Automotive Connectivity Market Planning & Strategic Insights for 2034

Automotive Connectivity Market Size, Trends and Strategic Recommendations

The automotive connectivity market size is forecast to grow at a CAGR of 16.44%, from USD 142.73 billion in 2025 to USD 561.63 billion by 2034, over the forecast period from 2025 to 2034.

Unlock Infinite Advantages: Subscribe to Annual Membership

Introduction

The automotive connectivity market is a prominent branch of the automotive technology sector. This industry deals in providing automotive connectivity solutions to consumers around the world. There are different types of connectivity developed in this sector consisting of embedded connectivity, tethered connectivity and integrated connectivity. These connectivity modules are designed for different vehicles comprising of passenger cars and commercial vehicles. The rapid developments in the 5G infrastructure coupled with advancements in ADAS technology has contributed to significantly to the industrial development. This market is projected to rise drastically with the growth of the overall automotive sector across the globe.

• According to the 5G Americas Organization, the global 5G industry size in 2024 was US$ 2.9 billion in 2024 that is projected to reach US$ 4.8 billion in 2026.

Highlights of the Automotive Connectivity Market

• Asia Pacific held the highest share of the automotive connectivity market due to the technological developments in the automotive sector coupled with presence of various semiconductor companies in this region.
• North America is projected to grow with a significant CAGR due to the rising government initiatives for enhancing vehicle safety and growing cases of vehicle thefts in Canada.
• The in-car infotainment systems segment dominated the market due to the growing demand for convenience and entertainment features in automotives.
• The passenger cars segment led the market due to the increasing demand for SUVs and sportscars in developed regions.

Automotive Connectivity: Stats and Figures

• According to the IEEE ComSOc, the number of connected vehicles is projected to reach 367 million by the year 2027.
• According to the RAC Foundation, in 2024, there were around 41.7 million licensed vehicles in UK region with a rise of 1% as compared to 2023.
• According to a report of Deloitte, around 470 million connected vehicles are estimated to be moving on highways in the year 2025.
• According to the 5GAA Automotive Association, the global V2X market is estimated to reach US$ 20 billion by 2030.

Industry Leader Announcement

In September 2023, Mr. Jason Ho, the Chairman of Taisys Group made an announcement stating that, “The launch of the iConnect platform marks a significant milestone for Taisys India. We believe that connectivity is the future of mobility, and industry leaders Lumax Ituran reaffirms our commitment to shaping that future through groundbreaking technology.”

Competitive Landscape

The automotive connectivity market is a fragmented industry with the presence of numerous dominant players. Some of the prominent companies in this industry comprises of Denso, Continental, Bosch, Qualcomm, NXP Semiconductors, Harman, Verizon and some others. These market players are constantly engaged in developing advanced technologies for enhancing connectivity in vehicles and adopting strategies such as launches, collaborations, partnerships and some others to sustain their dominant position in this industry.

• According to the annual report of Continental, the revenue of automotive segment in 2022 was 18321.60 million euros that increased to 20295.40 million euros in 2023.

Market Segmentations

By Technology

• 4G/LTE
• 5G
• 3G

By Connectivity Solutions

• Integrated
• Embedded
• Tethered

By Service

• Driver assistance
• Safety
• Entertainment
• Well-being
• Vehicle management
• Mobility management

By Sales Channel

• OEM 
• Aftermarket

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa