A connected car is a vehicle equipped with internet access and communication technologies that allow it to interact with external devices, systems, and networks. These cars can share data with other vehicles, infrastructure, and cloud services, providing features like real-time navigation, remote diagnostics, safety alerts, and infotainment, enhancing both the driving experience and overall vehicle functionality.
The sales of connected cars are expected to grow significantly in the coming years, driven by several technological advancements and shifting consumer expectations. One key factor is the increasing demand for enhanced safety features. Connected cars enable real-time communication between vehicles and infrastructure, leading to features like automatic emergency braking, lane-keeping assistance, and collision avoidance systems, which are becoming standard in modern vehicles. By 2030, more than 90% of new vehicles sold in developed markets will include some form of connectivity.
Additionally, the rapid expansion of 5G networks is creating a stronger foundation for connected cars. The ultra-low latency and higher bandwidth of 5G allow for faster data transmission, supporting the growing use of vehicle-to-everything (V2X) communication, crucial for the development of autonomous driving. As these technologies mature, more consumers will demand vehicles that can leverage these capabilities, further boosting sales.
Consumer preferences are also shifting towards infotainment and in-car connectivity. Automakers are responding by integrating advanced infotainment systems in a wider range of models, catering to tech-savvy consumers. Moreover, the adoption of electric vehicles (EVs) is rising, and these vehicles are often paired with advanced connected technologies to optimize performance, battery management, and navigation to charging stations. As governments push for greater EV adoption through incentives and stricter emission regulations, connected EVs will contribute to the overall rise in connected car sales. Such factors create a strong foundation for sustained growth in the connected car market over the coming years.
The advancement of autonomous driving technologies is significantly driving the demand for connected cars. As automakers and tech companies invest heavily in developing self-driving systems, the need for robust connectivity becomes increasingly critical. Autonomous vehicles rely on real-time data exchange to navigate complex environments, avoid obstacles, and ensure passenger safety. This requires constant communication with other vehicles, infrastructure, and cloud services, thus highlighting the importance of connected technology.
As consumers become more aware of the benefits of autonomous driving, their interest in connected cars grows. Features such as adaptive cruise control, lane-keeping assistance, and automated parking are in the initial phase of autonomous capabilities; full autonomy is expected to transform personal mobility strongly.
Connected cars not only enhance the functionality of these features but also provide essential updates and improvements through over-the-air software updates, making them more appealing to potential buyers.
In addition, the integration of connected systems allows for the development of advanced safety protocols, reassuring consumers about the reliability of autonomous technology. With government regulations driving safer and more efficient transportation standards, the market is expected to have a significant growth. The combination of rising consumer interest, technological advancements, and regulatory support positions connected cars as a key player in the future of transportation, is further fueling the demand for autonomous driving technologies.
As foundational mobile technology, 3G is witnessing increased sales due to its role in connecting older vehicles to basic services such as emergency calls and navigation. While it may not support high-bandwidth applications, many consumers still own vehicles equipped with 3G technology. The growing demand for retrofitting existing vehicles with connectivity solution keeps this segment relevant. Additionally, some regions are gradually expanding their 3G infrastructure to improve mobile coverage, facilitating better service access. Consequently, manufacturers and service providers can capitalize on this demand, leading to sustained growth in the 3G technology segment as consumers prioritize connectivity in their vehicles.
The 5G segment is expected to witness growth as it offers unprecedented data speeds, low latency, and massive connectivity potential for connected cars. This technology enables advanced applications such as autonomous driving, vehicle-to-everything (V2X) communication, and real-time data sharing, which are becoming increasingly essential in the automotive industry. The shift from 3G to 5G technology is driving the growth of connected car sales. With 5G expected to provide ultra-low latency and faster data transfer, automakers are increasingly integrating this technology into their vehicles. According to the 5G Automotive Association, the 5G connections in vehicles are projected to reach more than 400 million globally by 2025, enhancing features like real-time navigation and vehicle-to-everything communication.
The connected car market is segmented on the basis of technology, connectivity solution, service, sales channel, and region. On the basis of technology, the market is classified into 3G, 4G/LTE, and 5G. On the basis of connectivity solution, the market is categorized into integrated, embedded, and tethered. On the basis of service, the market is categorized into driver assistance, safety, entertainment, well-being, vehicle management, and mobility management. On the basis of sales channel, the market is divided into OEM, and aftermarket. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, Latin America. and Middles East & Africa. The key players in the connected car market are AT&T, Audi, Continental AG, Ford Motor Company, Harman International, Intellias Ltd, Qualcomm Technologies, Inc., Robert Bosch GmbH, TomTom International BV, Verizon, and Visteon.
The sales of connected cars are expected to grow significantly in the coming years, driven by several technological advancements and shifting consumer expectations. One key factor is the increasing demand for enhanced safety features. Connected cars enable real-time communication between vehicles and infrastructure, leading to features like automatic emergency braking, lane-keeping assistance, and collision avoidance systems, which are becoming standard in modern vehicles. By 2030, more than 90% of new vehicles sold in developed markets will include some form of connectivity.
