Connected vehicle tech market seen topping $76 billion by 2030

The connected vehicle technology market is projected to surpass $76 billion by 2030 as 5G, V2X systems, software-defined vehicles and AI boost demand for in-car connectivity and data services. Asia-Pacific is forecast to lead regional growth, while the U.S. is expected to remain the largest country market.

Why it matters: - Connected vehicle technology is moving from a niche automotive feature to a core part of the mobility and digital infrastructure market. - The market’s growth is tied to safety, infotainment, fleet management, autonomous driving and real-time vehicle data services. - The shift affects automakers, telecom providers, chipmakers, software firms and mobility platforms across the supply chain.

What happened: - The Business Research Company projected the connected vehicle technology market will exceed $76 billion by 2030. - The forecast comes in the firm’s Connected Vehicle Technology Global Market Report 2026. - The market is expected to grow at an 11% CAGR through 2030. - The report places connected vehicle technology at about 29% of the broader telematics market by 2030. - The report says the category will account for nearly 1% of the wider information technology market by 2030.

The details: - Asia-Pacific is forecast to be the largest regional market in 2030 at $33 billion, up from $18 billion in 2025. - Asia-Pacific is projected to grow at a 13% CAGR, driven by vehicle safety mandates, 5G rollout, V2X adoption, major automakers, telematics-based fleet management and usage-based insurance. - The United States is expected to be the largest country market in 2030 at $17 billion, up from $11 billion in 2025. - U.S. growth is linked to smart highway projects, digital tolling integration, V2I traffic optimization, consumer demand for digital in-car services and stronger automotive cybersecurity. - Hardware is expected to be the largest segment in 2030 at 44% of the market, or $33 billion. - Hardware demand is being supported by telematics control units, embedded communication modules, sensor fusion, edge computing devices, smart dashboards and digital cockpit hardware. - The market is segmented by communication type into vehicle-to-vehicle, vehicle-to-infrastructure, vehicle-to-pedestrian and other methods. - The vehicle segment includes passenger cars and commercial vehicles. - The application segment includes telematics, infotainment, emergency response, navigation and other uses. - End users are split between original equipment manufacturers and the aftermarket. - From 2025 to 2030, hardware is projected to add $13 billion, software $13 billion and services $5 billion.

Between the lines: - The report points to 5G and Cellular Vehicle-to-Everything as the main technical engine behind the market’s next phase. - Software-defined vehicles and connected electric vehicles are increasing demand for cloud management, remote updates, cybersecurity and onboard communication systems. - AI-powered analytics and autonomous systems are adding another layer of demand for low-latency connectivity and data processing. - The market remains moderately fragmented, with the top 10 players accounting for 21% of revenue in 2025. - Continental AG led global sales in 2025 with a 4% share. - Other major companies listed include Qualcomm Technologies, Aptiv, DENSO, Mobileye, HARMAN, NXP, Robert Bosch, LG Electronics, Samsung, Ericsson, Siemens, Huawei, Infineon, Microsoft, Cisco, Verizon Connect, Intel, TomTom and AT&T. - The report says barriers to entry remain high because of software integration complexity, cybersecurity requirements and low-latency communication needs. - A dual-tier connected services model is emerging, with Stellantis launching a basic connected package and a subscription-based advanced tier in April 2026.

What's next: - Competition is likely to center on V2X platforms, real-time analytics, cloud connectivity, infotainment and cybersecurity. - Companies are expected to lean more on AI, edge computing and sensor fusion to improve safety and navigation. - Further market gains should come from deeper integration between automakers, telecom operators and digital service providers. - The report signals continued expansion in connected fleet management, subscription-based in-vehicle services and autonomous vehicle testing.

The bottom line: - Connected vehicle technology is becoming a major growth market as cars turn into software-driven, always-connected devices.