Connected Car Market To Reach $501.8 Billion, Globally, By 2033 At 16.5% CAGR: Allied Market Research

(MENAFN- GlobeNewsWire - Nasdaq) The sales of connected cars are expected to rise due to increasing consumer demand for enhanced in-car experiences, improved safety features, and better fuel efficiency. Advancements in 5G connectivity, the growing adoption of autonomous driving technologies, and stricter government regulations on vehicle safety are also driving this trend. Additionally, partnerships between automakers and tech companies to integrate advanced telematics will further boost sales.

Wilmington, New Castle, Delaware , Jan. 28, 2025 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, " Connected Car Market by Technology (3G, 4G/LTE, and 5G), Connectivity Solution (Integrated, Embedded, and Tethered), Service (Driver Assistance, Safety, Entertainment, Well-being, Vehicle Management, and Mobility Management), and Sales Channel (OEM, and Aftermarket): Global Opportunity Analysis and Industry Forecast, 2024-2033". According to the report, the global connected car market was valued at $115.8 billion in 2023 and is projected to reach $501.8 billion by 2033, registering a CAGR of 16.5% from 2024 to 2033.

Prime determinants of growth

The global connected car market is experiencing growth due to increase in demand for ADAS, growth of 5G network infrastructure, and growth of IoT integration in vehicles. However, high cost of connected car technology and cybersecurity & data privacy concerns hinder the market growth. Moreover, the expansion of autonomous vehicle fleets and the growth of smart city infrastructure are expected to create lucrative opportunities for the connected car market. These advancements are expected to increase the demand for integrated connectivity solutions, enhancing safety, convenience, and operational efficiency. As cities become more connected and autonomous vehicles become mainstream, connected car technology will play a central role in enabling seamless vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, further boosting the market growth.

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Report coverage & details:

Report Coverage	Details
Forecast Period	2024–2033
Base Year	2023
Market Size in 2023	$115.8 billion
Market Size in 2033	$501.8 billion
CAGR	16.50%
No. of Pages in Report	280
Segments Covered	Technology, Connectivity Solution, Service, Sales Channel, and Region
Drivers	Increase in demand for ADAS (Advanced Driver Assistance Systems)
	Growth of 5G network infrastructure
	Rise in consumer preference for in-vehicle infotainment
Opportunities	Expansion of autonomous vehicle fleets
	Growth in smart city infrastructure
	Increase in demand for vehicle-to-everything (V2X) communication
Restraints	High cost of connected car technology
	Cybersecurity and data privacy concerns
	Complex integration with existing vehicle platforms

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The 4G/LTE segment to maintain its leadership status throughout the forecast period

By technology, the 4G/LTE segment held the highest market share in 2023, accounting for more than four-fifths of the global market revenue and is estimated to maintain its leadership status throughout the forecast period because of its extensive network coverage, established infrastructure, and ability to support essential connected car functionalities. Automakers continue to rely on 4G/LTE for delivering high-speed connectivity required for features such as navigation, infotainment, and real-time vehicle monitoring. The transition to 5G is slower due to infrastructure limitations, especially in developing regions, allowing 4G/LTE to remain dominant throughout the forecast period. Its cost-efficiency and reliability for existing connected services further solidify its position.

The integrated segment is expected to garner the highest share in the market.

By connectivity solution, the integrated segment held the highest market share in 2023, accounting for more than half of the global connected car market revenue because it offers seamless and cost-effective integration of multiple vehicle systems, such as infotainment, navigation, and telematics. Automakers are increasingly adopting integrated systems to improve vehicle performance and user experience by providing a unified platform for managing these functions. With growth in demand for autonomous driving and advanced driver assistance systems (ADAS), the need for integrated connectivity solutions continues to rise, thus driving this segment's sustained dominance in the connected car market.

The driver assistance segment to maintain its lead position throughout the forecast period

By service, the driver assistance segment held the highest market share in 2023, accounting for more than one-third of the global connected car market revenue due to the growing focus on vehicle safety and autonomous driving technologies. Advanced driver assistance systems (ADAS), including features like adaptive cruise control, lane departure warning, and parking assistance, are becoming standard in modern vehicles. As regulations tighten and consumer demand for safety features rises, automakers are investing more in driver assistance technologies. This segment's potential to prevent accidents and improve road safety ensures its continued growth and leadership during the forecast period.

The OEM segment is expected to witness the highest market share.

By sales channel, the OEM segment held the highest market share in 2023, accounting for more than three-fourths of the global connected car market revenue due to the trend of automakers offering factory-installed connectivity solutions. OEMs are increasingly integrating advanced telematics, navigation, and infotainment systems directly into vehicles during production to meet rising consumer demand for connected features. Additionally, OEM-installed solutions provide better reliability, compatibility, and security than aftermarket systems, making them more appealing to consumers. As vehicles become more connected, OEMs will continue to lead in providing high-quality, integrated solutions.

Europe to maintain its dominance by 2033

The Europe region held the highest market share in 2023, accounting for more than one-third of the market revenue and is estimated to maintain its leadership status throughout the forecast period due to high adoption rates of advanced automotive technologies and stringent government regulations promoting vehicle safety and emissions reductions. European countries such as Germany, the UK, and France are key players in innovation, with strong support for autonomous driving and telematics systems. Automakers in Europe prioritize integrating connected solutions to meet consumer demand for enhanced safety and comfort, ensuring the region's leadership is projected to continue throughout the forecast period.

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Leading Market Players: -

• AT&T
• Audi
• Continental AG
• Ford Motor Company
• Harman International
• Intellias Ltd
• Qualcomm Technologies, Inc.
• Robert Bosch GmbH
• TomTom International BV
• Verizon
• Visteon

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The report provides a detailed analysis of key players in the global connected car market. These companies use strategies such as launching innovative connectivity solutions, expanding their businesses, forming strategic partnerships, and pursuing mergers to strengthen their market position and remain competitive. The analysis covers their business performance, product offerings, operational segments, and strategic efforts, offering valuable insights into the competitive landscape of the connected car industry. As the demand for enhanced safety, driver assistance, and in-vehicle entertainment increases, these companies focus on developing new technologies and expanding their market presence across different regions.

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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports Insights" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies, and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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