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IoT in the Automotive Market By IoT Application(Telematics, Infotainment and Connectivity, ADAS, Predictive Maintenance, Fleet Management), By Communication Type(In-Vehicle Connectivity, V2V, V2I, V2X), By Component(Sensors, Connectivity Modules, Processors and Controllers, Software and Applications), By End User(OEMs, Aftermarket Suppliers, Fleet Operators, Consumers), By Market Type(B2B, B2C ), By Region(North America, APAC, LATAM, EMEA)

Global IoT in Automotive Market:

The Global IoT in Automotive Market is anticipated at USD 265.3 Billion by 2030 with a CAGR of 24%. The IoT in automotive market is propelled by the growing integration of connected technologies, enhancing vehicle safety, efficiency, and user experience through real-time data collection and communication.The convergence of cutting-edge technology and the automotive industry has given rise to the Internet of Things (IoT) in the automotive sector, transforming vehicles into intelligent, connected entities. IoT's integration empowers vehicles with internet-connected devices and sensors, fostering a dynamic ecosystem of communication between vehicles, infrastructure, and the cloud. This revolution in connectivity is redefining the driving experience, enhancing safety, efficiency, and convenience on the roads.IoT-enabled cars offer an array of features, including real-time navigation, remote diagnostics, and over-the-air software updates. Telematics systems collect and transmit critical data, enabling applications like fleet management and personalized usage-based insurance. Advanced Driver Assistance Systems (ADAS) leverage IoT technology to deploy sophisticated safety features like adaptive cruise control and collision avoidance.

IoT in the automotive market has several key applications. One of the most notable is predictive maintenance, where sensors monitor the health of vehicle components and provide real-time data to vehicle owners or manufacturers. This allows for proactive maintenance, reducing downtime and repair costs. Furthermore, IoT contributes to enhanced driver safety through Advanced Driver Assistance Systems (ADAS) that use real-time data for features like lane-keeping assistance and automatic emergency braking. Fleet management benefits from IoT by tracking vehicle location, fuel consumption, and driver behavior, optimizing routes, and improving overall efficiency. The IoT in the automotive market is a dynamic and transformative force, revolutionizing the way vehicles are designed, built, operated, and serviced. It's fostering a new era of connected, safe, and efficient transportation, where vehicles are no longer just means of transportation but intelligent, data-driven platforms offering a wide array of services and benefits to consumers and businesses alike.

 Internet of things in Automotive market size
IoT in Automotive market size from year 2024-2030

IoT in Automotive Market drivers:

Connected Services and Convenience: IoT technology enhances the driver and passenger experience by providing connected services such as real-time traffic updates, weather forecasts, remote vehicle control (e.g., locking/unlocking doors), and access to a wide range of entertainment and information through infotainment systems. These features enhance the convenience and functionality of vehicles.

Advanced Telematics: IoT enables advanced telematics systems, which collect and transmit data on vehicle performance, driver behavior, and maintenance needs. This data can be used for predictive maintenance, improving fuel efficiency, and optimizing vehicle operations.

Safety and Security: IoT plays a crucial role in enhancing vehicle safety and security. Advanced driver assistance systems (ADAS) and collision avoidance systems leverage IoT connectivity to communicate with other vehicles and infrastructure, helping to reduce accidents. Additionally, IoT can facilitate vehicle tracking and recovery in case of theft.

Regulatory Compliance: Many countries are enacting regulations that require vehicles to have certain IoT-based features, such as eCall systems for emergency assistance. These regulations are a significant driver for IoT adoption in the automotive market.

Environmental Concerns: As the automotive industry shifts towards electric vehicles (EVs) and hybrid vehicles, IoT technology is crucial for monitoring and managing EV charging infrastructure. It also helps in optimizing energy consumption and reducing the carbon footprint of transportation.

Consumer Demand: Consumers increasingly expect connected features in their vehicles. IoT technology allows for features like in-car Wi-Fi, over-the-air (OTA) updates, and voice-activated controls, which enhance the driving experience and align with consumer preferences.

Data Monetization: Vehicle-generated data is a valuable resource, and many companies are exploring ways to monetize this data. IoT technology allows for the collection and analysis of data, which can be used for various purposes, including personalized insurance policies, targeted advertising, and predictive maintenance services.

Urbanization and Smart Cities: As urban areas become more connected and smarter, vehicles are expected to integrate with smart city infrastructure. IoT in vehicles can facilitate communication with traffic lights, parking systems, and other elements of the urban environment, reducing congestion and improving overall city transportation.

IoT in Automotive Market trends:

Connected Cars: The integration of IoT technology into vehicles continues to expand, enabling a wide range of connected car services. These services include real-time traffic updates, remote diagnostics, over-the-air (OTA) updates, and in-car Wi-Fi, enhancing the convenience and functionality of vehicles.

Vehicle-to-Everything (V2X) Communication: V2X technology allows vehicles to communicate with other vehicles (V2V), infrastructure (V2I), pedestrians (V2P), and the cloud (V2C). This connectivity facilitates safety enhancements, traffic management, and the development of smart cities.

Autonomous and Semi-Autonomous Vehicles: IoT technology is integral to the development of autonomous vehicles. Vehicles use IoT to collect and process data from various sensors, cameras, and radar systems to navigate and make decisions in real-time.

In-Vehicle Infotainment: IoT enables in-vehicle infotainment systems that provide access to a wide range of services, such as streaming music, navigation, voice-activated controls, and smartphone integration. These systems enhance the in-car entertainment and connectivity experience for drivers and passengers.

Predictive Maintenance: IoT facilitates predictive maintenance by collecting data on vehicle performance and wear-and-tear in real-time. This data is analyzed to predict maintenance needs, reducing downtime and extending the life of vehicles.

Fleet Management: IoT-based fleet management solutions help commercial vehicle operators monitor vehicle location, driver behavior, fuel consumption, and maintenance requirements in real-time. This leads to cost savings, improved safety, and efficient fleet operations.

Environmental Sustainability: IoT is instrumental in promoting environmental sustainability in the automotive market. IoT technology is used for monitoring and optimizing electric vehicle (EV) charging infrastructure, reducing energy consumption, and improving the sustainability of transportation.

IoT in automotive market report scope:




2024 – 2030




265.3 Billion USD


Value in Us Dollars and Volume in Metric Tons


By Application, Communication, Component, End User, Market, Region


North America, APAC, LATAM, EMEA


Bosch Connected Mobility Solutions, Continental AG, Visteon Corporation, Harman International (A Samsung Company), NXP Semiconductors, Aptiv PLC, TomTom NV, Verizon Connect, Sierra Wireless, Aeris Communications, Microsoft Corporation, AT&T Inc., Thales, IBM, Geotab Inc., Intel Corp., Texas Instrument, STMicro Electronics, Qualcomm, Mitsubishi Electric Corp, Telefonica SA, Tech Mahindra Ltd.

IoT in automotive market developments:

BMW has signed a deal with Amazon Web Services (AWS) to include autonomous vehicle data. The software will be integrated into BMW’s ‘Neue Klasse’ platform due out 2025. This was announced in 2023. The new deal will allow BMW to use AWS's cloud computing platform to store and process data from its autonomous vehicles. This data will be used to train and improve BMW's autonomous vehicle driving algorithms. The expansion of BMW's deal with AWS is a positive development for both companies and for the automotive industry as a whole. It is a sign of the growing importance of cloud computing in the development of autonomous vehicles.

In 2021, Volkswagen and Microsoft have announced their partnership to build an "Automated Driving Platform" powered by AI services on the Azure cloud. The Automated Driving Platform (ADP) will be a cloud-based platform that will provide Volkswagen with the infrastructure and tools it needs to develop and deploy automated driving functions. The ADP will be built on Microsoft Azure, and it will use Microsoft's AI services to power its automated driving functions. The ADP will be used to develop automated driving functions for all of Volkswagen's brands, including Volkswagen, Audi, Škoda, SEAT, and Porsche. The ADP will also be used to develop automated driving functions for commercial vehicles.

