According to Cognitive Market Research, the global automotive IoT market size will be USD 173.9 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 21.15% from 2024 to 2031. Market Dynamics of Automotive IoT Market

Key Drivers for Automotive IoT Market

Increasing Use of Electric and Hybrid Automobiles to Minimize Co2 Emissions. - Motor cars that do not run on fossil fuels, such as electric vehicles, hybrid electric vehicles, and solar-powered vehicles, are the preferred choice for alternative fuel-powered engines. The growing use of electric and hybrid vehicles will assist customers in lowering fuel prices, minimizing air pollution due to reduced greenhouse gases (GHGs), improving urban air quality, and reducing reliance on fossil fuels.
Governmental programs for intelligent transportation to drive the automotive IoT market's expansion in the years ahead.

Key Restraints for Automotive IoT Market

Data security and privacy issues pose a serious threat to the automotive IoT industry.
The market also faces significant difficulties related to high installation costs

Introduction of the Automotive IoT Market

The application of Internet of Things (IoT) technology in the automotive sector is known as the Automotive IoT market. This covers enhancing the efficiency, safety, and performance of vehicles through the use of sensors, software, and linked devices. Vehicles became a part of the network when IoT components were integrated into them. This allowed the vehicles to "communicate" with pedestrians (vehicle-to-pedestrian or V2P), with infrastructure (vehicle-to-infrastructure or V2I), and with each other, creating a vehicle-to-everything (V2X) network. The study included independent, critical viewpoints, expert opinions and analysis, and high-quality data. The goal of the research strategy is to give stakeholders a well-rounded understanding of international markets and help them make informed decisions that will help them reach their most ambitious growth goals. With multiple participants, including AT&T, Cisco System, Inc., Google, Intel, Microsoft Corporation, NXP Semiconductors, Robert Bosch, Texas Instruments, Thales SA, and TomTom, the market is extremely fragmented. Additionally, major initiatives of the companies involved in the IoT in the automotive sector were tracked, including product launches, mergers, expansions, and acquisitions.

This statistic represents the global automotive industry sector's revenue from the Internet of Things in 2014 and 2025. It is predicted that the industry will generate almost **** billion U.S. dollars in IoT-related revenue in 2025.

automotive IoT market size was worth around USD 131.13 billion in 2023 and is predicted to grow to around USD 373.87 billion by 2032

Report Overview

As per Market.us report, The global Automotive Internet Of Things (IoT) Market is projected to experience remarkable growth, reaching a value of approximately USD 1,197.9 billion by 2034, up from USD 142.8 billion in 2024. This surge represents a compound annual growth rate (CAGR) of 23.70% over the forecast period from 2025 to 2034. North America currently leads the market, accounting for more than 35.2% of the share and generating USD 50.2 billion in revenue in 2024. The U.S. is a major contributor, with the market hitting USD 40.21 billion and expected to expand at a robust CAGR of 21.5%.

Several factors contribute to the rapid growth of the Automotive IoT sector. Consumer demand for enhanced vehicle safety and convenience features is a significant driver. Technologies such as automatic emergency braking, GPS tracking, and vehicle-to-vehicle communication are increasingly favored by consumers, pushing automakers to incorporate IoT solutions. Regulatory mandates for vehicle safety and emissions standards compel manufacturers to adopt advanced technologies, including IoT, to comply with stringent regulations.

Emerging trends in Automotive IoT aim to improve connectivity and automation. A key development is the integration of artificial intelligence (AI) with IoT, enabling advanced data analytics and smarter decision-making in vehicles. Additionally, 5G adoption enhances communication speed and reliability, which is crucial for the growth of autonomous vehicles and dynamic traffic management systems, highlighting the importance of high-speed data in future automotive innovations.

The market for Automotive IoT is poised for substantial expansion. This growth is primarily driven by the increasing incorporation of telematics and infotainment systems in mid-range and luxury vehicles, expanding the market reach. Furthermore, the push towards autonomous vehicles and the need for connected car solutions in urban planning and management are expanding the scope of IoT applications in the automotive sector.

