The connected car market, valued at USD 63.44 billion in 2025, is projected to hit USD 131.87 billion by 2030, growing at a 15.76% CAGR. Automakers integrate advanced telematics & consumers embrace seamless in-vehicle digital experiences and safety features.
Hyderabad, India, Nov. 12, 2025 (GLOBE NEWSWIRE) — The connect car market’s rapid expansion highlights the industry’s transformation from traditional hardware to software-defined vehicles designed as intelligent, connected platforms. Growth is fuelled by 5G rollout, data-driven services, and new safety regulations, while evolving cybersecurity laws and localized manufacturing strategies continue to shape global supply networks. A mix of automakers, chipmakers, and cloud providers competing for connectivity dominance keeps the connected car market dynamic and innovation driven.
Regional Insights
Asia-Pacific dominates the connected car landscape, supported by proactive government initiatives, a strong electric vehicle ecosystem, and advanced connectivity networks. Favorable policies, mature supply chains, and rapid 5G expansion across major cities continue to strengthen the region’s leadership in connected mobility.
The Middle East is emerging as a key growth hub for connected vehicles, driven by national electrification goals and strong government support for smart mobility. Affordable energy, large-scale infrastructure projects, and increasing adoption of feature-rich connected models are accelerating market momentum across the region.
Market Dynamics and Growth Drivers
Rising Usage-Based Insurance Demand Drives Embedded Data Adoption
Insurers are increasingly turning to telematics for refining risk assessment and offer customized premiums based on driving behavior. Heightened regulatory attention on data privacy has prompted stricter consent and transparency standards. Automakers are reinforcing cybersecurity and governance measures to balance real-time data use with consumer trust and compliance expectations.
Stricter Regulations Drive eCall and Safety Telematics Adoption
The next-generation eCall system transitions emergency response connectivity to faster 4G and 5G networks, improving reliability and coverage. Early implementation has shown better urban response times, though rural coverage still poses challenges. Policy alignment between regions, such as the EU and UK, supports smoother technology upgrades, while new safety initiatives in the United States highlight a growing global focus on connected emergency communication systems.
Segmentation Landscape
By Technology Type
- 5G / C-V2X
- 4G / LTE
- 3G
- 2G
By Application
- Driver Assistance (ADAS)
- Safety & Security
- Telematics & Diagnostics
- Infotainment & HMI
- Mobility & Fleet Management
- Over-the-Air (OTA) Updates
By Connectivity
- Integrated
- Embedded
- Tethered
By Vehicle Connectivity
- Vehicle-to-Vehicle (V2V)
- Vehicle-to-Infrastructure (V2I)
- Vehicle-to-Pedestrian (V2P)
- Vehicle-to-Cloud (V2C)
- Vehicle-to-Grid (V2G)
By Car Type
- Hatchback
- Sedan
- SUVs / MUVs
By End Market
- OEM-Fitted
- Aftermarket
Connected Car Companies
- Continental AG
- Robert Bosch GmbH
- Harman International (Samsung)
- Denso Corporation
- Qualcomm Technologies
- Visteon Corporation
- Aptiv PLC
- Tesla Inc.
- General Motors (OnStar)
- Ford Motor Company
- BMW Group
- Daimler Truck / Mercedes-Benz Group
- Toyota Motor Corporation
- Hyundai Motor Group
- Panasonic Automotive
- NXP Semiconductors
- Verizon Communications
- AT&T
- Vodafone Automotive
- Cerence Inc.
- Airbiquity
- Geotab
Industry Related Reports by Mordor Intelligence
Automotive Artificial Intelligence Market: The automotive AI market is estimated at USD 4.98 billion in 2025 and is projected to reach USD 15.08 billion by 2030, registering a CAGR of approximately 24.7% during the forecast period. Growth is being driven by rising deployment of software‑defined vehicles, mandatory advanced driver‑assistance system (ADAS) requirements in major markets, falling costs of automotive‑grade AI compute, and the shift from mechanical hardware to algorithm‑driven vehicle features.
Connected Motorcycle Market: The connected motorcycle market is estimated at USD 96.31 million in 2025 and is projected to reach USD 582.11 million by 2030, registering a compound annual growth rate (CAGR) of approximately 43.31% during the forecast period. Growth is being driven by the rapid roll‑out of 5G networks, rising adoption of eSIM‑enabled telematics in two‑wheelers.
Get More information: https://www.mordorintelligence.com/industry-reports/connected-motorcycle-market?utm_source=Globenewswire
Autonomous Driving Software Market: The autonomous driving software market is estimated at USD 2.29 billion in 2025 and is projected to reach USD 4.38 billion by 2030, registering a compound annual growth rate (CAGR) of approximately 13.83% over the forecast period. Growth is being driven by stricter advanced driver‑assistance regulations, rapidly falling sensor and compute costs, and the shift by automakers toward software‑defined vehicle platforms that emphasise perception, prediction and decision‑making layers.
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