Connected Car Devices Market Report 2026

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.

The rising adoption of electric vehicles is expected to drive the growth of the connected car devices market going forward. Electric vehicles (EVs) are powered by one or more electric motors, using energy stored in rechargeable batteries or generated by onboard fuel cells. Their adoption is increasing due to stringent emissions regulations, growing awareness of environmental benefits, and cost efficiency. Connected car devices in EVs enable remote monitoring of battery status, vehicle charging, and energy consumption, while providing real-time navigation updates tailored for electric vehicles, enhancing efficiency and user experience. For instance, in 2024, according to the International Energy Agency, a France-based intergovernmental organization, electric vehicle sales in 2023 increased by 3.5 million units over 2022, representing a 35% year-on-year growth. Therefore, the rising adoption of electric vehicles is propelling the connected car devices market.

Major companies in the connected car devices market are focusing on technological advancements such as intelligent vehicle communication platforms to improve road safety, traffic efficiency, and connectivity. These platforms enable vehicles to exchange data with other vehicles, infrastructure, pedestrians, and networks, optimizing driving conditions and reducing accidents. For instance, in April 2025, Verizon Business, a US-based telecommunications company, launched a Vehicle-to-Everything connected-driving platform for multiple customers. The platform integrates advanced connectivity, real-time analytics, and security features, supporting safer, more efficient, and connected driving experiences. Leveraging its network infrastructure and cloud capabilities, Verizon’s solution allows scalable deployment across fleet operators, smart cities, and automotive OEMs, accelerating global adoption of connected mobility solutions.

In June 2025, NXP Semiconductors, a Netherlands-based semiconductor manufacturer, acquired TTTech Auto for an undisclosed amount. This acquisition aims to accelerate the shift to software-defined vehicles, expand NXP’s automotive product portfolio, strengthen capabilities in advanced vehicle control systems, and drive innovation in the automotive semiconductor market. TTTech Auto, based in Austria, specializes in the development and commercialization of advanced automotive software and hardware solutions.

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.

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. The countries covered in the connected car devices market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The connected car devices market consists of revenues earned by entities by providing services such as infotainment solutions, safety and security, vehicle-to-everything (V2X), remote control, data analytics and fleet management. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected car devices market also includes sales of telematics devices, on-board diagnostics devices, embedded communication modules, dashcams and security 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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