The automotive IoT market is projected to reach a value of $194.04 billion by 2033, growing at a CAGR of 11.8% over the forecast period. The growth of this market is attributed to the increasing demand for connected cars, the proliferation of IoT devices, and the growing adoption of cloud computing and big data analytics in the automotive industry. The automotive IoT market is segmented by component, system, application, and region. The hardware segment is expected to hold the largest share of the automotive IoT market, followed by the software segment and the services segment. The embedded system segment is expected to dominate the automotive IoT market, followed by the tethered system segment and the integrated system segment. The navigation application segment is expected to hold the largest share of the automotive IoT market, followed by the telematics application segment and the infotainment application segment. North America is expected to account for the largest share of the automotive IoT market, followed by Europe and Asia Pacific. The Automotive Internet Of Things (IoT) Market size was valued at $85.20 billion in 2022, and is projected to reach $253.04 billion by 2029, growing at a CAGR of 14.7% from 2023 to 2029. Recent developments include: In May 2023, Alphabet Inc., utilizing its subsidiary Google, launched a series of innovative features and services custom-made for vehicles, including video conferencing, gaming, and YouTube access. By expanding the scope of applications that developers can integrate with Android Auto, Google now accommodates Internet of Things (IoT) and weather-related applications. , In January 2023, HARMAN International Industries, Inc. launched Ready on Demand. This innovative software platform offers an easy-to-use app for branded audio benefits, feature upgrades, and monetization options. As a first in the industry, it allows for enhanced experiences and future updates that users can activate anytime through in-app purchases, extending the vehicle's lifespan. , In January, 2023, NXP Semiconductors N.V. and VinFast Auto, LLC announced their partnership on the development of VinFast's new generation of automotive applications. This partnership was aimed at supporting VinFast's ambition to produce smarter, cleaner, and more connected electric vehicles. .

Automotive IoT Market size is anticipated to exceed $ 501.26 Billion by 2032 from a value of $ 142.89 Billion in 2024 and is poised to reach $ 164.67 Billion in 2025, growing at a CAGR of 19.0% from 2025 to 2032.

Automotive IoT Market Outlook

The global market size for Automotive IoT was valued at approximately USD 205 billion in 2023 and is expected to reach around USD 650 billion by 2032, growing at a robust compound annual growth rate (CAGR) of 13.5%. This significant growth is propelled by several factors including advancements in connectivity technologies, increased consumer demand for advanced vehicle features, and the growing emphasis on vehicle safety and autonomous driving capabilities.

One of the primary growth drivers for the Automotive IoT market is the rapid development and deployment of 5G technology. Enhanced connectivity speeds and reduced latency offered by 5G are crucial for the effective implementation of IoT applications in vehicles, ranging from real-time navigation to advanced driver-assistance systems (ADAS). With automotive manufacturers and technology companies increasingly investing in 5G infrastructure, the market is poised for substantial growth. Furthermore, government initiatives and regulatory mandates around the world aimed at improving road safety and reducing emissions are also accelerating the adoption of IoT in the automotive sector.

Another significant growth factor is the rising consumer demand for smart and connected vehicles. Modern consumers are looking for vehicles equipped with the latest technology features such as infotainment systems, real-time traffic updates, and predictive maintenance alerts. This demand is pushing automotive manufacturers to incorporate sophisticated IoT solutions into their vehicles. The integration of AI and machine learning with IoT is further enhancing vehicle functionality and user experience, making connected cars a critical selling point in the automotive market.

Additionally, the growing focus on autonomous driving is a key factor driving the Automotive IoT market. Autonomous vehicles rely heavily on IoT technologies for communication, data collection, and real-time processing. The development of self-driving cars is pushing the boundaries of IoT applications in the automotive industry, creating numerous opportunities for innovation and market expansion. The collaboration between automotive manufacturers, technology companies, and IoT solution providers is fostering an ecosystem conducive to the proliferation of autonomous vehicles.

As the automotive industry continues to evolve, IT Spending in Automotive is becoming a crucial factor in driving innovation and maintaining competitiveness. With the increasing integration of IoT technologies in vehicles, automotive manufacturers are allocating significant resources towards IT infrastructure and solutions. This spending is not only directed towards developing new IoT applications but also towards enhancing cybersecurity measures to protect sensitive data. The growing complexity of connected vehicles necessitates robust IT systems that can handle vast amounts of data and ensure seamless communication between various components. Consequently, the role of IT in the automotive sector is expanding, with companies investing in cutting-edge technologies and skilled personnel to support their IoT initiatives.

Regionally, North America is currently leading the Automotive IoT market, driven by high consumer adoption rates of connected vehicles and substantial investments in automotive technology. However, Asia Pacific is expected to witness the highest growth rate during the forecast period. This growth is attributed to the increasing automotive production, expanding middle-class population, and rising consumer awareness about vehicle safety and technology in countries like China and India. Europe also remains a significant market, supported by stringent safety regulations and high levels of technological advancements.

