Connected Vehicle Technology Market to Reach $84.54 Billion by 2030 as 5G and Smart Mobility Adoption Accelerate

Dublin, July 23, 2026 (GLOBE NEWSWIRE) — The “Connected Vehicle Technology Market Global Report 2026” has been added to ResearchAndMarkets.com’s offering.

The global connected vehicle technology market is experiencing rapid expansion as automakers, fleet operators and technology providers increase investment in digital mobility solutions. The market is projected to grow from $45.99 billion in 2025 to $51.86 billion in 2026, representing a compound annual growth rate of 12.8%.

By 2030, the connected vehicle technology market is expected to reach $84.54 billion, expanding at a CAGR of 13% from 2026. Growth is being supported by the rising penetration of electric and autonomous vehicles, demand for real-time vehicle diagnostics, adoption of predictive maintenance systems and development of software-defined vehicle architectures.

The expansion of 5G networks and smart city infrastructure is also strengthening connected mobility ecosystems. Ultra-low-latency communications enable vehicles to exchange information with other vehicles, road infrastructure, cloud platforms and mobility networks. Key market trends include vehicle-to-everything communication, embedded telematics control units, over-the-air software updates, AI-powered vehicle health monitoring and cloud-based fleet management platforms.

Rising urban traffic congestion is creating additional demand for connected vehicle technology. Real-time data exchange can improve traffic coordination, optimize route selection and reduce delays across densely populated areas. According to the UK Department for Transport, vehicles traveled 330.8 billion miles on roads in Great Britain during 2023, an increase of 2.2% compared with 2022. Continued growth in road use is increasing pressure on transportation networks and supporting investment in intelligent mobility systems.

Automotive manufacturers are introducing flexible connected service packages to improve accessibility and generate recurring digital revenue. In April 2026, Stellantis N.V. launched a two-tier connected vehicle offering. Its Connect One package is included in the vehicle purchase price and provides services such as emergency assistance and remote charging management. A subscription-based tier offers additional advanced features and enhanced connectivity, enabling customers to select services according to their requirements.

Merger and acquisition activity is also supporting market development. In December 2025, Canada-based Element Fleet Management Corp. acquired Car IQ Inc. for an undisclosed amount. The acquisition adds vehicle-initiated transaction capabilities to Element’s fleet management platform, supporting automated and secure payments across fuel, maintenance, mobility and service networks. Car IQ is a US-based financial technology company specializing in connected vehicle payment solutions.

North America was the largest connected vehicle technology market in 2025, supported by established automotive, cloud computing and telecommunications industries. Asia-Pacific is forecast to be the fastest-growing region through 2030 as vehicle production, 5G deployment, smart city investment and connected mobility adoption increase.

Prominent companies operating in the connected vehicle technology market include Amazon Web Services, Volkswagen, Google, Toyota Motor Corporation, Microsoft, Ford Motor Company, General Motors, BMW Group, Mercedes-Benz Group, Honda Motor, Hyundai Motor Company, Huawei Technologies, Tesla, Robert Bosch, Nissan Motor, Kia Corporation, IBM, NVIDIA, Cisco Systems, Intel and Qualcomm.

The market includes telematics services, fleet management solutions, over-the-air software updates, in-vehicle connectivity, remote diagnostics, predictive maintenance, navigation, cybersecurity and mobility data analytics. It also covers sales of telematics control units, onboard connectivity modules, sensors, infotainment hardware and GPS devices.

Reasons to Purchase:

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• Understand customers based on end user analysis.
• Benchmark performance against key competitors based on market share, innovation, and brand strength.
• Evaluate the total addressable market (TAM) and market attractiveness scoring to measure market potential.
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• All data from the report will also be delivered in an excel dashboard format.

Description

Where is the largest and fastest growing market for connected vehicle technology ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The connected vehicle technology market global report answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Report Scope
Markets Covered:

1) By Component: Hardware; Software; Services
2) By Communication Type: Vehicle-To-Vehicle; Vehicle-To-Infrastructure; Vehicle-To-Pedestrian; Other Communication Types
3) By Vehicle Type: Passenger Cars; Commercial Vehicles
4) By Application: Telematics; Infotainment; Emergency Response; Navigation; Other Applications
5) By End Use: Original Equipment Manufacturer; Aftermarket

Subsegments:

1) By Hardware: Telematics Control Units; Sensors; On-Board Diagnostics Devices; Global Positioning System Modules; Vehicle-To-Everything Communication Modules; Infotainment Hardware Units
2) By Software: Fleet Management Software; Navigation and Mapping Software; Vehicle Diagnostics Software; Cybersecurity Software For Vehicles; Data Analytics and Artificial Intelligence Platforms; Over-The-Air Update Software
3) By Services: Managed Connectivity Services; Vehicle Maintenance and Support Services; Data Services and Cloud Integration; Consulting and System Integration Services; Mobility-As-A-Service Support Services; Subscription-Based Connected Services

Key Attributes:

Companies Featured

• Amazon Web Services Inc. (AWS)
• Volkswagen AG
• Google LLC
• Toyota Motor Corporation
• Microsoft Corporation
• Ford Motor Company
• General Motors Company
• BMW Group
• Mercedes-Benz Group AG
• Honda Motor Co. Ltd.
• Hyundai Motor Company
• Huawei Technologies Co. Ltd.
• Tesla Inc.
• Robert Bosch GmbH
• Nissan Motor Co. Ltd.
• Kia Corporation
• International Business Machines Corporation (IBM)
• NVIDIA Corporation
• Cisco Systems Inc.
• Intel Corporation
• Qualcomm Incorporated.

For more information about this report visit https://www.researchandmarkets.com/r/70we5z

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• Connected Vehicle Technology Market