Internet of Vehicles Market Playbook, Growth Opportunities & Trends

Internet of Vehicles Market Strategic Growth, Innovation & Investment Trends

The internet of vehicles market is forecasted to expand from USD 223.48 billion in 2025 to USD 1552.28 billion by 2034, growing at a CAGR of 24.03% from 2025 to 2034.

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Introduction

The internet of vehicles market is a prominent sector of the automotive technology industry. This industry deals in developing internet-based solutions for enhancing automotive communication. There are several communication solutions provided by this industry comprising of Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), Vehicle-to-Cloud (V2C) and some others. It includes several components including hardware, software and services. There are numerous applications of this sector consisting of fleet management, autonomous driving, traffic management, infotainment & connected services, predictive maintenance and others. The growing adoption of electric vehicles around the world has boosted the industrial expansion. This market is expected to grow significantly with the rise in the telecom sector across the world.

• According to the International Energy Agency, around 7300000 BEVs were sold globally in 2022 that increased to 9500000 in 2023.

Highlights of the Internet of Vehicles Market

• Asia Pacific held the dominant share of the internet of vehicles market due to the technological advancements related to automotive sector in this region.
• North America is expected to grow with a significant CAGR due to the presence of numerous 5G service providers in this region.
• The on-vehicle segment dominated the market due to the rapid integration of telematics in luxury vehicles.
• The Wi-Fi segment led the market due to its faster processing speed and simple configuration that helps in connecting numerous vehicles through a single network.

Internet of Vehicles: Stats and Figures

• According to the 5G Americas, around 4.8 billion consumers are expected to adopt 5G across North America during 2026.
• According to the VVA Association, around 81% of the EU population was covered by 5G network during 2023.
• According to the IEEE Organization, the number of connected vehicles is projected to rise to 367 million in 2027.
• According to the India Brand Equity Foundation, India’s 5G subscription is expected to reach 350 million in 2026.

Industry Leader Announcement

In November 2024, Kevin Cohen, the VP of Direct to Device Partnerships at Viasat announced that,” With a longstanding history in providing critical safety services in the air and at sea, and our continued innovation on direct-to-device connectivity, joining the 5GAA is a natural fit for Viasat. By utilizing already licensed L-band spectrum for mobile satellite services, vehicles could roam between space and ground network connectivity, With satellites helping to power a unified connectivity ecosystem, vehicles could automatically and autonomously work with each other and central management platforms to operate more safely, sustainably, and efficiently.”

Competitive Landscape

The internet of vehicles market is a highly competitive industry with the presence of various dominant players. Some of the prominent companies ruling this industry comprises of Cisco System, Inc. NXP Semiconductors (Netherlands), Intel Corporation (U.S.), IBM Corporation (U.S.), Google LLC (U.S.), (U.S.), Volkswagen (Germany), Ford Motor Company (U.S.), Veniam (U.S.) and some others. These market players are constantly engaged in providing superior communication solutions for automotives and adopting several strategies to sustain their dominant position in this industry.

• According to the annual report of NXP, the automotive segment generated a revenue of around US$ 7261 million in 2022 that increased to US$ 7484 million in 2023.

Market Segmentations

By Solution

• On-Vehicle
• IoV Management Center

By Networking Technology

• Wi-Fi
• Bluetooth
• Cellular Network

By Communication Type

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Pedestrian (V2P)
• Vehicle-to-Cloud (V2C)
• Others

By Region

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