Connected Car Market Size, Share, and Growth Analysis, By Component (Hardware, Service), By Form Type (Embedded, Integrated), By Transponder, By Network, By Vehicle Type, By Application, By End Market, By Region - Industry Forecast 2025-2032

Global Connected Car Market size was valued at USD 109.35 billion in 2023 and is poised to grow from USD 126.30 billion in 2024 to USD 400.00 billion by 2032, growing at a CAGR of 15.5% during the forecast period (2025-2032).

The Global Connected Car Market is witnessing robust growth, driven by the rapid adoption of smart technologies and IoT integration worldwide. Key features such as real-time navigation, remote diagnostics, infotainment, and enhanced safety through vehicle-to-everything (V2X) communication are fueling demand. Our analysis reveals that the evolution of 5G infrastructure plays a crucial role, enabling faster and more complex data exchanges and making connected cars more responsive and intelligent. V2X technology is particularly transformative, allowing seamless communication between vehicles, pedestrians, infrastructure, and the cloud-improving traffic management, energy efficiency, and road safety. Furthermore, the integration of Artificial Intelligence (AI) and Machine Learning enhances autonomous functions such as predictive maintenance, adaptive cruise control, and real-time driving assistance, further accelerating market expansion.

Top-down and bottom-up approaches were used to estimate and validate the size of the Connected Car market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Connected Car Market Segments Analysis

Global Connected Car Market is segmented by Component, Form Type, Transponder, Network, Vehicle Type, Application, End Market and region. Based on Component, the market is segmented into Hardware and Service. Based on Form Type, the market is segmented into Embedded and Integrated. Based on Transponder, the market is segmented into Onboard Unit and Roadside Unit. Based on Network, the market is segmented into Dedicated Short Range Communication and Cellular. Based on Vehicle Type, the market is segmented into ICE Vehicle, BEV, PHEV and FCEV. Based on Application, the market is segmented into Data Capture And Management, Dynamic Mobility, Road Weather Management, Real-Time Information Synthesis, Vehicle Health Monitoring, and Others. Based on End Market, the market is segmented into OEM and Aftermarket. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Connected Car Market

The growing consumer demand for advanced vehicle experiences is significantly driving the Global Connected Car Market. As technological innovations such as advanced infotainment systems, in-car connectivity, and artificial intelligence (AI) become more prevalent, consumers increasingly expect vehicles to act as extensions of their digital lives. They seek seamless access to real-time information, entertainment, and communication while on the move. For example, Hyundai's Bluelink AI system exemplifies this trend by offering always-on connectivity via an inbuilt SIM card and a 24/7 call center. This system enhances safety, security, and convenience through real-time data exchange between vehicle and driver. The shift toward personalized, user-centric driving solutions is reshaping consumer expectations and accelerating market growth.

Restraints in the Connected Car Market

SkyQuest's study reveals that the growth of the Global Connected Car Market is significantly restrained by the uneven deployment of high-speed internet and 5G infrastructure across various regions. Connected cars rely heavily on stable and high-speed connectivity for real-time traffic navigation, data transmission, V2X (vehicle-to-everything), and V2V (vehicle-to-vehicle) communications. The failure or interruption of these networks poses serious safety risks and undermines the reliability of advanced features such as autonomous driving and high-definition mapping, which require ultra-low latency and high bandwidth. Although global digitalization and modernization efforts are accelerating, the disparity in 5G infrastructure availability hampers the consistent adoption of connected vehicle technologies, creating a major obstacle to market expansion and raising critical concerns about safety and operational efficiency.

Market Trends of the Connected Car Market

A prominent supply-side trend reshaping the Global Connected Car Market is the surge in strategic partnerships aimed at integrating 5G-ready telematics control units (TCUs) into vehicles. These collaborations between automotive suppliers and technology companies are accelerating the deployment of advanced 5G connectivity solutions, enabling a wider array of connected services such as real-time diagnostics, over-the-air updates, enhanced navigation, and vehicle-to-everything (V2X) communication. Our analysis reveals that this trend is gaining significant momentum as automakers prioritize seamless, high-speed connectivity to enhance user experience and drive innovation. A notable example is the February 2024 launch of the Harman Ready Connect 5G TCU, developed in partnership with Qualcomm Technologies, Inc., showcasing how key players are co-developing solutions to meet the growing demand for intelligent, connected mobility.