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India Connected Car Market Size (2024 - 2029)

The India connected car market is poised for significant growth, driven by the increasing incorporation of advanced technologies such as artificial intelligence and the Internet of Things in vehicles. This market's expansion is facilitated by collaborations between car manufacturers and telecom companies to ensure seamless internet connectivity, which is crucial for the functionality of connected cars. Although still in its early stages, the market's potential is substantial, especially with the government's push towards electric vehicles, which is expected to accelerate the adoption of connected car technologies.

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Market Size of India Connected Car Industry

India Connected Car Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR (2024 - 2029) > 20.00 %
Market Concentration Medium

Major Players

India Connected Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Connected Car Market Analysis

The India Connected Car Market is expected to register a CAGR of greater than 20% during the forecast period.

The connected car market is still in its nascent stage in India. It is expected to grow at a much faster rate, as the industry participants are looking at this market full of potential. As electric vehicles are making their way on the Indian roads, connected cars will also soon become part of the Indian market.

India has an ambitious target of becoming an all-electric vehicle nation by 2030. In the process of mass adoption of electric vehicles in the country, the government has announced its plan to introduce 10,000 electric buses and 50,000 electric rickshaws within the next few years.

The connected car requires access to the internet for its smooth functionality. As a result, many players that have launched their connected cars in India have collaborated with telecom companies to make connected cars a reality in the Indian market. For instance, MG India partnered with Airtel for connected mobility solutions with an e-SIM, and the company claims that it is Internet Protocol Version 6 (IPV6) ready for 5G.

All these ongoing developments are expected to drive the growth of the connected car market in India during the forecast period.

India Connected Car Industry Segmentation

A connected car is a vehicle that is equipped with internet access and wireless connectivity, allowing it to share data with other devices, systems, and networks. This connectivity enables a range of features and services, such as real-time traffic updates, remote vehicle diagnostics, and infotainment streaming.

The Indian connected car market is segmented by application, connectivity form, vehicle connectivity, and vehicle type. By application, the market is segmented into driver assistance, telematics, infotainment, and other applications. By connectivity form, the market is segmented into integrated, embedded, and tethered. By vehicle connectivity, the market is segmented into vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-t-pedestrian (V2P). By vehicle type, the market is segmented into passenger cars and commercial vehicles. The report offers market size and forecasts for all the above segments in terms of value (USD).

By Application Type
Driver Assistance
Telematics
Infotainment
Other Application Types
By Connectivity Type
Integrated
Embedded
Tethered
By Vehicle Connectivity
Vehicle-to-Vehicle (V2V)
Vehicle-to-Infrastructure (V2I)
Vehicle-to-Pedestrain (V2P)
By Vehicle Type
Passenger Cars
Commercial Vehicle
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India Connected Car Market Size Summary

The India connected car market is experiencing significant growth, driven by the increasing integration of advanced technologies such as artificial intelligence and the Internet of Things into vehicles. This trend, which was initially seen in luxury and high-end cars in mature markets like Germany and the United States, is now gaining traction in India as original equipment manufacturers (OEMs) recognize the potential of these technologies. The decreasing cost of technology and the willingness of consumers to invest in modern features are key factors propelling this market. Collaborations between automotive companies and telecom providers are essential for the functionality of connected cars, with partnerships like MG India's collaboration with Airtel exemplifying this trend. As the market evolves, connected cars are expected to become more prevalent, especially with the country's push towards electric vehicles and the government's initiatives to promote electric mobility.

The connected car market in India is still in its early stages but is poised for rapid expansion, supported by the country's robust automotive manufacturing sector and a growing base of smartphone users. The market is characterized by the introduction of various connected vehicle technologies by both established and new players. Notable examples include Morris Garages Motor India's launch of the d ZS Connected Car and Kia Motors India's KIA Seltos, both featuring advanced connectivity options. The rising popularity of SUVs, driven by demand for space and technology, is also influencing the market dynamics. Despite being highly consolidated with limited global players, the market sees active participation from local giants like Maruti Suzuki and Toyota, who are expanding their connected services offerings. As the market matures, it is expected to align more closely with global trends, offering a range of features that enhance vehicle connectivity and user experience.

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India Connected Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Rising Disposable Income

    2. 1.2 Market Restraints

      1. 1.2.1 Increase in the Threat of Data Breach and Cyber Security for Connected Vehicles

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Application Type

      1. 2.1.1 Driver Assistance

      2. 2.1.2 Telematics

      3. 2.1.3 Infotainment

      4. 2.1.4 Other Application Types

    2. 2.2 By Connectivity Type

      1. 2.2.1 Integrated

      2. 2.2.2 Embedded

      3. 2.2.3 Tethered

    3. 2.3 By Vehicle Connectivity

      1. 2.3.1 Vehicle-to-Vehicle (V2V)

      2. 2.3.2 Vehicle-to-Infrastructure (V2I)

      3. 2.3.3 Vehicle-to-Pedestrain (V2P)

    4. 2.4 By Vehicle Type

      1. 2.4.1 Passenger Cars

      2. 2.4.2 Commercial Vehicle

India Connected Car Market Size FAQs

The India Connected Car Market is projected to register a CAGR of greater than 20% during the forecast period (2024-2029)

MG Motor UK Limited, Hyundai Motor Company, Kia Motors Corporation, Maruti Suzuki India Limited and Toyota Motor Corporation are the major companies operating in the India Connected Car Market.

India Connected Car Market Report Snapshots

India Connected Car Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)