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IoT in Automobile Market Research Report: By Technology (Telematics, Vehicle-to-Everything, Remote Diagnostics, Fleet Management), By Application (Navigation, Safety Security, Remote Vehicle Management, Infotainment), By End Use (Passenger Vehicles, Commercial Vehicles, Electric Vehicles), By Connectivity (Cellular Connectivity, Satellite Connectivity, Wi-Fi Connectivity) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035.


ID: MRFR/ICT/1786-HCR | 100 Pages | Author: Shubham Munde| April 2025

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 12.14% during the forecast period (2025 - 2035).


Key IoT in Automobile Market Trends Highlighted


The growing demand for smart cars and developments in linked technologies are driving the IoT in automobile market's notable expansion. The use of IoT technologies in cars is encouraged by growing customer awareness of vehicle efficiency and safety.


The main forces behind innovation in this industry are the possibility of better fleet management capabilities, real-time diagnostics, and greater vehicle management. In order to achieve sustainable growth, lower emissions, and improve road safety, governments in a number of locations are also placing a strong emphasis on the integration of IoT in automobiles.


Automakers now have a rare chance to deploy IoT-enabled innovations that adhere to environmental regulations thanks to this regulatory backing. Opportunities for the creation of sophisticated features like vehicle-to-everything (V2X) communication present themselves as technology advances.


As a result, new business models and service offerings, such as ride-sharing and autonomous driving technologies, are investigated. The integration of IoT in the automotive industry is further facilitated by investments in infrastructure, such as connected roads and smart traffic systems.


Strong security measures for connected cars are being implemented as a result of recent trends showing an increasing focus on data security and privacy. Consumers' growing sensitivity to data security is encouraging the creation of safe IoT architectures.


Along with improving energy management and optimizing charging infrastructure, the rise of electric vehicles and IoT solutions also supports sustainability objectives. The constant development of consumer demands for connectivity and technology guarantees the IoT's continued expansion in the automobile market, paving the way for a revolutionary future for the sector.


IoT in Automobile Market overview


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


IoT in Automobile Market Drivers


Increase in Connected Vehicles


The IoT in Automobile Market is significantly driven by the rapid increase in connected vehicles globally. As of recent data, it is estimated that over 50% of new vehicles are equipped with internet connectivity features, which enhances communication and data exchange between vehicles and external systems.


This transformation is supported by industry leaders such as Tesla and Ford, who have invested heavily in smart vehicle technology and connectivity. According to the International Telecommunication Union, the number of connected vehicles worldwide is expected to surpass 1.2 billion by 2030.


This trend indicates a doubling of connected vehicle numbers; thus, it aligns with the growing consumer demand for enhanced driving experiences and safety features, propelling the growth of the IoT in Automobile Market significantly.


Growing Demand for Fleet Management Solutions


The demand for advanced fleet management solutions utilizing IoT technology is another substantial growth driver in the IoT in Automobile Market. Fleet management systems are expected to grow by approximately 20% by 2025, as reported by the European Automobile Manufacturers Association.


Organizations such as UPS and DHL are increasingly adopting IoT solutions to optimize their logistics and transportation operations, resulting in reduced operational costs and improved efficiency. The integration of IoT devices allows for real-time tracking, route optimization, and predictive maintenance, thus enhancing the operational capabilities of fleets, which in turn boosts the market growth.


Increasing Focus on Vehicle Safety Regulations


Stringent safety regulations enforced globally are significantly contributing to the growth of the IoT in Automobile Market. Regulatory bodies, such as the National Highway Traffic Safety Administration (NHTSA) in the United States, have mandated the inclusion of advanced safety features powered by IoT technologies in new vehicles.


For instance, new regulations require all vehicles to include Electronic Stability Control and advanced crash avoidance systems by 2025. This focus on safety has stimulated the demand for IoT solutions that monitor vehicle performance and driver behavior. As a result, manufacturers are investing in connected vehicle technology to comply with regulations, thereby driving market growth.


IoT in Automobile Market Segment Insights:


IoT in Automobile Market Technology Insights


IoT in Automobile Market experienced notable expansion, fueled by advancements in technology and increasing connectivity within vehicles. The Technology segment consisting of areas such as Telematics, Vehicle-to-Everything, Remote Diagnostics, and Fleet Management played a crucial role in this evolution.


Telematics alone commanded a substantial share, with a market valuation of 15.0 USD Billion in 2024 and expected growth to 53.0 USD Billion by 2035. This segment enhanced vehicle tracking, navigation, and data analysis, supporting fleet operations and improving overall safety on the roads.


Vehicle-to-Everything further contributed to the market's development by facilitating communication between vehicles and infrastructure, which is anticipated to grow from 10.0 USD Billion in 2024 to 35.0 USD Billion by 2035. This technology enhanced traffic management, reduces congestion, and promotes safer driving conditions, making it increasingly significant in urban environments.


Remote Diagnostics, valued at 8.0 USD Billion in 2024, is also projected to evolve to 27.5 USD Billion by 2035. This technology allowed for real-time vehicle assessments, identifying issues before they escalated and ensuring optimal vehicle performance.


Additionally, Fleet Management, valued at 9.56 USD Billion in 2024, is expected to reach 34.5 USD Billion by 2035, focusing on efficient resource management and cost reduction for businesses. This segment primarily supports the logistics industry by enabling better route planning, vehicle maintenance scheduling, and driver behavior monitoring.


Collectively, these segments highlight the importance of technology in driving efficiencies, safety mechanisms, and enhancing user experiences within the IoT in Automobile Market.


As the industry moves forward, the continuous adoption of these technologies will be a defining factor in reshaping how transportation operates on a scale, emphasizing connectivity, real-time data analytics, and improved communication networks within vehicles.


IoT in Automobile Market type insights


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


IoT in Automobile Market Application Insights


The IoT in Automobile Market is witnessing substantial growth, particularly in the Application segment, which is projected to play a crucial role in shaping the future of smart mobility.


Within this segment, Navigation, Safety and Security, Remote Vehicle Management, and Infotainment are key areas that are driving demand. Navigation applications enhance route optimization and real-time traffic updates, improving overall efficiency for drivers.


Safety and Security measures, which have gained increasing importance, provide enhanced features such as collision detection and remote monitoring. Remote Vehicle Management solutions are also essential, enabling users to manage vehicle performance and maintenance seamlessly.


Infotainment systems are transforming the driving experience by offering connectivity and entertainment options, appealing particularly to tech-savvy consumers. As the IoT in Automobile Market evolves, these applications are not only enhancing user experiences but are also pivotal in driving market growth and addressing emerging challenges related to vehicle connectivity and safety regulations.


IoT in Automobile Market End Use Insights


The IoT in Automobile Market is poised for considerable growth. This growth is propelled by various factors including enhanced connectivity and the growing demand for smart transportation solutions.


The market segmentation predominantly encompasses Passenger Vehicles, Commercial Vehicles, and Electric Vehicles. Passenger Vehicles are integral to the market as they contribute significantly to the development of connected car technologies that enhance safety, convenience, and user experience.


Commercial Vehicles are essential as they adopt IoT solutions for fleet management, enabling optimized routes and reducing operational costs. Electric Vehicles represent a growing segment that leverages IoT for advanced battery management and vehicle-to-everything (V2X) communication, which is pivotal in supporting infrastructure development and sustainability goals.


The continuous innovations in IoT technology are anticipated to address challenges such as data security and integration among different platforms, while also opening new opportunities for advancements in vehicle automation and smart city initiatives. The emphasis on creating efficient transportation systems underlines the importance of these segments within the IoT in Automobile Market.


IoT in Automobile Market Connectivity Insights


The segment encompasses various communication technologies essential for vehicle connectivity, allowing real-time data exchange and vehicle-to-everything communication. Cellular Connectivity plays a significant role, enabling vehicles to connect effectively with mobile networks, which supports a range of applications from navigation to advanced driver assistance systems.


Meanwhile, Satellite Connectivity offers unparalleled coverage, essential for remote areas where cellular signals may be weak, supporting fleet management and emergency services. Wi-Fi Connectivity is increasingly important for enabling in-car services and updates, allowing vehicles to interact seamlessly with devices and infrastructures.


The market growth for this segment is propelled by rising demand for smart transportation solutions, ongoing advancements in technology, and increasing consumer awareness regarding safety and convenience.


However, challenges such as cybersecurity threats and regulatory issues remain prevalent. Overall, the IoT in Automobile Market data reveals that the Connectivity segment not only enhances vehicle performance but also significantly contributes to the evolving landscape of smart mobility.


IoT in Automobile Market Regional Insights


The IoT in Automobile Market experienced substantial growth, particularly across various regions. In 2024, North America dominated the market with a valuation of 15.0 USD Billion, significantly leading to 53.7 USD Billion in 2035. This region's growth can be attributed to the rapid technological advancements and high adoption rates of connected vehicles.


Europe followed closely, valued at 12.5 USD Billion in 2024 and projected to reach 44.5 USD Billion by 2035, fueled by stringent regulations promoting vehicle connectivity and safety.


The Asia-Pacific (APAC) region, valued at 10.0 USD Billion in 2024, is growing at a notable pace, reaching 35.0 USD Billion in 2035, driven by a large automotive manufacturing base and increasing demand for smart transportation solutions.


South America was comparatively smaller market, valued at 2.0 USD Billion in 2024 and grows to 7.0 USD Billion by 2035, reflecting slower adoption rates. Meanwhile, the Middle East and Africa (MEA) region, starting at 3.06 USD Billion in 2024 and projected to grow to 9.8 USD Billion by 2035, witnessed increasing investments in smart mobility initiatives.


Overall, these dynamics revealed the diverse opportunities and challenges across different regions in the IoT in Automobile Market, shaping its trajectory and growth patterns.

