According to the report by Expert Market Research (EMR), The global connected vehicle market attained a value of USD 123.48 billion in 2023, driven by the increased demand for passenger cars among consumers. Aided by heightened demand for vehicle safety, the market is expected to witness a further growth in the forecast period of 2024-2032, growing at a CAGR of 17%. The market is projected to reach USD 507.31 billion by 2032.
Connected vehicles represent a significant leap in the automotive sector, integrating advanced communication technologies to enable a wide range of applications such as real-time traffic updates, automated driving, remote diagnostics, and enhanced entertainment systems. These vehicles use a combination of Internet of Things (IoT) connectivity, AI, and data analytics. They provide safer, more efficient, and more comfortable driving experiences.
The surge in consumer demand for vehicles equipped with advanced safety features is a primary driver of the connected vehicle market growth. Alongside this, the convenience offered by real-time vehicle monitoring and diagnostics also contributes significantly. In addition, increasing awareness of the benefits of vehicle connectivity includes fuel efficiency, reduced emissions, and predictive maintenance. This awareness is further bolstering the market expansion.
Another critical factor contributing to the connected vehicle market’s growth is the integration of infotainment systems. These systems offer navigation, parking assistance, voice recognition, and streaming services, enhancing the overall in-vehicle experience. Additionally, the rise in smartphone penetration and the growing popularity of cloud-based services have led to the seamless integration of mobile applications with vehicle systems. This expansion has further widened the scope of connected vehicle capabilities.
Significant investments in the development of autonomous vehicles are influencing the outlook of the connected vehicle market. These autonomous vehicles rely heavily on connected vehicle technologies. This trend is not only transforming the automotive industry. It is also paving the way for new business models and opportunities in the realms of shared mobility and transportation-as-a-service (TaaS).
Governments across the globe are increasingly focusing on regulations and initiatives to promote vehicle connectivity. Regulatory support, coupled with incentives promoting eco-friendly transport, will likely greatly increase the adoption of connected vehicles.
The demand for the connected vehicle market poised to experience significant growth. Technological advancements, consumer demand for advanced safety and infotainment features, and supportive government policies are driving this growth. The automotive industry continues to evolve towards more connected and autonomous vehicles. The market’s anticipated growth presents lucrative prospects for ecosystem participants such as manufacturers, tech firms, and service providers.
