Connected Car Devices Market Forecasts to 2030 - Global Analysis By Communication Type, Car Type, Vehicle Type, Connectivity Mode, Sales Channel, Technology and By Geography

According to Stratistics MRC, the Global Connected Car Devices Market is accounted for $88.16 billion in 2024 and is expected to reach $244.12 billion by 2030 growing at a CAGR of 18.5% during the forecast period. Connected car devices refer to hardware components or systems integrated into vehicles that enable communication with external networks or devices. These devices utilize various technologies such as GPS, cellular networks, Wi-Fi, and Bluetooth to gather and transmit data. They facilitate a range of functionalities including real-time navigation, vehicle diagnostics, remote monitoring, and entertainment services. These devices leverage internet connectivity to enhance safety, efficiency, and overall driving experience.

According to the Federal Bureau of Investigation (FBI), 773,139 vehicles were stolen in 2017 and 767,290 in 2016.

Market Dynamics:

Driver:

Rising demand for enhanced safety and security

The growing emphasis on safety and security in the automotive industry has propelled the connected car devices market forward. These devices integrate advanced technologies like GPS navigation, real-time diagnostics, and communication systems to enhance driver and passenger safety. They enable features such as emergency assistance, remote monitoring, and vehicle tracking, offering peace of mind to users. With increasing concerns over road accidents, thefts, and vehicle misuse, consumers are increasingly adopting connected car devices to safeguard their vehicles and occupants. Moreover, regulatory mandates for vehicle safety standards further drive the market as manufacturers strive to comply and differentiate their offerings.

Restraint:

Privacy and security concerns

As vehicles become increasingly connected, they gather vast amounts of data about their drivers, locations, and behaviors. This data, if not properly secured, can be vulnerable to hacking, identity theft, and unauthorized access. Consumers worry about the misuse of their personal information by both malicious actors and even by the companies collecting the data. The integration of various technologies within connected cars, such as cameras and microphones, raises concerns about surveillance and privacy invasion. These issues have prompted regulatory scrutiny and consumer hesitancy, slowing down the adoption of connected car devices.

Opportunity:

Growing focus on vehicle efficiency and sustainability

As global awareness of environmental impact grows, automakers and consumers alike are prioritizing technologies that optimize vehicle performance and reduce carbon footprints. Connected car devices play a pivotal role in this shift by enabling real-time monitoring of vehicle operations, facilitating predictive maintenance, and enhancing energy management systems. These devices leverage IoT (Internet of Things) technology to provide drivers with actionable insights into their driving habits, energy consumption patterns, and overall vehicle health.

Threat:

High cost of implementation

The high cost of implementation poses a significant barrier in the connected car devices market. Integrating advanced technologies such as sensors, telematics systems, and communication modules into vehicles requires substantial financial investment. Original equipment manufacturers (OEMs) and aftermarket suppliers face challenges in sourcing and incorporating these sophisticated components while maintaining affordability for consumers. However, the expenses associated with research and development for ensuring compatibility, reliability, and compliance with safety standards further inflate costs.

Covid-19 Impact:

The COVID-19 pandemic significantly influenced the connected car devices market. Initially, the crisis caused disruptions in manufacturing and supply chains, leading to delays in product launches and distribution of new devices. Consumer demand for connected car technologies fluctuated as economic uncertainties prompted cautious spending behaviors. As remote working became prevalent, there was an increased focus on technologies that enhance in-car connectivity and productivity. However, concerns about health and safety encouraged the adoption of contactless features and improved vehicle diagnostics through connected devices.

The Vehicle-to-Pedestrian segment is expected to be the largest during the forecast period

Vehicle-to-Pedestrian segment is expected to be the largest during the forecast period by integrating advanced communication technologies to enhance pedestrian safety. V2P technology enables vehicles to communicate directly with pedestrians, alerting drivers and pedestrians to each other's presence, intentions, and potential hazards in real-time. This communication is facilitated through sensors, cameras, and dedicated short-range communication (DSRC) systems, which exchange information such as location, speed, and direction. By providing early warnings and alerts, V2P systems significantly reduce the risk of accidents and improve overall road safety.

