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In-car connectivity extends beyond vehicles into integrated ecosystems
Monday, August 25, 2025 — 16:04:05 (UTC)
DUBLIN--(BUSINESS WIRE)--The "Connected Vehicle Market Growth Outlook, 2025" report has been added to ResearchAndMarkets.com's offering.
Connected vehicles are revolutionizing the automotive industry, evolving from transportation modes to smart, digital hubs that seamlessly integrate with users' lifestyles. In 2025, industry adoption of vehicle-to-everything (V2X) communication, AI-driven personalization, service-based monetization models, and software-defined Vehicles (SDVs) is expected to surge, enabling safer, smarter, and more immersive in-car experiences.
These advancements will not only enhance connectivity within the vehicle but also beyond it by fostering a truly integrated mobility ecosystem that redefines how users interact with their cars, infrastructure, and digital services.
This report offers a deep dive into
Key technologies, trends, features, and services shaping the next wave of connected vehicles Market landscape in 2024 and global/regional projections for 2025, showcasing best practices and strategic moves by industry leaders Regional analysis covering North America, Europe, Asia-Pacific, China, India, Japan, South Korea, South America, and the rest of the world Emerging challenges impacting the automotive connectivity ecosystem Focus areas of key ecosystem players, including OEMs, Tier I suppliers, telco providers, and technology companies, including connected services, human-machine interfaces (HMI), and in-vehicle navigation The report analyzes insights from industry experts, including OEMs, Tier I suppliers, technology firms, and telecommunications providers, to present a forward-looking analysis based on three core connectivity types: smartphone, tethered, and embedded.
The study outlines critical strategies for automakers and Tier I suppliers to capture key growth opportunities in the fast-expanding connected car market.
Top Trends Driving the Global Connected Vehicle Market
5G Connectivity and Deployment Advanced HMI Voice Assistants, Immersive Displays, HD Mapping, AR/VR Integration In-vehicle Media Streaming Use of AI in Connected Cars Connected Vehicle Commerce In-car Payments In-vehicle Gaming Services Connected Road Safety Advancements in Insurtech Software-defined Vehicles Automotive App Stores The Impact of the Top 3 Strategic Imperatives on the Global Connected Vehicle Market
Disruptive Technologies
Smartphone, home entertainment, and cloud technologies are transforming the connected vehicles market, enabling AI-powered assistants, real-time infotainment, and personalized experiences. AR, advanced driver assistance systems (ADAS), and V2X connectivity in the automotive V2X market are further integrating cars into the digital ecosystem, redefining in-vehicle interactions. With the rise of in-vehicle infotainment market, gaming, and advanced audio services, including surround 3D sound and personalized acoustics, vehicles are evolving into extended living spaces. To capitalize on this automotive connectivity trends, automakers must adopt strategic partnerships to enhance in-cabin experiences. Partnerships - such as the BMW-AirConsole collaboration for gaming and the Volvo-Dolby alliance for Dolby Atmos - emphasize the crucial role of cooperation in this field. Industry Convergence
To enhance in-vehicle experiences and competitiveness, OEMs are integrating IT, entertainment, gaming, and pure-play software providers into their value chain within the automotive connectivity trends. The rise of software-defined vehicles (SDVs) in the software-defined vehicles market is accelerating this convergence, making collaboration with technology players a strategic approach. OEMs are considering expanding partnerships beyond the automotive sector, collaborating with technology and consumer electronics firms to develop innovative digital solutions that align with the demand for a connected lifestyle. The integration of digital cockpits and advanced display technologies is expected to drive disruptions in connectivity, enabling immersive in-vehicle experiences in the connected vehicle market. Innovative Business Models
The automotive industry is shifting from a hardware-driven model to a software-centric approach, shaping its future in the connected vehicle market. Consumers' growing awareness of cybersecurity, features-on-demand (FODs), navigation, vehicle data, and connected safety directly influences decision-making within the vehicle. The conventional revenue model centered on vehicle sales is shifting toward a service-based approach, with OEMs monetizing digital offerings. To navigate this transformation in the connected vehicles market, automakers increasingly partner with software and cloud providers, accelerating their shift toward connected services. Going forward, OEMs will rely on connected services, FODs, and data monetization as their primary revenue streams within the automotive connectivity trends. Marketplaces subscription-based services are emerging as key growth areas, with AI-driven personalization and in-vehicle commerce expected to enhance customer engagement and profitability further. Key Topics Covered:
Growth Environment
Connected Car Market Outlook 2024: Forecast vs Actual CES 2025 Highlights: AI and SDVs Take Center Stage Notable Regulations and Mandates: A Snapshot Regional Connected Vehicles Market OTA-enabled Vehicles: Regional Analysis Key OEM Partnerships Connected Vehicle Ecosystem and Related Markets Transformation in the Connected Vehicles Industry
Why Is It Increasingly Difficult to Grow? The Strategic Imperative The Impact of the Top 3 Strategic Imperatives on the Global Connected Vehicles Industry Growth Opportunities Fuel the Growth Pipeline Engine Ecosystem
Research Scope Definitions: Market Segmentation Global Economic Outlook, 2025
Global Connected Vehicle Regulations
Snapshot of Connectivity Regulations European Data Act Global Connected Vehicle Outlook, 2025: Trends and Implications
Top Trends Driving the Global Connected Vehicle Market Trend 1: 5G Connectivity and Deployment Trend 2: Advanced HMI Voice Assistants, Immersive Displays, HD Mapping, AR/VR Integration Trend 3: In-vehicle Media Streaming Trend 4: Use of AI in Connected Cars Trend 5: Connected Vehicle Commerce In-car Payments Trend 6: In-vehicle Gaming Services Trend 7: Connected Road Safety Trend 8: Advancements in Insurtech Trend 9: Software-defined Vehicles Trend 10: Automotive App Stores Impact of Trends by Region: 2025 Growth Generator
Connected Vehicle Sales by Region Connected Vehicle Penetration by Region Product Type Forecast Product Type Snapshot by Region Pricing and Service Models OTA-enabled Vehicle Sales by Region OTA-enabled Vehicle Penetration by Region OTA Phases and OEM Strategies Growth Generator: Regional Predictions, 2025: Economic, Technology, and Regulatory
Regional Analysis: APAC Regional Analysis: China Regional Analysis: Europe Regional Analysis: India Regional Analysis: Japan Regional Analysis: North America Regional Analysis: South America Regional Analysis: South Korea Conclusions and Future Outlook: Top 10 Predictions, 2025
Key Findings: Top 10 Predictions for 2025 Growth Opportunity Universe
Growth Opportunity 1: AI-driven Personalization and Contextual Intelligence Growth Opportunity 2: In-car Entertainment and Connected Vehicle Commerce Growth Opportunity 3: Connected Safety and V2X Evolution For more information about this report visit www.researchandmarkets.com/r/5fm4ry
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