| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 187.97 Billion |
| Market Size (2030) | USD 401.30 Billion |
| CAGR (2025 - 2030) | 16.38% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Internet Of Cars Market Analysis by Mordor Intelligence
The Internet Of Cars Market size is estimated at USD 187.97 billion in 2025, and is expected to reach USD 401.30 billion by 2030, at a CAGR of 16.38% during the forecast period (2025-2030).
- Vehicle and passenger safety is becoming a paramount concern as global road traffic surges, particularly in densely populated areas. Both consumers and governments are prioritizing the minimization of accidents. Internet of Vehicles (IoV) technologies allow real-time communication between vehicles (V2V), infrastructure (V2I), pedestrians (V2P), and networks (V2N). Such interactions provide early warnings about hazards, traffic jams, or abrupt braking, enabling timely reactions from drivers or autonomous systems. With IoV backing advanced driver-assistance systems (ADAS), there's a notable reduction in collision risks, swifter emergency responses, and enhanced navigation safety.
- Another significant trend is the increasing integration of the Internet of Things (IoT) and cloud services in the automotive sector. Today's vehicles, equipped with sensors, cameras, and onboard systems, generate vast data volumes. IoT platforms harness this data, offering real-time diagnostics, predictive maintenance alerts, and tailored user experiences. Fleet operators leverage IoV for route optimization, vehicle health monitoring, and fuel efficiency improvements, leading to reduced operational costs. This synergy of IoT and cloud services cultivates a more interconnected and efficient transportation landscape, propelling market growth.
- The rapid advancement of autonomous and connected vehicle technologies is anticipated to drive the growth of the studied market. Autonomous vehicles require swift data exchanges with their environment to ensure safe decision-making. The Internet of Vehicles (IoV) supports vehicle-to-everything (V2X) communication, which is essential for achieving Level 3 autonomy and beyond. By sharing critical insights on road conditions, traffic patterns, and potential hazards, these connected vehicles enhance situational awareness, surpassing the capabilities of onboard sensors. This progress is further strengthened by advancements in 5G networks, artificial intelligence (AI), and edge computing, which collectively improve the efficiency of IoV ecosystems.
- However, the IoV market grapples with challenges, notably in precise vehicle positioning and consistent data transmission amidst complex environments. Urban landscapes, with their tall buildings, tunnels, and dense infrastructures, can obstruct GPS signals and wireless communications, leading to data loss or delays. Additionally, network inconsistencies, whether in coverage or bandwidth, can hinder the real-time data exchanges vital for safety and autonomous operations. Such challenges threaten the efficacy of IoV systems, risking both safety and user satisfaction.
- Rapid urbanization, especially in emerging markets of Asia Pacific, Latin America, and parts of Africa, is a significant macroeconomic driver for the IoV market. As urban migration rises, so does vehicle ownership, amplifying the demand for safe and connected transportation. With increased disposable incomes, consumers are more inclined to purchase vehicles boasting advanced connectivity. This urban expansion necessitates solutions for traffic management, pollution oversight, and mobility services—all areas where IoV technologies excel. Thus, the confluence of a burgeoning urban populace and improving economic conditions sets the stage for a swift IoV adoption.
Global Internet Of Cars Market Trends and Insights
Automotive End-User Segment is Expected to Witness Significant Growth
- Attracted by the promise of safer, smarter, and more efficient transportation, the automotive industry is increasingly embracing the Internet of Vehicles (IoV) market. IoV facilitates real-time communication among vehicles, infrastructure, and cloud systems. This connectivity enhances advanced driver assistance systems (ADAS), paves the way for autonomous driving, streamlines traffic flow management, and offers personalized in-car services, all elevating the driving experience and bolstering road safety.
- Moreover, the rapid deployment of 5G networks, combined with cloud-centric vehicle architectures, enables vehicles to swiftly process complex data, from road conditions to image recognition. For example, the 5G telco cloud is transforming the Internet of Vehicles landscape. This technology serves as the backbone for real-time data processing, ensuring high-bandwidth connectivity and enhancing reliability. The integration of 5G and cloud technologies is driving advancements in autonomous vehicles. With the 5G telco cloud, vehicles are evolving in areas like safety, navigation, fleet management, and vehicle-to-everything (V2X) communication, signaling a transformative era. This evolution not only enhances operational performance but also introduces new mobility features.