The Battery Electric Vehicle segment is expected to have the highest CAGR during the forecast period

As BEVs gain popularity due to their environmental benefits and lower operating costs, manufacturers are increasingly integrating advanced connectivity features into these vehicles, battery electric vehicle segment is expected to have the highest CAGR during the forecast period. The growth of BEVs is stimulating a broader ecosystem of connected services, including smart charging solutions and vehicle-to-grid communications, which further enhances the appeal and functionality of electric vehicles in the modern automotive landscape. Thus, the BEV segment serves as a catalyst for the expansion and integration of connected car devices, driving forward the evolution of smart and sustainable transportation solutions.

Region with largest share:

As these technologies gain momentum, they bring forth a new era of smart and interconnected vehicles, Europe region commanded the largest share of the market over the extrapolated period. Autonomous vehicles, equipped with advanced sensors and communication systems, require robust connectivity solutions for real-time data exchange and navigation across the region. This demand is driving the adoption of connected car devices such as telematics units, IoT platforms, and vehicle-to-everything (V2X) communication modules across the region. The shift towards electric mobility is fostering the regional development of integrated systems that monitor battery performance, charging stations availability, and energy consumption, all of which rely on interconnected devices.

Region with highest CAGR:

Europe region is projected to witness profitable growth during the projection period. Smartphones serve as multifunctional hubs, providing seamless connectivity, navigation, and access to a plethora of apps and services directly from the dashboard. Wearables complement this by enabling personalized experiences and health monitoring, enhancing both safety and convenience for drivers and passengers across the region. As a result, the European market is witnessing accelerated adoption of connected car technologies, driving innovation and setting new standards for mobility solutions.

Key players in the market

Some of the key players in Connected Car Devices market include Alphabet Inc, Cisco Systems, Inc, Continental AG, Denso Corporation, Infineon Technologies AG, Intel Corporation, LG Electronics, Mitsubishi Electric Corporation, NXP Semiconductors, Panasonic Corporation, Qualcomm, Robert Bosch GmbH, Samsung Electronics, Siemens AG and Visteon Corporation.

Key Developments:

In May 2024, Lenovo and Cisco unveiled a global strategic partnership to deliver fully integrated infrastructure and networking solutions designed to accelerate digital transformation for businesses of all sizes. The two companies have signed a Memorandum of Understanding (MoU) agreement to jointly establish design, engineering, and execution plans for accelerating digital transformation with turnkey solutions that extend world-class networking and purpose-built AI infrastructure solutions from edge to cloud for customers worldwide.

In January 2024, Cisco Collaborates with Microsoft and Samsung to Deliver Superior Meeting Room Experiences. With a collective vision to enable seamless and inclusive meetings for all, the companies unveiled integrated video collaboration solutions for Cisco Room Series. The solutions feature Front Row - an inclusive content layout for Microsoft Teams Rooms, with either Samsung's newly unveiled 105" Smart Signage (model name: QPD-5K) with 21:9 aspect ratio and 5K resolution, or Samsung 4K Smart Signage screens.

In September 2023, Cisco and Splunk, the cybersecurity and observability leader, announced a definitive agreement under which Cisco intends to acquire Splunk for $157 per share in cash, representing approximately $28 billion in equity value. The acquisition builds on Splunk's heritage of helping organizations enhance their digital resilience and will accelerate Cisco's strategy to securely connect everything to make anything possible.

Communication Types Covered:

• Vehicle-to-Vehicle
• Vehicle-to-Infrastructure
• Vehicle-to-Pedestrian
• Other Communication Types

Car Types Covered:

• Sedan
• Hatchback

Vehicle Types Covered:

• Heavy Commercial Vehicles
• Light Commercial Vehicles
• Passenger Cars
• Battery Electric Vehicle
• Hybrid Electric Vehicle
• Fuel Cell Vehicle
• Other Vehicle Types

Connectivity Modes Covered:

• Long Range/ Cellular Network
• Dedicated Short Range Communication

Sales Channels Covered:

• Aftermarket
• Original Equipment Manufacturer

Technologies Covered:

• Telematics
• Driver Assistance Systems
• Other Technologies

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • 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 2022, 2023, 2024, 2026, and 2030
• 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
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances