- Summary
- Table Of Content
- Methodology
Automotive IoT Market Size:
Automotive IoT Market size is estimated to reach over USD 501.26 Billion by 2032 from a value of USD 142.89 Billion in 2024 and is projected to grow by USD 164.67 Billion in 2025, growing at a CAGR of 19.0% from 2025 to 2032.
Automotive IoT Market Scope & Overview:
Automotive IoT or automotive internet of things refers to connecting vehicles to other vehicles or infrastructure. It enables vehicles to communicate with each other using sensors, connectivity modules, platforms, cloud services, and other technologies. Moreover, automotive internet of things includes connected car, advanced driver assistance systems (ADAS), fleet management systems, and other systems. This enables real-time tracking, route planning, driver monitoring, traffic updates, remote diagnostics, software updates, cloud backup, and several other applications.
Automotive IoT Market Dynamics - (DRO):
Key Drivers:
Rising adoption of automotive IoT systems for fleet management propels the market growth
The fleet management systems provide real-time insights, predictive analytics, and operational control to fleet operators. Moreover, these systems offer real-time monitoring of vehicle speed, location, and condition to optimize fleet performance. Integrated video telematics functionalities enhance the safety protocols that enables improved driver coaching and event management. Furthermore, instant alerts through SMS and email assists fleet operators to respond quickly to events, minimizing downtime and risks.
- For instance, in March 2025, Magenta Mobility launched NormInc., an advanced IoT vehicle management platform. The platform improves the fleet efficiency by 30%.
Thus, the rising adoption of automotive internet of things system for fleet management is driving the automotive IoT market growth.
Key Restraints:
Interoperability issues associated with automotive IoT hinders the market growth
Different devices and systems from various manufacturers use several protocols and standards to communicate. This lack of uniformity creates issues in seamless integration among IoT devices. Moreover, IoT systems use different file formats, data models, and schemas, further creating challenges for seamless transfer of data.
Furthermore, the aforementioned factors along with lack of standardized frameworks and protocols hinders the adoption of automotive internet of things devices. Thus, the market analysis shows that the aforementioned factors are restraining the automotive IoT market demand.
Future Opportunities:
Integration of advanced technologies with automotive IoT creates market opportunities
The integration of advanced technologies with automotive internet of things including 5G, AI, and cloud computing enables connected cars, smarter fleet management, and predictive maintenance. Moreover, advanced algorithms analyze the collected data, identify patterns, and make predictions regarding potential issues, leading to safer, more efficient, and personalized driving experiences. Furthermore, 5G enables fast and efficient software updates for vehicles that allows manufacturers to publish new features, bug fixes, and security patches remotely.
- For instance, in May 2024, SoundHound AI and Perplexity partnered to integrate online LLMs to next generation voice assistants in IoT devices and cars. SoundHound Chat AI is able to respond to user’s questions with real-time knowledge from the web.
Thus, the ongoing advancements in technologies and their integration with automotive internet of things are projected to drive automotive IoT market opportunities during the forecast period.
Automotive IoT Market Segmental Analysis :
By Communication:
Based on the communication, the market is segmented into vehicle to vehicle, in vehicle communication, and vehicle to infrastructure.
Trends in the Communication:
- Rising adoption of vehicle-to-vehicle communication for enhanced safety on road in order to avoid accidents and obstacles is boosting the automotive IoT market size.
- Increasing shift in adoption of vehicle to infrastructure communication to get timely updates about road hazards, traffic conditions, and traffic signal timings.
The in-vehicle communication segment accounted for the largest revenue in the automotive IoT market share in 2024.
- In-vehicle communication refers to the integration of communication technology within vehicles to enhance functionality, safety, and user experience. This enables communication between various vehicle systems, components, and external networks.
- For instance, in March 2025, Murata launched a high-Q RF inductor to be used in in-vehicle communication devices. The product features quality performance, accommodating the strict requirements of AEC-Q200 qualification.
- Therefore, the wide applications of in-vehicle communication are boosting the automotive IoT market growth.
The vehicle to vehicle segment is expected to register the fastest CAGR during the forecast period.
- Vehicle-to-vehicle (V2V) communication allows vehicles to directly communicate with each other to share information about their location, speed, and other relevant data, leading to enhanced traffic efficiency and road safety.
- For instance, in December 2023, Magna in collaboration with NorthStar, enhanced its automated driving capabilities. This collaboration aims to trail the vehicle-to-vehicle (V2V) communication technology.
- Thus, the growth in adoption of vehicle to vehicle communication is expected to the boost the automotive IoT market trends during the forecast period.
By Offering:
Based on the offering, the market is segmented into hardware, software, and services.
Trends in the Offering:
- Rising adoption of IoT software in automotive industry for cargo handling, fleet tracking, and monitoring is boosting the automotive IoT market size.
- Increasing demand in IoT services in automotive sector to connect, communicates, and analyze data.
The hardware segment accounted for the largest revenue share of 52.88% in the market in 2024.
- The automotive internet of things hardware includes cameras, sensors, telematics solutions, GPS trackers, microcontrollers, actuators, and connected infotainment systems.
- For instance, in November 2024, Renesas Electronics Corporation launched automotive fusion system-on-chips to be integrated in in-vehicle infotainment (IVI) and advanced driver assistance systems (ADAS).
- Therefore, the wide applications of hardware in automotive internet of things boosts the automotive IoT market demand.
The services segment is expected to register the fastest CAGR during the forecast period.
- Automotive internet of things services encompasses a range of connected car solutions, including in-vehicle infotainment, fleet management, advanced driver-assistance systems (ADAS), predictive maintenance, and telematics.
- These services offer enhanced safety, improved driving experience, reduced maintenance costs, remote access and control, improved fleet management, and other prominent benefits.
- Thus, the ongoing adoption of services in the market is expected to propel the automotive IoT market trends during the forecast period.
By Connectivity Form:
Based on the connectivity form, the market is segmented into embedded, tethered, and integrated.
Trends in the Connectivity Form:
- Rising shift in adoption of tethered connectivity to stream music, receive real-time traffic updates, and remote access to the systems.
- Increasing demand in integrated systems in automobiles to connect to the internet and transfer the data.
The embedded segment accounted for the largest revenue in the automotive IoT market share in 2024.
- IoT systems with embedded connectivity involves manufacturers integrating communication modules including cellular or satellite connectivity directly into a vehicle's embedded systems.
- For instance, in May 2023, BlackBerry launched QNX SDP 8.0 featuring its QNX operating systems. This system enhances the performance of embedded systems in automotive sector.
- Therefore, the benefits provided by embedded systems are boosting the automotive IoT market expansion.
The integrated segment is expected to register the fastest CAGR during the forecast period.
- Automotive integrated connectivity systems enhance the driving experience by providing features including navigation, infotainment, smartphone integration, and connectivity modules while focusing on safety and convenience.
- Moreover, these systems are able to connect using GPS, Wi-Fi, and Bluetooth, which enable vehicles to connect with external networks and devices.
- Thus, the ongoing advancements in integrated connectivity systems are driving their adoption, which is expected to propel the automotive IoT market opportunities during the forecast period.
By Application:
Based on the application, the market is segmented into navigation, infotainment, and telematics.
Trends in the Application:
- Rising trend in adoption of IoT systems for navigation to ensure accurate location tracking with real-time updates.
- The ongoing trend of adoption of IoT systems in telematics due to enhanced safety, efficiency, and convenience.
The navigation segment accounted for the largest revenue in the market in 2024.
- The navigation systems offer features including access to real-time traffic information, efficient routes, finding near-by gas stations, restaurants, and other places, in turn leading to safer and more efficient travel.
- For instance, in April 2022, Airtel launched IoT solution for GPS tracking of vehicles. This solution allows continuous tracking of the vehicle, thereby, enhancing safety and providing navigation details.
- Therefore, the analysis states that the wide applications of IoT systems in navigation are boosting the automotive IoT market expansion.
The infotainment segment is expected to register the fastest CAGR during the forecast period.
- Infotainment systems allow drivers to access audio, video, and other content from various sources including streaming services and connected devices.
- Moreover, advanced systems offer features such as smartphone integration and voice recognition, which enables hands-free interaction and improves safety and convenience.
- For instance, in January 2024, ACCESS and MediaTek collaborated to launch Twine4Car, an automotive infotainment service. The services offered include audio, video, and games across car’s head unit, customer devices, and rear-seat entertainment.
- Thus, the market analysis shows that the ongoing advancements in IoT infotainment systems are expected to propel the market during the forecast period.
By End User:
Based on the end user, the market is segmented into OEM and aftermarket.
Trends in the End User:
- Rising trend in adoption of aftermarket services to update the IoT systems integrated in the vehicle, particularly infotainment systems.
- Increasing demand in customization of IoT systems by customers to OEMs, in order to provide high-quality products.
The OEM segment accounted for the largest revenue in the market in 2024.
- OEM automobile IoT system offers benefits including high compatibility, quality, and reliability, as they are designed and manufactured by the vehicle manufacturer that ensures seamless integration and performance.
- For instance, in June 2024, LG Electronics launched LG AplhaWare, which can be integrated with existing OEM vehicle systems. This helps auto manufacturers to create immersive experiences for passengers and drivers.
- Thus, the automotive IoT market analysis depicts that the aforementioned factors are boosting the market.
The aftermarket segment is expected to register the fastest CAGR during the forecast period.
- Aftermarket products, services and solutions are available in wider options, lower costs, and customization options.
- Aftermarket also offers benefits including ease of installation, high availability, innovations, upgrades, budget-friendly, and wide variety in models or systems.
- Thus, the market analysis depicts that the benefits provided by aftermarket services are expected to boost the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 36.80 Billion in 2024. Moreover, it is projected to grow by USD 42.54 Billion in 2025 and reach over USD 133.99 Billion by 2032. Out of this, China accounted for the maximum revenue share of 32.08%. The market in the region is rising due to increasing disposable incomes, rapid urbanization, digital infrastructure, and a growing demand for connected vehicles and smart transportation solutions.
- For instance, in November 2023, Reliance Retail launched Jiomotive, an IoT device for cars. It is an on-board diagnostics device with 4G connectivity support.
North America is estimated to reach over USD 171.18 Billion by 2032 from a value of USD 49.37 Billion in 2024 and is projected to grow by USD 56.84 Billion in 2025. The market in the region is driven by strong infrastructural developments, wireless network infrastructure, along with regulatory support for safety and emissions.
Additionally, the automotive IoT market analysis depicts that in Europe, the market growth is driven due to rising investments in autonomous systems that require IoT systems and devices, in turn leading to market expansion. Moreover, in Middle East and Africa and Latin America, the market growth is proliferating due to the advancements in technology, rising consumer demand for enhanced infotainment, safety, and communication systems, in turn boosting the market in the region.
Top Key Players & Market Share Insights:
The automotive IoT industry is highly competitive with major players providing solutions to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global automotive IoT market. Key players in the automotive IoT industry include -
Recent Industry Developments :
Product Launches:
- In September 2024, Ericsson launched IoT and in-vehicle solutions. These solutions include Cradlepoint R980 and S400 routers especially designed to provide enterprises with secure, seamless, and scalable connectivity.
Automotive IoT Market Report Insights:
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 501.26 Billion |
| CAGR (2025-2032) | 19.0% |
| By Communication |
|
| By Offering |
|
| By Connectivity Form |
|
| By Application |
|
| By End User |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the automotive IoT market? +
Automotive IoT Market size is estimated to reach over USD 501.26 Billion by 2032 from a value of USD 142.89 Billion in 2024 and is projected to grow by USD 164.67 Billion in 2025, growing at a CAGR of 19.0% from 2025 to 2032.
What are the major segments covered in the automotive IoT market report? +
The segments covered in the report are communication, offering, connectivity form, application, end user, and region.
Which region holds the largest revenue share in 2024 in the automotive IoT market? +
North America holds the largest revenue share in the automotive IoT market in 2024.
Who are the major key players in the automotive IoT market? +
The major key players in the market are Cisco (US), Google (US), IBM (US), Apple (US), AT&T (US), Audi (Germany), Ford Motor (US), General Motors (US), Intel (US), Microsoft (US), NXP Semiconductors (Netherlands), Robert Bosch (Germany), Texas Instruments (US), Thales SA (France), TOMTOM (Netherlands), and Vodafone (UK).
