Global Connected Car Devices Market Research Report By Technology (Telematics, Infotainment, V2X Communication, Advanced Driver Assistance Systems, Vehicle Diagnostics), By Type (Embedded Systems, Tethered Systems, Integrated Systems), By Application (Fleet Management, Insurance Telematics, In-Vehicle Entertainment, Navigation Systems), By End Use (Personal Vehicles, Commercial Vehicles, Public Transport) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Connected Car Devices Market Overview:

As per MRFR analysis, the Connected Car Devices Market Size was estimated at 78.26 (USD Billion) in 2023.The Connected Car Devices Market is expected to grow from 87.53(USD Billion) in 2024 to 300.0 (USD Billion) by 2035. The Connected Car Devices Market CAGR (growth rate) is expected to be around 11.85% during the forecast period (2025 - 2035).

Key Connected Car Devices Market Trends Highlighted

The evolution of the global connected car devices market is being shaped by a number of important factors. The use of connected car technology has expanded as a result of the growing need for improved driver convenience and safety features.

Customers are searching for cars with greater device connectivity, real-time traffic data, and sophisticated navigation. Also, manufacturers are being forced to incorporate increasingly complex hardware and software solutions due to the growing popularity of electric vehicles, which makes connected car gadgets an essential component of contemporary automobile design.

Road safety is increased and more individualized user experiences are made possible by the incorporation of IoT and machine learning technology into automobiles.

There are numerous opportunities to be explored within this expanding market. Automotive manufacturers and tech companies can collaborate to develop innovative solutions that enhance connectivity and drive usability.

The integration of artificial intelligence in connected car devices presents potential for predictive maintenance, personalized driving experiences, and seamless integration with smart city infrastructure.

Furthermore, the increasing awareness of environmental sustainability among consumers offers the potential for connected electric vehicle solutions that promote eco-friendly driving habits.

Recently, there has been a notable trend towards the development of over-the-air software updates, allowing vehicles to receive improvements and new features without needing to visit a dealership.

This capability enhances the ownership experience and encourages consumers to embrace newer technologies. Additionally, the rise of subscription-based models for connected features is changing the way consumers interact with their vehicles.

Car manufacturers are not just selling vehicles anymore but are providing ongoing services that make driving more enjoyable and convenient. The market continues to evolve, reflecting a shift in consumer expectations and technological advancements that promise to redefine how we think about transportation.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Connected Car Devices Market Drivers

Growing Demand for Vehicle Connectivity

The rapid advancement in technology has significantly driven the demand for vehicle connectivity, making it a crucial driver in the Global Connected Car Devices Market.

As vehicles become more sophisticated, consumers expect not only seamless connectivity but also enhanced safety features, entertainment options, and real-time information access. This trend is fueled by the increasing reliance on smartphones and portable devices, which have ingrained a culture of connectivity in daily life.

Consumers are looking for cars that can connect to their smart devices, offering navigation solutions, music streaming, and other app integrations that improve their driving experience.

This growing demand necessitates the integration of connected car devices, thus propelling market growth. Investing in innovative technologies that allow for smoother connectivity has become critical for car manufacturers aiming to remain competitive in today's market.

The shift towards electric and autonomous vehicles also enhances the necessity for connected car features, as these technologies often rely on robust connectivity for optimal performance.

Furthermore, the Global Connected Car Devices Market is benefitting from regulatory pressures aimed at improving vehicle safety and efficiency, leading manufacturers to invest heavily in connected technologies. With consumers increasingly valuing smart and connected solutions, the forecast for the market indicates significant potential in the coming years as these demands are met.

Increase in Automotive Cybersecurity Concerns

As connected cars become more prevalent, the levels of cybersecurity threats to vehicle systems have also risen sharply. This has prompted manufacturers and service providers in the Global Connected Car Devices Market to invest heavily in cybersecurity solutions.

Protecting sensitive data, including personal information and payment details, has become a top priority for the automotive sector. Consumers are becoming more aware of these risks and are seeking reassurance that their vehicles are equipped with the latest security technologies.

Enhancements in cybersecurity solutions are seen not only as a necessity but also as a competitive advantage in the market.

Rising Consumer Preference for Advanced Driver Assistance Systems (ADAS)

The increasing consumer preference for Advanced Driver Assistance Systems (ADAS) is a significant driver fueling the growth of the Global Connected Car Devices Market. As road safety becomes a growing concern, technologies that assist drivers in navigation, collision avoidance, and parking are gaining immense popularity.

These features, often integrated with connected car devices, enhance the overall driving experience, attracting more customers to invest in cars equipped with such advanced technologies. The rising demand for ADAS contributes positively to market growth as manufacturers prioritize the development and integration of these systems into their vehicles.

