Europe connected car market is evaluated to be USD 15 billion in 2024. The industry is expected to reach USD 65.3 billion by 2034. The industry is projected to register a 15.8% CAGR from 2024 to 2034.

Semi-annual Industry Update

Country-wise Insights

Category-wise Insights

The Europe Connected Car Market Report is Segmented by Technology Type (Navigation, Infotainment, Safety/ADAS, Vehicle Management, Telematics and OTA Updates, and Other Types), Connectivity Type (Integrated, Embedded, Tethered, and Hybrid), Vehicle-Connectivity Scope (V2V, V2I, and V2X), End-User (OEM Factory-Fit, Aftermarket, and More), and Country. The Market Forecasts are Provided in Terms of Value (USD).

By 2025, an estimated 44 percent of all vehicles in operation in Europe could have basic or advanced connectivity. Five years later, that level is set to rise to nearly 50 percent, and 11 percent of the fleet could be advanced connected. Car connectivity includes but is not limited to direct data streaming, processing, and communication with outside parties.

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Connected Car Market Size 2024-2028

The connected car market size is forecast to increase by USD 341.72 billion at a CAGR of 36.5% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing penetration of the internet and the subsequent integration of connected technologies into automobiles. This trend is evident in the rising number of vehicle launches equipped with advanced features such as real-time traffic updates, remote diagnostics, and over-the-air software updates. However, the market is not without challenges. Design complexity and technological advancements pose significant hurdles for manufacturers, requiring substantial investments in research and development.
To capitalize on this market opportunity, companies must navigate these challenges effectively by collaborating with technology partners, investing in robust cybersecurity measures, and prioritizing user experience. By doing so, they can differentiate themselves in a competitive landscape and meet the evolving demands of tech-savvy consumers.

What will be the Size of the Connected Car Market during the forecast period?

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The market is experiencing significant growth as car manufacturers and technology companies integrate advanced features to enhance the driving experience. autonomous cars are at the forefront of this trend, with connectivity solutions becoming increasingly essential for optimal performance. Vehicle downtime is minimized through real-time communication between vehicles and online platforms, enabling seamless network technology integration. Service providers play a vital role in this ecosystem, offering solutions for vehicle infotainment and safety features such as lane-keep assist and blind spot detection.
The aftermarket also benefits from this evolution, with car manufacturers partnering with technology companies to develop innovative solutions. V2V communication is another emerging trend, enabling vehicles to communicate with each other for improved safety and performance. Overall, the market is transforming the automotive industry, with technology companies and service providers playing pivotal roles in shaping its future.

How is this Connected Car Industry segmented?

The connected car industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Connectivity

  4G/LTE
  5G
  Satellite
  Wi-Fi


End-user

  OEM
  Aftermarket


Application

  Telematics
  Infotainment
  Driver Assistance
  Mobility Management


Vehicle Types

  Passenger Cars
  Commercial Vehicles
  Electric Vehicles


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Connectivity Insights

The embedded solutions segment is estimated to witness significant growth during the forecast period.

In the evolving automotive industry, telematics and connected car technologies have become integral components of in-vehicle infotainment systems. These systems offer entertainment, navigation, communication, security, and Internet-based services to consumers. OEMs collaborate with technology companies to integrate these features, with Apple CarPlay available through aftermarket infotainment offerings. Hyundai Blue Link and GM's MyLink and IntelliLink systems support third-party applications. Moreover, safety features such as collision warning, lane assistance, blind spot detection, and advanced diagnostics are increasingly being incorporated into these systems. Fleet management and vehicle production companies leverage telematics for real-time communication, predictive technology, and maintenance cost reduction.

Legislative policies mandate the integration of safety features like collision warning and lane assistance. Autonomous cars and ADAS (Advanced Driver Assistance Systems) are expected to further revolutionize the automotive industry. The transition phase towards these technologies necessitates the adoption of advanced processors, sensors, and network technology. Connected car services like connected car, GPS tracking, and maintenance schedule management are becoming essential for consumers. With the increasing popularity of autonomous vehicles, the aftermarket for connected car services is expected to grow significantly. The 5G Automotive Association is working on increasing data transfer speed for connected cars, ensuring seamless integration of these technologies.

