Connected Car Market Projected to reach $26.4 billion by 2030

The global connected car market is projected to grow from USD 12.4 Billion in 2024 to USD 26.4 Billion by 2030 at a CAGR of 13.3%. The connected car market is experiencing exponential growth, driven by various factors. Foremost is the surging consumer demand for constant connectivity and reliance on technology, particularly among tech-savvy populations.

This insatiable need for connectivity is being met by rapid advancements in automotive technology, such as the rollout of 5G networks and AI-powered features. Governments are also playing a catalyzing role, with regulations like the US Department of Transportation's mandate for vehicle-to-vehicle communication technology in new cars. The popularity of automation, ridesharing, and mobility services is further propelling the connected car market. Finally, the increasing production and sales of vehicles, especially luxury models, supplement this dynamic sector's growth.

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Cellular Network is anticipated to be the fastest growing segment by network type during the forecast period”

As the cellular network plays a vital role in the rapid growth of the connected car market, driving innovation and creating new revenue streams for various stakeholders. One significant aspect contributing to expanding cellular networks in connected cars is the adoption of eSIMs (Embedded SIMs). These eSIMs enable seamless connectivity by connecting vehicles to multiple operators, enhancing security, and providing flexibility in selecting local operators based on the vehicle's location. By supporting the GSMA Embedded SIM Specification, the automotive sector has embraced a new era of connected cars, where vehicles can leverage cellular connectivity for a wide range of services, from navigation to remote diagnostics, transforming the driving experience and paving the way for advanced features like OTA updates and autonomous driving.

Moreover, integrating cellular networks in connected cars has opened new revenue opportunities and business models. Service providers leverage the vast data connected vehicles generate to offer innovative services and solutions. For instance, the data collected from connected cars can be utilized for various applications such as fleet management, in-vehicle entertainment, navigation, and advanced driver assistance services. This data-driven approach enhances the driving experience for consumers and enables service providers to create value-added services, optimize operations, and establish partnerships within the automotive ecosystem. By monetizing data and offering tailored services based on connectivity, service providers are transforming the connected car market into a lucrative sector with immense potential for growth and profitability.

The Aftermarket connected car Services segment holds the largest market share in the connected car market during the forecast period.

The aftermarket segment generates new revenue pockets for the connected car market by providing products and services that upgrade and enhance existing vehicles with advanced connectivity and performance features. In North America, this trend is driven by a tech-savvy consumer base and a high demand for connectivity enhancements. Companies like Verizon have capitalized on this with the Hum service, which offers a plug-in device that adds vehicle diagnostics, emergency assistance, and Wi-Fi hotspot capabilities to older cars. These aftermarket solutions allow consumers to enjoy modern connectivity features without purchasing new vehicles, creating lucrative opportunities for tech companies and service providers.

The rest of the World is estimated to be the second fastest-growing market for connected cars during the forecast period.

The countries considered in RoW are Argentina, Brazil, and Iran, where these countries are rapidly emerging regions in the connected car market, driven by rapid urbanization and a burgeoning middle class. More people are moving to urban areas in these regions, necessitating efficient and advanced transportation solutions. Connected car technologies significantly benefit traffic management, navigation, and safety, which are critical in densely populated cities. Some countries in this region have increasingly adopted this technology to address traffic congestion and reduce accidents. The expanding middle class in these regions is also more inclined to invest in advanced vehicle technologies, further accelerating market growth. Significant investments in automotive infrastructure by governments and private sector entities in the Middle East and Latin America are also propelling the growth of the connected car market. Countries like the United Arab Emirates (UAE) and Saudi Arabia invest heavily in innovative city initiatives, including developing intelligent transportation systems that integrate connected car technologies. These initiatives aim to improve traffic flow and enhance safety by seamlessly connecting vehicles with urban infrastructure. In Latin America, nations such as Brazil and Mexico focus on expanding telecommunications infrastructure to support the widespread use of connected cars. The rollout of 4G LTE and 5G networks in these regions ensures connected vehicles' reliable and efficient functioning.

Key Players

Major manufacturers in the connected car market include Continental AG (Germany), Robert Bosch GmbH (Germany), Harman International (US), Airbiquity (US), and Visteon (US).

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