Connected Mobility Solutions Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Connected Vehicles and Services Market is expected to reach USD 73.52 billion in 2023, and is estimated to grow to USD 175 billion by 2032. This will lead to a CAGR of 10.12% from 2024 to 2032. This upward trend is driven by the increasing demand for smart mobility solutions, and the advancements in the Internet of Things, artificial intelligence, and 5G. The need for efficient mobility solutions is growing rapidly as urbanization increases. Connected vehicles and services are becoming an essential part of the modern transportation system. Electric vehicles, driverless cars, and the growing demand for low-emission vehicles are driving the market. The major players, such as BMW, Ford, and Tesla, are investing in new technologies and entering into strategic alliances to enhance their connected mobility offerings. For example, the collaboration between the automotive industry and the technology industry is expected to lead to the development of advanced telematics and vehicle-to-everything (V2X) communication systems, thereby ensuring the future of the market.

Regional Market Size

Regional Deep Dive

The Connected Mobility Solution Market is experiencing significant growth in various regions, owing to the advancements in technology, the rise in urbanization, and the growing importance of the concept of sustainability. In North America, the market is characterized by the presence of technology companies and automobile manufacturers investing in connected vehicle technology. In Europe, there is a strong government support for electric and connected vehicles. Asia-Pacific is rapidly adopting smart mobility solutions, owing to the large population and urbanization. The Middle East and Africa are gradually adopting connected mobility solutions, owing to the government initiatives to improve the transportation system. Latin America is also beginning to explore the connected mobility solution market, but at a lower pace, owing to the economic challenges and the varying levels of technological adoption.

Europe

• The European Union has implemented stringent regulations aimed at reducing carbon emissions, which is driving the adoption of electric and connected vehicles across member states.
• Companies like Volkswagen and BMW are leading the charge in developing integrated mobility platforms that combine electric vehicles with smart city infrastructure, enhancing user experience and sustainability.

Asia Pacific

• China is rapidly advancing its connected mobility landscape, with companies like Baidu and Didi Chuxing investing in autonomous driving technologies and smart transportation solutions.
• The region is also seeing significant government support, such as Japan's 'Connected and Automated Driving' initiative, which aims to promote the development of connected vehicle technologies.

Latin America

• Brazil is witnessing a rise in smart mobility initiatives, with local startups developing apps that integrate public transport and ride-sharing services to enhance urban mobility.
• Government programs in countries like Mexico are starting to focus on improving transportation infrastructure, which is expected to create opportunities for connected mobility solutions.

North America

• The U.S. government has introduced initiatives like the Smart Cities Challenge, encouraging cities to adopt connected mobility solutions, which has led to increased collaboration between public and private sectors.
• Major automotive players such as Ford and General Motors are investing heavily in connected vehicle technologies, including V2X (Vehicle-to-Everything) communication systems, to enhance safety and efficiency.

Middle East And Africa

• The UAE has launched the Dubai Autonomous Transportation Strategy, aiming to convert 25% of all transportation in Dubai to autonomous modes by 2030, significantly impacting the connected mobility landscape.
• Countries like South Africa are beginning to explore connected mobility solutions, driven by urbanization and the need for improved public transportation systems.

Did You Know?

“By 2025, it is estimated that over 75% of vehicles sold in North America will be equipped with some form of connected technology.” — McKinsey & Company

Segmental Market Size

The connected mobility solutions segment plays a key role in the transportation industry, which is currently experiencing strong growth, driven by the rising demand for seamless mobility and enhanced safety. The development of smart cities, which focus on the integration of transport systems, and the promotion of electric and driverless vehicles are key drivers in this market. In addition, advances in wireless communication technology, such as 5G, which facilitate the exchange of real-time data, are boosting the market. The connected mobility solutions market is currently transitioning from the trial and pilot phase to mass deployment, with Waymo and Tesla as the leading companies in the development of driverless vehicles. North America and Europe are leading the way in the implementation of smart traffic management systems and vehicle-to-everything (V2X) communications. Applications include ride-hailing services, fleet management, and smart parking, with Uber and Parkmobile among the companies to benefit from these trends. The macro-level trends of sustainable development and urbanization are accelerating the growth of the market. In addition, technological developments, such as the IoT, artificial intelligence, and the blockchain, are enabling the evolution of the market, enhancing both the efficiency and the experience of the users.

Future Outlook

The Connected Vehicles and Vehicle-to-X Technology Market is expected to rise from a value of $73,522,931,000 in 2023 to $175,082,600,000 by 2032, at a CAGR of 10.12%. The growth is driven by the increasing popularity of smart transport systems, the development of vehicle-to-everything technology, and the growing need for sustainable and efficient urban mobility. By 2032, it is estimated that connected vehicles will account for around 60% of the global vehicle market, driven by consumer demand for increased safety features, real-time data and the integration of mobility services. The advent of 5G, IoT and AI will also play a major role in the connected vehicles market. These will enable the development of connected vehicles, smart traffic management systems and integrated mobility platforms, which will enhance the efficiency of transportation and the experience of users. Government policies to reduce carbon emissions and to promote smart cities will also accelerate the market. Meanwhile, the increasing popularity of mobility-as-a-service and the increasing collaboration between the automobile industry and technology companies will ensure that the market remains flexible and dynamic.