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Connected Car Devices Market Expected To Reach $16.6 Billion By 2030 At 201.15% CAGR
The connected car devices market size has seen swift expansion in recent years. It is forecast to grow from $93.25 billion in 2025 to $108.67 billion in 2026, achieving a compound annual growth rate (CAGR) of 16.5%. Historically, this growth can be attributed to the early adoption of GPS systems, the proliferation of telematics solutions, an increase in vehicle electronics, the demand for infotainment, and regulatory safety mandates.
The connected car devices market size is anticipated to experience significant growth in the upcoming years. By 2030, its value is projected to reach $201.15 billion, advancing at a compound annual growth rate (CAGR) of 16.6%. This expansion during the forecast timeframe is primarily driven by autonomous driving development, smart city integration, the rollout of 5G connectivity, electric vehicle adoption, and increased cybersecurity investments. Noteworthy trends for the forecast period include the integration of advanced telematics devices, the proliferation of v2x communication modules, an escalating demand for safety-oriented connectivity, the broadening of cloud-based vehicle services, and the widespread adoption of over-the-air updates.
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Connected Car Devices Market Development Factors: Which Trends Are Supporting Demand?
The increasing uptake of electric vehicles is anticipated to drive the expansion of the connected car devices market in the future. EVs, or Electric vehicles, are vehicles propelled by one or more electric motors, drawing power from electrical energy held in rechargeable batteries or produced by an integrated fuel cell. The increasing embrace of electric vehicles stems from multiple reasons, such as strict emissions rules, heightened understanding of their environmental advantages, and economic efficiency. Within electric vehicles, connected car devices enable remote tracking of battery condition, charging processes, and energy usage. They also provide real-time navigation updates tailored for EVs, consequently boosting overall efficiency and enhancing user contentment. For example, data from the International Energy Agency, a France-based autonomous intergovernmental organization, indicates that in 2024, electric vehicle sales in 2023 increased by 3.5 million units relative to 2022, signifying a 35% year-on-year growth. Consequently, the expanding uptake of electric vehicles is fueling the development of the connected car devices market.
Connected Car Devices Market Segment Landscape: Which Areas Lead Market Development?
The connected car devices market covered in this report is segmented –
1) By Communication: Vehicle-To-Vehicle (V2V), Vehicle-To-Infrastructure (V2I), Vehicle-To-Pedestrian(V2P), Other Modes Of Communication
2) By Technology: Telematics Control Units (TCUs), Infotainment And In-Vehicle Connectivity Systems, V2X Communication Modules (V2V, V2I, V2P, V2C), Connected ADAS And Safety Systems, Remote Diagnostics And Vehicle Monitoring Systems, Over-the-Air (OTA) Update And Software Management Systems
3) By Connectivity: Dedicated Short Range Communication (DSRC), Long Range Or Cellular Network
4) By Vehicle Type: Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles
5) By End-User: Original Equipment Manufacturer, Aftermarket
Subsegments:
1) By Vehicle-To-Vehicle (V2V): Direct Vehicle Communication, Cooperative Adaptive Cruise Control (CACC), Collision Avoidance Systems, Platooning
2) By Vehicle-To-Infrastructure (V2I): Traffic Signal Communication, Roadside Unit Communication (RSU), Smart Traffic Management, Toll Collection Systems, Parking Management
3) By Vehicle-To-Pedestrian (V2P): Pedestrian Safety Alerts, Crosswalk Communication, Pedestrian Detection Systems
4) By Other Modes Of Communication: Vehicle-To-Cloud (V2C), Vehicle-To-Device (V2D)
Connected Car Devices Market Transformation Trends: Which Innovations Are Driving Change?
Leading firms within the connected car devices market are concentrating on creating technological improvements, including smart vehicle communication platforms, with the aim of improving road safety, traffic flow, and overall connectivity. Such platforms allow vehicles to share information among themselves, with infrastructure, pedestrians, and various networks, thereby optimizing driving scenarios and decreasing the likelihood of accidents. An example of this is Verizon Business, a US-based telecommunications and networking company, which introduced a Vehicle-to-Everything connected-driving platform in April 2025, engaging several clients. This platform incorporates sophisticated connectivity, real-time data analysis, and robust security functionalities to facilitate driving experiences that are safer, more streamlined, and better connected. Utilizing its extensive network infrastructure and cloud resources, Verizon’s offering supports widespread implementation for fleet operators, smart cities, and automotive OEMs, thereby speeding up the worldwide adoption of connected mobility innovations.
Connected Car Devices Market Industry Leaders And Market Competition
Major companies operating in the connected car devices market report include Volkswagen AG, Toyota Motor Corporation, General Motors Company, Robert Bosch GmbH, Tesla Inc., Intel Corporation, Panasonic Corporation, Denso Corporation, Nvidia Corporation, Qualcomm Incorporated, Continental AG, Porsche AG, Magna International Inc., Valeo SA, Infineon Technologies AG, Autoliv Inc., Harman International Industries Incorporated, Garmin Ltd., Visteon Corporation, TomTom N.V., Sierra Wireless Inc., Delphi Technologies, Autotalks Ltd.
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Connected Car Devices Market Regional Analysis And Leading Geography
Asia-Pacific was the largest region in the connected car devices market in 2025. It is expected to be the fastest-growing region in the forecast period. The regions covered in the connected car devices market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