Additionally, the rapid expansion of 5G networks is creating a stronger foundation for connected cars. The ultra-low latency and higher bandwidth of 5G allow for faster data transmission, supporting the growing use of vehicle-to-everything (V2X) communication, crucial for the development of autonomous driving. As these technologies mature, more consumers will demand vehicles that can leverage these capabilities, further boosting sales.
Consumer preferences are also shifting towards infotainment and in-car connectivity. Automakers are responding by integrating advanced infotainment systems in a wider range of models, catering to tech-savvy consumers. Moreover, the adoption of electric vehicles (EVs) is rising, and these vehicles are often paired with advanced connected technologies to optimize performance, battery management, and navigation to charging stations. As governments push for greater EV adoption through incentives and stricter emission regulations, connected EVs will contribute to the overall rise in connected car sales. Such factors create a strong foundation for sustained growth in the connected car market over the coming years.
The advancement of autonomous driving technologies is significantly driving the demand for connected cars. As automakers and tech companies invest heavily in developing self-driving systems, the need for robust connectivity becomes increasingly critical. Autonomous vehicles rely on real-time data exchange to navigate complex environments, avoid obstacles, and ensure passenger safety. This requires constant communication with other vehicles, infrastructure, and cloud services, thus highlighting the importance of connected technology.
As consumers become more aware of the benefits of autonomous driving, their interest in connected cars grows. Features such as adaptive cruise control, lane-keeping assistance, and automated parking are in the initial phase of autonomous capabilities; full autonomy is expected to transform personal mobility strongly.
Connected cars not only enhance the functionality of these features but also provide essential updates and improvements through over-the-air software updates, making them more appealing to potential buyers.
In addition, the integration of connected systems allows for the development of advanced safety protocols, reassuring consumers about the reliability of autonomous technology. With government regulations driving safer and more efficient transportation standards, the market is expected to have a significant growth. The combination of rising consumer interest, technological advancements, and regulatory support positions connected cars as a key player in the future of transportation, is further fueling the demand for autonomous driving technologies.
As foundational mobile technology, 3G is witnessing increased sales due to its role in connecting older vehicles to basic services such as emergency calls and navigation. While it may not support high-bandwidth applications, many consumers still own vehicles equipped with 3G technology. The growing demand for retrofitting existing vehicles with connectivity solution keeps this segment relevant. Additionally, some regions are gradually expanding their 3G infrastructure to improve mobile coverage, facilitating better service access. Consequently, manufacturers and service providers can capitalize on this demand, leading to sustained growth in the 3G technology segment as consumers prioritize connectivity in their vehicles.
The 5G segment is expected to witness growth as it offers unprecedented data speeds, low latency, and massive connectivity potential for connected cars. This technology enables advanced applications such as autonomous driving, vehicle-to-everything (V2X) communication, and real-time data sharing, which are becoming increasingly essential in the automotive industry. The shift from 3G to 5G technology is driving the growth of connected car sales. With 5G expected to provide ultra-low latency and faster data transfer, automakers are increasingly integrating this technology into their vehicles. According to the 5G Automotive Association, the 5G connections in vehicles are projected to reach more than 400 million globally by 2025, enhancing features like real-time navigation and vehicle-to-everything communication.
The connected car market is segmented on the basis of technology, connectivity solution, service, sales channel, and region. On the basis of technology, the market is classified into 3G, 4G/LTE, and 5G. On the basis of connectivity solution, the market is categorized into integrated, embedded, and tethered. On the basis of service, the market is categorized into driver assistance, safety, entertainment, well-being, vehicle management, and mobility management. On the basis of sales channel, the market is divided into OEM, and aftermarket. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, Latin America. and Middles East & Africa. The key players in the connected car market are AT&T, Audi, Continental AG, Ford Motor Company, Harman International, Intellias Ltd, Qualcomm Technologies, Inc., Robert Bosch GmbH, TomTom International BV, Verizon, and Visteon.
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Key Market Segments
By Technology
- 4G/LTE
- 5G
- 3G
By Connectivity Solutions
- Integrated
- Embedded
- Tethered
By Service
- Driver assistance
- Safety
- Entertainment
- Well-being
- Vehicle management
- Mobility management
By Sales Channel
- OEM
- Aftermarket
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Russia
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- TomTom International BV
- Robert Bosch GmbH
- Continental AG
- HARMAN International
- Visteon Corporation
- Verizon
- AT&T
- AUDI AG
- Ford Motor Company
- Qualcomm Technologies, Inc.
- Intellias
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CONNECTED CAR MARKET, BY TECHNOLOGY
CHAPTER 5: CONNECTED CAR MARKET, BY CONNECTIVITY SOLUTIONS
CHAPTER 6: CONNECTED CAR MARKET, BY SERVICE
CHAPTER 7: CONNECTED CAR MARKET, BY SALES CHANNEL
CHAPTER 8: CONNECTED CAR MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- TomTom International BV
- Robert Bosch GmbH
- Continental AG
- HARMAN International
- Visteon Corporation
- Verizon
- AT&T
- AUDI AG
- Ford Motor Company
- Qualcomm Technologies, Inc.
- Intellias
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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