Connected and Autonomous Mobility Vehicles Market Report 2026

The connected and autonomous mobility vehicles market size has grown exponentially in recent years. It will grow from $288.85 billion in 2025 to $408.41 billion in 2026 at a compound annual growth rate (CAGR) of 41.4%. The growth in the historic period can be attributed to early development of driver assistance systems, rise in connected car technologies, increasing investments in autonomous r&d, growth of electric vehicle infrastructure, expanding regulatory support for automation.

The connected and autonomous mobility vehicles market size is expected to see exponential growth in the next few years. It will grow to $1.68 trillion in 2030 at a compound annual growth rate (CAGR) of 42.6%. The growth in the forecast period can be attributed to increasing demand for autonomous logistics, rising adoption of smart city mobility solutions, growth of robo taxi deployments, advancements in AI driven navigation, expansion of commercial autonomous fleets. Major trends in the forecast period include growing integration of advanced sensor fusion systems, rising deployment of vehicle to everything (v2x) communication, increased adoption of autonomous fleet solutions, expansion of real time mapping and perception technologies, growth in safety redundancy and fail safe system designs.

The increasing incidence of road accidents is anticipated to drive the growth of the connected and autonomous mobility vehicles market in the coming years. A road accident is defined as an incident resulting in property damage or personal injury that occurs in areas designated for public transportation or frequently used for transportation, involving at least one moving vehicle. Connected and autonomous vehicles (CAVs) leverage their connectivity and automation capabilities to help prevent and mitigate road accidents by executing evasive maneuvers, monitoring driver attention, and taking control of the vehicle when the driver is not attentive. For instance, in December 2023, the World Health Organization, a Switzerland-based intergovernmental organization, reported approximately 1.19 million road traffic deaths worldwide, with the European Union noting about 20,400 fatalities, a slight rise from 20,196 in 2022. Consequently, the increasing number of road accidents is propelling the growth of the connected and autonomous mobility vehicle market.

Major companies in the connected and autonomous mobility vehicles market are strategically focusing on introducing third-generation autonomous driving systems to gain a competitive advantage. Third-generation autonomous driving systems are capable of performing all aspects of driving autonomously under specific conditions and in defined environments, such as highway driving. In March 2023, May Mobility launched its third-generation autonomous driving system, equipped with advanced sensors for improved object detection, enhanced communication systems, and multiple safety features. This system aims to ensure vehicle and passenger safety in various situations, contributing to the market's growth.

In June 2025, NXP Semiconductors N.V., a Europe-based provider of automotive processing and networking solutions, acquired TTTech Auto GmbH for an undisclosed amount. This acquisition strengthens NXP’s position in software-defined vehicles, expands its portfolio with safety-critical middleware and system software for connected and autonomous vehicles, and accelerates the company’s capabilities in developing next-generation automotive software architectures. TTTech Auto GmbH is an Austria-based company that specializes in providing safety-critical middleware, system software, and architectures for software-defined vehicles, supporting connected and autonomous mobility.

Major companies operating in the connected and autonomous mobility vehicles market are Microsoft Corporation, General Motors (GM), Mercedes-Benz Group AG, Ford Motor Company, Bayerische Motoren Werke AG (BMW), SAIC Motor Corp. Ltd., Tesla Inc., Nissan Motor Co. Ltd., Intel Corporation, BYD Co. Ltd., Groupe Renault, The Volvo Group, Magna International Inc., Uber Technologies Inc., ABB Ltd., Nvidia Corporation, Jaguar Land Rover Automotive PLC, Didi Chuxing Technology Co. Ltd., Baidu Inc., Aptiv plc, Porsche Automobil Holding SE, Lyft Inc., Motional, Aurora Innovation Inc., SAE International, Nuro Inc., Argo AI, AutoX Inc., Swift Navigation, Nauto.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on sensors, semiconductor components, and communication modules essential for connected and autonomous mobility vehicles have raised manufacturing and integration costs, particularly affecting regions reliant on Asian imports. High end systems such as V2X modules and perception sensors face the greatest tariff exposure. However, tariffs are encouraging domestic manufacturing, localized supply chains, and increased innovation in cost optimized autonomous driving technologies, offering partial long term benefits to the market.

The connected and autonomous mobility vehicles market research report is one of a series of new reports that provides connected and autonomous mobility vehicles market statistics, including connected and autonomous mobility vehicles industry global market size, regional shares, competitors with a connected and autonomous mobility vehicles market share, detailed connected and autonomous mobility vehicles market segments, market trends and opportunities, and any further data you may need to thrive in the connected and autonomous mobility vehicles industry. This connected and autonomous mobility vehicles market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Connected and autonomous mobility vehicles (CAVs) are vehicles capable of communicating with each other and the surrounding infrastructure, functioning without human intervention. These vehicles come equipped with an array of sensors, communication technologies, and artificial intelligence, enabling them to perceive their environment, interpret sensory data, and operate autonomously.

The automation levels in connected and autonomous mobility vehicles encompass level 1, level 2, level 3, level 4, and level 5. Level 1 automation comprises basic driver assistance features that can manage specific driving aspects but necessitate the driver's overall control and attentiveness. Semi-autonomous and fully autonomous propulsion systems are utilized by passenger cars and commercial vehicles, serving civil, defense, transportation and logistics, and construction purposes.North America was the largest region in the connected and autonomous mobility vehicles market in 2025. The regions covered in the connected and autonomous mobility vehicles market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the connected and autonomous mobility vehicles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The connected and autonomous mobility vehicles market consists of revenues earned by entities by providing services such as traffic management, fleet management, safety, and personal mobility. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected and autonomous mobility vehicles market consists of sales of navigation devices, light detection and ranging systems, cameras, and RADAR systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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