Global IoT in Automobile Market Overview
As per MRFR analysis, the IoT in Automobile Market Size was estimated at 37.95 (USD Billion) in 2023. The IoT in Automobile Market is expected to grow from 42.56 (USD Billion) in 2024 to 150 (USD Billion) by 2035. The IoT in Automobile Market CAGR (growth rate) is expected to be around 12.13% during the forecast period (2025 - 2035)
Key IoT in Automobile Market Trends Highlighted
The growing need for connection and automation in automobiles is driving notable developments in the global IoT in automotive market. The increasing demand from consumers for improved entertainment systems that offer seamless communication with mobile devices is a major market driver.
Infrastructure and technological developments, such as the spread of 5G networks over different regions, are driving this trend. Additionally, manufacturers are being encouraged to incorporate IoT technology that allow for real-time monitoring of vehicle performance, which helps to lower accidents and improve overall driving safety, as a result of the growing emphasis on vehicle safety and regulatory compliance.
The growth of smart cities and electric vehicles (EVs), which offer a method to incorporate IoT technologies into automotive applications, are opportunities to be investigated in the worldwide market. Significant growth potential for IoT technology in cars is provided by the development of intelligent transportation systems (ITS) and the expansion of EV charging infrastructure.
Better energy management and vehicle-to-grid communication models may result from this alignment, improving urban transportation's efficiency and sustainability. The increasing cooperation between automakers and IT companies to improve IoT capabilities in cars is a noteworthy development in recent years.
Innovation in connected automobile services, such as advanced driver-assistance systems (ADAS) and autonomous driving technologies, is being aided by this collaboration strategy. Government programs encouraging transportation digitalization, which seek to enhance traffic control and lessen congestion globally, also lend support to the movement.
All things considered, the IoT in Automobile Market is developing quickly thanks to these factors and trends, establishing itself as a crucial industry at the nexus of technology and transportation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT in Automobile Market Drivers
Rapid Technological Advancements
The Global Internet of Things (IoT) in Automobile Market is experiencing significant growth due to rapid advancements in technology, particularly in connectivity and data analytics. The proliferation of high-speed internet and the deployment of 5G networks are expected to enhance vehicle-to-everything (V2X) communication, which allows vehicles to communicate with each other and with infrastructure.
This capability is projected to lead to safer and more efficient transportation systems. According to a report from the International Telecommunication Union, the number of connected devices worldwide is anticipated to reach 75 billion by 2025, indicating a robust increase in opportunities for IoT integration in automobiles.
Major players like Tesla and Ford are heavily investing in Research and Development (R&D) to incorporate AI and machine learning into their automotive design, which further amplifies the need for IoT technologies in vehicles. As a result, this technological revolution is a key driver of growth in the IoT in Automobile Market.
Growing Demand for Connected Vehicles
Consumer demand for connected vehicles is surging, driven by the desire for enhanced safety features, convenience, and entertainment options. 60% of consumers express a strong inclination towards cars equipped with Internet connectivity and advanced driver assistance systems.
Major automobile manufacturers such as BMW and Mercedes-Benz are leading the charge by introducing models with integrated IoT features, enhancing user experience. This trend reflects a broader consumer shift towards embracing technology, which directly elevates the prospects of the IoT in Automobile Market.
Government Initiatives and Regulations
Governments across the globe are implementing policies and regulations aimed at promoting the adoption of connected vehicle technologies. For instance, the European Commission has set stringent regulations mandating the installation of eCall systems in new vehicles by 2023, promoting immediate emergency response in case of accidents.
Furthermore, several countries, including the United States, have introduced funding programs to stimulate the development of smart transportation infrastructure.
The U.S. Department of Transportation's Smart City Challenge has allocated substantial financial resources to enhance the integration of IoT technologies in urban planning and transportation. These initiatives create a conducive environment for the growth of the IoT in Automobile Market, as they encourage manufacturers to innovate and comply with new standards.
IoT in Automobile Market Segment Insights
IoT in Automobile Market Technology Insights
The IoT in Automobile Market encompassed various technological innovations that enhanced vehicle intelligence and connectivity.One of the most prominent segments was Telematics, which reached a valuation of 10.5 USD Billion in 2024, showcasing its vital role in real-time vehicle tracking and monitoring, thereby aiding in fleet efficiency and driving safety. This technology segment dominated due to the increasing emphasis on vehicle data analytics and the integration of navigation systems.
Another important segment, Vehicle-to-Everything, held a market value of 8.0 USD Billion in 2024, enabling vehicles to communicate with various components of the transportation ecosystem including other vehicles, infrastructure, and networks. This connectivity fostered improved road safety and traffic management, making it a key focus area for automotive manufacturers.
Remote Diagnostics, valued at 7.0 USD Billion in 2024, allowed for proactive vehicle maintenance by providing real-time data regarding vehicle performance and health. This capability led to reduced downtime and enhanced customer satisfaction, as drivers receive immediate insights into potential issues.
Lastly, Fleet Management, which commanded a considerable valuation of 17.06 USD Billion in 2024, underscores its significance in the market by optimizing logistics and reducing operational costs. As businesses focused on improving their fleet operations, this segment became increasingly important due to its ability to integrate with other IoT solutions.
Overall, the IoT in Automobile Market is driven by technological advancements which enhance connectivity, improve safety, and optimize operational efficiency across these segments, demonstrating a strong link to the ongoing evolution of the automotive industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT in Automobile Market Application Insights
The expansion underscores the increasing reliance on connected technologies in the automobile sector. Within this landscape, the Application segment plays a crucial role, encompassing areas such as Navigation, Safety Security, Remote Vehicle Management, and Infotainment.
Navigation systems are essential for enhancing driving efficiency and experience, while Safety Security applications are critical for accident prevention and vehicle protection. Remote Vehicle Management is significant as it enables fleet operators and individual users to monitor vehicle performance in real-time, ensuring optimal functioning.
Infotainment systems dominate the consumer experience by integrating entertainment and information, thereby increasing user engagement. The segment's growth is driven by advancements in technology, rising consumer demand for connected car functionalities, and increasing awareness of vehicle safety.
Additionally, governments worldwide are promoting smart transportation initiatives, creating opportunities for further development in the IoT in Automobile Market.
IoT in Automobile Market End-use Insights
The IoT in Automobile Market is showing substantial growth across various End-use categories, contributing significantly to market dynamics. Among the diverse applications, Passenger Vehicles are likely to hold a major share, driven by consumer demand for enhanced connectivity, safety, and convenience features.
Meanwhile, Commercial Vehicles are gaining traction due to the push for fleet management solutions and efficiency improvements, benefiting from IoT capabilities that streamline operations and lower costs.Electric Vehicles represent a critical segment within the market, fueled by increasing environmental regulations and a shift towards sustainable mobility; this segment is increasingly adopting IoT technologies for enhanced battery management and software updates.
The combination of these segments positions the IoT in Automobile Market for a remarkable growth trajectory, alluding to the broader trends of increasing automation and the quest for smarter transportation solutions, thereby catering to both individual consumers and businesses alike.
As governmental policies around smart cities and sustainable transport evolve globally, the IoT in Automobile Market is poised to thrive, creating numerous opportunities and facing challenges in technology adoption and cybersecurity.
IoT in Automobile Market Connectivity Insights
The IoT in Automobile Market, particularly within the Connectivity segment, has shown the potential for robust growth. As the industry embraces technological advancements, the increasing integration of connectivity solutions is reshaping vehicle functionality and enhancing user experience.
Cellular connectivity is crucial in supporting real-time data exchange and enables vehicles to communicate seamlessly with each other and infrastructure, thus enhancing safety and navigation. Meanwhile, satellite connectivity plays a significant role in offering coverage in remote areas where terrestrial networks are inaccessible, proving essential for fleets operating outside urban regions.
Wi-Fi connectivity serves as an important feature for consumers seeking in-vehicle connectivity for entertainment and productivity, further driving customer satisfaction. The IoT in Automobile Market data reflects that these connectivity forms are key drivers for market growth, supported by rising demand for autonomous driving capabilities and robust data analytics.
However, the industry faces challenges such as cybersecurity threats and varying regulatory frameworks across different regions. Despite these challenges, the increasing focus on smart mobility and the optimization of operational efficiencies present substantial opportunities for further advancements in this segment.
IoT in Automobile Market Regional Insights
The IoT in Automobile Market witnessed significant growth. The regional breakdown indicated that North America led with a valuation of 16.5 USD Billion in 2024 and is expected to rise to 56.5 USD Billion in 2035, indicating its dominance due to advanced automotive technologies and a well-established network infrastructure.
Europe followed closely, valued at 12.0 USD Billion in 2024, benefiting from stringent regulations promoting connectivity and smart mobility, projected to reach 42.0 USD Billion by 2035. Asia Pacific held a significant position with a value of 8.0 USD Billion in 2024, driven by rapid urbanization and technological advancements, and is expected to grow to 30.0 USD Billion by 2035.
South America, while smaller, showed potential with a valuation of 3.5 USD Billion in 2024 expected to grow to 11.0 USD Billion by 2035, as the region adopts more IoT in automotive solutions. The Middle East and Africa, valued at 2.56 USD Billion in 2024, highlighting their developing markets, are projected to reach 10.5 USD Billion by 2035, indicating considerable growth opportunities as infrastructure improves.
This distribution demonstrated variations in market maturity and adoption levels across regions, significantly impacting the IoT in Automobile Market statistics and growth trajectory.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT in Automobile Market Key Players and Competitive Insights
The IoT in Automobile Market has been experiencing rapid development, driven by connectivity, the increasing adoption of smart devices, and a shift towards electric and autonomous vehicles.As the industry embraces transformative technologies, competitive insights become crucial for understanding the landscape, where traditional car manufacturers are integrating advanced IoT solutions into their offerings.
Companies are investing in smart transportation systems, real-time vehicle tracking, driver behavior analytics, and predictive maintenance technologies to enhance the user experience and improve safety and efficiency.
The race is on to innovate, differentiate, and cater to evolving consumer demands, making it necessary for players in this market to understand their competition and identify strategic opportunities that align with their growth objectives.The interplay of established automakers with tech companies further complicates the competitive landscape, with partnerships and collaborations becoming increasingly common to enhance technological capabilities and deliver connected experiences.
BMW has crafted a formidable presence in the IoT in Automobile Market by leveraging its deep-rooted expertise in engineering and design. The brand focuses heavily on integrating IoT technologies within its vehicles, aiming to enhance customer experiences and overall vehicle performance.
BMW’s strengths lie in its commitment to connectivity features, advanced driving assistance systems, and smart infotainment solutions. The company has continuously pushed the envelope of innovation, incorporating advanced analytics and cloud services into its offerings, further solidifying its position in the market.
With a strong legacy of prestige and reliability, BMW successfully projects a competitive edge through its high-quality vehicles equipped with state-of-the-art IoT solutions, which not only meets consumer expectations but also sets benchmarks for the industry.
Samsung plays a significant role in the IoT in Automobile Market by leveraging its technological prowess to drive advancements in connected vehicle technologies.Focused on creating smart mobility solutions, Samsung offers key products and services that include hardware components, in-car entertainment systems, and IoT connectivity solutions that facilitate vehicle-to-everything communication.
Their extensive market presence is reinforced by strategic partnerships and collaborative ventures aimed at integrating their technology with automotive manufacturers worldwide. With a strong emphasis on research and development, Samsung continually enhances its offerings in the realms of safety, user experience, and vehicle efficiency.
The company's strengths also include its substantial financial resources and its history of mergers and acquisitions, allowing for an accelerated entry into emerging technologies and markets, further enriching its competitive position within the IoT in Automobile Market.
