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Connected Car Devices Market Growth Analysis: How Will Revenue Trend Over The Forecast Period?
The connected car devices market size has grown rapidly in recent years. It will grow from $93.25 billion in 2025 to $108.67 billion in 2026 at a compound annual growth rate (CAGR) of 16.5%. The growth in the historic period can be attributed to early adoption of gps systems, growth of telematics solutions, rise in vehicle electronics, demand for infotainment, regulatory safety mandates.
The connected car devices market size is expected to see rapid growth in the next few years. It will grow to $201.15 billion in 2030 at a compound annual growth rate (CAGR) of 16.6%. The growth in the forecast period can be attributed to autonomous driving development, smart city integration, 5G connectivity rollout, electric vehicle adoption, cybersecurity investments. Major trends in the forecast period include integration of advanced telematics devices, growth of v2x communication modules, rising demand for safety-focused connectivity, expansion of cloud-based vehicle services, adoption of over-the-air updates.
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Connected Car Devices Market Growth Drivers: What’s Behind The Acceleration?
The rising adoption of electric vehicles is expected to propel the growth of connected car devices market going forward. Electric vehicles (EVs) are automobiles that are powered by one or more electric motors, using electrical energy stored in rechargeable batteries or generated by an onboard fuel cell. Electric vehicle adoption is on the rise due to several factors, including stringent emissions regulations, growing awareness of the environmental benefits, and cost efficiency. Connected car devices in electric vehicles facilitate remote monitoring of battery status, vehicle charging, and energy consumption, while also delivering real-time navigation updates customized for EVs, thereby improving overall efficiency and user satisfaction. For instance, in 2024, according to the International Energy Agency is a France-based autonomous intergovernmental organization, electric vehicle sales in 2023 rose by 3.5 million units compared to 2022, marking a 35% year-on-year growth. Therefore, the rising adoption of electric vehicles is driving the growth of the connected car devices market.
Connected Car Devices Market Segments: Where Is Growth Concentrated?
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 Trends: What’s Defining The Industry’s Next Phase?
Major companies operating in the connected car devices market are focusing on developing technological advancements such as intelligent vehicle communication platforms to enhance road safety, traffic efficiency, and connectivity. These platforms enable vehicles to exchange data with other vehicles, infrastructure, pedestrians, and networks to optimize driving conditions and reduce accidents. For instance, in April 2025, Verizon Business, a US-based telecommunications and networking company, launched a Vehicle-to-Everything connected-driving platform with multiple customers. The platform integrates advanced connectivity, real-time analytics, and security features to enable safer, more efficient, and connected driving experiences. By leveraging its network infrastructure and cloud capabilities, Verizon’s solution supports scalable deployment across fleet operators, smart cities, and automotive OEMs, accelerating the adoption of connected mobility solutions globally.
Connected Car Devices Market Key Participants And Competitive Landscape
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: Which Geography Leads On Revenue?
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.
