Asia-Pacific Connected Cars Market Size (2024 - 2029)

Asia-Pacific Connected Cars Market Analysis

The Asia-Pacific Connected Cars Market size is estimated at USD 30.42 billion in 2024, and is expected to reach USD 66.01 billion by 2029, growing at a CAGR of 16.76% during the forecast period (2024-2029).

Over the long term, increasing investments in R&D by major industry players, preference by new young car buyers for connectivity features, rise in adoption of smartphones, an increase in sales of electric and autonomous vehicles, as well as rising internet connectivity and falling data prices are driving demand for connected cars market across the Asia-Pacific region. 

Enhancement of network infrastructure in countries such as China and India to develop their 5G connectivity ecosystem is complementing various auto manufacturers to integrate this space and offer advanced vehicle models to consumers. It helps them access real-time information on vehicle performance, door locking/unlocking through smartphones and a range of other features.

Key players in the market are expanding their investments and entering into tie-ups with telecom companies to cater to the increased demand for connected cars. For instance, in May 2023, MediaTek, a Taiwanese-based semiconductor company, announced its partnership with NVIDIA to design an automotive solution for intelligent and connected vehicles with the integration of artificial intelligence and accelerated computing. In August 2022, SAIC Motor and OPPO entered into a joint venture to create a software platform for cross-integration between cars and smartphones. 

In March 2022, Chinese state-owned SAIC Motor announced to invest USD 43 billion into advanced automotive technologies, including connected automotive solutions, over the next five years.

The connected cars market in the Asia-Pacific region will witness surging growth during the forecast period, owing to the consumers' increasing preference towards availing of services that give real-time information about vehicle health, traffic conditions, weather conditions, etc. Coupled with that, rising internet penetration, the advent of 5G, and the proliferation of low-cost smart devices are further anticipated to bolster the demand for connected cars market across the Asia-Pacific region.

Asia-Pacific Connected Cars Industry Segmentation

A connected car is a type of vehicle that can share data both inside and outside the vehicle with other vehicles and third-party players like navigation providers, telecom companies, and cloud services. A connected car communicates bidirectionally, usually through WLAN networks. However, many modern cars also support Wi-Fi, 4G, and 5G networks for connectivity. Connected cars provide essential data like fuel consumption, tire pressure, navigation, and weather updates to the driver of the vehicle. Connected cars also provide other information like nearby places of interest such as malls and restaurants as well as hospitals in case of any medical emergency or an accident.

The Asia-Pacific connected cars market is segmented by vehicle type, technology type, vehicle connectivity, end-user type, and country. By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. By technology type, the market is segmented into navigation, entertainment, safety, vehicle management, and others (multimedia streaming, etc.). By vehicle connectivity, the market is segmented into vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-everything (V2X). By end-user type, the market is segmented into original equipment manufacturer (OEM) and aftermarket/replacement). By country, the market is segmented into India, China, Japan, South Korea, and the rest of Asia-Pacific.

The report offers market size and forecasts for Connected Cars in value (USD) for all the above segments.