Key Companies in the IoT in Automobile Market Include
- BMW
- Samsung
- Hyundai
- IBM
- Toyota
- Tesla
- Intel
- Cisco Systems
- Honda
- Volkswagen
- Nissan
- Ford
- Daimler
- General Motors
- Qualcomm
IoT in Automobile Market Developments
For its Neue Klasse electric vehicles, BMW expanded its cloud and IoT partnership with AWS and Qualcomm in September 2023. By combining Qualcomm's Snapdragon Ride for infotainment and ADAS with AWS's cloud data center, the company made it possible for over-the-air upgrades and scalable data-driven vehicle design.
BMW's Automated Driving In-facility effort was implemented in December 2024 at the plants in Leipzig and Dingolfing. It uses LiDAR, digital twins, and the Internet of Things to move cars and parts on the manufacturing floor automatically. By 2025, the program will be expanded across the whole facility.
Tesla started distributing its Hardware 4 Autopilot computer (also known as the "FSD Computer") in Model S and Y cars in January 2023. This computer has 3–8× GPU performance over HW3 and allows for totally camera-based driving.Qualcomm's Snapdragon Auto 5G Modem RF Gen 2 was introduced at MWC in February 2023. It is intended for connected automobiles and offers 50% greater processing power, improved power efficiency, and compatibility for satellite communications.
Strong design wins with BMW, GM, Stellantis, and Hyundai (>$45 billion pipeline) propelled Qualcomm's Automotive and IoT division to 25% of sales in FY 2024, with aspirations to reach 50% by 2029, the company said in January 2025.In order to compete with Qualcomm and Nvidia in the automotive computing industry by introducing high-performance, long-lasting chipsets, Intel unveiled production-ready AI PC processors for automobiles at CES 2025 in January 2025.
IoT In Automobile Market Segmentation Insights
IoT in Automobile Market Technology Outlook
- Telematics
- Vehicle-to-Everything
- Remote Diagnostics
- Fleet Management
IoT in Automobile Market Application Outlook
- Navigation
- Safety Security
- Remote Vehicle Management
- Infotainment
IoT in Automobile Market End-use Outlook
- Passenger Vehicles
- Commercial Vehicles
- Electric Vehicles
IoT in Automobile Market Connectivity Outlook
- Cellular Connectivity
- Satellite Connectivity
- Wi-Fi Connectivity
IoT in Automobile Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2023
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37.95(USD Billion)
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Market Size 2024
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42.56(USD Billion)
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Market Size 2035
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150.0(USD Billion)
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Compound Annual Growth Rate (CAGR)
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12.13% (2025 - 2035)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2035
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Historical Data
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2019 - 2024
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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BMW, Samsung, Hyundai, IBM, Toyota, Tesla, Intel, Cisco Systems, Honda, Volkswagen, Nissan, Ford, Daimler, General Motors, Qualcomm
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Segments Covered
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Technology, Application, End-use, Connectivity, Regional
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Key Market Opportunities
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Connected vehicle services expansion, Enhanced vehicle safety technologies, Smart transportation systems integration, Autonomous vehicle development, Data analytics for predictive maintenance
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Key Market Dynamics
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increased vehicle connectivity, enhanced safety features, demand for real-time data, growing electric vehicle adoption, rising consumer expectations
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The IoT in Automobile Market was valued at 42.56 USD Billion in 2024.
The market is projected to have a compound annual growth rate (CAGR) of 12.13% from 2025 to 2035.
North America held the largest market share, valued at 16.5 USD Billion in 2024.
By 2035, the IoT in Automobile Market is expected to reach a valuation of 150.0 USD Billion.
In 2024, the market was segmented into Telematics valued at 10.5 USD Billion, Vehicle-to-Everything at 8.0 USD Billion, Remote Diagnostics at 7.0 USD Billion, and Fleet Management at 17.06 USD Billion.
The Fleet Management segment is projected to be valued at 60.0 USD Billion in 2035.
Major players in the market include BMW, Samsung, Hyundai, IBM, Toyota, Tesla, Intel, and Cisco Systems.
The market size for Europe in 2024 was 12.0 USD Billion.
The South American market is expected to increase to 11.0 USD Billion by 2035.
The Remote Diagnostics segment is projected to reach a valuation of 24.0 USD Billion by 2035.