IoT in Automobile Market regional insights


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


IoT in Automobile Market Key Players and Competitive Insights


The IoT in Automobile Market is a rapidly evolving landscape characterized by the integration of digital connectivity and smart technologies into vehicles. This market has seen significant advancements driven by the increasing demand for enhanced safety, security, and convenience features in automobiles.


Companies within this space are focused on leveraging IoT to develop innovative solutions that improve vehicle performance, optimize fleet management, and provide real-time data analytics for better decision-making.


As competition intensifies, the need for differentiation through unique offerings and superior customer experiences becomes paramount, leading to substantial investments in research and development as well as strategic partnerships.


Continental has established a strong foothold in the IoT in Automobile Market, recognized for its advanced technological capabilities and extensive industry experience. The company's strengths lie in its robust portfolio of solutions that encompass connectivity, vehicle integration, and advanced driver assistance systems.


Continental stands out due to its commitment to innovation and its ability to adapt to changing market demands, enabling it to create tailored IoT solutions that meet customer needs. Furthermore, the company has formed strategic collaborations with various stakeholders in the automotive ecosystem, enhancing its market presence and driving further expansion in smart vehicle technologies.


Audi is a prominent player in the IoT in Automobile Market, focusing on the development of connected vehicle technologies that enhance the driving experience. Key services and products offered by Audi include advanced infotainment systems, vehicle-to-everything (V2X) communication, and autonomous driving solutions.


The company has leveraged its heritage of innovation to strengthen its market position, engaging in strategic mergers and acquisitions to enhance its technological capabilities and broaden its service offerings.


With a strong emphasis on sustainability and electrification, Audi is aligning its IoT strategies with broader industry trends, positioning itself as a leader in automotive innovation. The company's proactive approach to integrating IoT solutions across its vehicle lineup further reinforces its competitive advantage in the market.


Key Companies in the IoT in Automobile Market Include




  • Continental




  • Audi




  • Daimler




  • Honda




  • Pioneer




  • Toyota




  • Tesla




  • Hyundai




  • General Motors




  • Siemens




  • BMW




  • Ford Motor




  • Nokia




  • Nissan




  • Volkswagen




IoT in Automobile Market Developments


The Internet of Things (IoT) in the Automobile Market has witnessed significant developments recently, with companies like Tesla focusing on enhancing vehicle connectivity through over-the-air updates, while Daimler has been investing in smart mobility solutions.


In October 2023, Hyundai announced a partnership with Apple to integrate its vehicles with advanced IoT functionalities. Meanwhile, BMW and Siemens are collaborating on a project aimed at developing advanced connected vehicle technologies. Current affairs include Ford Motor's announcement in September 2023 of a new investment in its electric vehicle IoT capabilities, aiming to enhance user experience and vehicle safety.


Notably, in June 2023, General Motors acquired a startup specializing in IoT-based automotive sensor technologies to improve their technological edge. Volkswagen is also making strides in IoT adoption within its production lines, improving efficiency and safety.


Furthermore, the growth of the IoT in Automobile Market is reflected in the increasing valuation of companies like Audi and Honda, driven by their commitment to innovative automotive solutions. In the last few years, a significant focus has been on integrating artificial intelligence with IoT for better vehicle functions and consumer experiences, emphasizing particularly on sustainability and safety.


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





IoT in Automobile Market Report Scope
Report Attribute/Metric Details
Market Size 2023 37.95(USD Billion)
Market Size 2024 42.56(USD Billion)
Market Size 2035 150.0(USD Billion)
Compound Annual Growth Rate (CAGR) 12.14% (2025 - 2035)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Continental, Audi, Daimler, Honda, Pioneer, Toyota, Tesla, Hyundai, General Motors, Siemens, BMW, Ford Motor, Nokia, Nissan, Volkswagen
Segments Covered Technology, Application, End Use, Connectivity, Regional
Key Market Opportunities Connected vehicle services expansion, Enhanced vehicle safety systems, Autonomous driving technology integration, Smart fleet management solutions, Real-time data analytics and insights
Key Market Dynamics Connectivity advancements, Regulatory compliance, Consumer demand for safety, Data security concerns, Fuel efficiency optimization
Countries Covered North America, Europe, APAC, South America, MEA


Frequently Asked Questions (FAQ) :

The Global IoT in Automobile Market was valued at 42.56 USD Billion by 2024.

By 2035, the market is anticipated to reach a valuation of 150.0 USD Billion.

The market is projected to grow at a CAGR of 12.14% during the forecast period from 2025 to 2035.

North America is expected to dominate with a market value of 53.7 USD Billion by 2035.

What was the market size for Telematics in the IoT in Automobile Market by 2024?

The Fleet Management segment is projected to reach 34.5 USD Billion by 2035.

Europe's market value was 12.5 USD Billion by 2024.

Key players include Continental, Audi, Daimler, Honda, Toyota, Tesla, and General Motors.

The Vehicle-to-Everything segment is anticipated to be valued at 35.0 USD Billion by 2035.

The APAC region reached a market size of 10.0 USD Billion by 2024.

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