Internet Of Cars Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Internet Of Cars Market Trends and Insights

Rising Government Funding for V2X Infrastructure

National and regional authorities are underwriting roadside communication nodes, lowering the cost hurdle for private investors and speeding rollouts. The United States awarded USD 60 million in 2024 to equip 1,200 intersections with cellular Vehicle-to-Everything (V2X) hardware.^{[1]U.S. Department of Transportation, “V2X Infrastructure Grants and Deployment Programs,” TRANSPORTATION.GOV} China mandated that all new highways integrate C-V2X by 2025, trimming deployment timelines by 18 months. The European Commission directed EUR 1.3 billion (USD 1.39 billion) toward cooperative transport systems along trans-European corridors. Saudi Arabia’s NEOM project earmarked USD 500 billion for a 5G-enabled mobility grid. To gain access to these funds, suppliers must document ISO 21434 cybersecurity compliance at the design stage.

Integration of 5G and Edge Computing in Vehicle Platforms

5G paired with multi-access edge computing is compressing latency to below 10 milliseconds, enabling safety-critical functions. Qualcomm’s Snapdragon Ride was shipped in production cars in 2024, featuring an integrated edge AI accelerator that processes sensor data locally.^{[2]Qualcomm Technologies, “Snapdragon Ride Platform,” QUALCOMM.COM} Verizon and Nissan cut over-the-air update times to less than five minutes at 150 U.S. dealerships. China Mobile established 320 edge sites, which reduced the average travel time by 12% along a major freight corridor. European operators remain behind; Vodafone’s coverage reached only 8% of Germany’s autobahn network by the end of 2024.

OEM Pivot Toward Data-Monetization Business Models

Automakers are targeting subscription income to offset thinning hardware margins. General Motors generated USD 2 billion in platform revenue during Ultifi’s first year. Tesla’s Full Self-Driving subscription exceeded 500,000 users by September 2024. Ford created Ford Pro Intelligence to monetize fleet data, aiming for USD 1 billion in revenue by 2026. Still, GDPR audits found 22% of consent flows non-compliant in 2024, forcing costly redesigns.

Insurer Adoption of Usage-Based Policies

Carriers are incorporating telematics into their pricing algorithms. A SambaSafety survey found that 82% of U.S. insurers offered or planned to offer usage-based products by 2026.^{[3]SambaSafety, “Usage-Based Insurance Adoption Survey 2024,” SAMBASAFETY.COM} Progressive’s Snapshot program enrolled 8 million vehicles and cut loss ratios by 18 percentage points. Allianz introduced pay-per-kilometer cover in Germany, supported by live traffic APIs. India allowed usage-based policies in 2024, with early movers issuing policies 30% faster.

Fragmented Global Cellular-V2X Standards

Inconsistent spectrum allocation is forcing automakers to engineer multiple hardware variants, which inflates costs and slows launches. The U.S. allows Wi-Fi devices in the 5.9 GHz band, which raises the risk of interference.^{[4]Federal Communications Commission, “5.9 GHz Band Allocation,” FCC.GOV} Europe allows member states to choose between C-V2X and DSRC, resulting in a patchwork of different technologies. China has standardized on 3GPP Release 16, while Europe and the United States are moving to Release 17. Continental said maintaining separate variants added EUR 180 million (USD 193 million) to its 2024 R&D budget.

Consumer Privacy Concerns Around In-Car Data Streams

Reluctance to share driving data is limiting opt-in rates. A 2024 Deloitte survey found 68% of consumers unwilling to share real-time location data without compensation. GDPR fines totaled EUR 420 million (USD 450 million) against three automakers that bundled consent requests. California’s updated privacy act added USD 15 million in annual compliance costs per OEM. Tesla opened a Shanghai data center in 2024 to comply with China’s local storage rule.

Segment Analysis

By Software Solutions: Security Spending Outpaces Fleet Platforms

Security software is forecast to grow at a 19.4% CAGR through 2030 as July 2024 UNECE rules require intrusion detection on every new model. Fleet management retained the largest share, at 18.3%, in 2024, highlighting the commercial fleets’ focus on uptime and route efficiency. Real-time transit systems gained momentum when the Los Angeles Metro reduced passenger wait times by eight minutes by connecting 2,300 buses. Remote monitoring has become routine for electric fleets that need battery health diagnostics. Bandwidth management tools are gaining popularity because Ford spent USD 120 million on cellular data in 2024, prior to deploying edge caching.

Demand for security is reconfiguring procurement. OEMs now insist suppliers show third-party ISO 21434 audits, adding up to nine months to product timelines. Vendors that pre-certified solutions reported faster design wins, positioning cybersecurity as the next pricing lever. Fleet platforms remain sticky, but over-the-air update orchestration is emerging as a cross-segment opportunity that software firms are racing to capture. As a result, the Internet of Cars market continues to migrate toward a software-first revenue profile.