The role of predictive technology and Internet service providers in providing advanced connected car services cannot be overlooked. Smartphones and sensors pl

The report provides an in-depth analysis of the connected car technologies, encompassing communication type (cellular, Wi-Fi, Bluetooth), connectivity technology (4G, 5G, LTE), application (infotainment, safety, navigation), vehicle type (passenger cars, commercial vehicles), and end-user segments (OEMs, aftermarket). Each segment is thoroughly evaluated to offer valuable insights into market size, growth prospects, and the competitive dynamics. Recent developments include: May 2022: Harman and Amazon have announced a collaborative partnership aimed at creating secure and dependable connected vehicle solutions. This alliance aims to address challenges encountered by OEMs regarding safety and reliability through the development of sophisticated software-defined vehicles.. Key drivers for this market are: Rising demand for enhanced driving experiences

Adoption of advanced technologies (5G, IoT). Potential restraints include: Cybersecurity concerns

Privacy issues and data protection regulations. Notable trends are: Integration of artificial intelligence and machine learning

Development of autonomous driving technologies.

The Europe’s connected car market is evolving with widespread C-V2X and 5G integration, AI-driven mobility services, and over-the-air software updates.

The global connected car market is projected to reach USD 118,352 million by 2034 from an estimated valuation of USD 37,223 million in 2024, expanding at a CAGR of 12.3%. With remarkable progression in the past few years, the automotive sector has made big bets in the advancement and adoption of AI and advanced connectivity features.

Category-wise Insights

Country-wise Insights

Snapshot img { margin: 10px !important; } The connected vehicles market size will record an incremental growth of 23.45 million units and a CAGR of over 7% during 2020-2024.

This market report entails segmentation by type (passenger cars and commercial vehicles) and geography (APAC, Europe, North America, and South America). View our sample report to gather market insights on the segmentations.

The connected vehicles market report also analyzes the market’s competitive landscape and offers information on several market vendors, including BMW AG, Daimler AG, Fiat Chrysler Automobiles NV, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Nissan Motor Co. Ltd., Toyota Motor Corp., and Volkswagen AG.

What will the Connected Vehicles Market Size be in 2020?

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Overview of Competitive Analysis

The connected vehicles market forecast report provides insights on complete key vendor profiles and their business strategies to reimage themselves. The profiles include information on the production, competitive landscape, sustainability, and prospects of the leading companies.

The market structure is fragmented. With the shift in consumer behavior owing to the COVID-19 pandemic, the vendors are focusing on leveraging upcoming trends and drivers that have been identified and explored in this connected vehicles market analysis report. Factors such as the safety and mobility benefits offered by connected vehicles will offer immense growth opportunities. The report also covers challenges and strategies to dodge them, which will help vendors in recreating their plan of action to obtain growth opportunities in the future.

To make the most of the opportunities, vendors should also capitalize on growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments. Fetch actionable market insights on post-COVID-19 impact on each product and service segments.

Which are the Key Regional Markets for Connected Vehicles Market?

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The report offers an up-to-date analysis of the geographical composition of the market. APAC had the largest market share in the connected vehicles market in 2019, and the region will offer several growth opportunities to market vendors during the forecast period. The government regulations on mandating connected features in vehicles will significantly influence connected vehicles market growth in this region. To garner further competitive intelligence and regional opportunities in store for vendors, view our sample report.

69% of the market’s growth will originate from APAC during the forecast period. China and Japan are the key markets for connected vehicles in the region. This report provides estimations of the contribution of all regions to the growth of the connected vehicles market size.

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What are the Key Factors Covered in this Connected Vehicles Market Report?

