CONNECTED VEHICLES MARKET Size and trends

Connected Vehicles Market Size and Trends

The global connected vehicles market is estimated to be valued at USD 84.68 Bn in 2025 and is expected to reach USD 194.46 Bn by 2032, growing at a compound annual growth rate (CAGR) of 12.6% from 2025 to 2032.

Key Takeaways of the Connected Vehicles Market:

• The passenger cars are expected to contribute the highest market share of 56.0% in 2025.
• Aftermarket segment is expected to contribute the highest market share of 53.6% in 2025.
• Vehicle-to-vehicle contributes the highest market share of 45.8% in 2025.
• North America is the leading market and is expected to account for 48.0% market share in 2025.

Market Overview:

The connected vehicles market growth is attributed to increasing demand for connected services such as fleet management, predictive maintenance, usage-based insurance and other connectivity solutions in commercial vehicles. In addition, increasing adoption of advanced driving assistance systems and government mandates for vehicle safety and connectivity are fueling the market growth. However, lack of standardization in connectivity protocols and high costs associated with the implementation of connected vehicle solutions are some of the challenges inhibiting the market growth. Still, upcoming opportunities around autonomous driving, blockchain, and 5G connectivity are expected to provide new growth avenues for connected vehicles market in coming years.