United States Connected Cars Market Projected to Reach USD 56.2 Billion by 2031, Driven by IoT, AI, 5G, and Vehicle-to-Everything (V2X) Communication Technologies | Top Companies are LUXOFT, Continental AG, Qualcomm Technologies Inc.

The Global Connected Cars Market reached USD 23.5 billion in 2022 and is expected to reach USD 56.2 billion by 2031, growing with a CAGR of 18.5% during the forecast period 2024-2031.

The connected cars market involves vehicles integrated with internet and wireless technologies for communication, navigation, and safety features. These vehicles provide real-time traffic updates, remote diagnostics, and infotainment services. Growth is fueled by IoT adoption, smart city initiatives, and consumer demand for safety and convenience. Advanced driver-assistance systems (ADAS) and vehicle-to-everything (V2X) communication are major trends. Cybersecurity and data privacy considerations are shaping technology development. Increasing integration with autonomous vehicle systems further expands market opportunities.

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☛ Connected Cars Market Recent Developments 2025:

United States: Recent Industry Developments

✅ In August 2025, General Motors announced the launch of its Ultium-connected EV platform, featuring real-time vehicle diagnostics, over-the-air updates, and advanced driver assistance system (ADAS) integration.

✅ In July 2025, Ford partnered with Google Cloud to enhance its connected car ecosystem, leveraging AI and cloud computing for predictive maintenance and personalized in-vehicle experiences.

✅ In June 2025, Tesla rolled out enhanced Full Self-Driving (FSD) beta updates, improving navigation, safety features, and smart energy management for connected vehicles.

Europe: Recent Industry Developments

✅ In July 2025, Volkswagen Group launched Car.Software Org updates across its European EV lineup, enabling seamless vehicle-to-cloud connectivity and software-driven service enhancements.

✅ In June 2025, BMW introduced NextGen ConnectedDrive, integrating AI-powered route optimization, predictive maintenance alerts, and vehicle-to-infrastructure communication across European markets.

✅ In May 2025, Daimler AG partnered with Bosch to enhance Mercedes-Benz connected car services, focusing on fleet telematics, predictive diagnostics, and cybersecurity.

Japan: Recent Industry Developments

✅ In July 2025, Toyota unveiled Toyota Smart Connect, a next-gen connected car platform integrating cloud AI, real-time traffic management, and remote diagnostics for Japanese drivers.

✅ In June 2025, Honda expanded its Honda CONNECT services, including OTA updates, AI-powered route planning, and smart home integration for urban mobility solutions.

✅ In May 2025, Nissan launched vehicle-to-everything (V2X) communication technology in collaboration with NTT, improving road safety and traffic efficiency in smart city initiatives.

☛ Connected Cars Market Trends:

The connected cars market is expanding with advancements in IoT, AI, and 5G technologies that enable vehicle-to-everything (V2X) communication. Consumer demand for enhanced safety, navigation, infotainment, and real-time vehicle monitoring is propelling market growth. Data-driven insights and telematics services are becoming increasingly valuable to both drivers and manufacturers.

Market dynamics include the rapid adoption of autonomous driving features, government regulations promoting road safety, and the growing use of over-the-air (OTA) updates for software optimization. Partnerships among automotive OEMs, tech companies, and telecom providers are crucial in shaping the connected car ecosystem.

☛ Connected Cars Market Competitve Landscape:

LUXOFT, Continental AG, Qualcomm Technologies, Inc., Robert Bosch GmbH, Sierra Wireless, Tesla, Audi AG, BMW Group, Daimler AG and Ford Motor Company.

Research Methodology

We follow a hybrid research approach, combining qualitative insights with rigorous quantitative analysis to deliver reliable and comprehensive market intelligence. Our process begins with extensive secondary research, drawing on trusted industry reports, proprietary databases, and credible market sources. This is then reinforced through targeted primary research, including structured surveys and in-depth interviews with industry leaders, subject matter experts, and key market participants.

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☛ Segment Covered in the Connected Cars Market:

By Type: Embedded, Tethered, Integrated.

By Network: Dedicated Short-Range Communication, Cellular.

By Services: Navigation, Remote Diagnostics, Collision Warning, Auto Parking, Autopilot, Vehicle Management, Cybersecurity, Others.

By Hardware Type: Electronic Control Unit, Intelligent Antenna, Sensors, Keyless Entry Systems, Central Gateway, Head Unit, Telematics Control Unit.

☛ This Report Includes:

✔ Comprehensive go-to-market strategies with actionable insights.

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✔ Deep-dive analysis into development trends, competitive landscape, supply-demand dynamics, YoY growth, benchmarking, vendor mapping, market access, and overall progress.

✔ Tailored regional and country-level reports with detailed localized analysis available on request.

✔ Identification of niche segments and high-growth regions presenting strong opportunities.

✔ Accurate regional forecasts using both top-down and bottom-up approaches.

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☛ Regional Analysis for Connected Cars Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

☛ Frequently asked questions:

➠ What is the global sales, production, consumption, import, and export value of the Connected Cars Market?
➠ Who are the key global manufacturers, and what is their operational performance?
➠ What are the major opportunities and threats in the global Connected Cars Market?
➠ Which product types or end-users show the most growth potential and market share?
➠ What challenges and constraints are impacting the Connected Cars Market?
➠ What sales, marketing, and distribution channels are used globally?

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