Connected Vehicle Services Market Size - By Service, By Connectivity, By Vehicle, By End Use, Growth Forecast, 2025 - 2034

Connected Vehicle Services Market Size

The global connected vehicle services market was valued at USD 21 billion in 2024 and is estimated to register a CAGR of 10.8% between 2025 and 2034. The shift towards software-defined vehicles (SDVs) is highly changing the way automotive services are designed, offered, and often priced. In April 2025, Intel launched the new AI-integrated SoC specially designed for SDVs. The cutting-edge SoC is the first in the automotive industry to incorporate multi-process node chipset architecture. This innovation enables automakers to customize the graphics, and AI capabilities of the SoC to their desired requirements, all while minimizing development costs and thus improving the go-to-market timeline.
 

SDVs, unlike traditional vehicles, are designed to provide real-time updates and customized services after the initial purchase because they are structured around flexible, updatable software frameworks. Manufacturers can provide features including advanced driver assistance, remote diagnostics, and infotainment updates using OTA updates, enhancing the scope and scale of connected vehicle services.
 

SDVs also allow vehicle manufacturers and technology developers to monetize services through subscriptions, offer pay-per-use models, or create data-driven services. Services such as performance tuning and navigation system updates, which used to require a visit to the dealer, can now be performed instantly and remotely. This evolving service lifecycle deepens customer interaction with the brand, enhances brand loyalty, and meets the increasing demand for personalized, always-on driving experiences.
 

The advancement of 4G/5G technologies and V2X communication systems are opening new possibilities for integrated connected vehicle applications by offering improved data exchange between vehicles, infrastructure, and cloud services. Real-time IoT applications, such as remote streaming of entertainment programs, remote operational control, real-time traffic notifications, and proactive system maintenance checks, function better with improved communication latency and increased bandwidth to the sensors. This development contributes to the improved quality of consumer services as well as business applications, such as smart fleet monitoring and management and smart mobility systems.
 

Connected Vehicle Services Market Trends

• Commercial fleets and ride-sharing services are adopting connected services for tracking, analytics, and real-time fleet driving telemetry. As urban transport develops, MaaS platforms depend on connected intelligence deeply as it improves service delivery and efficiency.
   
• In September 2024, myTVS, an automotive aftermarket platform, introduced MaaS (Mobility-as-a-Service) platform to improve the last-mile EV fleet operations across the country. The platform aims to on-board the entire EV ecosystem, including OEMs, service providers, and other relevant partners, thus offering integrated services throughout the EV fleet lifecycle.
   
• The increase in the volume of vehicle data collected and transmitted necessitates the safeguarding of personal privacy and protection from cyber threats. To solve this issue various service providers are investing in safe architecture, encryption, and globally compliant architecture.
   
• AI and ML are increasingly being integrated into vehicles, that helps them notify the drivers of the component failures and thus schedule services automatically. This optimization minimizes downtime and improves safety, especially for commercial and fleet vehicles.
   

Trump Administration Tariff

• The connected vehicle services depend on imported parts such as semiconductors, sensors, telematics units, and 5G modules. A large proportion of these supplies come from Asia. Imposing tariffs on such goods would increase associated hardware costs for automobile manufacturers and suppliers, which in turn would delay the deployment of connected features.
   
• Tariffs imposed on vehicle production would likely increase retail prices, which can lead the consumers to pay more to access features, services, or subscriptions. In turn, demand would decline particularly for mid-range or economy vehicles.
   
• Tariffs could introduce greater operational expenses and uncertainty within the market which in turn could slow down investment in new innovations in connected vehicle services among automobile manufacturers and technology companies. This could result in a slower pace of new service launches or platform upgrades.
   

Connected Vehicle Services Market Analysis

Based on service, the connected vehicle services market is segmented into safety and security, remote operations, navigation and infotainment, vehicle management, driver assistance, and others. In 2024, the safety and security segment was valued at around USD 5 billion and held a market share of over 25%.
 

• The features such as the ability to get real-time updates and notifications about crashes, roadside help, and vehicle theft control features are primary considerations for consumers as they increase personal as well as vehicle safety. These offerings provide assurance, both practically and psychologically, contributing to their high demand and utility among users.
   
• Safety services, unlike infotainment or navigation systems, provide real-time monitoring, crash detection, and automated emergency response functions 24/7 around the clock. This nature further enhances both the perceived value and adoption rate of these features.
   
• Fleet operators depend on security features for vehicle location, monitoring use, and theft or vandalism recovery. Insurance companies also utilize safety features, claiming their safety data to evaluate risks and provide additional discounts, thus increasing demand from business and private customers.
   
• In January 2025, Samsara extended its strategic partnership with Stellantis by enabling hardware-free access to telematics data spanning millions of connected vehicles throughout Europe via Stellantis’ Mobilisights data platform.
   
• Fleet managers can on-board Stellantis vehicles to Samsara’s Connected Operations Cloud by simply inputting the vehicle identification number (VIN) without aftermarket hardware requirements. This hardware-free onboarding causes instant remote access to important fleet metrics like GPS position, odometer readings, and fuel tank levels. As a result, fleet operations across Europe become more streamlined as well as secure, efficient, and environmentally friendly.

Based on the end use, the connected vehicle services market is segmented as OEM and aftermarket. The OEM segment dominated in 2024 with a market share of around 88%.
 

• OEMs install associated hardware and software directly in the vehicle during its production itself, enabling them to provide navigation, diagnostics, and even remote start engine capabilities as integrated services.
   
• Automotive consumers are more open to accepting connected services when bundled with vehicles, especially when it comes from a trusted automaker brand. This trust is further exploited by the OEMs to market enhanced service and subscription additions, heightening the adoption and revenue of the services.
   
• OEMs can retain complete control of data collection, software updates, and new service introductions because they own the vehicle platform and service infrastructure. This vertical control enhances their capability to consistently deliver connected automaker services.
   

Based on connectivity, the connected vehicle services market is segmented as embedded, tethered, and integrated. The diesel segment led the market in 2024.
 

• Embedded systems integrate modems and SIM cards, ensuring constant internet connectivity without external equipment. This provides dependable communication for essential services such as emergency notifications, navigation, and vehicle self-diagnostic checks without interruption.
   
• Embedded systems provide advanced user experience and services by enabling remote diagnostics, over-the-air (OTA) updates, and scheduled maintenance interfaces, helping users plan maintenance in advance. This seamless integration allows for accurate predictive maintenance and enhanced user experiences.
   
• OEMs prefer embedded systems because they allow better control over data, service provision, and monetization. Likewise, fleet operators benefit from the embedded systems solutions that provide central control, tracking, and security without needing driver engagement.
   

Based on vehicle, the connected vehicle services market is segmented as passenger vehicle, commercial vehicle, two and three wheelers, and off highway vehicles. The passenger vehicle segment led the market in 2024.
 

• The passenger segment of vehicles dominates sales globally, creating a substantial target market for integrated services. The European Automobile Manufacturers Association reported in 2024 that global automotive sales hit 74.6 million units. Furthermore, as new cars with integrated connectivity features continue to grow, the potential market for services soars exponentially.
   
• Consumers are also expecting that advanced features such as navigation, infotainment, and safety alerts should be provided as standard. This change in the client expectations is pushing automakers to provide integrated services to differentiate their new models.
   
• Automotive manufacturers focus on integrated services to improve their ownership experience with features like customizable driver profiles and smartphone integration, as well as subscription upgrades. These services have become essential to contemporary vehicle marketing and customer loyalty programs.

Asia Pacific dominated the global connected vehicle services market with a major share of over 35% and China led the market in the region and was valued at around USD 2 billion in 2024.
 