- Moreover, rising consumer demand for connected car technologies, government initiatives for smart transportation, and increased vehicle production are fueling this trend. For instance, in December 2024, the U.S. Department of Energy (DOE) announced a USD 51.7 million investment in projects aimed at innovating transportation, with an emphasis on expanding affordable and reliable mobility options across the nation. The 19 funded projects will advance a variety of next-generation transportation technologies, with a significant focus on vehicle-to-everything (V2X) connectivity. The integration of IoT, AI, and V2X communication facilitates seamless data exchange, making vehicles more intelligent and responsive to dynamic road conditions. Despite concerns over data privacy and cybersecurity, substantial investments in secure network infrastructures are propelling the swift adoption of IoV.
- Furthermore, as automakers increasingly equip vehicles with internet connectivity, the Internet of Vehicles market continues to expand. Each connected vehicle not only broadens the network of data-generating endpoints but also enhances vehicle-to-everything communication and services. A survey by the Experience Per Mile Advisory Council predicts that by 2030, 96% of all newly shipped cars worldwide will feature built-in connectivity.
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North America is Expected to Hold Significant Market Share
- As North American consumers increasingly demand features like real-time navigation, entertainment, and advanced safety systems in their vehicles, automotive manufacturers are responding by significantly boosting investments in Internet of Vehicles (IoV) technologies. This surge in investment is resulting in a broader selection of connected cars entering the market.
- Cutting-edge technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) are revolutionizing vehicle systems, enhancing both connectivity and functionality. Features such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications are becoming more prevalent, leading to safer and more efficient driving experiences. This technological integration is heightening competition among manufacturers, further driving market growth.
- In North America, especially in the U.S., government agencies are amplifying their focus on automotive safety and emissions reductions. For instance, in March 2024, the EPA unveiled a final rule, tightening standards to curb greenhouse gas emissions from heavy-duty vehicles for the 2027 model year. The agency also established even more stringent benchmarks for models from 2028 to 2032. Additionally, in January 2025, the U.S. Department of Commerce's Bureau of Industry and Security (BIS), through its Office of Information and Communications Technology and Services (OICTS), rolled out a Final Rule. This regulation bars specific transactions of connected vehicles (CVs) with hardware and software associated with China and Russia. Such regulatory actions not only bolster local investments in connected vehicle technologies and promote domestic manufacturing but also compel automakers to hasten their efforts to meet compliance standards.
- Furthermore, the growing emphasis on data analytics and vehicle telematics is driving market growth. Companies are leveraging data from connected vehicles to gain insights into driver behavior, maintenance needs, and operational efficiency. This data-driven approach not only enhances user experiences but also enables manufacturers to offer personalized services and improve vehicle performance.
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Competitive Landscape
In the Internet of Vehicles market, competition is moderate, featuring a mix of global giants and regional contenders. Dominant players hold significant market shares, yet emerging companies are swiftly broadening their reach, especially in developing nations, fueled by the rising demand for IoT services in connected transportation.
Prominent companies in the market include Cisco Systems Inc., IBM Corporation, Bosch Software Innovations GmbH, Waymo LLC (a subsidiary of Alphabet Inc.), and Tesla Motors Inc. These organizations benefit from strong brand recognition and extensive global operations, enabling them to secure a substantial share of the market. Their competitive strengths lie in innovation and comprehensive software solution offerings. To maintain their market leadership and expand their reach, these companies frequently engage in strategic acquisitions and partnerships.
Achieving success in the Internet of Vehicles market requires a strong focus on innovation and the adoption of advanced technologies. Companies that invest in emerging markets and customize their products to meet regional requirements are well-positioned to gain a competitive advantage in this fragmented market.
Internet Of Cars Industry Leaders
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Cisco Systems, Inc.
