Connected Car Market to Grow at a CAGR of 19.8% over 2025 to 2032; Growing Trend Toward Autonomous Driving to Stimulate Market Growth

The connected car market size was valued at USD 98.39 billion in 2024. The market is expected to grow from USD 119.27 billion in 2025 to USD 422.72 billion by 2032, exhibiting a CAGR of 19.8% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Connected Car Market Size, Share & Industry Analysis, By Application Type (Mobility Management, Telematics, Infotainment, and Driver Assistance), By Network Type (3G, 4G, 5G, and Satellite), By Technology Type (Embedded, Tethered, and Integrated), By Sales Channel Type (OEM and Aftermarket), By Communication Type (Vehicle to Vehicle and Vehicle to Infrastructure) and Regional Forecasts, 2025-2032”.

Connected car uses GSM/4G/5G modules or aftermarket dongles to stay linked with the digital ecosystem. This connectivity powers services such as over‑the‑air software updates, in‑car entertainment, emergency response, vehicle‑to‑vehicle (V2V) or vehicle‑to‑infrastructure (V2I) coordination, data‑driven analytics, real‑time navigation, and remote diagnostics. The market is expected to ramp up owing to the rising trend toward autonomous driving and the adoption of advanced technologies such as Artificial Intelligence and Machine Learning.

Hyundai Deployed its HCloud to meet Rising Needs for Seamless Connectivity in Connected and Autonomous Vehicles

Hyundai launched its proprietary HCloud in May 2025, deploying it globally across Equinix facilities. Built for connected and autonomous vehicles, the platform leverages Equinix’s IBX and Fabric to link with clouds such as AWS, ensuring faster data delivery, consistent global service coverage, and reliable connectivity.

Increasing Demand for Autonomous Vehicles and Advanced Driver-Assistance Systems to Bolster Market Growth

Connected car technologies are driving the growth of autonomous mobility by enabling intelligent functions such as traffic sign recognition, collision avoidance, and automated driving. Leading players such as Tesla, GM, and Waymo rely on real-time connectivity to deliver these features effectively. The U.S. NHTSA is strengthening this trend with rules mandating ADAS adoption and advancing vehicle-to-everything (V2X) communication. Together, consumer demand for safety and regulatory mandates are propelling connected cars to the forefront of the automotive industry’s transformation.

However, rising fear over data misuse is likely to obstruct the connected car market growth.

Industry Participants Focus on Investing Heavily in Autonomous Driving to Gain Competitive Edge

Harman International has pioneered connected car technology through infotainment, ADAS, and immersive sound solutions. Powered by its Harman Ignite cloud platform, with features such as mobile integration and OTA updates. Continental AG, another major player, delivers smart mobility through its Continental Connected platform, enabling V2X communication, real-time data, and seamless infotainment. By investing heavily in electric and autonomous driving, the company is positioned at the forefront of the next generation of connected vehicles.

List of Key Players Mentioned in the Report

• Harman International (U.S.)
• Continental AG (Germany)
• AT&T (U.S.)
• Robert Bosch GmbH (Germany)
• Daimler AG  (Germany)
• Audi (Germany)
• TomTom Inc. (Netherlands)
• General Motors (U.S.)
• Ford Motor Company (U.S.)
• HYUNDAI MOTOR GROUP (South Korea)
• Volvo (Sweden)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/connected-car-market-101606

Key Industry Development

• February 2024- HARMAN introduced the Ready Connect 5G TCU, built on Qualcomm’s Snapdragon Digital Chassis and Auto 5G Modem-RF Gen 2. The solution enhances its in-car connectivity, accelerates OEM time to market, and was showcased at MWC 2024.

Further Report Findings

• Asia Pacific is set to hold the key connected car market share, fueled by strong demand for in-vehicle connectivity, affordable solutions, and accelerating consumer transition to connected vehicles.
• Europe ranks as the second-largest connected car market, with consumers seeking advanced features such as live traffic updates, in-car Wi-Fi, and remote diagnostics. In October 2023, Yahoo and Xperi joined hands to stream Yahoo Finance, Sports, and In the Know content to BMW's prior work with Meta on AR and VR integration, underscoring Europe’s rapid move toward an immersive, connected driving experience.
• North America is set to showcase steady growth in the market, supported by the rapid adoption of advanced technologies such as 5G.  
• As per technology type, the market is trifurcated into embedded, tethered, and integrated systems. The integrated segment is poised to capture the key market share during the study period, driven by its cost-effectiveness compared to embedded and tethered systems.

Table of Segmentation