IoT in automotive market insights:

Connected vehicles represent a fundamental segment, enabling cars to access the internet, share data, and communicate with other vehicles and infrastructure. The impact of this segment is substantial, as it enables remote diagnostics, over-the-air updates, and real-time data collection. This leads to improved vehicle maintenance, enhanced safety, and a more efficient driving experience, thereby elevating the overall quality of the automotive market. IoT plays a central role in the development of autonomous vehicles. These vehicles rely on a myriad of sensors and IoT connectivity to perceive their surroundings, communicate with other vehicles, and make real-time decisions. The market impact here is transformative, as self-driving cars have the potential to redefine mobility, reduce congestion, and fundamentally change how people and goods move from one place to another. IoT connectivity has brought about a revolution in in-car entertainment and connectivity. With features like streaming services, voice assistants, and smartphone integration, this segment enhances the overall driving experience. The market impact is reflected in the increased demand for vehicles with advanced infotainment systems, where automakers can differentiate their products and create new revenue streams through subscription-based services. V2X communication is a critical IoT segment that connects vehicles with their surroundings, including other vehicles, infrastructure, and pedestrians. The market impact is substantial as it enhances road safety and traffic management.North America, particularly the United States, has been a significant driver of IoT in the automotive market. The region benefits from a well-established automotive industry, a robust regulatory framework, and consumer demand for advanced connected vehicle features.

The United States, with the presence of major automotive and technology companies, has been at the forefront of IoT adoption in vehicles, leading to the development of connected car technologies and autonomous vehicles. The region's strong focus on innovation, research and development, and regulatory initiatives for road safety have created a conducive environment for IoT growth. Europe is another prominent region in the IoT in automotive market, characterized by its advanced automotive manufacturing sector and stringent safety and environmental regulations. European countries have been leaders in the development of connected vehicle technologies and intelligent transportation systems. The Asia-Pacific region, including Japan, South Korea, and China, has witnessed rapid growth in IoT adoption within the automotive sector. Japan, with its technological leadership and strong automotive industry, has played a pivotal role in developing connected car technologies. China, driven by its massive automotive market and increasing consumer expectations, is a key player in the adoption of IoT applications, particularly in electric and autonomous vehicles. South Korea's automotive giants have also contributed to the development and implementation of IoT technologies. The growth of IoT in the automotive market in India is characterized by a combination of factors, including an expanding automotive industry, increasing consumer demand for connected and safer vehicles, and a push towards digitalization and smart mobility solutions.

IoT in automotive market segmentation:

By IoT Application:


Infotainment and Connectivity

Advanced Driver Assistance Systems (ADAS)

Predictive Maintenance

Fleet Management

By Communication Type:

In-Vehicle Connectivity

Vehicle-to-Vehicle (V2V) Connectivity

Vehicle-to-Infrastructure (V2I) Connectivity

Vehicle-to-Everything (V2X) Connectivity

By Component:

Sensors (Temperature, Pressure, Proximity, etc.)

Connectivity Modules (Cellular, Wi-Fi, Bluetooth)

Processors and Controllers

Software and Applications

By End-User:

OEMs (Original Equipment Manufacturers)

Aftermarket Suppliers

Fleet Operators


By Market Type:

B2B (Business-to-Business)

B2C (Business-to-Consumer)

By Region

North America




IoT in automotive market key players:

Bosch Connected Mobility Solutions

Continental AG

Visteon Corporation

Harman International (A Samsung Company)

NXP Semiconductors

Aptiv PLC

TomTom NV

Verizon Connect

Sierra Wireless

Aeris Communications

Microsoft Corporation

AT&T Inc.

IoT In Automotive Market

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