CAGR of the market during the forecast period 
Detailed information on factors that will drive connected vehicles market growth during the next five years
Precise estimation of the size and its contribution to the parent market
Accurate predictions on upcoming trends and changes in consumer behavior
The growth of the connected vehicles industry across APAC, Europe, North America, and South America
A thorough analysis of the market’s competitive landscape and detailed information on vendors
Comprehensive details of factors that will challenge the growth of connected vehicles market vendors

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    Connected Vehicles Market Scope




    Report Coverage


    Details




    Page number


    120




    Base year


    2019




    Forecast period


    2020-2024




    Growth momentum & CAGR


    Accelerate at a CAGR of 7%




    Market growth 2020-2024


    23.45 million units




    Market structure


    Fragmented




    YoY growth (%)


    3.93




    Regional analysis


    APAC, Europe, North America, and South America




    Performing market contribution


    APAC at 69%




    Key consumer countries


    China, US, Germany, Japan, and Spain




    Competitive landscape


    Leading companies, competitive strategies, consumer engagement scope




    Companies profiled


    BMW AG, Daimler AG, Fiat Chrysler Automobiles NV, Ford Motor Co., General

This statistic shows a comparison for forecasted revenues in European countries in 2018. According to the Digital Market Outlook, Connected Car revenues are estimated to amount to *** million U.S. dollar in Latvia.Statista’s Digital Market Outlook offers forecasts, detailed market insights and essential performance indicators of the most significant areas in the “Digital Economy”, including various digital goods and services. Alongside revenue forecasts for ** countries worldwide, Statista offers additional insights into consumer trends and demographic structure of digital consumer markets.

While the total car parc in the European Union (EU) is projected to shrink in the coming years, an increasing number of cars will become connected. While in 2021, only about 24 percent of all cars in the EU were connected, connected cars are expected to become dominant by 2035. In 2035, 93 percent of all cars in the EU are projected to be connected.

The Europe Connected Cars market is add more than USD 20 Billion from 2024 to 2029 owing to stringent regulations and growing focus on vehicle connectivity

The connected vehicles market is experiencing robust growth, driven by increasing demand for enhanced safety features, improved driver experience, and the proliferation of advanced driver-assistance systems (ADAS). The market size in 2025 is estimated at $200 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This significant expansion is fueled by several key factors: the integration of 5G technology enabling faster data transmission and improved connectivity, the increasing adoption of in-vehicle infotainment systems, and the rising focus on fleet management and logistics optimization through connected vehicle solutions. Furthermore, stringent government regulations promoting vehicle safety and the growing adoption of electric vehicles are further accelerating market growth. Segmentation reveals a strong preference for embedded connected vehicles due to their seamless integration with the vehicle's infrastructure, followed by tethered and integrated options. The automotive segment dominates the application landscape, owing to high consumer adoption and substantial investments by automotive manufacturers. Key players like BMW, Daimler, and Toyota are heavily involved in developing and integrating connected vehicle technologies, driving innovation and competition within the sector. The market's growth, however, is not without challenges. High initial investment costs for implementing connected vehicle infrastructure and potential cybersecurity vulnerabilities remain significant restraints. The varying levels of technological adoption across different regions also influence growth rates. North America and Europe currently hold a dominant market share, but Asia Pacific is projected to witness rapid expansion due to increasing vehicle sales and government initiatives promoting smart city infrastructure. Over the forecast period, the market will likely witness increased integration of artificial intelligence (AI) and machine learning (ML) capabilities within connected vehicles, resulting in improved predictive maintenance, personalized driving experiences, and enhanced safety systems. The continued evolution of telematics and the development of autonomous driving technologies are expected to further propel market expansion throughout the forecast period.

Connected Car Market Outlook

The global connected car market size was valued at approximately USD 50 billion in 2023 and is forecast to reach around USD 185 billion by 2032, growing at a CAGR of 15.2% over the forecast period. The market is driven by the rapid advancements in automotive technologies, increasing demand for advanced safety features, and the rising trend of autonomous driving. The integration of Internet of Things (IoT) in vehicles and the growing consumer preference for in-car connectivity are also significant growth factors boosting market expansion.

One of the primary growth drivers of the connected car market is the increasing emphasis on passenger safety. Governments worldwide are implementing stringent regulations to enhance vehicle safety standards, which is compelling automakers to integrate advanced driver assistance systems (ADAS) and telematics. These features not only improve driver and passenger safety but also help in reducing road accidents, thereby driving the demand for connected cars. Additionally, the rising adoption of autonomous and semi-autonomous driving technologies is further fueling market growth.

Another significant factor contributing to the market growth is the widespread proliferation of high-speed internet and the adoption of 5G technology. The deployment of 5G networks ensures seamless and reliable connectivity, which is crucial for the optimal functioning of connected car systems. The low latency and high bandwidth offered by 5G technology enable real-time communication between vehicles and various infrastructure components, enhancing the overall driving experience. This technological advancement is expected to play a pivotal role in the growth trajectory of the connected car market over the forecast period.

Moreover, the growing consumer demand for enhanced in-car experience and convenience is propelling the market. Modern consumers seek vehicles equipped with state-of-the-art infotainment systems, navigation, and other smart features that simplify driving and enhance comfort. The integration of voice assistants, real-time traffic updates, and personalized entertainment options in connected cars are some of the features appealing to tech-savvy consumers. This consumer inclination towards technologically advanced and connected vehicles is significantly driving market growth.

The emergence of the Automotive Connected Car Platform is revolutionizing the way vehicles interact with their surroundings. This platform serves as the backbone for integrating various technologies, enabling seamless communication between the car and external systems. By leveraging cloud-based services and advanced data analytics, the platform facilitates real-time updates and personalized experiences for drivers. Automakers are increasingly adopting these platforms to enhance vehicle functionality, improve safety features, and provide a more connected and immersive driving experience. As consumer expectations evolve, the demand for robust connected car platforms is set to rise, driving further innovation in the automotive industry.

Regionally, North America is currently leading the connected car market, followed by Europe and the Asia Pacific. The region's dominance can be attributed to the high adoption rate of advanced automotive technologies, supportive government policies, and the presence of key market players. Europe is also witnessing substantial growth due to the stringent safety regulations and the increasing adoption of electric vehicles. The Asia Pacific region is expected to experience rapid growth during the forecast period, driven by the rising disposable incomes, urbanization, and increasing penetration of high-speed internet.

Technology Analysis

The connected car market, segmented by technology, includes Embedded, Tethered, and Integrated systems. Embedded technology holds a significant market share due to its reliability and longstanding presence in the automotive industry. These systems are directly built into the vehicle's architecture, providing consistent and secure connectivity. Governments in various countries are advocating for the use of embedded systems in vehicles to comply with safety regulations, which is further driving this segmentÂ’s growth.

Tethered technology refers to systems that connect to external devices, such as smartphones, to access internet services. While this technology was initially popular due to its cost-effective

Snapshot img

Automotive Connected Car Platform Market Size 2025-2029

The automotive connected car platform market size is forecast to increase by USD 8.06 billion at a CAGR of 14.2% between 2024 and 2029.

The market is experiencing significant growth due to the increased focus of Original Equipment Manufacturers (OEMs) on developing autonomous and connected vehicles. This trend is driven by the consumer demand for advanced in-vehicle technologies and the potential for enhanced safety and convenience features. Furthermore, rental companies are adopting connected car platforms to attract customers and differentiate their offerings. Autonomous cars represent a key trend in this market, with V2V communication enabling vehicles to exchange data and improve road safety. However, the market faces challenges, including design complexity and technological hurdles. The integration of various sensors, communication systems, and software components necessitates intricate engineering and testing processes, which can increase development costs and time-to-market. These challenges include ensuring secure data transmission, integrating multiple sensors and systems, and complying with regulatory requirements.
Additionally, ensuring interoperability and compatibility across different vehicle models and manufacturers poses a significant challenge. Navigating these challenges requires strategic partnerships, robust R&D investments, and a deep understanding of consumer preferences and market trends. Companies that can effectively address these challenges and deliver innovative connected car solutions will capitalize on the market's growth potential.

What will be the Size of the Automotive Connected Car Platform Market during the forecast period?

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The connected car market is experiencing significant advancements, with the integration of various technologies reshaping the automotive industry. Connected car apps enable remote vehicle diagnostics, allowing drivers to monitor and address issues before they become major concerns. Head-up displays provide real-time information, enhancing safety and convenience. Startups are introducing innovative solutions, such as parking assistance, gesture control, and predictive maintenance, to meet evolving consumer demands. Connected car deployment continues to expand, with infrastructure developments facilitating seamless integration of real-time traffic information, emergency assistance, and fuel efficiency. Connected car partnerships are crucial in driving growth, with industry leaders collaborating to offer integrated entertainment systems, vehicle health monitoring, and connected car marketplaces. The connected car platform market is experiencing significant growth due to the increased focus of Original Equipment Manufacturers (OEMs) on the development of autonomous and connected vehicles.
Voice control and policy adjustments further enhance user experience, ensuring a more personalized and efficient driving experience. Connected car investments are surging, fueled by the potential for significant cost savings through improved vehicle maintenance and enhanced safety features. As the market evolves, driver behavior monitoring and connected car infrastructure will continue to shape the future of the automotive industry.

How is this Automotive Connected Car Platform Industry segmented?

The automotive connected car platform industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Service

  Infotainment services
  Telematics services


Technology

  Integrated solutions
  Embedded solutions
  Tethered solutions


Communication Technology

  Vehicle to infrastructure
  Vehicle to vehicle


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Service Insights

The infotainment services segment is estimated to witness significant growth during the forecast period. In the dynamic automotive landscape of 2024, connected car technology continued to advance, with infotainment systems integrating news, weather, social networking, and audio/video streaming. OEMs recognized the importance of differentiation to attract customers and invested in unique connected car services. For instance, one OEM introduced a personalized in-car assistant, while another offered real-time traffic and parking information. In May 2025, Kia announced a significant update to its EV6 model, enhancing its competitiveness in the electric vehicle market. The EV6 now supports the North American Charging Standard (NACS), enabling access to Tesla Supercharger networks. Furthermore, the updated model boasts expanded battery capacities,

In Europe Connected Car Market, Tech giants are also entering the fray, offering cloud-based services and applications specifically designed for connected cars.

The global commercial connected vehicles market is experiencing robust growth, driven by increasing demand for enhanced fleet management, improved safety features, and optimized logistics. The market is projected to reach a significant size, with a Compound Annual Growth Rate (CAGR) indicating substantial expansion over the forecast period of 2025-2033. Let's assume, for illustrative purposes, a 2025 market size of $50 billion. Considering a conservative CAGR of 15% (a figure reflecting technological advancements and increasing adoption across various industries), the market is poised for substantial expansion in the coming years. This growth is fueled by several key factors: the proliferation of affordable and reliable cellular connectivity, advancements in telematics technology enabling real-time data tracking and analysis, and government regulations promoting safety and efficiency in commercial transportation. The integration of connected vehicle technology across various segments, such as Light Commercial Vehicles (LCVs) and other vehicle types, used in both consumer and enterprise applications, is a key contributor to this upward trajectory. The market segmentation reveals diverse opportunities for stakeholders. LCVs, owing to their prevalence in last-mile delivery and logistics, are expected to hold a significant market share. Meanwhile, the enterprise segment will continue to lead in terms of adoption rate, owing to the significant ROI offered by fleet management solutions. Regional variations will also play a key role, with North America and Europe leading in early adoption due to robust infrastructure and established regulatory frameworks. However, the Asia-Pacific region is projected to witness significant growth driven by burgeoning economies and rapid technological advancements. Key players in the market—including established telematics providers, network operators, and technology companies—are actively shaping this evolution through continuous innovation and strategic partnerships, further solidifying the market's positive outlook. The competitive landscape is characterized by both established players and emerging startups, contributing to rapid technological innovation and a wide range of solutions.

Europe heavy-duty autonomous vehicle market is anticipated to reach $387.2 billion by 2032, witnessing a CAGR of 28.82% during the forecast period 2023-2032.

The connected vehicle market is experiencing robust growth, projected to reach a substantial size driven by the increasing adoption of advanced driver-assistance systems (ADAS), telematics solutions, and in-vehicle infotainment systems. The market's Compound Annual Growth Rate (CAGR) of 17.35% from 2019 to 2024 indicates significant expansion, fueled by technological advancements in 4G/LTE, 5G, and other connectivity technologies. The integration of these technologies enables features such as real-time traffic updates, remote diagnostics, over-the-air (OTA) updates, and enhanced safety features, boosting consumer demand. Growth is further spurred by stringent government regulations promoting vehicle safety and the rising popularity of connected car services among consumers seeking convenience and enhanced driving experiences. Segmentation reveals a strong focus on passenger cars, but the commercial vehicle segment is also witnessing rapid growth due to fleet management and logistics optimization needs. Key players like Robert Bosch, Continental AG, and Denso Corporation are heavily investing in research and development to maintain their market leadership and capitalize on the evolving technological landscape. Regional analysis suggests North America and Europe currently hold dominant market share, but the Asia-Pacific region is poised for significant expansion given the rapid growth of the automotive industry in countries like China and India. The future of the connected vehicle market hinges on the successful rollout of 5G networks, which will enable faster data speeds and lower latency, facilitating the seamless implementation of advanced features. The increasing focus on cybersecurity and data privacy within the automotive industry is crucial to ensuring consumer trust and driving market adoption. Further innovation in areas such as V2X (Vehicle-to-Everything) communication, AI-powered driver assistance, and the integration of electric and autonomous vehicles will propel the market to even greater heights in the coming years. The ongoing shift towards subscription-based services and the increasing adoption of Software-Defined Vehicles (SDVs) are also contributing factors to the sustained growth and diversification of the connected vehicle ecosystem. Competition among established automotive suppliers and tech companies is intensifying, leading to continuous innovation and the development of sophisticated connected car technologies. Recent developments include: In May 2022, Toyota Connected North America introduced cabin awareness concept technology that uses millimeter-wave, high-resolution 4D imaging radar to help detect occupants (including certain pets) in cars., In April 2022, Obigo Inc. (Obigo) and Korea Electric Technology Institute (KETI) jointly developed 5G-NR-V2X technologies for connected and autonomous driving vehicles., In January 2022, Aptiv PLC introduced a next-generation advanced driver-assistance system (ADAS) for autonomous and electric vehicles. This will aid in reducing the cost of software-driven vehicles due to Aptiv's scalable architecture., In November 2021, Continental introduced a technology solution for highly automated driving consisting of intelligent software that enables complex autonomous driving. The Next Generation Driving Planner is an innovative software solution that enables highly automated driving from Level 3.. Notable trends are: Growing demand for ADAS features in vehicle.

Europe Connected Car Market size was valued at USD 28.68 Billion in 2024 and is projected to reach USD 69.48 Billion by 2032, growing at a CAGR of 11.7% from 2026 to 2032.

Europe Connected Car Market: Definition/ Overview

A connected car refers to a vehicle that is equipped with internet connectivity and various technologies that allow it to communicate with external devices, other vehicles, and infrastructure. This connectivity enables the car to exchange data in real-time, providing features like navigation updates, remote diagnostics, and real-time traffic information. The connection may be facilitated through Wi-Fi, Bluetooth, cellular networks, or specialized vehicle-to-everything (V2X) communication systems.