Note: Segment shares of all individual segments available upon report purchase

By Hardware Components: Embedded Modems Displace Aftermarket Dongles

Telematics control units accounted for 12.3% of 2024 revenue; however, embedded 5G modems are projected to grow at a 20.3% CAGR to 2030. Qualcomm’s single-chip radio merges C-V2X and cellular broadband, shaving 30% off bill-of-materials costs. Vehicles shipped in 2024 carried an average of 17 connected sensors, up from 11 two years earlier. Continental’s 48-inch OLED cluster illustrates how human-machine interfaces are converging into software-defined cockpits.

Growth is constrained by semiconductor supply tightness; lead times for telematics ECUs hit 26 weeks in 2024. Three suppliers—Bosch, Continental, and Denso—controlled 60% of the output, underscoring the concentration risk. Antenna innovation is accelerating as millimeter-wave 5G becomes viable; Amphenol’s phased-array design supports 28 GHz and 39 GHz bands for gigabit car streaming. These shifts signal that hardware will increasingly be standardized, while differentiation moves to the software layer, reinforcing the data-centric outlook for the Internet of Cars market.

By Connectivity Technology: 5G C-V2X Eclipses Legacy DSRC

Cellular-V2X built on 5G held 11.1% share in 2024 and is forecast to expand at 21.6% CAGR through 2030. Release 16 sidelink enables direct car-to-car messaging without network coverage, which is vital for rural safety use cases. China’s nationwide mandate enabled the deployment of 1.2 million C-V2X vehicles on roads in 2024. The U.S. shifted USD 200 million from DSRC to cellular pilots.

Satellite links are gaining traction for remote regions; Starlink’s automotive terminal delivers 100 Mbps where 5G is absent. Wi-Fi and Bluetooth remain common in-cabin, yet add little incremental revenue. Regulatory convergence is improving: a September 2025 EU directive reserves the 5.9 GHz band exclusively for C-V2X starting in 2027, reducing compliance costs and bolstering the Internet of Cars market.

By Application: Entertainment Subscriptions Fuel Revenue Growth

Safety and driver assistance accounted for 15.6% of 2024 demand, driven by the mandatory implementation of automatic emergency braking in key markets. Integrated entertainment is projected to grow at a 19.9% CAGR as users expect smartphone-grade streaming and gaming capabilities. Samsung and Stellantis brought 4K video and Xbox Cloud Gaming to 12 models in 2024. Mobility management is gaining traction; Uber now displays public transit fares in 85 cities.

Vehicle management features, such as remote diagnostics, are table stakes; Tesla issued 12 fleet-wide updates in 2024. Venture investors injected USD 800 million into vehicle-to-grid and peer-to-peer sharing startups. As recurring content fees outpace hardware margins, connected entertainment stands to be a primary revenue accelerator for the Internet of Cars market.

Note: Segment shares of all individual segments available upon report purchase

By End-User Industry: Ride-Hailing Fleets Drive Connectivity Adoption

Automotive OEMs generated 22.3% of 2024 revenue, but ride-hailing and car-sharing fleets are forecast to grow at a 20.7% CAGR. Uber equipped 500,000 North American cars with bespoke telematics to inform dynamic pricing and maintenance. Lyft monetizes anonymized driving data through partnerships with urban planners.

Transportation and logistics firms embraced advanced fleet tools; DHL saved 9% on fuel after deploying Verizon Connect in 12,000 vans. Allstate tied premiums to real-time braking and mileage for 2 million users in six months. With fleet managers focused on cost per mile, centralized telematics investments continue to expand the Internet of Cars market size across commercial verticals.

Geography Analysis

The Asia Pacific led the Internet of Cars market in 2024, with a 33.9% share, and is expected to sustain a 19.6% CAGR through 2030. China budgeted RMB 50 billion (USD 6.9 billion) for smart roadside assets in Wuxi, Shanghai, and Chongqing. Japan’s 5G-V2X program aims to deploy 50,000 cooperative cruise-control cars by 2027. India’s USD 15 billion Smart Cities Mission has completed pilots that reduced wait times by 18% at intersections. South Korea plans to install C-V2X technology on every new expressway starting from 2025. Indonesia and Vietnam are slower due to limited 5G coverage; however, ride-hailing firms are deploying telematics on their two-wheel fleets.

North America and Europe are mature yet divergent. Washington authorized USD 1.2 billion for V2X corridors on Interstates 80 and 95. The EU has financed 23 cross-border freight projects that enable fuel savings of 10-15% through truck platooning. Canada’s Ontario pilot cut rear-end collisions by 22% at signalized intersections. Mexico focuses on plant-side 5G networks for vehicle testing. Stricter privacy rules in Europe increased compliance spending and impacted monetization timelines.

The Middle East and Africa are riding the smart-city megaprojects. Saudi Arabia’s USD 500 billion NEOM will deploy 5G-ready V2X across 26,500 square kilometers. Dubai connected 1,200 buses and cut delays by 12 minutes. South Africa’s Gauteng province plans 300 C-V2X intersections by 2027. Nigeria and Kenya focus on delivery-motorcycle tracking for theft reduction. Latin America lags due to funding gaps; Brazil’s 5G road-coverage mandate faces uncertain timelines. These diverse trajectories outline how regional policies and telecom readiness will shape the future growth of the Internet of Cars market.