Connected Car Market to Reach $501.8 Billion by 2033, Driven by AI, 5G, and In-Vehicle Connectivity

WILMINGTON, NEW CASTLE, DE, UNITED STATES, July 8, 2025 /EINPresswire.com/ -- 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 size 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.

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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.

Key Developments

February 2024: HARMAN International collaborated with Qualcomm to Drive Automotive Innovation with New Ready Connect 5G TCU for Connected Cars. The Ready Connect 5G TCU, powered by the Snapdragon Modem-RF Gen 2 system, delivers outstanding connectivity performance, ensuring upgradability, scalability, and usability to meet the automotive market's evolving needs.

January 2024: Ford Motor Company and its subsidiary Lincoln launched Updated Connected Car Services that includes Apple CarPlay and Android Auto. Through this technology, the driver can access the system through a touchscreen control panel and buttons on the steering wheel. Furthermore, drivers can place apps and services where they want them on the screen and can see information like media, weather and fuel economy via widgets

September 2022: Ford Motor Company collaborated with Qualcomm Technologies to developed Next Generation Connected Vehicle Innovation with 5G Connectivity Powered by Snapdragon 5G Modem-RF. The Snapdragon 5G Modem-RF help to unlock the 5G capabilities needed to support connected and intelligent driving experiences.

July 2021: AUDI AG partnered with Mobileum Inc. to deploy Mobileum’s Connected Car Testing solution to test & monitor the end-to-end quality of service (QoS) of connected cars and to ensure the highest standards of service assurance and control over customer experience. This technology helps to provide quality assurance for eCall, IoT Telemetry, eSIM remote provisioning, and business applications availability.

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.

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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

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.

David Correa
Allied Market Research
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