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Connected Cars Market Forecast: What Market Value Is Expected By 2030?
The market for connected vehicles has experienced swift expansion over the past few years. Projections indicate that its value will rise from $105.67 billion in 2025 to $121.23 billion in 2026, reflecting a compound annual growth rate (CAGR) of 14.7%. This historical growth has been driven by factors including the widespread uptake of infotainment systems, increasing consumer preference for smartphone integration, the proliferation of vehicle sensors, the broadening scope of telematics, and the ongoing digital transformation of the automotive sector.
Projections for the connected cars market indicate swift expansion in the coming years, with an anticipated value of $214.42 billion by 2030, equating to a compound annual growth rate (CAGR) of 15.3%. This upward trajectory during the forecast period is driven by factors such as the development of autonomous vehicle roadmaps, the emergence of smart mobility ecosystems, the shift toward software-defined vehicles, requirements for electric vehicle connectivity, and the rise of data-driven mobility services. Key trends shaping this period encompass the proliferation of embedded connectivity platforms, broader integration of advanced driver-assistance systems (ADAS), growing emphasis on real-time vehicle diagnostics, the expansion of in-car digital services, and the increasing uptake of vehicle-to-everything (V2X) communication technology.
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Connected Cars Market Growth Drivers: What Factors Are Accelerating Expansion?
The growing prevalence of autonomous vehicles is anticipated to drive expansion in the connected cars market moving forward. Autonomous vehicles, also known as self-driving cars or driverless automobiles, are fitted with cutting-edge sensors, artificial intelligence (AI) systems, and various technologies that allow them to function and navigate without requiring direct human intervention. Connected cars provide a critical foundation for the advancement and operation of autonomous vehicles by enabling data sharing, improving route guidance, boosting safety, and delivering the necessary support and infrastructure for self-driving cars to operate effectively and safely on roadways. For example, in 2023, the National Academies Press, a US-based government publisher, reported that self-driving vehicles are rapidly approaching commercial availability in global markets, and by 2035, 40% of new cars in the UK could possess self-driving capabilities. Consequently, the rise of autonomous vehicles is fueling growth in the connected cars market.
Connected Cars Market Segment Analysis And Revenue Opportunities
The connected cars market covered in this report is segmented –
1) By Product Type: Embedded, Tethered, Integrated
2) By Application: Navigation, Infotainment, Telematics, Combination
3) By Services: Driver Assistance, Safety and Well-Being, Entertainment, Vehicle Management, Mobility Management, Other Services
Subsegments:
1) By Embedded: OEM Embedded Systems, Aftermarket Embedded Systems
2) By Tethered: Smartphone Tethering, Mobile Hotspot Tethering
3) By Integrated: Infotainment Systems, Advanced Driver-Assistance Systems (ADAS), Vehicle-to-Everything (V2X) Communication
Connected Cars Market Trends Driving Strategic Industry Expansion
Leading players in the connected car market are concentrating on advancing technology, particularly through the creation of comprehensive digital vehicle profiles, which aim to improve data transparency, ownership verification, and overall lifecycle management. These profiles act as secure, centralized records that compile a vehicle’s entire history, encompassing manufacturing details, service and maintenance logs, accident records, and ownership changes. A notable example from May 2025 is Hyundai India, an automotive manufacturer based in India, which introduced a vehicle digital passport for its clientele. This digital passport is designed to boost data accessibility, ensure greater transparency in used car transactions, streamline aftersales service operations, and build stronger trust among manufacturers, dealers, and vehicle owners. Ultimately, this drives innovation and accelerates digital transformation within the automotive industry.
#Connected Cars Market Industry Leaders: Which Organizations Are Driving Competition?
Major companies operating in the connected cars market report include Volkswagen, Toyota Motor Corporation, General Motors, Daimler AG, BMW Group, Ford Motor Company, Honda Motor Co Ltd, Hyundai Motor Group, Tesla, Renault, Tata Motors Limited, Mahindra and Mahindra Ltd., NIO Inc., XPeng Inc., Geely Automobile Holdings Limited, Nissan Motor Co., Ltd., Mitsubishi Motor Corporation, Audi AG, Fiat Chrysler Automobiles, Mercedes-Benz, SAIC Motor, Dongfeng, FAW, Changan Automobile, Beijing Automotive Group, Brilliance Automotive, Guangzhou Automobile Group, Chery Automobile, Jianghuai Automobile Group (JAC), Stellantis, Jaguar Land Rover, Suzuki Auto South Africa, GAZ Group, Kamaz
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Connected Cars Market Geographic Landscape: Which Region Dominates Industry Growth?
Asia-Pacific was the largest region in the connected cars market share in 2025. Western Europe was the second largest region in the global connected cars market. The regions covered in the connected cars 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.