• China is at the forefront of manufacturing and selling vehicles, yielding significant opportunities for its connected services market. The production for automobiles in China was estimated to be 3 million units in March 2025, indicating a rise compared to 2.6 million units’ production in March 2024. To cope with this growing consumer demand for smart driving, both domestic and international manufacturers in the country are improving their vehicles and driving experiences with enhanced digital capabilities.
   
• Chinese customers are quick at adopting technology and are familiar with advanced automotive features and technologies such as AI-powered navigation, infotainment streaming, and voice assistants that offers customized services in vehicles. Car manufacturers serve this market with regular updates and custom user experiences, pushed through over-the-air updates.
   
• China is amongst the major and leading countries having 4G and 5G networks, which enable real-time data transfer necessary for connected vehicle services. The processes of cloud, OTA updates, and location-based services is optimally supported on a large scale because of this infrastructure.
   

The growth forecast for the connected vehicle services market in the U.S. from 2025 to 2034 is highly encouraging.
 

• The U.S. has some of the most prominent automobile manufacturers, technology companies, and telematics industry leaders that simultaneously facilitate innovation within connected vehicle services. This fosters a strong ecosystem for the development and scaling of new functionalities such as OTA updates, real-time diagnostics, and remote control of the vehicle.
   
• The U.S. has strong 4G network in place and is also increasingly investing in expanding 5G networks that can support data-intensive services. This network advancement helps create smooth functioning for cloud-dependent systems, navigation, safety features, and infotainment systems.
   
• In February 2024, Cisco and TELUS introduced new 5G capabilities in North America suitable for IoT applications and connected vehicle uses. This partnership will help OEMs to provide improved in-vehicle services and support allied services and features through advanced connected subscription services.
   

Germany is expected to show remarkable and promising development in the connected vehicle services market from 2025-2034.
 

• Germany is among the world's top automobile industries which are best known for their advanced connected services offered in their vehicles. They are leading the development of infotainment systems, remote diagnosis, and vehicle-to-vehicle (V2I) and vehicle-to-everything (V2X) systems.
   
• Germany has always placed a strong emphasis on automotive R&D. Its investment in connected technologies such as cybersecurity, telematics, and software-defined vehicles is extraordinarily high. The strong R&D abilities of Germany enable rapid adoption and commercial use of advanced technology.
   
• Germany has a well-structured system to support the use of other advanced services like predictive system maintenance, real-time traffic alerts, and remote software updates. Government initiatives encourage their use, in addition to smart mobility and V2X communication.
   

The connected vehicle services market in Mexico is expected to experience significant and promising growth from 2025 to 2034.
 

• Mexico is an integral part of the automobile ecosystem as it produces and assembles millions of vehicles for export and domestic use. As OEMs begin to install more embedded connectivity in vehicles at the factory level, this enhances the embedded connectivity demand across the region.
   
• A rising trend of urbanization and congestion levels has been observed in the country, which is leading to the growing demand for connected technologies such as stolen vehicle recovery, emergency assistance, and vehicle fleet supervision in Mexico. These services are of the utmost importance and are highly demanded by commercial operators and metropolitan residents who understand the necessity and need for enhanced safety features.
   

Connected Vehicle Services Market Share

Top 7 companies leading the connected vehicle services industry in 2024 Bosch, Continental, General Motors, Ford, Verizon Connect, BMW, and Harman International. Together, they held around 40% of the market share.
 

• Bosch is one of the largest providers in automotive electronics and telematics solutions, offering both hardware and cloud platforms for safety, driver assistance, and vehicle management services. Bosch serves OEMs and fleets with modular and adaptable connected solutions. With strong partnerships from OEMs and considerable investments in AI-driven mobility services, Bosch has established a commanding position in connected vehicle technology.
   
• Bosch optimally serves both fleets and OEMs with flexible, modular connected solutions. With strong OEM partnerships and investments in AI-driven mobility services, Bosch retains a commanding influence over the ecosystem of connected vehicle technologies.
   
