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Automotive Digital Services Global Market Insights: Growth Drivers, Size & Forecasts to 2029

09-09-2025 08:32 AM CET | Logistics & Transport

Press release from: The Business Research Company

Automotive Digital Services

Automotive Digital Services

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What Is the Forecasted Market Growth Rate of the Automotive Digital Services Industry?
The size of the automotive digital services market has expanded swiftly over recent years, with predictions suggesting it will rise from a value of $3.53 billion in 2024 to $3.92 billion in 2025, representing a compound annual growth rate (CAGR) of 11.0%. Factors contributing to the growth observed during this historical period include the advancement and availability of internet and connectivity standards, the rise of smartphones and mobile applications, along with regulatory emphasis on safety and emissions standards.

How Will the Automotive Digital Services Market Size Evolve From 2025 to 2029?
The market for digital services in the automotive sector is anticipated to experience significant expansion in the coming years. By 2029, it is projected to reach a value of $5.73 billion, growing at a compound annual growth rate (CAGR) of 10.0%. This projected growth can be associated with factors such as the development of the connected car ecosystem, integration of electric vehicles, advancements in edge computing and AI, and the rise of personalized mobility services. Key trends moving forward include improved vehicle connectivity, an increase in customized user experiences, the growth of in-car entertainment and infotainment systems, and the further integration of augmented reality (AR) and heads-up displays (HUDs).

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What Are the Main Growth Drivers in the Automotive Digital Services Market Today?
The growing popularity of connected vehicles is forecasted to fuel the expansion of the automotive digital services market. A connected car refers to a vehicle that has advanced communication technologies and connectivity attributes, enabling it to interact with other vehicles. The increasing demand stems from consumer desires for improved safety, convenience, leisure, and connectivity features. Automotive digital services are employed to increase the comfort, safety, and entertainment of drivers and passengers in connected vehicles, while giving manufacturers the chance for continuous interaction. For example, the Australian Computer Society, a professional association based in Australia, stated in August 2021 that there are approximately a million connected cars in Australia, with this figure anticipated to grow to 10 million by 2030. As a result, the growing desire for connected cars is fuelling the automotive digital services market's expansion.

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Which Automotive Digital Services Market Segment Is Expected to Lead Through 2029?
The automotive digital services market covered in this report is segmented -

1) By Product Type: Mobility On Demand Service, Logistic Fleet Management Service, In-Vehicle Digital Service
2) By Vehicle Type: Commercial Vehicle, Passenger Vehicle
3) By Application: Vehicle Owner, Automobile Manufacturer, Automobile Service Provider, Transportation Management Company, Other Applications

Subsegments:
1) By Mobility On Demand Service: Ride-Hailing Services, Car Sharing Services, E-Scooter And Bike Sharing Services
2) By Logistic Fleet Management Service: Fleet Tracking Solutions, Route Optimization Services, Maintenance And Compliance Management
3) By In-Vehicle Digital Service: Infotainment Systems, Connected Navigation Services, Vehicle Health Monitoring Services

Which Market Trends Are Expected to Dominate Automotive Digital Services Industry Growth?
The focus of leading companies in the automotive digital services market is on the creation of progressive solutions, such as the digital chassis, intended to increase car connectivity, safety, and efficiency. Digital chassis is a consolidated digital platform in a car that merges hardware, software, and connection solutions to manage and improve a variety of car features like safety, performance, and consumer experience. In September 2023, Qualcomm Incorporated, a semiconductor company from the United States, introduced two fresh platforms, QWM2290 and QWS2290, associated with its Snapdragon Digital Chassis. These were geared towards improving connectivity and safety features for a range of vehicles, such as motorcycles, electronic bikes, and ATVs. The features of these platforms include advanced smart clusters equipped with custom navigation, alerts for low battery, and reminders for maintenance, as well as sturdy 4G/5G connectivity and vehicle-to-everything (V2X) communication. Furthermore, they provide a suite of integrated services for updates over-the-air and remote diagnostics.

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Which Companies Hold the Largest Market Share in the Automotive Digital Services Sector?
Major companies operating in the automotive digital services market are Volkswagen AG, Toyota Motor Corporation, Ford Motor Company, Mercedes-Benz Group, General Motors Company, Bayerische Motoren Werke AG, Hyundai Motor Company, Tesla Inc., Nissan Motor Co. Ltd., Aurora Innovation Inc., Volvo AB, Qualcomm Incorporated, Continental AG, Tata Motors Limited, Uber Technologies Inc., NVIDIA Corporation, Aptiv PLC, Harman International Industries Incorporated, Lyft Inc., XPeng Inc., Rivian Automotive Inc., Waymo LLC, Cruise LLC, BlackBerry Limited, TomTom NV

Where Is the Automotive Digital Services Market Experiencing the Highest Growth?
Asia-Pacific was the largest region in the automotive digital services market in 2024. The regions covered in the automotive digital services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Speak With Our Expert:
Saumya Sahay
Americas +1 310-496-7795,
Asia +44 7882 955267 & +91 8897263534,
Europe +44 7882 955267
Email:saumyas@tbrc.info
The Business Research Company -www.thebusinessresearchcompany.com
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Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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