>
>

Connected Vehicle Technology Market Size - By Technology, By Vehicle, By Application, By End Use, Share, Growth Forecast, 2025 - 2034

Download Free PDF

Connected Vehicle Technology Market Size

The global connected vehicle technology market size was valued at USD 35.9 billion in 2024 and is projected to grow at a CAGR of 10.9% between 2025 and 2034. The rise in incentives, such as tax credits for the integration of safety habits or automobile subsidies, has led many consumers and manufacturers to engage in the latest vehicle tech.
 

Connected Vehicle Technology Market

As a direct result, countries are starting to take action by introducing stricter regulations and incentives that push for increased use of connected vehicle technologies. Such a change can be regarded as a great advancement since it promotes the development of connected cars and smart cars which can be integrated firmly within the automotive online contact ecosystem. 

An example where the trend is observed is present in the actions taken by the Federal Communications Commission (FCC) when it supported C-V2X technology with the release of Second Report and Order in November 2024. This focus is meant to modernize vehicle construction and safety, guaranteeing active coordination from both the vehicle manufacturing industry and the government.
 

The connected vehicle technology market owes a great debt of gratitude to ever-growing consumers' expectations surrounding safety features that should be integrated into vehicles. Both sides of the market began putting more emphasis on safety, leading to the integration of advanced vehicle tech such as driver assistance systems and vehicle diagnostic tools. Emergency brakes, lane detectors, and collision avoidance systems are becoming standard features within vehicles, which has led to the increased demand for construction of smart automobiles that are able to ensure maximum safety for all of the passengers.
 

Connected Vehicle Technology Market Trends

  • Customization of the car experience through its digital ecosystems while in the car is also attracting traction. With consumers wanting to be more connected, the automotive industry is transitioning by enhancing their infotainment systems integration with existing applications for better vehicle-personal device interaction. These range from voice recognition, artificial intelligence-driven car assistants, and even targeted content recommendation systems.
     
  • Also, the usage of cloud computing in relation to performing big data analytics on driving information is being deployed to assist motorists with route suggestions, advice on driving style, and vehicle usage. These changes are resulting in the emergence of more advanced mobility services which are more productive and comfortable for the consumers.
     
  • Another important direction is the transition to electric vehicles (EVs), alongside improvements in charging solutions and interaction protocols with the electric grid. The automotive industry is shifting to more eco-friendly solutions, and tools such as vehicle-to-grid (V2G) and smart charging stations are becoming more essential.
     
  • The necessity for improved cybersecurity is also growing, given the increased vulnerability cyber systems have due to the linkages between vehicles, infrastructure, and cloud services. Consequently, a great deal of attention is paid to protection of vehicle system technologies and user information. These tendencies are reframing the connected vehicles scenario, paving way for the advancement of smart cities and better transportation systems across the globe.
     
  • The car industry today faces another privacy challenge as they look to expand into global markets. Owing to data recording and data transmitting technology in use today which includes details such as a driver’s drive style, locations and even biological data, a great wealth of force must be used to ensure that this information is protected from hacking attempts.
     
  • Automakers and technology providers must put security measures in place to prevent possible violations. Failure to do this may compromise consumer trust or previously agreed rigid government regulations. Moreover, the mass deployment of a connected vehicle infrastructure made up of sophisticated sensors, V2X systems and telematics infrastructure may also pose a challenge to such large-scale adoption.
     

Connected Vehicle Technology Market Analysis

Global Connected Vehicle Technology Market, By Technology, 2022 - 2034 (USD Billion)

In the market for connected vehicle technologies, the classification according to the type of technology used includes V2X communication and embedded systems, with the latter being the dominant technology in 2024.
 

  • As of 2024, approximately 80% of the share was held by the embedded systems segment; however, it is forecasted that constant growth will be experienced by the segment by the year 2034. This segment has the largest market share because of the overall integration of telematics, infotainment, and navigation systems in vehicles which is done at the factories of the manufacturers.
     
  • The surge in the number of sold electric vehicles and autonomous cars has also increased the demand for embedded gadgets. Moreover, there is a tendency towards cooperation between OEMs and technology providers to offer consistent and protective embedded architectures, which positively affects this market segment.
     