Connected Car Devices Market Segment Insights:

Connected Car Devices Market Technology Insights

The Global Connected Car Devices Market evolved rapidly, particularly within the Technology segment, which was poised for significant growth in the coming years. The Technology segment encompassed various critical areas, including Telematics, Infotainment, V2X Communication, Advanced Driver Assistance Systems, and Vehicle Diagnostics, each contributing uniquely to the overall market dynamics.

Among these, Telematics dominated the segment with a valuation of 25.0 USD Billion in 2024, bound to grow to 86.0 USD Billion by 2035. This technology facilitated communication between the vehicle and external systems, providing crucial data for navigation and safety, thus addressing the growing demand for smarter transportation solutions.

Infotainment also played a significant role, valued at 20.0 USD Billion in 2024 and projected to rise to 70.0 USD Billion by 2035, offering entertainment and information services that catered to consumer comfort and preferences, thereby enhancing the driving experience.

Furthermore, V2X Communication held a notable place with a valuation of 10.0 USD Billion expected to escalate to 40.0 USD Billion by 2035, which contributed to road safety and efficiency by enabling vehicles to communicate with each other and surrounding infrastructure.

Advanced Driver Assistance Systems (ADAS), valued at 20.0 USD Billion in 2024 and anticipated to reach 70.0 USD Billion by 2035, highlighted the importance of driver safety and automation technologies, making it a key focus area in the automotive sector.

Lastly, Vehicle Diagnostics, with a valuation of 12.53 USD Billion in 2024 poised to grow to 34.0 USD Billion by 2035, was integral in monitoring vehicle performance and ensuring timely maintenance, ultimately enhancing vehicle longevity and reliability.

Collectively, these segments formed a robust landscape for the Global Connected Car Devices Market, each addressing specific consumer needs and contributing to the overarching market growth through innovative technological solutions driven by consumer demand for safety, efficiency, and enhanced user experiences.

As the market continues to evolve, advancements in these areas will play a critical role in shaping the future of connected vehicle technologies.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Connected Car Devices Market Type Insights

Within this market, the Type segmentation includes Embedded Systems, Tethered Systems, and Integrated Systems, each contributing uniquely to the overall landscape. Embedded Systems are crucial as they offer seamless integration within vehicle architecture, facilitating real-time data transmission.

Tethered Systems enable connectivity through external devices, enhancing user interaction and functionality. Integrated Systems combine both hardware and software, representing a significant trend towards more sophisticated technological integration.

Together, these types of systems are driving innovation and improving the user experience in connected vehicles. The demand for enhanced safety features, advanced navigation systems, and real-time connectivity is propelling the adoption of these devices, making them essential in the evolving automotive industry.

As the Global Connected Car Devices Market statistics show, these segments play a pivotal role in shaping the future of transportation, catering to growing consumer expectations for connectivity and convenience.

Connected Car Devices Market Application Insights

The Global Connected Car Devices Market is expected to see significant engagement in the Application segment, which plays a crucial role in enhancing vehicle functionality and user experience. Among these applications, Fleet Management is vital, as it enables businesses to optimize their operations and reduce costs through real-time monitoring and management of their vehicle fleets.

Similarly, Insurance Telematics is gaining traction, helping insurance companies offer personalized policies based on actual driving behavior, thereby promoting safer driving practices. In-vehicle entertainment continues to be a major focus area as consumers increasingly seek connected services that provide entertainment and convenience during their journeys.

Navigation Systems also hold significance as they enhance route efficiency and driver safety, which is particularly relevant with the rise of smart cities. The diverse Application segment is significantly contributing to the overall market growth, driven by advancements in technology, changing consumer preferences, and the increasing integration of connectivity features in vehicles.

Connected Car Devices Market End Use Insights

As the market develops, the End Use segment, comprising Personal Vehicles, Commercial Vehicles, and Public Transport, plays a crucial role. Personal Vehicles are experiencing a marked increase in adoption as consumers prioritize connectivity features for enhanced safety, entertainment, and convenience.

In Commercial Vehicles, the integration of connected devices optimizes fleet management, reducing operational costs and improving efficiency, which contributes to the market's growth.

Public Transport is also becoming increasingly connected, allowing for better tracking, improved passenger experiences, and efficient resource management. The growth drivers include advancements in technology, rising demand for smart transportation systems, and increasing consumer preferences for connected features across different vehicle types.

However, challenges such as data security and privacy concerns may affect market growth. Nevertheless, the Global Connected Car Devices Market continues to expand, supported by emerging opportunities in innovative connected solutions tailored to meet the unique demands of each End Use category.

Connected Car Devices Market Regional Insights

The Global Connected Car Devices Market exhibited significant growth across various regions, with North America leading the way, valued at 36.3 USD Billion in 2024 and projected to reach 125.0 USD Billion by 2035, marking majority holding within the market landscape.

