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Automotive IOT Market Size Outlook: A $330.38 Billion Market By 2030, Growing At 13.2% Annually
The automotive iot market has seen substantial growth in recent years. Its valuation is expected to rise from $176.66 billion in 2025 to $201.55 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 14.1%. This historical expansion can be attributed to several factors including the rising adoption of telematics devices, the proliferation of fleet digitization programs, an increased demand for vehicle tracking solutions, the growing integration of connected car technologies, and the widespread availability of cloud-based automotive platforms.
The automotive IoT market is projected to experience substantial expansion in the coming years, anticipated to reach $330.38 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 13.2%. This growth during the projected period stems from factors such as the greater uptake of smart mobility solutions, heightened demand for real-time vehicle diagnostics, the broadening of connectivity for autonomous and electric vehicles, an intensified focus on automotive data security, and improvements in automotive IoT platforms. Key trends anticipated within this forecast timeframe encompass the expanding implementation of connected vehicle platforms, increased adoption of predictive maintenance solutions, the enlargement of fleet management IoT systems, greater integration of V2X communication, and a heightened emphasis on vehicle cybersecurity.
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Key Demand Driver Expected To Lift Automotive IOT Market Revenue
The escalating requirement for autonomous vehicles is projected to boost the expansion of the automotive IoT market moving forward. Autonomous vehicles are self-driving cars that perform various functions and can operate independently using diverse technologies. The Internet of Things allows autonomous vehicles to connect wirelessly to a cloud system through multiple devices, facilitating vehicle-to-vehicle interaction; consequently, the rising demand for autonomous vehicles increases the need for the automotive IoT market. For instance, in June 2024, a Us-based open-access repository reported that 18.43 million new cars will feature hands-free driving automation in 2024, with 95% of new vehicles expected to achieve high or full automation by 2030. Therefore, the increasing demand for autonomous vehicles propels the automotive IoT market growth.
Exploring The Automotive IOT Market Through Its Key Segments
The automotive iot market covered in this report is segmented –
1) By Offering: Hardware, Software, Services
2) By Connectivity: Embedded, Tethered, Integrated
3) By Application: Infotainment, Fleet Management, Predictive Maintenance, Vehicle Security, Other Applications
4) By End User: Original Equipment Manufacturers, Aftermarket
Subsegments:
1) By Hardware: IoT Sensors, Connectivity Devices, On-Board Units (OBUs), Vehicle Telematics Devices
2) By Software: Fleet Management Software, Vehicle Tracking Software, Predictive Maintenance Software, Data Analytics Platforms, Vehicle-To-Everything (V2X) Communication Software
3) By Services: Consulting Services, Integration Services, Maintenance And Support Services, Cloud Services, Data Management Services
New Trends Redefining Competition In The Automotive IOT Market
Leading companies in the automotive IoT industry are adopting a strategic alliance approach to furnish essential communication services to individuals, enterprises, and governments. Strategic partnerships represent a process where companies leverage each other’s strengths and resources to achieve mutual benefits and success. For instance, in August 2023, HyundAI Mobis Co., a South Korea-based car parts company, formed a partnership with Autotalks Ltd., an Israel-based chipset maker company. Through this collaboration, they aim to develop innovative 5G network-based vehicle-to-everything (V2X) integrated control technology to improve the safety of autonomous vehicles. 5G V2X is crucial for self-driving, allowing unmanned vehicles to perceive their surroundings and manage motion.
Automotive IOT Market Competition: Key Players And Industry Participants
Major companies operating in the automotive iot market are Texas Instruments Incorporated; NXP Semiconductors N. V.; Intel Corporation; TomTom N. V.; Cisco Systems Inc.; Microsoft Corporation; International Business Machines Corporation; Google LLC; AT&T Inc.; Apple Inc.; Robert Bosch GmbH; Harman International Industries Inc.; Infineon Technologies AG; Octo Group S. p. A.; Alibaba Group Holding Limited; Huawei Technologies Co. Ltd.; Orange SA; Aeris Communications Inc.; KORE Wireless Group Inc.; Eurotech S. p. A.; STMicroelectronics N. V.; Sierra Wireless Inc.; Verizon Communications Inc.; Telefónica S. A.; Mitsubishi Electric Corporation; Tech Mahindra Ltd.
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Automotive IOT Market Regional Overview: Largest Market And Global Coverage
North America was the largest region in the automotive IoT market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive iot market report are 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.
