Connected Vehicles Propel Iot In Automotive Market To $760.3 Billion By 2032

(MENAFN- EIN Presswire) The future of automotive IoT centers on connected, autonomous, and sustainable vehicles, powered by 5G and AI for smart mobility innovation.

WILMINGTON, DE, UNITED STATES, August 21, 2025 /EINPresswire / -- According to a new report published by Allied Market Research, titled,“IoT in Automotive Market by Communication (Vehicle to Vehicle, In vehicle communication, Vehicle to infrastructure), by Application (Navigation, Infotainment, Telematics, Others), by Connectivity (Embedded, Tethered, Integrated): Global Opportunity Analysis and Industry Forecast, 2022 - 2032” The global IoT in automotive market was valued at $102.3 billion in 2022, and is projected to reach $760.3 billion by 2032, growing at a CAGR of 22.6% from 2023 to 2032.

The Internet of Things (IoT) in the automotive industry integrates connected devices, sensors, and communication technologies to improve vehicle performance, safety, and user experience. IoT enables smart features such as predictive maintenance, real-time navigation, telematics, vehicle-to-vehicle (V2V) communication, and advanced driver assistance systems (ADAS). Growing demand for connected cars, smart mobility, and intelligent transportation systems is driving market expansion worldwide.

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Market Dynamics
The IoT in automotive market is primarily driven by the rising demand for connected and autonomous vehicles. With consumers increasingly expecting seamless connectivity and enhanced safety features, automakers are integrating IoT solutions into vehicle design, fueling adoption.

Another key driver is the growing adoption of ADAS and telematics solutions. Governments worldwide are enforcing stricter safety standards, pushing automotive companies to integrate IoT-driven technologies that enhance road safety and reduce accidents.

On the other hand, cybersecurity and data privacy concerns remain significant challenges. As vehicles become more connected, risks of hacking and unauthorized data access increase, compelling manufacturers to invest heavily in secure IoT ecosystems.

Additionally, the rise of electric vehicles (EVs) is creating new opportunities for IoT applications. IoT-enabled charging infrastructure, battery monitoring, and energy management systems are becoming essential to EV adoption and sustainability.

Lastly, the integration of 5G and edge computing is expected to accelerate IoT in the automotive sector. These technologies enhance real-time data processing, enabling faster response times for autonomous driving and smart mobility solutions.

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Segment Overview
The IoT in Automotive market analysis is segmented based on communication, connectivity, application, and region. By communication, the market is segmented into the vehicle to vehicle, in vehicle communication and vehicle-to-infrastructure. Further, by vehicle type, the market is segmented into passenger cars and commercial vehicles. By application, the market is segmented into autonomous driving, body control & comfort systems, infotainment systems, communication systems, connected services, and others. Region-wise, the market is classified into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa (LAMEA) including country-level analysis for each region.

Regional Analysis
North America dominates the IoT in automotive market, supported by high adoption of connected car technologies, advanced infrastructure, and the presence of leading automotive OEMs and IoT providers. The U.S. remains a key contributor with growing investments in autonomous vehicles and 5G-enabled mobility solutions.

Asia-Pacific is expected to register the highest growth rate during the forecast period. Rapid urbanization, rising disposable income, and strong government initiatives toward smart transportation in countries like China, Japan, and India are fueling demand for IoT-enabled vehicles.

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Competitive Analysis
The market is highly competitive with key players such as Texas Instruments Inc., Microsoft Corporation, Alphabet Inc., TomTom International BV, NXP Semiconductors, Intel Corporation, AT&T, Thales, Cisco System, Inc., Robert Bosch GmbH leading innovation. These companies are focusing on collaborations, R&D, and partnerships with automotive OEMs to strengthen their portfolios.

Startups and technology companies are also entering the market, offering niche IoT solutions for fleet management, cybersecurity, and mobility services. This increasing competition is driving innovation and lowering costs, benefiting end-users.

Key findings of the study
.Rising demand for connected and autonomous vehicles is the primary growth driver.
.ADAS and telematics are witnessing significant adoption due to safety regulations.
.Cybersecurity remains a major challenge for IoT adoption in automotive.
.Asia-Pacific is expected to be the fastest-growing regional market.
.Integration of 5G and EV adoption are opening new opportunities.

David Correa
Allied Market Research
+15038946022 ext.
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