Europe followed closely, with an expected valuation of 25.0 USD Billion in 2024 and rising to 85.0 USD Billion by 2035, showcasing its importance in connected car technology adoption. The APAC region was also a key player, with projections of 15.0 USD Billion in 2024, expanding to 50.0 USD Billion in 2035, driven by increasing demand for smart vehicles.

South America, although smaller, is expected to grow from 5.23 USD Billion to 20.0 USD Billion in the same period, reflecting emerging market opportunities. Meanwhile, the MEA region, starting at 6.0 USD Billion in 2024 and expected to reach 20.0 USD Billion by 2035, highlighted potential growth despite its relatively lesser market share.

The growth drivers included advancements in IoT technology and consumer preferences for enhanced driving experiences, while challenges may arise from regulatory hurdles and varying technological infrastructure across regions. The Global Connected Car Devices Market data indicated promising opportunities for innovation and investment in connected car solutions across all regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Connected Car Devices Market Key Players and Competitive Insights:

The Global Connected Car Devices Market has been experiencing significant growth, driven by the continuous advancement of in-vehicle connectivity technologies and the increasing demand for enhanced in-car experiences. The competitive landscape is characterized by a variety of players adapting to the rapid pace of innovation and changing consumer preferences.

Manufacturers are focusing on developing integrated solutions that encompass connectivity features such as real-time navigation, telematics, and advanced driver-assistance systems (ADAS). The rise of electric and automated vehicles is further reshaping the market, prompting companies to enhance their offerings in connected car solutions.

Industry players are leveraging partnerships and collaborations to expand their market presence and improve their technological capabilities, fueling competitiveness in the sector.

FCA has established a strong foothold in the Global Connected Car Devices Market by committing to innovation and enhancing its technological offerings. The company emphasizes the integration of connectivity features that cater to customer needs, promoting safety, convenience, and infotainment.

FCA has effectively used its platform to develop advanced telematics solutions, enabling seamless communication between vehicles and external networks. The brand's strengths lie in its ability to innovate rapidly while maintaining a focus on quality and reliability.

By investing in strategic partnerships, FCA has enhanced its capabilities in data analytics and connected services, allowing it to offer comprehensive solutions that appeal to modern consumers. This proactive approach underscores the company’s position as a key player in the competitive landscape of connected car devices.

Hyundai has made significant strides in the Global Connected Car Devices Market through its commitment to delivering cutting-edge, connected solutions. The company has a robust portfolio that includes features designed to improve vehicle connectivity and user experience.

Hyundai's strengths lie in its ability to integrate advanced technologies such as voice recognition, navigation systems, and mobile apps to provide drivers with convenience and enhanced control over their vehicles. The focus on consumer-centric innovations enables Hyundai to adapt to evolving market demands.

Furthermore, Hyundai's strategic collaborations with tech firms empower it to incorporate the latest advancements in connectivity, ensuring its offerings remain competitive. The company’s continuous investment in research and development reflects its dedication to maintaining leadership in the connected car landscape, preparing it for future market challenges.

Key Companies in the Connected Car Devices Market Include:

• FCA


• Hyundai


• General Motors


• Qualcomm


• Cisco


• Volkswagen


• Daimler


• Toyota


• Tesla


• Audi


• BMW


• Honda


• Panasonic


• Nissan


• Ford

Connected Car Devices Market Developments

Recent developments in the Global Connected Car Devices Market have highlighted significant advancements and collaborations among major automotive companies. FCA has taken strides in enhancing vehicle connectivity, aligning its technology with 5G applications for improved user experience.

Hyundai has reported increases in market share driven by its integration of advanced infotainment systems. General Motors is ramping up its efforts in electric vehicles, advancing the connected car ecosystem with over-the-air updates. Qualcomm continues to lead in chip technology, partnering with several automakers to improve connected car infrastructures.

Cisco is expanding its focus on cybersecurity solutions for connected vehicles, addressing growing concerns in this area. Volkswagen and Daimler are also making headlines with their joint ventures aimed at developing new mobility services and connected technologies.

In the realm of mergers and acquisitions, notable activity includes Ford's acquisition of a software firm to enhance its connectivity offerings. Additionally, companies like Tesla and BMW are continuously innovating their connected services, significantly impacting the market's growth and valuation as consumer demand for smart technologies in vehicles surges.

Connected Car Devices Market Segmentation Insights

Connected Car Devices MarketTechnologyOutlook

• Telematics


• Infotainment


• V2X Communication


• Advanced Driver Assistance Systems


• Vehicle Diagnostics

Connected Car Devices MarketTypeOutlook

• Embedded Systems


• Tethered Systems


• Integrated Systems

Connected Car Devices MarketApplicationOutlook

• Fleet Management


• Insurance Telematics


• In-Vehicle Entertainment


• Navigation Systems

Connected Car Devices MarketEnd UseOutlook

• Personal Vehicles


• Commercial Vehicles


• Public Transport

Connected Car Devices MarketRegionalOutlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa