Connected Car Devices Market Size and Share
Connected Car Devices Market Analysis by Mordor Intelligence
The Connected Car Devices Market size is estimated at USD 63.27 billion in 2025, and is expected to reach USD 126.32 billion by 2030, at a CAGR of 14.83% during the forecast period (2025-2030). Demand stems from rapid 5G roll-outs, new e-Call and ADAS mandates, and the shift toward software-defined vehicles that rely on seamless connectivity. OEMs view embedded modules as the backbone for subscription services and data monetization, with potential revenue of USD 1,600 per vehicle from connected offerings. Growth is bolstered by the spread of cellular vehicle-to-everything (C-V2X) standards and edge AI chipsets that lower latency for safety-critical functions.
Key Report Takeaways
- By end-user type, OEM channels led with 63.27% of connected car devices market share in 2024, while aftermarket solutions are projected to advance at a 15.74% CAGR to 2030.
- By communication type, vehicle-to-vehicle technology accounted for 39.62% of the connected car devices market size in 2024; vehicle-to-grid is poised for the fastest 15.12% CAGR through 2030.
- By product type, driver assistance systems commanded 41.21% share of the connected car devices market size in 2024, whereas cybersecurity hardware will expand the quickest at 14.89% CAGR.
- By connectivity technology, embedded solutions dominated with 48.83% revenue share in 2024, and the C-V2X segment is on course for a 15.51% CAGR.
- By vehicle propulsion type, internal-combustion models retained 76.14% share in 2024; battery electric vehicles will register the highest 15.17% CAGR this decade.
- By geography, North America held 38.73% connected car devices market share in 2024, although Asia Pacific is forecast to post the strongest 15.37% CAGR to 2030.
Global Connected Car Devices Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Rapid 5G Roll-Out and Carrier-OEM | +3.2% | Global, with early gains in China, South Korea, US | Medium term (2-4 years) |
Mandatory E-Call and ADAS Regulations | +2.8% | North America and EU core, China implementation | Short term (≤ 2 years) |
Subscription-Based Revenue Targets | +2.1% | Global, premium segments first | Medium term (2-4 years) |
Edge AI Chips Enabling | +1.9% | Global, led by premium and EV segments | Long term (≥ 4 years) |
Usage-Based-Insurance Driving | +1.7% | North America and EU, expanding to Asia-Pacific | Medium term (2-4 years) |
Cross-Industry App-Store Ecosystems | +1.4% | Global, concentrated in developed markets | Long term (≥ 4 years) |
Source: Mordor Intelligence
Rapid 5G Roll-Out and Carrier-OEM Partnerships
Automotive 5G connections are forecast to grow exponentially in enablement revenues by 2027. Cisco and TELUS already provision more than 1.5 million 5G vehicles on automated platforms, cutting latency to near-real-time levels critical for autonomous features. Partnerships now bundle connectivity, edge computing, and developer tools into unified offerings that let OEMs launch new services faster. These alliances change the supplier landscape because carriers shift from bandwidth providers to strategic technology partners. The resulting service platforms underpin premium infotainment, remote diagnostics, and high-definition maps, supporting higher average revenue per user.
Mandatory E-Call and ADAS Regulations
The National Highway Traffic Safety Administration requires automatic emergency braking with pedestrian detection on all light vehicles by September 2029, carrying USD 354 million in annual compliance costs and lifetime benefits topping USD 5.82 billion[1]“Automatic Emergency Braking Final Rule,” National Highway Traffic Safety Administration, nhtsa.gov . Europe enforces e-Call and a suite of driver-assistance functions under the General Safety Regulation, while China scales vehicle-road-cloud pilots with more than 7,000 5G-A base stations in Beijing. These mandates remove uncertainty around timelines, prompting OEMs to integrate connected sensors as standard equipment. Suppliers benefit from predictable volumes, and consumers gain universal safety features that lower accident rates.
Subscription-Based Revenue Targets
Automakers seek recurring income as hardware margins tighten. Volvo’s EX90 electric SUV runs Qualcomm’s digital cockpit to unlock features on demand, and Volkswagen’s Cariad unit explores paid automated-driving packages. Industry projections show software accounting for more than three-fourths of vehicle innovation. Success rests on delivering clear consumer value while avoiding pushback over paywalls for basic functions. Platforms must support secure over-the-air updates, usage analytics, and flexible billing so brands can personalise offerings without compromising safety or performance.
Edge AI Chips for In-Vehicle Inferencing
NXP’s S32N55 and Honda-Renesas’ forthcoming 2,000 TOPS processor illustrate the migration to centralised, AI-ready architectures[2]“S32N55 Vehicle Super-Integration Platform,” NXP Semiconductors, nxp.com. Putting compute at the edge reduces cloud reliance, enabling real-time driver monitoring, sensor fusion, and predictive maintenance even when connectivity is poor. Due to advanced AI hardware, semiconductor content per vehicle is forecast to double by 2030. Consolidating multiple electronic control units into domain controllers trims wiring, saves weight, and simplifies updates, yet requires robust thermal management and cybersecurity protections baked into silicon.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Cyber-Security Vulnerabilities | -2.4% | Global, acute in premium segments | Short term (≤ 2 years) |
High BOM Cost of Multi-Band V2X | -1.8% | Global, concentrated in emerging markets | Medium term (2-4 years) |
Data-Cloud Egress Fees Eroding OEM | -1.6% | Global, concentrated in North America and EU | Medium term (2-4 years) |
Semiconductor Supply-Chain Fragility | -1.4% | Global, acute in Asia Pacific manufacturing | Short term (≤ 2 years) |
Source: Mordor Intelligence
Cyber-Security Vulnerabilities and Recalls
The Pwn2Own Automotive 2024 contest exposed a zero-click exploit in Alpine’s Halo9 infotainment unit with a 96% success rate, highlighting the ease of remote compromise[3]“Automotive 2024 Contest Results,” Pwn2Own, pwn2own.com. Software-related recalls affected over 30 million vehicles in 2023, and the NIST-listed CVE-2023-6248 flaw enables full device takeover of popular telematics gateways. As vehicles become rolling data centres, their attack surface expands, raising the cost of post-sale patches and reputational damage. Regulators demand security-by-design, pushing suppliers to embed hardware root-of-trust, secure over-the-air frameworks, and continuous penetration testing.
High BOM Cost of Multi-Band V2X Modules
Supporting DSRC, C-V2X, and emerging 5G sidelink in one box elevates RF complexity and production cost. Automotive semiconductors are on track to top the chart by 2027, with V2X radios among the most expensive components. OEMs face a choice: diversify SKUs by region to cut costs or fit universal modules that preserve global platforms. The interim overlap of DSRC and C-V2X limits economies of scale, and price-sensitive markets weigh connectivity against core mechanical content. Until volumes rise and standards converge, high module pricing will restrain adoption outside premium segments.
Segment Analysis
By End-User Type: OEM Dominance Drives Integration
OEM installations captured 63.27% of the connected car devices market share in 2024 because factory-fitted hardware integrates deeply with vehicle diagnostics, power management, and warranty frameworks. Automakers embed modules during assembly to ensure compliance with e-Call and ADAS mandates, streamline over-the-air upgrades, and bolster brand control over data. Growing reliance on software-defined architectures cements this channel’s leadership as OEMs link connectivity to revenue-generating services such as remote feature activation and predictive maintenance.
However, aftermarket providers are expanding quickly, with a 15.74% CAGR, as insurers and fleet managers retrofit legacy assets. Plug-and-play dongles and hardwired black boxes supply real-time usage data that underpins behaviour-based premiums and asset tracking. HARMAN’s ready-upgrade kits exemplify solutions tailored for mixed fleets needing installation speed and cross-brand compatibility. While OEM control remains strong, price-sensitive owners and commercial operators continue to drive a parallel aftermarket, ensuring competitive variety within the connected car devices market.
Note: Segment shares of all individual segments available upon report purchase
By Communication Type: V2V Leads Current Deployment
Vehicle-to-vehicle links represented 39.62% of the connected car devices market revenue share in 2024 because they deliver collision warnings without requiring roadside units. Mature standards and demonstrated safety gains encourage OEMs to adopt V2V first, particularly in high-volume models aiming for five-star safety ratings. Retrofits also proliferate in commercial fleets where forward-collision alerts cut downtime and insurance costs.
Vehicle-to-grid capability is projected to post a 15.12% CAGR to 2030 as energy utilities partner with automakers to stabilise renewable-heavy grids. Bidirectional chargers paired with connectivity let electric cars feed stored power back to the network, creating new revenue for owners and grid operators. Growth in vehicle-to-infrastructure and vehicle-to-pedestrian segments follows smart-city spending, yet these depend on broader public investment. Over time, integrated V2X suites will blend all modes, but V2V will remain the cornerstone while ecosystems mature around it.
By Product Type: ADAS Systems Command Market Leadership
Driver assistance systems held a 41.21% share of the connected car devices market in 2024, reflecting regulatory deadlines for automatic emergency braking, lane-keeping, and intelligent speed assistance. Combining radar, camera, and LiDAR data with connectivity allows vehicles to access cloud-based maps and traffic information that sharpen sensor performance. Consumers perceive immediate safety benefits, justifying higher sticker prices in mass-market segments.
Cybersecurity hardware, though niche in revenue today, will expand fastest at 14.89% CAGR as software-centric vehicles demand dedicated processors for anomaly detection, encryption, and secure boot. Telematics boxes remain essential for fleet monitoring, utilisation, and maintenance cycles, while infotainment platforms evolve into digital cockpits that unify entertainment, navigation, and climate controls. Suppliers that bundle ADAS, infotainment, and security into modular architectures can capture greater value as product boundaries blur within the connected car devices market.
By Connectivity Technology: Embedded Solutions Dominate
Embedded modems secured 48.83% revenue share in 2024 because buyers always expect on-demand services without extra devices. Native SIMs simplify provisioning, updates, and diagnostics, allowing automakers to guarantee performance across global roaming partners. Subscription bundling through carriers further entrenches embedded designs as the default for premium and volume models.
Cellular V2X adoption will climb at a 15.51% CAGR as 5G Standalone networks enable higher throughput, enhanced sidelink range, and future automated-driving features. Integrated and tethered options persist in niche applications: tethered dongles suit lower-priced cars and aftermarket retrofits, while integrated solutions balance flexibility and cost for mid-tier trims. Convergence toward software-defined radios that toggle between 4G, 5G, and Wi-Fi will reduce SKUs, but embedded architectures will remain the anchor of the connected car devices market.

Note: Segment shares of all individual segments available upon report purchase
By Vehicle Propulsion Type: ICE Vehicles Maintain Share Leadership
Internal-combustion platforms contributed 76.14% of 2024 unit shipments, ensuring they stay the largest revenue pool for connected hardware this decade. Retrofits of e-Call, telematics, and basic infotainment to ICE models allow OEMs to monetise data and comply with safety rules while capitalising on existing production lines. These volumes underpin scale economies that lower component costs across all propulsion types.
Battery electric vehicles will grow at 15.17% CAGR as zero-emission mandates tighten. Their high-voltage architectures and centralised software stacks make them ideal hosts for advanced connected services such as intelligent charging, route-based energy optimisation, and vehicle-to-home power export. Hybrid and fuel-cell variants also gain from connectivity that synchronises propulsion modes and maintenance cycles. Even as BEV share rises, the sheer installed base of ICE vehicles will keep them a cornerstone customer group within the connected car devices market.
Geography Analysis
North America accounted for 38.73% of the connected car devices market share in 2024. Uptake is driven by federal funding under the Infrastructure Investment and Jobs Act and consumer appetite for premium SUVs brimming with ADAS, high-definition infotainment, and 5G hotspots. Ongoing pilots with the U.S. Department of Transportation and the 5G Automotive Association boost confidence in C-V2X, while tight cybersecurity and privacy rules shape procurement specifications. Canada and Mexico benefit from integrated supply chains, enabling regional OEM plants to standardise connected modules and software stacks. These factors sustain healthy replacement cycles and after-sales subscriptions across North America.
Asia-Pacific is on track for the fastest 15.37% CAGR to 2030. China’s vehicle-road-cloud blueprint anchors public and private spending, with Beijing alone hosting more than 7,000 5G-A base stations for intelligent mobility. Domestic brands embed connectivity to differentiate in a crowded electric-vehicle arena, while regional suppliers deliver cost-optimised telematics for two-wheelers and microcars. Japan and South Korea leverage chip-making prowess and early 5G roll-outs to test next-generation C-V2X sidelink features. India emerges as a high-volume opportunity as safety norms tighten and smartphone-savvy buyers demand always-on infotainment, though price sensitivity keeps tethered solutions relevant.
Europe maintains steady momentum under harmonised regulations such as mandatory e-Call and the General Safety Regulation. Germany, the United Kingdom, and France lead adoption as luxury marques bundle connectivity into premium trim lines, and mid-range brands follow suit. Energy-efficiency and carbon-reduction goals drive interest in vehicle-to-grid pilots that align EV charging with renewable output. Strict data sovereignty laws influence cloud-hosting choices, giving European-based providers an edge. Pan-EU standards for cybersecurity certification are under development, promising to streamline cross-border homologation and further stimulate the connected car devices market.

Competitive Landscape
The connected car devices market is moderately fragmented, yet competition intensifies as semiconductor houses, cloud hyperscalers, and telecom equipment firms challenge established Tier 1 suppliers. Infineon’s purchase of Marvell’s Automotive Ethernet unit underscores a push toward vertical integration of high-bandwidth networking with power electronics and microcontrollers. Qualcomm’s acquisition of Autotalks adds dual-mode DSRC/C-V2X capabilities to the Snapdragon Digital Chassis, signaling a race to offer turnkey platforms that blend connectivity, compute, and AI accelerators.
Partnerships now set the pace of innovation. Bosch and Microsoft combine domain expertise with generative AI to automate software-validation workflows, shortening release cycles for over-the-air updates. AWS collaborates with Toyota to host connected service back-ends, while Google extends Android Automotive OS and app services to multiple European brands. These alliances let carmakers tap cloud scale without relinquishing brand identity, accelerating service deployment across model ranges.
White-space opportunities abound in cybersecurity and edge inference. Specialists such as Blaize offers energy-efficient graph-streaming processors for real-time perception. As architectures converge on centralised compute, suppliers that can deliver secure, upgradeable, and standards-compliant modules gain bargaining power. At the same time, price pressure and overlapping portfolios spur consolidation, suggesting further mergers as players seek scale in the connected car devices market.
Connected Car Devices Industry Leaders
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Continental AG
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Denso Corporation
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Robert Bosch GmbH
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Autoliv Inc.
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Valeo SA
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- June 2025: Qualcomm finalised the acquisition of Autotalks to deepen V2X expertise and integrate dual-mode DSRC/C-V2X into Snapdragon Digital Chassis.
- May 2025: HARMAN open-sourced its end-to-end connected services platform via the Eclipse Foundation, enabling deployments for up to 100,000 vehicles.
- April 2025: Infineon closed its USD 2.5 billion purchase of Marvell’s Automotive Ethernet business to blend microcontroller leadership with multi-gigabit in-vehicle networking.
Global Connected Car Devices Market Report Scope
The Connected Car Devices Market is segmented by End-user Type (OEM and Aftermarket), Communication Type (V2V, V2I, and V2P), Product Type (Driver Assistance System and Telematics), Vehicle Type (IC Engine, Electric, and Fuel Cell Vehicle), and by Geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers market size and forecast for connected car devices in terms of value (USD Million) for all the above segments.
By End-User Type | OEM | ||
Aftermarket | |||
By Communication Type | V2V | ||
V2I | |||
V2P | |||
V2N | |||
V2G | |||
By Product Type | Driver Assistance System (ADAS) | ||
Telematics | |||
In-Car Infotainment | |||
Cyber-security Hardware | |||
By Connectivity Technology | Embedded | ||
Integrated | |||
Tethered | |||
DSRC | |||
C-V2X (4G/5G) | |||
By Vehicle Propulsion Type | Internal-Combustion Engine Vehicles | ||
Electric Vehicles | Battery Electric Vehicle | ||
Hybrid Electric Vehicle | |||
Fuel-cell Electric Vehicle | |||
Plug-in Hybrid Electric Vehicle | |||
By Geography | North America | United States | |
Canada | |||
Rest of North America | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Spain | |||
Italy | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
South Korea | |||
Rest of Asia-Pacific | |||
Middle East and Africa | United Arab Emirates | ||
Saudi Arabia | |||
South Africa | |||
Rest of Middle East and Africa |
OEM |
Aftermarket |
V2V |
V2I |
V2P |
V2N |
V2G |
Driver Assistance System (ADAS) |
Telematics |
In-Car Infotainment |
Cyber-security Hardware |
Embedded |
Integrated |
Tethered |
DSRC |
C-V2X (4G/5G) |
Internal-Combustion Engine Vehicles | |
Electric Vehicles | Battery Electric Vehicle |
Hybrid Electric Vehicle | |
Fuel-cell Electric Vehicle | |
Plug-in Hybrid Electric Vehicle |
North America | United States |
Canada | |
Rest of North America | |
South America | Brazil |
Argentina | |
Rest of South America | |
Europe | Germany |
United Kingdom | |
France | |
Spain | |
Italy | |
Rest of Europe | |
Asia-Pacific | China |
Japan | |
India | |
South Korea | |
Rest of Asia-Pacific | |
Middle East and Africa | United Arab Emirates |
Saudi Arabia | |
South Africa | |
Rest of Middle East and Africa |
Key Questions Answered in the Report
What is the current size of the connected car devices market?
The connected car devices market size reached USD 63.27 billion in 2025 and is projected to double to about USD 126.31 billion by 2030 on a 14.83% CAGR.
Which region leads the market?
North America held 38.73% market share in 2024 due to regulatory mandates and high premium-vehicle penetration.
Why are OEMs focusing on subscription services?
OEMs aim to offset tightening hardware margins by unlocking recurring revenue, with potential connected-service earnings of USD 1,600 per vehicle.
What segments are growing the fastest?
Vehicle-to-grid communication, cybersecurity hardware and battery electric vehicles each post CAGRs above 13.5% through 2030.
How are cybersecurity risks being addressed?
Automakers now embed hardware root-of-trust, run continuous penetration tests and partner with specialist firms to meet emerging security-by-design regulations.
What role will 5G play in connected vehicles?
Standalone 5G cuts latency to near-real-time, enabling advanced driver assistance, high-definition mapping and future autonomous driving functions while supporting new carrier-OEM service platforms.
Page last updated on: July 1, 2025