Global Connected Vehicle Market Size and Share Analysis 2023-2028

Market Overview

The Connected Vehicle Market is projected to reach USD 141.06 billion by 2028, with an estimated size of USD 63.39 billion in 2023, growing at a CAGR of 17.35% during the forecast period (2023-2028).

A connected vehicle refers to any type of vehicle that can connect to the internet, typically through a Wireless Local Area Network (WLAN). These vehicles have the capability to share internet access with devices both inside and outside the car, as well as exchange data with external devices and services.

Product Type

Market Report

No. of Pages


Release Date

April 2023

Base Year


Forecast Period


Market Size

USD 56.1 billion in 2021

Market Segments

Technology Type, Application, Connectivity, Vehicle Connectivity, Vehicle, and Geography



No. of Companies Mentioned


The COVID-19 pandemic significantly impacted the market, leading to supply chain disruptions and a temporary halt in vehicle production worldwide due to lockdowns and trade restrictions. However, as restrictions eased, industry players refocused their efforts on mitigating risks and driving advancements, generating momentum for the market during the forecast period.

The increasing integration of advanced safety and comfort features in vehicles, such as advanced driver assistance systems (ADAS) and vehicle infotainment systems, is a major growth driver in the market. The production of vehicles with integrated ADAS features is on the rise, driven by growing awareness of passenger comfort and safety, as well as government regulations mandating safety measures. Additionally, the growing acceptance of self-driving or automated vehicles further contributes to the market’s growth.

Governments worldwide are actively designing legislative policies and regulations to monitor vehicle users, proposing mandates and incentives for consumers to install ADAS components in their vehicles, aiming to mitigate the rising number of road accidents. For example, the Indian government has already mandated the installation of anti-lock braking systems (ABS) on motorcycles as part of its efforts to improve vehicle safety. Furthermore, India is working towards making Electronic Stability Control (ESC) and Autonomous Emergency Braking (AEB) mandatory in cars by 2022-2023.

Market Segmentation

The market is segmented based on various factors, including technology type, application, connectivity, vehicle connectivity, vehicle, and geography.

Segmentation by Technology Type

Segmentation by Application
Driver Assistance

Segmentation by Connectivity

Segmentation by Vehicle Connectivity
Vehicle to Vehicle (V2V)
Vehicle to Infrastructure (V2I)
Vehicle to Pedestrian (V2P)

Segmentation by Vehicle
Passenger cars
Commercial Vehicle

Segmentation by Geography
North America – United States, Canada, and Rest of North America
Europe – United Kingdom, Germany, France, and Rest of Europe
Asia-Pacific – China, Japan, India, South Korea, and Rest of Asia-Pacific
Rest of the World – Latin America, Middle East and Africa

In 2022, the 3G segment emerged as the dominant technology type in terms of revenue. This is mainly because automotive connectivity technology providers worldwide still offer 3G connectivity to various vehicles.

In terms of revenue, the driver assistance segment took the lead in 2022. According to a study, its lane-keep assist feature, which provides steering assistance to keep a vehicle in its lane, was installed in 56% of new cars sold in Europe in the first half of 2021, 52% in Japan, 30% in Mainland China, and 63% in the United States.

Embedded connectivity solutions held a significant market share in terms of revenue in 2022. These solutions have been widely used to develop firmware and hardware solutions for connected vehicles.

The growing interest in autonomous cars and connected vehicles is expected to drive wider acceptance in the coming years. Advanced driver assistance systems (ADAS) are predicted to bridge the gap between traditional and future cars. With technological advancements in the automotive industry, end users are willing to invest more in the latest technologies that enhance the driving experience and ensure safety. ADAS features such as collision warning, lane assistance, and blind spot detection significantly impact consumer behavior and improve vehicle performance by reducing downtime through timely fault alerts.

ADAS has made considerable progress, but connected vehicle technology still has room to grow. Vehicle-to-vehicle communication (V2V) holds the potential to further enhance it. By enabling direct communication between vehicles, V2V allows the sharing of information on speed, position, direction, and control inputs like braking or acceleration. Combining this data with sensor inputs can create a detailed picture of the surroundings and provide more accurate warnings or corrective actions to prevent collisions.

The number of ADAS components continues to grow, with systems previously available only in high-end models now being used in entry-level vehicles. These systems enhance safety and security during daily driving and enable the vehicle to make adjustments based on various conditions, such as steering, braking, and accelerating.