• GM dominates the market in connected services through the OnStar platform, which provides emergency services, diagnostics, remote access, and vehicle tracking. Its primary focus on software-defined vehicles and OTA-enabled continuous servicing unlocks further expansion opportunities.
   
• Ford’s platforms provide strong fleet management for connected vehicles and navigation, telematics, EV tools, and comprehensive fleet management. The firm is moving towards a software-led mobility model and is heavily investing in connected ecosystems for personal and commercial clients. Ford’s unrivaled market position further strengthened due to their mobile app integration and real-time data analytics.
   
• Verizon Connect focuses on serving thousands of commercial operators within fleet management, mobile workforces, and telematics. It provides GPS tracking, driver behavior analytic, asset monitoring, and route planning. Its industry-leading Verizon network infrastructure places it as a commercial telematics leader, providing unparalleled reliability within connected commercial vehicles.
   

Connected Vehicle Services Market Companies

Major players operating in the connected vehicle services industry include:

• AT&T
• BMW
• Bosch
• Continental
• Ford
• General Motors
• Geotab
• Harman International
• HERE Technologies
• Verizon Connect
   
• The ability to access vehicle data in real time and maintain a stable connection (4G/5G) is a primary differentiating factor. Businesses with robust telematics systems and cloud infrastructure are gaining traction, particularly in managing fleets, monitoring vehicles, and performing over-the-air (OTA) updates.
   
• Business models in the industry are shifting from selling hardware to offering subscription-based services which include remote access, driver assistance, and predictive maintenance. In the long term, this shift benefits businesses that are able to constantly provide and revise digital features, fueling competition on services rather than features.
   
• As vehicles become connected, companies are under increasing pressure to adhere to diverse data privacy laws, cybersecurity standards, and automotive safety regulations. Navigating global compliance poses additional operational complexity and costs, providing an edge to firms with substantial resources and scaled capabilities.
   

Connected Vehicle Services Industry News

• In March 2025, Tele2 and Turkcell collaborated to offer connected vehicle services in Turkiye, merging Tele2's managed IoT connectivity with Turkcell's advanced network. This partnership focuses on heavy vehicles marketed in Turkiye, providing an IoT solution which is regulatory compliant and supports a comprehensive scope of applications including automotive, healthcare, security, and asset tracking.
   
• In February 2025, Thales partnered with Cubic to launch new eSIM features designed for the easier use and heightened security of worldwide automotive connectivity. As a leader in software-centered vehicle (SDV) solutions, Cubic is incorporating Thales’s eSIM management platform into its global connectivity ecosystem, which now meets compliance with the latest GSMA SGP.32 standard for IoT.
   
• In January 2025, AiDEN Automotive and HERE Technologies created a strategic partnership to enhance in-vehicle services by applying advanced privacy features to connected automobiles worldwide. AiDEN’s in-vehicle platform now employs HERE’s situational road and traffic alert data, delivering optimized routes along with hazard updates and tailored notifications directly and actively to drivers.
   
• In January 2025, Qualcomm partnered with MapMyIndia to create indigenous technologies related to connected vehicles that are both affordable and specifically designed for the Indian market. This collaboration specifically integrates Qualcomm’s Snapdragon Digital Chassis, Auto Connectivity, and Car-to-Cloud platforms with MapMyIndia’s sophisticated digital maps and localized data, so that complete telematics and connectivity solutions can be developed for two-wheel and four-wheel vehicles.
   

The connected vehicle services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Service

• Safety and security
• Remote operations
• Navigation and infotainment
• Vehicle management
• Driver assistance
• Others

Market, By Connectivity

• Embedded
• Tethered
• Integrated

Market, By Vehicle

• Passenger vehicle
  • Sedan
  • SUV
  • Hatchback
• Commercial vehicle
  • LCV
  • MCV
  • HCV
• Two and three wheelers
• Off-highway vehicles

Market, By End Use

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia