United States Connected Cars Market 2031 | Growth Drivers, Key Players & Investment Opportunities

Market Size and Growth

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.

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Key Development:

United States: Recent Connected Car Developments

✅ In December 2025, Eagle Electronics completed the acquisition of Wireless Mobility and rebranded as Eagle Wireless to strengthen its connected vehicle module portfolio. The move enhances automotive-grade connectivity, cybersecurity, and telematics capabilities. It aligns with growing U.S. regulatory focus on secure connected vehicle infrastructure.

✅ In November 2025, Waymo expanded its connected autonomous vehicle operations by adding new fully driverless service routes across multiple U.S. cities. The expansion leverages advanced vehicle connectivity, real-time data exchange, and cloud-based fleet management. It marks continued scaling of connected mobility services in urban environments.

✅ In November 2025, Nokia expanded its collaboration with LiveOne to enhance in-car streaming and connected infotainment platforms. The partnership focuses on seamless audio content delivery and monetization inside connected vehicles. It highlights growing convergence of telecom, media, and automotive ecosystems.

✅ In October 2025, U.S. federal agencies increased strategic engagement with connected and autonomous vehicle software and hardware suppliers. The initiatives emphasize resilient connectivity stacks, vehicle cybersecurity, and data interoperability. This reflects rising national focus on next-generation connected transportation systems.

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Japan: Recent Connected Car Developments

✅ In October 2025, Japan Mobility Show 2025 showcased next-generation connected car technologies from leading Japanese OEMs and suppliers. The event highlighted vehicle-to-everything communication, software-defined vehicles, and smart cockpit innovations. It reinforced Japan's commitment to advanced connected mobility solutions.

✅ In October 2025, JOYNEXT received industry recognition for its flat antenna V2V connectivity solution designed for connected vehicles. The technology improves signal reliability, integration flexibility, and high-speed data exchange. It supports Japan's push toward scalable V2X communication infrastructure.

✅ In September 2025, Japan expanded government-backed pilot projects integrating connected vehicle technologies into urban mobility systems. These pilots combine real-time connectivity, autonomous driving features, and smart traffic coordination. The initiatives aim to accelerate commercialization of connected and automated vehicles.

✅ In August 2025, Japanese automotive and telecom stakeholders advanced nationwide 5G-V2X deployment programs supporting connected car communication. The developments enable low-latency data sharing between vehicles and infrastructure. They strengthen Japan's foundation for connected and autonomous driving ecosystems.

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Recent Mergers and Acquisitions :

United States: Recent Connected Cars M&A Activity

✅ In December 2025, Element Fleet Management completed the acquisition of Car IQ, a platform enabling vehicle-initiated payments through embedded connectivity. The acquisition strengthens Element's connected fleet ecosystem with real-time payments, telematics, and data integration. It accelerates adoption of software-defined and connected fleet services in the U.S.

✅ In December 2025, Wayve acquired Quality Match, a data quality and AI training company supporting autonomous and connected vehicle development. The deal enhances Wayve's capability to process large-scale connected driving datasets. It supports faster deployment of intelligent and connected vehicle systems.

✅ In October 2025, Qualcomm completed the acquisition of Ventana Micro Systems, strengthening high-performance compute capabilities for automotive connectivity platforms. The acquisition supports next-generation connected car processors and centralized vehicle architectures. It reinforces Qualcomm's position in software-defined vehicle ecosystems.

✅ In October 2025, Qualcomm finalized its acquisition of Autotalks, a specialist in vehicle-to-everything communication technology. The deal enhances safety-critical connectivity for connected and autonomous vehicles. It expands Qualcomm's automotive connectivity and V2X portfolio.

Japan: Recent Connected Cars M&A Activity

✅ In December 2025, Toyota Boshoku completed the acquisition of a U.S.-based manufacturing entity to expand its global automotive footprint. The transaction supports future integration of smart interiors and connected cockpit technologies. It aligns with Toyota Group's connected vehicle strategy.

✅ In December 2025, Adient acquired a minority stake in a joint venture focused on advanced vehicle seating systems. The deal enables integration of sensors and connectivity into next-generation automotive interiors. It supports connected and intelligent cabin development.

✅ In November 2025, Tata AutoComp Systems acquired European automotive interior assets previously serving Japanese OEM programs. The acquisition expands capabilities in smart and connected vehicle components. It strengthens supply chains supporting connected car platforms.

✅ In November 2025, Inteva Products completed acquisitions of select European automotive interior businesses linked to Japanese OEMs. The deal enhances engineering capacity for connected and electronically integrated vehicle systems. It supports scalable deployment of smart automotive interiors.

Key Players:

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

Key Segments:

By Type

Embedded systems dominate with 40% share, driven by rising adoption of factory-installed connected vehicle solutions offering high reliability, seamless integration, and enhanced safety features. Tethered systems account for 35%, supported by increasing smartphone penetration and consumer preference for cost-effective connectivity solutions. Integrated systems hold 25%, gaining traction due to their ability to combine embedded hardware with external devices for advanced infotainment and vehicle management functionalities.

By Network

Cellular networks lead with 65% share, fueled by the expansion of 4G/5G infrastructure, real-time data transmission needs, and growing demand for autonomous and connected vehicle applications. Dedicated Short-Range Communication (DSRC) accounts for 35%, supported by vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) safety applications in traffic management and collision avoidance systems.

By Services

Navigation services hold 22%, driven by real-time traffic updates and route optimization demand. Remote Diagnostics account for 18%, supported by predictive maintenance and fleet management adoption. Collision Warning captures 15%, fueled by stringent vehicle safety regulations. Auto Parking represents 12%, driven by urban congestion and parking challenges. Autopilot services hold 10%, supported by advancements in ADAS and autonomous driving. Vehicle Management contributes 9%, driven by connected fleet solutions. Cybersecurity accounts for 8%, reflecting rising concerns over vehicle data protection. Others represent 6%, including infotainment and emergency services.

By Hardware Type

Electronic Control Units (ECUs) dominate with 28% share, driven by increased electronic content in vehicles. Sensors account for 22%, supported by ADAS and autonomous vehicle technologies. Telematics Control Units (TCUs) hold 18%, fueled by vehicle connectivity and data transmission needs. Head Units represent 14%, driven by infotainment demand. Central Gateways capture 8%, supporting in-vehicle network management. Intelligent Antennas account for 6%, enabling seamless connectivity. Keyless Entry Systems represent 4%, supported by vehicle access and security solutions.

By Region

North America - 34% Share
North America leads with 34%, driven by early adoption of connected and autonomous vehicle technologies, strong OEM presence, and favorable regulatory frameworks in the U.S. and Canada.

Europe - 27% Share
Europe holds 27%, supported by stringent safety regulations, high penetration of premium vehicles, and strong demand for ADAS and telematics solutions across Germany, France, and the U.K.

Asia Pacific - 26% Share
Asia Pacific accounts for 26%, fueled by rising vehicle production, expanding smart mobility initiatives, and rapid adoption of connected vehicles in China, Japan, South Korea, and India.

Latin America - 7% Share
Latin America represents 7%, driven by gradual adoption of connected vehicle technologies and growing automotive markets in Brazil and Mexico.

Middle East & Africa - 6% Share
Middle East & Africa hold 6%, supported by increasing demand for premium vehicles, smart transportation initiatives, and improving digital infrastructure.

FAQ

What is the current size of the Connected Cars Market?

A: In 2022, the Connected Cars Market was valued at USD 23.5 billion, reflecting its strong industry presence.

Q2: How large is the Connected Cars Market expected to be by 2031?

A: By 2031, industry forecasts suggest the Connected Cars Market will grow to around USD 56.2 billion, demonstrating significant expansion.

Q3: What is the growth rate of the Connected Cars Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 18.5% during the forecast period from 2024 to 2031.

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