Europe dominated the market in terms of revenue in 2022 due to the presence of leading vehicle manufacturing countries like Germany. The country’s automotive industry, led by giants such as Volkswagen AG, Daimler-Mercedes, BMW AG, and Porsche, contributes significantly to research and development spending, accounting for over 35%.

Asia-Pacific is expected to lead the connected vehicle market, driven by increasing connectivity features in the latest car models. The demand for digital features in vehicles, especially in developing countries like China and India, will propel the connected vehicle market in the region.

China, one of the world’s largest automotive markets, recorded impressive sales of over 21.48 million passenger cars in 2021, despite the pandemic. This presents a significant opportunity for predictive technology to establish its position in the Chinese automobile market. The Chinese government is prioritizing advanced vehicle technologies, including ADAS features and electric mobility. Major automakers in the country are updating their portfolios with the introduction of new level 2 and level 3 ADAS features.

North America and Europe also hold considerable market share in terms of revenue and are projected to grow during the forecast period. Initiatives focused on predictive technology, including the implementation of ADAS features in cars, will further boost the market.

Competitive Landscape

The connected vehicle market is predominantly led by industry giants such as Continental AG, Robert Bosch GmbH, Harman International Industries, Inc., DENSO Corporation, Airbiquity Inc, and Visteon Corporation. In developing nations like China, India, and others, the adoption of connected vehicle features is expected to become increasingly common during the forecast period. Original Equipment Manufacturers (OEMs) have already started incorporating connected car features into their new models.

Among the key players in the market, Robert Bosch GmbH stands out as a prominent contender. The company boasts an extensive product portfolio and maintains advanced research and development facilities on a global scale. The company’s strengths lie in its strong customer base and its advanced research capabilities.

The report profiles several noteworthy companies, including Robert Bosch GmbH, Continental AG, Denso Corporation, Visteon Corporation, Harman International, AT&T Inc., Tomtom International BV, Airbiquity Inc., Qualcomm Technologies Inc., Sierra Wireless (Semtech Wireless), Infineon Technologies AG, Magna International Inc., and ZF Friedrichshafen AG.

Recent Industry Developments

May 2022 witnessed the introduction of cabin awareness concept technology by Toyota Connected North America. This cutting-edge technology incorporates millimeter-wave, high-resolution 4D imaging radar to facilitate the detection of occupants, including certain pets, inside vehicles.

In April 2022, Obigo Inc. and Korea Electric Technology Institute (KETI) collaboratively developed 5G-NR-V2X technologies specifically designed for connected and autonomous driving vehicles.

January 2022 marked the unveiling of a next-generation advanced driver-assistance system (ADAS) by Aptiv PLC. This state-of-the-art system is tailored for autonomous and electric vehicles, and its implementation promises to reduce the cost associated with software-driven vehicles due to Aptiv’s scalable architecture.

Continental made a significant technology breakthrough in November 2021. They introduced an intelligent software solution called the Next Generation Driving Planner, which plays a pivotal role in highly automated driving. This innovative software enables complex autonomous driving starting from Level 3.

Key Questions Answered

What is the duration of the study period for the Connected Vehicle Market?
The study period for the Connected Vehicle Market spans from 2018 to 2028.

What is the growth rate of the Connected Vehicle Market?
The Connected Vehicle Market is projected to experience a compound annual growth rate (CAGR) of 17.35% over the next five years.

What is the size of the Connected Vehicle Market?
The Connected Vehicle Market is expected to reach USD 63.39 billion in 2023 and is anticipated to grow at a CAGR of 17.35% to reach USD 141.06 billion by 2028.

Which region demonstrates the highest growth rate in the Connected Vehicle Market?
The Asia Pacific region exhibits the highest CAGR for the period of 2018 to 2028 in the Connected Vehicle Market.

Which region holds the largest share in the Connected Vehicle Market?
Asia-Pacific currently holds the highest market share in 2021 within the Connected Vehicle Market.

Who are the key players in the Connected Vehicle Market?
The major companies operating in the Connected Vehicle Market include Continental AG, Robert Bosch GmbH, Visteon Corporation, Harman International, and Denso Corporation.

Original price was: USD 4,750.Current price is: USD 2,850.

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Global Connected Vehicle Market Size and Share Analysis 2023-2028

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Global Connected Vehicle Market Size and Share Analysis 2023-2028

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