millimeter-wave, high-resolution 4D imaging radar to enhance occupant detection, including certain pets, within vehicles.
In April 2022, Obigo Inc. (Obigo) collaborated with the Korea Electric Technology Institute (KETI) to develop 5G-NR-V2X technologies, aimed at advancing connectivity and autonomous driving capabilities in vehicles.