Connected Car Device Market Report

Market Insights

“The connected car market size was USD 80.87 billion in 2023 and is projected to grow at a CAGR of 20.1% to reach USD 396.82 billion by 2032.”

Market Dynamics

Introduction

The connected car device market is witnessing robust growth, largely fueled by the increasing integration of advanced telematics, vehicle safety features, and in-car entertainment systems. Among the various technologies, embedded connectivity solutions are gaining prominence due to their reliability and seamless performance. The introduction of next-generation networks, particularly 5G, is significantly enhancing real-time data exchange capabilities, thereby improving the functionality of connected systems. Additionally, vehicle-to-everything (V2X) communication encompassing both vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) is playing a vital role in advancing road safety and optimizing traffic flows. Although concerns such as data privacy, cybersecurity vulnerabilities, and high implementation costs continue to pose challenges, the market outlook remains optimistic. This is supported by rising government mandates for vehicle safety, expanding smart transportation infrastructure, and a growing consumer appetite for connectivity-driven features. As the automotive industry continues its transition toward digital and intelligent mobility, connected car technologies are expected to be a key component of future transportation ecosystems.

Segments Analysis

By Application Type

“Driver assistance systems are gaining strong traction and are expected to witness the fastest growth among application types during the forecast period.”

The market includes applications such as mobility management, telematics, infotainment, and driver assistance systems. Of these, driver assistance has become a key focus area for automakers. With rising concerns over traffic safety and government mandates for advanced safety technologies, systems like lane departure warnings, blind spot detection, and adaptive cruise control are being widely adopted. Consumer demand for safer, more intuitive driving experiences is accelerating integration across vehicle segments, making this segment a strong growth driver for the overall market.

By Network Type

“5G is expected to be the fastest-growing network type due to its ability to support real-time, high-speed data transmission in connected vehicles.”

Connected vehicles operate across several network standards, including 3G, 4G, 5G, and satellite connectivity. Although 4G is currently prevalent, the shift toward 5G is expected to transform the in-car experience. The lower latency and higher bandwidth offered by 5G support critical use cases like over-the-air software updates, real-time hazard alerts, and autonomous navigation. As telecom infrastructure expands and automakers embrace advanced connectivity solutions, 5G is poised to become the leading communication backbone for future connected vehicles.

By Technology Type

“Embedded technology is expected to remain dominant, while integrated systems will witness the highest growth during the forecast period.”

Technology integration in connected vehicles is broadly categorized into embedded, tethered, and integrated types. Embedded systems, built directly into the vehicle by OEMs, are valued for their security and reliability. However, integrated systems, which utilize smartphones for connectivity, are seeing increased interest, particularly in mid-range and entry-level vehicles, due to their lower cost and easy scalability. Tethered systems, which rely on external devices, are gradually being phased out as consumers and manufacturers shift toward more seamless, integrated experiences.

By Sales Channel Type

“OEMs continue to lead the market, but aftermarket sales are gaining momentum with increased demand for vehicle upgrades and retrofitting.”

Connected car components are distributed through both OEM and aftermarket channels. Original equipment manufacturers continue to lead the segment as more vehicles come factory-fitted with connectivity modules. However, the aftermarket is expanding rapidly, driven by the need to retrofit older vehicles with modern safety, navigation, and infotainment systems. The rise of fleet management, increased telematics adoption among commercial users, and growing consumer interest in vehicle personalization are contributing to the aftermarket’s steady rise.

By Communication Type

“V2X (Vehicle-to-Everything) communication is projected to be a transformative force in connected mobility, with infrastructure improvements fuelling growth.”

The communication segment encompasses Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) systems. These technologies facilitate data sharing between vehicles and road infrastructure, helping to prevent accidents, reduce congestion, and improve traffic flow. As urban centres invest in smart city initiatives, V2X communication is becoming a foundational component of intelligent transportation systems. Increased regulatory support, pilot deployments, and strategic partnerships between governments and automotive manufacturers are expected to accelerate its rollout across regions.

Regional Analysis

“Asia-Pacific is expected to remain the leading market for connected cars, followed by North America.”

Asia-Pacific, particularly China, Japan, South Korea, and India, is emerging as the largest market for connected cars due to high vehicle production, government-backed digital infrastructure programs, and rising demand for advanced automotive technologies. North America continues to be a key player, driven by strong consumer demand, innovation in automotive electronics, and rapid 5G deployment. Meanwhile, Europe maintains a steady presence due to its emphasis on vehicle safety and emissions regulations, supporting connectivity integration across premium and mid-tier vehicles.

Key Players

Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the connected car device market.

Here is the list of the Top Players (Based on Dominance)

• Continental AG
• Robert Bosch GmbH
• ZF Friedrichshafen AG
• Autoliv
• Valeo S.A.
• Delphi Technologies
• Infineon Technologies AG
• Magna International
• Panasonic Corporation
• Harman International

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The global connected car device market is segmented into the following categories. 

Connected Car Market, by Application Type

• Mobility Management (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Telematics (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Infotainment (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Driver Assistance (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Connected Car Market, by Network Type

• 3G (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• 4G (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• 5G (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Satellite (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Connected Car Market, by Technology Type

• Embedded (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Tethered (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Integrated (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Connected Car Market, by Sales Channel Type

• OEM (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Aftermarket (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Connected Car Market, by Communication Type

• Vehicle-to-Vehicle (V2V) (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Vehicle-to-Infrastructure (V2I) (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Connected Car Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Argentina, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s connected car device market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]