The Connected Cars Market is projected to achieve a value of US $214.41 billion by 2030.
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The Business Research Company's Connected Cars Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035
LONDON, GREATER LONDON, UNITED KINGDOM, February 4, 2026 /EINPresswire.com/ -- The connected cars market is experiencing significant momentum as automotive technology continues to evolve rapidly. With increasing integration of digital systems and connectivity features, this sector is set for substantial growth in the coming years. Let’s explore the current market size, key drivers, regional insights, and future trends shaping the connected cars industry.
Connected Cars Market Size and Growth Projections Through 2026
The connected cars market has seen swift expansion in recent years, reaching a size of $105.67 billion in 2025. It is projected to grow further to $121.23 billion by 2026, reflecting a strong compound annual growth rate (CAGR) of 14.7%. This growth during the past period has been driven largely by greater adoption of infotainment systems, increased demand for smartphone integration, the proliferation of vehicle sensors, expansion of telematics services, and the overall digitization of vehicles.
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Forecasted Expansion of the Connected Cars Market by 2030
Looking ahead, the connected cars market is anticipated to accelerate its pace, reaching an estimated $214.42 billion by 2030 with a CAGR of 15.3%. Factors fueling growth in this outlook period include advances in autonomous vehicle development, the emergence of smart mobility ecosystems, the rise of software-defined vehicles, connectivity requirements for electric vehicles, and the increasing use of data-driven mobility services. Key trends expected to influence this growth involve the rise of embedded connectivity platforms, broader integration of advanced driver-assistance systems (ADAS), increasing demand for real-time vehicle diagnostics, growth in in-car digital services, and widespread adoption of vehicle-to-everything (V2X) communication technologies.
Understanding Connected Cars and Their Capabilities
Connected cars are vehicles equipped with internet access and a local area network that enables communication with other cars and external systems. These vehicles use a range of sensors to send and receive data from manufacturers and service providers, enhancing the overall driving experience through real-time interaction. Such connectivity also allows drivers to link their smartphones or other mobile devices to monitor vehicle performance and access various smart features seamlessly.
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Autonomous Vehicles as a Key Driver for Connected Cars Market Growth
A major factor propelling the connected cars market is the increasing development and deployment of autonomous vehicles. Often known as self-driving or driverless cars, these vehicles utilize sophisticated sensors, artificial intelligence (AI), and other advanced technologies to operate without human intervention. Connected car technology is crucial for supporting autonomous vehicles by enabling data sharing, improving navigation accuracy, enhancing safety features, and providing the infrastructure necessary for these cars to function effectively on public roads. For example, data from the National Academies Press in 2023 highlights that self-driving vehicles are on the verge of commercialization worldwide, with projections suggesting that by 2035, up to 40% of new cars in the UK could be autonomous. This growing adoption of autonomous cars is a strong catalyst for expansion in the connected cars market.
Regional Overview of the Connected Cars Market
In terms of regional market share, Asia-Pacific led the connected cars market in 2025, holding the largest portion of the global industry. Western Europe ranked as the second largest market for connected cars. The comprehensive report on this market also covers other key regions including South East Asia, Eastern Europe, North America, South America, the Middle East, and Africa, offering a detailed view of global market dynamics and growth opportunities.
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