Connected vehicles market is estimated to be valued at USD 60.80 Billion in 2024

  • Ronak Shah
  • U.S.A
  • January 15, 2025

Image Credit, Akysrl

A newly published report by Coherent Market Insights reveals a sustainable growth in opportunities in the connected vehicles market. Coherent Market Insights’ analyst projected the connected vehicles market to be valued at USD 60.80 Bn in 2024. It is expected to exhibit a CAGR of 12.4% over the forecast period 2024 -2031.

Advanced technologies such as IoT, 5G connectivity, AI, and big data analytics in the automotive sector are driving market growth. Automakers are focusing on improving driver experience with growing connectivity features in vehicles.

For example, 5G and AI-powered communication networks allow vehicles to share real-time traffic and road condition updates with other vehicles on road. This helps in enhancing road safety.

Key Market Trends: Connectivity features in vehicles is a major trend in connected vehicles market. Functions such as navigation, infotainment, telematics, and diagnostics allow seamless connectivity experience for drivers.

Cloud service: Cloud service is another trend gaining traction. They provide over-the-air updates to vehicles without the need for physical servicing. For instance, electric vehicle manufacturer Tesla uses cloud platforms to remotely update software, map data and charging profiles in vehicles.

Further, developments in autonomous driving technologies are also contributing to the evolving landscape of connected mobility. Automakers are integrating self-driving features using advanced technologies to offer safety, convenience and comfort to consumers.

Connected Vehicles Market Opportunities: By vehicle type, – The passenger cars segment is expected to hold a dominant position over the forecast period. Passenger cars are increasingly being equipped with advanced connectivity solutions that enhance safety and convenience features. They also enable the use of various in-vehicle infotainment services.

By End-user Industry – The OEM end-user industry segment is projected to witness significant growth during the forecast period. Automotive OEMs are actively working on integrating advanced connectivity features right from the production stage of vehicles. The availability of connected vehicle systems and services from new ensures a better customer experience.

Key Market Takeaways: The global connected vehicles market is anticipated to witness a CAGR of 12.4% during the forecast period 2024-2031. This is owing to the rapid adoption of wireless connectivity technologies in the automotive industry. On the basis of vehicle type, the passenger cars segment is expected to hold a dominant position. This is owing to the rising demand for infotainment and safety features from consumers.

By end-user industry, the OEM segment is projected to witness significant growth during the forecast period. This is due to the integration of connectivity solutions during vehicle production. On the basis of communication, the vehicle-to-vehicle segment is expected to hold a dominant position over the forecast period. This is due to benefits such as improved road safety and traffic management.

By connectivity, the cellular segment is anticipated to grow at a high CAGR during the forecast period. This is owing to the widespread availability of high-speed cellular networks.

North America is expected to hold a dominant position over the forecast period. This is due to the presence of major connected vehicle technology companies and favorable government regulations.

Competitor Insights: Key players operating in the connected vehicles market include: Continental AG, Robert Bosch GmbH, Harman International, Denso Corporation, Visteon Corporation, Intellias, Qualcomm Technologies Inc., Ford Motor Company, BMW Group, Samsung Electronic

Recent Developments:  In March 2024, Mercedes-Benz certified its S-Class and EQS models for Level 3 autonomy in Europe, allowing for conditional hands-free driving. In order to enhance connection in its EV lineup, Ford teamed up with Qualcomm to incorporate Snapdragon Digital Chassis. More information is available in full report 

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