Connected Cars Market Accelerates: Innovative Technologies Drive Smart, Safer, and Autonomous Mobility Worldwide 2025

The Global Connected Cars Market is expected to reach at a CAGR of 18.5% during the forecast period 2024-2031.

AUSTIN, TX, UNITED STATES, August 13, 2025 /EINPresswire.com/ -- According to DataM Intelligence, The Global Connected Cars Market reached USD 23.5 billion in 2022 and is expected to reach USD 56.2 billion by 2031, growing at a CAGR of 18.5% between 2024 and 2031. The Market is growing due to increasing demand for vehicle safety, real-time navigation, infotainment systems, IoT integration, autonomous driving features, and rising consumer preference for smart, connected mobility solutions.

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Market Drivers and Opportunities:

Several factors are accelerating the growth of the connected automobile market:

Advancements in Connectivity: The rollout of 5G networks is enabling faster and more reliable communication between vehicles and infrastructure, enhancing features like real-time navigation and vehicle-to-everything (V2X) communication.

Consumer Demand for Enhanced Features: Drivers are increasingly seeking vehicles equipped with advanced safety systems, infotainment options, and seamless integration with mobile devices.

Government Initiatives: Policies promoting smart city development and the adoption of electric vehicles are encouraging the integration of connected technologies in automobiles.

Telematics and Usage-Based Insurance: The adoption of telematics systems is facilitating the growth of usage-based insurance models, offering personalized premiums based on driving behavior.

Market Segmentation:

By Type:
Embedded
Tethered
Integrated.

By Network:
Dedicated Short-Range Communication
Cellular.

By Services:
Navigation
Remote Diagnostics
Collision Warning
Auto Parking
Autopilot
Vehicle Management
Cybersecurity
Sensors
Others.

By Hardware:
Electronic Control Unit
Intelligent Antenna
Sensors
Keyless Entry Systems
Central Gateway
Head Unit
Telematics Control Unit.

By Region:
North America
Latin America
Europe
Asia Pacific
Middle East
Africa.

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Geographical Market Share:

North America and Japan lead the global connected car market.

North America: The region is projected to reach USD 35.22 billion in 2025, with a CAGR of over 25%, driven by major automakers and technological advancements.

Japan: The Japanese connected car market is expected to grow from USD 6.1 billion in 2024 to USD 32.1 billion by 2033, exhibiting a CAGR of 20.4% .

Key Players:

Leading companies in the connected car market include:

LUXOFT
Continental AG
Qualcomm Technologies, Inc.
Robert Bosch GmbH
Sierra Wireless
Tesla
Audi AG
BMW Group
Daimler AG
Ford Motor Company.

Recent Developments:

United States (2025):
Policy Shifts: The U.S. electric vehicle sector faces significant policy shifts as the federal EV tax credit is eliminated, potentially impacting the adoption of connected vehicles.

Ford's Commitment: Despite challenges, Ford remains committed to EV innovation, unveiling a new cost-efficient EV platform and an affordable $30,000 EV pickup set for 2027.

Japan (2025):
Sales Surge: Japan's connected car sales surged 34% year-over-year in Q1 2025, driven by domestic OEMs accelerating the rollout of connected vehicles.

Nissan's Testing: Nissan is testing its driverless vehicle technology on the busy streets of Yokohama, Japan, with plans to achieve full autonomy by 2029-2030.

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Conclusion:

The Connected Cars Market is poised for unprecedented growth, with North America and Japan at the forefront. Advancements in connectivity, consumer demand for enhanced features, and supportive government initiatives are driving this expansion. As automakers continue to innovate, the future of transportation looks increasingly connected and intelligent.

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Sai Kiran
DataM Intelligence 4Market Research
+1 877-441-4866
Sai.k@datamintelligence.com
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