The global connected vehicle market is undergoing a paradigm shift, fueled by technological advancements, changing mobility patterns, and heightened consumer expectations. According to a recent market analysis by Mordor Intelligence, the market is projected to rise from USD 87.30 billion in 2025 to USD 194.27 billion by 2030, reflecting an impressive CAGR of 17.35% during the forecast period.
A Shift Toward Software-Defined Mobility
The evolution of connected vehicles is no longer limited to onboard navigation or entertainment systems. The industry is witnessing a rapid shift toward software-defined vehicles (SDVs). Automakers such as Hyundai Motor Group have made remarkable progress, surpassing 10 million global subscribers to their connected services as of June 2023. This shift places software and cloud-based systems at the heart of vehicle design and user experience.

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Key Trends Fueling the Connected Vehicle Ecosystem
1. AI and Cloud Integration
Strategic collaborations, such as the Volkswagen Group’s Cariad joint venture with ThunderSoft, are pushing boundaries in developing intelligent connectivity and infotainment systems. These advancements are enhancing real-time data processing and predictive maintenance.
2. Autonomous Capabilities
The line between connected and autonomous vehicles continues to blur. For example, Mercedes-Benz announced plans to implement Level 3 autonomous driving in its BMW 7 Series from March 2024. The synergy of autonomy and connectivity is unlocking innovation in safety systems, fleet management, and customer-centric experiences.
3. 5G and Communication Infrastructure
The deployment of 5G and V2X (Vehicle-to-Everything) technologies is laying the groundwork for seamless communication between vehicles and infrastructure. Notably, Saudi Arabia’s 2023 initiative to allocate 5.9 GHz for V2X applications showcases how countries are prioritizing intelligent traffic systems and road safety.
4. Cybersecurity and Data Privacy
As connectivity increases, so does the need for robust security. The FCC’s April 2023 approval to expand C-V2X deployment across select spectrum bands highlights the push for secure communication. In parallel, companies are investing in blockchain and encryption technologies to safeguard data and ensure reliable over-the-air updates.
Conclusion
The connected vehicle market stands as a cornerstone in the next generation of mobility, merging technology with transportation to deliver smarter, safer, and more responsive driving experiences. With exponential growth on the horizon and a strong CAGR of 17.35% through 2030, the industry is primed for innovation. Stakeholders—ranging from automakers and tech firms to governments—must continue investing in advanced communication networks, AI solutions, and cybersecurity frameworks to capitalize on this transformation and lead the future of connected mobility.
About mordor intelligence :
Mordor intelligence is a global market research and advisory firm that provides in-depth reports and analysis across a wide range of industries, including automotive, energy, healthcare, technology, and more. With a focus on accuracy, transparency, and actionable insights, Mordor Intelligence empowers businesses and decision-makers to stay ahead of market trends and make strategic, data-driven decisions. The firm is known for its comprehensive research methodologies, expert analysts, and real-time market tracking, serving clients ranging from startups to Fortune 500 companies worldwide.
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