Component Analysis

The Automotive IoT market is segmented by component into hardware, software, and services. The hardware segment includes various devices and modules such as sensors, actuators, and control units, which are essential for IoT functionality in vehicles. With the increasing complexity and sophistication of automotive IoT systems, the demand for advanced hardware components is on the rise. The widespread adoption of electric vehicles (EVs) is also contributing to the growth of the hardware segment, as these vehicles require specialized IoT hardware for efficient operation.<

Check out Market Research Intellect's Automotive IoT Market Report, valued at USD 78 billion in 2024, with a projected growth to USD 215 billion by 2033 at a CAGR of 12.5% (2026-2033).

The Automotive IoT Market Report is Segmented by Component (Hardware, Software, and Services), Connectivity Form (Embedded, Tethered, and Integrated), Application (Telematics, Infotainment and In-Car Services, Advanced Driver Assistance Systems and Safety, Fleet Management, Predictive Maintenance), Network Technology (Cellular, Bluetooth/BLE, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The Internet of Things (IoT) in the automotive sector is experiencing explosive growth, driven by the increasing demand for connected car features and advanced driver-assistance systems (ADAS). The market, estimated at $50 billion in 2025, is projected to expand at a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $150 billion by 2033. This robust growth is fueled by several key factors. Firstly, the proliferation of smartphones and the integration of mobile technologies within vehicles are creating seamless connectivity and a demand for infotainment, remote diagnostics, and over-the-air (OTA) updates. Secondly, the stringent safety regulations globally are pushing automakers to incorporate ADAS features relying heavily on IoT connectivity for data exchange and real-time processing. Finally, the rise of autonomous driving technologies necessitates high-bandwidth communication and data analytics, further accelerating the adoption of IoT solutions. Key players such as Texas Instruments, TomTom, Cisco, Intel, NXP Semiconductors, and Vodafone are actively involved in developing and deploying these technologies, contributing to a highly competitive yet innovative landscape. However, despite the promising outlook, challenges remain. Data security and privacy concerns regarding the vast amount of data generated by connected cars are paramount. Furthermore, the high initial investment required for implementing IoT infrastructure and the need for robust cybersecurity measures can act as restraints for smaller players. The standardization of communication protocols and the integration of various IoT devices within a vehicle's ecosystem are also crucial aspects requiring further development and collaboration. Regional variations in infrastructure development and regulatory frameworks also impact market penetration. Despite these hurdles, the long-term potential of IoT in the automotive industry remains immense, promising enhanced safety, convenience, and driver experience, and ultimately paving the way for the future of autonomous vehicles.

Automotive IoT Market is expected to grow at a high CAGR during the forecast period 2024-2031

Automotive Internet of Things (IoT) Market Outlook

The global Automotive Internet of Things (IoT) market size is anticipated to grow from USD 82.4 billion in 2023 to USD 310.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.1% during the forecast period. This remarkable growth is driven by the increasing adoption of connected car technologies, rising demand for real-time vehicle data, and advancements in communication technologies. As automotive manufacturers continue to integrate IoT solutions to enhance vehicle safety, efficiency, and user experience, the market is poised for substantial expansion.

One of the primary growth factors in the Automotive IoT market is the surging demand for connected vehicles that offer enhanced safety, comfort, and convenience features. Modern consumers are increasingly seeking vehicles equipped with advanced driver assistance systems (ADAS), in-vehicle infotainment, and telematics solutions. These technologies rely heavily on IoT to function seamlessly, thus driving the demand for IoT-enabled automotive solutions. Moreover, government regulations mandating the inclusion of safety features in vehicles are further propelling the market growth.

The proliferation of high-speed internet and advancements in communication technologies such as 5G are significantly contributing to the growth of the Automotive IoT market. The deployment of 5G networks facilitates faster and more reliable communication between vehicles and infrastructure, enabling real-time data exchange and enhanced vehicle-to-everything (V2X) communication. This, in turn, improves traffic management, reduces accidents, and enhances the overall driving experience, thereby boosting the adoption of IoT in the automotive sector.

The increasing focus on reducing carbon emissions and improving fuel efficiency is also a key driver for the Automotive IoT market. IoT solutions enable better vehicle maintenance and fleet management by providing real-time data on vehicle performance, predictive maintenance, and optimized route planning. These capabilities help in reducing fuel consumption and minimizing the environmental impact of vehicles. Additionally, the growing popularity of electric vehicles (EVs) and the need for efficient charging infrastructure are further augmenting the demand for IoT-based automotive solutions.

Regionally, North America and Europe are leading the market owing to their advanced automotive industries, high adoption rates of connected car technologies, and stringent safety regulations. The Asia Pacific region is expected to witness the highest growth rate during the forecast period, driven by the rapid economic development, increasing vehicle production, and rising consumer demand for advanced automotive features. Countries like China, Japan, and South Korea are at the forefront of this growth, investing heavily in IoT and smart transportation infrastructure.

Component Analysis

The Automotive IoT market is segmented by component into hardware, software, and services. Each of these components plays a crucial role in the functioning of IoT-enabled vehicles. Hardware components, such as sensors, processors, and connectivity modules, are fundamental to collecting and transmitting data within the vehicle and between the vehicle and external infrastructure. The advancements in sensor technologies and miniaturization of hardware components are significantly enhancing the capabilities of IoT solutions in the automotive sector.

Software is another critical component of the Automotive IoT market. IoT software solutions include platforms, applications, and analytics tools that process and analyze the vast amounts of data generated by connected vehicles. These software solutions enable real-time decision-making, predictive maintenance, and enhanced user experiences. The increasing complexity of connected vehicle systems and the need for seamless integration with other digital ecosystems are driving the demand for robust and scalable IoT software solutions in the automotive industry.

Services in the Automotive IoT market encompass a wide range of offerings, including consulting, implementation, and maintenance services. These services are essential for the successful deployment and operation of IoT solutions in vehicles. Automotive manufacturers and fleet operators rely on service providers to design, implement, and manage IoT systems effectively. The growing adoption of IoT in the automotive sector is creating significant opportunities for service providers to offer value-added services such as data analytic

Report of Automotive IoT Market is currently supplying a comprehensive analysis of many things which are liable for economy growth and factors which could play an important part in the increase of the marketplace in the prediction period. The record of Automotive IoT Industry is providing the thorough study on the grounds of market revenue discuss production and price happened. The report also provides the overview of the segmentation on the basis of area, contemplating the particulars of earnings and sales pertaining to marketplace.

The Internet of Things (IoT) in the automotive sector is experiencing explosive growth, driven by increasing consumer demand for connected car features, advancements in vehicle-to-everything (V2X) communication, and the rising adoption of autonomous driving technologies. The market, estimated at $50 billion in 2025, is projected to witness a robust Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $175 billion by 2033. Key growth drivers include the integration of advanced driver-assistance systems (ADAS), infotainment systems, telematics, and remote diagnostics. Manufacturers are leveraging IoT to enhance vehicle safety, improve fuel efficiency, optimize fleet management, and create personalized driving experiences. The integration of 5G technology further accelerates this growth by enabling faster data transmission and supporting more complex applications. While data security and privacy concerns represent a significant restraint, the industry is actively addressing these challenges through robust cybersecurity measures and data encryption protocols. Major players like Apple, Google, and established automotive manufacturers are heavily investing in research and development to gain a competitive edge. The market is segmented by technology (connectivity, sensors, software), application (safety, infotainment, fleet management), and vehicle type (passenger cars, commercial vehicles). Regional variations exist, with North America and Europe currently leading in adoption, but developing economies in Asia and other regions are demonstrating rapid growth potential. The competitive landscape is dynamic, with established automotive companies collaborating with tech giants to develop and integrate IoT solutions. This collaborative approach fosters innovation and accelerates the deployment of new technologies. However, the high initial investment costs associated with IoT implementation and the need for skilled professionals remain challenges for smaller players. Future growth will be shaped by the continuous evolution of IoT technologies, the increasing sophistication of artificial intelligence (AI) applications in vehicles, and the expansion of connected infrastructure. The market is expected to see further fragmentation as specialized IoT solutions providers emerge, catering to specific niches within the automotive industry. This evolution will drive further innovation and create new opportunities for market participants.

IoT in Automotive Market size was valued at USD 68.93 Billion in 2024 and is projected to reach USD 374.72 Billion by 2031, growing at a CAGR of 26% from 2024 to 2031.

Key drivers for the IoT in the automotive market include the growing demand for connected vehicles that offer enhanced safety, convenience, and efficiency. IoT-enabled features like real-time tracking, predictive maintenance, and autonomous driving technologies are revolutionizing the driving experience and improving vehicle performance. These advancements are powered by the increasing adoption of 5G, edge computing, and cloud technologies.

Additionally, rising consumer demand for personalized driving experiences, along with regulatory pressures for environmental sustainability, further fuel the market. The integration of IoT in automotive systems enables features such as fuel efficiency optimization, remote diagnostics, and over-the-air updates, which contribute to reduced maintenance costs and improved vehicle longevity.

The Automotive Internet of Things (IoT) market is experiencing robust growth, projected to reach $31.2 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 14.5% from 2025 to 2033. This expansion is fueled by several key factors. The increasing integration of advanced driver-assistance systems (ADAS), the rising demand for enhanced in-car infotainment and telematics solutions, and the proliferation of connected car services are all significant drivers. Furthermore, the automotive industry's ongoing digital transformation, coupled with the decreasing cost of sensors and connectivity technologies, is accelerating the adoption of Automotive IoT solutions. Growth is particularly strong in the software and services segments, driven by the demand for sophisticated data analytics and cloud-based platforms capable of managing the vast amounts of data generated by connected vehicles. The North American market currently holds a significant share, driven by early adoption and a robust technological infrastructure. However, Asia-Pacific, particularly China, is poised for rapid growth due to its expanding automotive manufacturing base and increasing consumer demand for smart vehicles. Competition within the sector is fierce, with major technology companies and established automotive suppliers vying for market dominance. The development of secure and reliable communication protocols will be crucial in addressing concerns surrounding data privacy and cybersecurity. Despite the promising growth trajectory, the Automotive IoT market faces certain challenges. Data security and privacy remain primary concerns, requiring robust security measures to protect sensitive vehicle and driver information. Furthermore, the complexity of integrating diverse IoT devices and platforms across different vehicle systems presents a considerable technical hurdle. Regulatory compliance and standardization are also crucial factors, as varying regulations across different regions could hinder market expansion. Nevertheless, ongoing technological advancements, coupled with increasing investments in research and development, are expected to mitigate these challenges and sustain the market's robust growth momentum throughout the forecast period. The continued development and deployment of 5G networks will also play a critical role in enhancing connectivity and improving the overall performance of automotive IoT systems.

In 2020, automotive Internet-of-Things (IoT) market is projected to generate *** billion U.S. dollars. By 2023, the value is expected to increase to *** billion. In the same period, the total IoT market in the region is forecasted to grow from ** to ** billion U.S. dollars. Between 2018 and 2025, the number of IoT connections in Latin America is projected to grow from *** million to *** billion.

The global market for IoT solutions in automobiles is experiencing robust growth, projected to reach $288.6 billion in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 18.5% from 2025 to 2033. This expansion is driven by several key factors. The increasing demand for enhanced safety features, such as advanced driver-assistance systems (ADAS) and autonomous driving capabilities, is a significant catalyst. Furthermore, the rising adoption of connected car technologies, enabling features like infotainment, navigation, and remote diagnostics, fuels market growth. The integration of IoT devices facilitates real-time data collection and analysis, leading to improved vehicle performance, fuel efficiency, and predictive maintenance. Growth is also being fueled by the expansion of cellular and satellite communication networks, providing the necessary infrastructure for seamless connectivity. The automotive industry's continuous innovation in vehicle electronics and software development further contributes to the rapid expansion of this market. Consumer demand for personalized in-car experiences and the increasing affordability of IoT-enabled automotive solutions are also important factors. Geographic distribution shows a diversified market. North America and Europe currently dominate the market due to high vehicle ownership rates and advanced technological infrastructure. However, rapid growth is anticipated in the Asia-Pacific region, particularly in China and India, driven by rising disposable incomes and increasing vehicle sales. The market segmentation reveals a significant contribution from hardware components like sensors and communication modules, followed by software solutions that manage and process data, and finally, service offerings related to installation, maintenance, and support. Infotainment applications currently lead segmental demand but navigation and telematics are rapidly catching up, showing strong potential for the future. Major players like Texas Instruments, Intel, NXP, and others are engaged in intense competition to leverage this expanding market with innovative solutions and strategic partnerships.

The Automotive Internet of Things (IoT) market report offers a thorough competitive analysis, mapping key players’ strategies, market share, and business models. It provides insights into competitor dynamics, helping companies align their strategies with the current market landscape and future trends.

The Automotive IoT market is expected to reach a value of $36,050 million by 2033, expanding at a CAGR of 15.1% during the forecast period. The rising demand for connected vehicles, advancements in technology, and increasing government regulations are driving the market's growth. Additionally, the growing adoption of IoT devices in the automotive sector, such as sensors, actuators, and controllers, is contributing to market expansion. The market is segmented by application, type, and region. The navigation segment is expected to hold the largest market share during the forecast period due to the increasing use of navigation systems in vehicles. The hardware segment is projected to grow at the highest CAGR, driven by the increasing demand for automotive electronics and sensors. North America is expected to dominate the market, followed by Europe and Asia-Pacific. The major players in the market include Google, Apple, OnStar, Cisco Systems, Microsoft, Intel Corporation, IBM Corporation, Robert Bosch, AutoNavi, NAVINFO, QiMing Information Technology, and Anhui Wantong Technology.