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IBM Corporation
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Bosch Software Innovations GmbH
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Waymo LLC (Alphabet Inc.)
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Tesla Motors Inc.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- January 2025: Samsara Inc. forged a significant partnership with Mobilisights, Stellantis' Data as a Service arm. This collaboration aims to grant European businesses effortless, hardware-free access to vehicle telematics data to enhance fleet management and boost operational efficiencies. Through this alliance, Samsara’s Connected Operations platform will seamlessly integrate with the built-in telematics hardware of Stellantis. This integration spans across Stellantis’ diverse brands, which include Alfa Romeo, Citroën, DS Automobiles, FIAT, Jeep, Opel, Peugeot, and Vauxhall.
- February 2024: Soracom, Inc., a prominent player in advanced Internet of Things (IoT) connectivity, teamed up with Suzuki Motor Corporation, a diverse player in mobility with offerings spanning automobiles, motorcycles, and outboard motors. The duo inked a deal to delve into the realm of advanced IoT technologies tailored for mobility services. Their collaboration aims to harness cutting-edge IoT innovations, with a spotlight on electric vehicles (EVs) tailored for global markets, versatile "mobility base units", and pioneering technologies and services championing carbon neutrality.
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Global Internet Of Cars Market Report Scope
Through a network of sensors, software, and hardware, the Internet of Vehicles (IoV) connects vehicles to their surroundings and each other, facilitating real-time data exchange. This connectivity aims to boost transportation efficiency, enhance safety, and propel advancements in autonomous driving technologies. For autonomous vehicles, this instant communication is crucial, allowing them to alert nearby cars about braking, lane changes, or turns. Such timely notifications ensure a smoother and safer transportation experience. The study tracks revenue from Internet of Vehicle solutions sold by industry players, highlighting their use across diverse end-user applications.
The internet of vehicle market is segmented by software solutions (real-time transit management systems, security solutions, remote monitoring systems, network bandwidth management, fleet management), applications (mobility management, vehicle management, integrated entertainment), end-user (transportation and logistics, automotive, other end-user industries), and geography (North America, Europe, Asia Pacific, and Rest of World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Software Solutions
| Real time Transit Management System |
| Security Solution |
| Remote Monitoring System |
| Network Bandwidth Management |
| Fleet Management |
By Applications
| Mobility Management |
| Vehicle Management |
| Integrated Entertainment |
By End-user Industry
| Transportation and Logistics |
| Automotive |
| Others End User Industries |
By Geography***
| North America |
| Europe |
| Asia |
| Australia and New Zealand |
| Latin America |
| Middle East and Africa |
| By Software Solutions | Real time Transit Management System |
| Security Solution | |
| Remote Monitoring System | |
| Network Bandwidth Management | |
| Fleet Management | |
| By Applications | Mobility Management |
| Vehicle Management | |
| Integrated Entertainment | |
| By End-user Industry | Transportation and Logistics |
| Automotive | |
| Others End User Industries | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
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Key Questions Answered in the Report
How big is the Internet Of Cars Market?
The Internet Of Cars Market size is expected to reach USD 187.97 billion in 2025 and grow at a CAGR of 16.38% to reach USD 401.30 billion by 2030.
What is the current Internet Of Cars Market size?
In 2025, the Internet Of Cars Market size is expected to reach USD 187.97 billion.
Who are the key players in Internet Of Cars Market?
Cisco Systems, Inc., IBM Corporation, Bosch Software Innovations GmbH, Waymo LLC (Alphabet Inc.) and Tesla Motors Inc. are the major companies operating in the Internet Of Cars Market.
Which is the fastest growing region in Internet Of Cars Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Internet Of Cars Market?
In 2025, the North America accounts for the largest market share in Internet Of Cars Market.
What years does this Internet Of Cars Market cover, and what was the market size in 2024?
In 2024, the Internet Of Cars Market size was estimated at USD 157.18 billion. The report covers the Internet Of Cars Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Internet Of Cars Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Internet Of Cars Market Report
Statistics for the 2025 Internet Of Cars market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Internet Of Cars analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