  • In addition to this trend, the demand for autonomous transportation technologies leads to the creation of new solutions on V2X devices such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications, which help solve the issues of efficient and safe traffic control systems. All of these technological innovations make the V2X communication segment one of the most promising fields in the growth of the market.
     
Global Connected Vehicle Technology Market Revenue Share, By End Use, 2024

In the connected vehicle technology market, the OEM and Aftermarket are the end-users, and OEM segment held market share of 73.8% in 2024. This is due to the increasing emphasis placed on the development of A3 information systems.
 

  • Vehicle manufacturers are embedding telematics, infotainment, and V2X communication systems into their cars to improve safety, performance and user experience. The integration of advanced technologies during the manufacturing process leads vehicle makers to meet the required standards, address the market demand for connectivity, and offer a higher standard of quality than the aftermarket-dominated system. All these reasons further make the OEM segment a prime factor for the growth of the market.
     
  • By the year 2034, the growth rate for the aftermarket segment is expected to rise exponentially. The rising demand for retrofitted older vehicles with plug-and-play telematics devices, fleet management systems, and V2X upgrades is the reason for skewed growth in the aftermarket segment.
     
  • The aftermarket solutions are economical and by using subscription-based models can be utilized by both standalone customers and bulk vehicle clientele. With cars getting older over time and the demands for old cars to be embedded with new technology continuing to rise, the aftermarket segment seems to be perfect to capture the market for vehicle amenities.
     
China Connected Vehicle Technology Market Size, 2022 - 2034 (USD Billion)

China is expected to lead the market for connected vehicle technology market and generate revenue of around USD 20 billion by 2034, and the trends also indicate positive growth in the market. Strong operations from the advertising industry, alongside multiple new vehicle sales being made are the pivotal aspects propelling growth in the graph.
 

  • Moreover, with the growing noise around emissions regulations and the increasing trend of consumers wanting high connectivity features in vehicles, the market for connected vehicles is increasing. Looking at the graph, it can be interpreted that Asia Pacific is aiding and providing resources to promote its automobile industry, hinting at growth for the vehicle technology integration. Furthermore, exposure in the market indicates growth in North America market primarily due to integration of advanced features in vehicles and augment in vehicle buyers.
     
  • More and more consumers nowadays are opting for larger vehicles, especially SUVs, even larger SUVs and trucks. These require superior communication and safety systems, thereby acting as a catalyst for the demand growth of connected vehicle technologies. Furthermore, growing concerns over safety, emissions, and technology integration have led to increased government regulation which, in turn, has triggered adoption of advanced connected vehicle solutions by automakers and enhanced the further expansion of this market.
     
  • EU is not only the largest market for connected vehicles and technologies but also the fastest growing region. Europe is believed to account for nearly 37% of the global connected car market.
     
  • In Europe, the connected vehicle technology market is primarily driven by the regulations relating to the environment which keep becoming more stringent as well as by the increase in the uptake rate of electric vehicles (EVs). In the EU, Let - M le 35, Article 1: 210/169 on integrated vehicle emission, is one of the measures aimed at combating climate change by promoting energy efficiency. The surge in electric vehicles, which require integrated vehicle to grid ICT communication and sophisticated dose of connectivity, are both contributing to an increase in supply of these technologies in that geography.
     

Connected Vehicle Technology Market Share

  • The connected vehicle technology industry in 2024 is expected to be dominated by Qualcomm Technologies, NXP Semiconductors, Continental, Infineon Technologies, and Denso Corporation to name a few.
     
  • These major players make a joint effort, combining their focus on connected vehicles with V2X, autonomous driving systems, telematics and the latest advanced technologies. In a market, expecting rapid growth, they integrate smart sensors, state-of-the-art HVAC systems and innovative engine technologies into vehicles.
     
  • As their services support the expansion of power connected vehicle systems, higher levels of connectivity and efficiency, the shifting automobile areas which they have touched upon only aid automotive electrification, thermal management, and vehicle electronics.
     

Connected Vehicle Technology Market Companies

Major players operating in the connected vehicle technology industry are:

  • Aptiv
  • Cisco
  • Denso
  • Ericsson
  • Harman
  • Intel
  • Microsoft
  • NXP Semiconductors
  • Qualcomm
  • Waymo
     
  • The competitive dynamic in the connected vehicle market incorporates both worldwide and regional players. Global companies utilize their large assets, large development capabilities, and a wide range of products to meet diverse geographic needs of customers.
     
  • In addition, a sufficient subset of these firms expands their technological capabilities and market coverage through strategic mergers and partnerships to drive market innovation. These international companies are also expanding in providing state-of-the-art solutions, which include AI-managed telematics, advanced safety systems, and over-the-air updates, giving them a stronghold as leaders in the industry.
     
  • On the other hand, local companies offer strategies with regional understanding of the market, providing complementary products including software, IC elements, and raw materials to address unique regional market needs. Most of these companies do well to design and implement products and services intended for domestic markets, which conform to country-specific requirements and cultural diversity.
     
  • However, this gulf in competitiveness is diminishing as local companies are increasingly joining the merger and acquisition trend to increase their technological edge to contend with the global companies.
     

Connected Vehicle Technology Market News

  • In November 2024, Hyundai Motor Group and Samsung Electronics joined forces in a bid to enhance connected vehicle technology with a special emphasis on software defined vehicles. The aim of the partnership is to utilize Samsung’s SmartThings ecosystem in order to offer customers of Hyundai and Kia, AI-based infotainment products for the vehicle. The venture will also introduce SmartThings Find for tracking the location of vehicles and direct integration to in-home devices to a connected SmartThings ecosystem.
     
  • In September 2024, Verizon Business partnered with Vay Technology in order expand Vay’s electric vehicles teleoperation fleet network in Las Vegas. This expansion is in tandem to the low latency of Verizon’s broadcast which bolsters Vay’s innovative teleoperated vehicles car-sharing service where people order a car through an app and a Vay driver remotely travels the car to them.
     
  • In March 2024, Applied Information, Audi, and HAAS Alert unveiled the first application of Cellular Vehicle to Everything (C-V2X) technology for requesting green traffic signals for passenger vehicles on public roads. The technology tested on Audi e-tron and RAM pickup truck reduces the need for vehicles to stop at intersections which minimizes emission and maintenance costs. It is an innovative application which interacts with traffic light systems using the TravelSafely application to enhance safety and efficiency of traffic light systems without restricting movement of vehicles.
     

The Connected Vehicle Technology market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

Market, By Technology

  • V2X communication
  • Embedded system

Market, By Vehicle

  • Passenger cars
    • Hatchback
    • Sedan
    • SUV
  • Commercial vehicle
    • Light Commercial Vehicles (LCVs)
    • Heavy Commercial Vehicles (HCVs)
  • Electric Vehicles (EVs)

Market, By Application

  • Autonomous driving
  • Mobility as a Service (MaaS)
  • Infotainment
  • Fleet management
  • Safety and security
  • Vehicle diagnostics and maintenance

Market, By End use

  • OEMs
  • Aftermarket

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa

 

Authors: Preeti Wadhwani,
Frequently Asked Question(FAQ) :
Who are some of the prominent players in the connected vehicle technology industry?
Key players in the market include Aptiv, Cisco, Denso, Ericsson, Harman, Intel, Microsoft, NXP Semiconductors, Qualcomm, and Waymo.
How big is the connected vehicle technology market?
How much is the connected vehicle technology market in China worth?
Why is the OEM segment dominating the connected vehicle technology industry?
Connected Vehicle Technology Market Scope
  • Connected Vehicle Technology Market Size
  • Connected Vehicle Technology Market Trends
  • Connected Vehicle Technology Market Analysis
  • Connected Vehicle Technology Market Share
Related Reports
    Authors: Preeti Wadhwani,
    Buy Now
    $4,123 $4,850
    15% off
    $4,840 $6,050
    20% off
    $5,845 $8,350
    30% off
        Buy now
    Premium Report Details

    Base Year: 2024

    Companies covered: 20

    Tables & Figures: 200

    Countries covered: 21

    Pages: 180

    Download Free PDF

    Top