North America Connected Car Market

North America Connected Car Market Analysis

The North America Connected Car Market size is estimated at USD 35.22 billion in 2025, and is expected to reach USD 107.48 billion by 2030, at a CAGR of greater than 25% during the forecast period (2025-2030).

North America's connected car market is surging, fueled by tech advancements, a consumer push for better in-car experiences, and backing from regulators. These "connected cars" harness internet connectivity, offering services from navigation and entertainment to diagnostics and safety, reshaping the continent's automotive scene.

At the core of this market's growth lies technological innovation. A key driver is the rollout of 5G technology, delivering the swift connectivity essential for real-time data exchanges and cutting-edge applications. With 5G, vehicles can communicate swiftly with infrastructure, setting the stage for advanced features like autonomous driving and vehicle-to-everything (V2X) interactions.

Artificial intelligence (AI) and machine learning are supercharging the capabilities of these connected vehicles. Thanks to these technologies, cars can now predict maintenance needs, offer tailored in-car experiences, and bolster safety via advanced driver-assistance systems (ADAS). For example, AI systems can scrutinize driving habits, issuing timely alerts to avert potential accidents.

Today's consumers are increasingly favoring vehicles that seamlessly blend connectivity with digital features. They perceive cars as extensions of their digital personas, desiring smartphone integration, cutting-edge infotainment, and constant internet access. In response, automakers are outfitting new models with these advanced features, enhancing the driving experience.

Interest in electric vehicles (EVs) is on the rise in North America, and these often come standard with advanced connectivity. Such features are vital for EVs, aiding in battery management, guiding drivers to charging stations, and monitoring performance in real-time, thus propelling the demand for connected car technologies.

Additionally, the push towards smart cities is opening doors for connected vehicles. As urban areas harness technology to elevate infrastructure and services, they're increasingly weaving in connected vehicle solutions. This synergy promises better traffic management, reduced congestion, and enhanced urban mobility.

With tech innovations and rising consumer acceptance, North America's connected car market is poised for a bright future. The expansion of 5G networks, relentless AI and machine learning breakthroughs, and a favorable regulatory landscape are set to propel the market's ascent.

North America Connected Car Market Trends

Growing Adoption of 5G and Telematics to Produce Growth in the Market

Smartphone internet usage has surged globally over the years. As communication technologies advance, the automotive industry's (both passenger and commercial) push for vehicle connectivity intensifies.

5G networks, boasting bandwidths far surpassing 3G, are adept at managing the vast data demands of connected vehicles. This data spans high-definition maps, traffic updates, entertainment, and vehicle telemetry. Such robust data management is vital for advanced driver assistance systems (ADAS) and autonomous driving, both of which rely on real-time processing of extensive sensor data.

In a bid to seamlessly integrate 5G into vehicles, automotive firms are forging alliances with tech and telecom giants. These collaborations empower companies to harness 5G for efficient data collection and analysis, enhancing vehicle management and maintenance services. For instance,

• In November 2023, a consortium comprising RanLOS, Toyo Corporation, AeroGT Labs, and Anritsu unveiled a cutting-edge 5G antenna over-the-air (OTA) measurement system. This system melds RanLOS' OTA testing solution with Anritsu’s MT8000A 5G Radio Communication Test Station. Its design allows for seamless integration with current electromagnetic compatibility (EMC) chambers, presenting a budget-friendly option for vehicle manufacturers.

Specifically engineered to assess antenna performance across a spectrum of transportation vehicles – from cars and vans to minibusses and autonomous systems – the system's adaptability to existing EMC chambers means manufacturers can establish a crucial testing environment without hefty upfront costs. This streamlines the evaluation of 5G antenna performance in the transportation realm.

• In August 2023, Hyundai and Kia announced a USD50 million investment in Canadian AI semiconductor firm, Tenstorrent, aiming to weave artificial intelligence into their future vehicle models.

Given these developments, the market is poised for significant growth in the coming years.

United States to Play Key Role in The Development of North American Connected Car Market

North America is witnessing a surge in connected car markets, with the U.S. poised to take the lead, trailed by Canada and Mexico in both vehicle sales and production.

The U.S. connected vehicle market is rapidly evolving, driven by technological innovations, shifting consumer demands, and a backdrop of favorable regulations. As one of the globe's largest arenas for connected vehicles, the U.S. showcases a robust mix of passenger and commercial vehicles, all boasting cutting-edge connectivity features.

U.S. regulatory bodies champion the adoption of connected vehicle technologies, particularly for bolstering safety. With an eye on enhancing transportation safety and equity, the government has earmarked nearly USD 95 million for diverse projects nationwide.

Under the SMART Grants Program, 59 pioneering projects have been selected, many focusing on the transition to a future dominated by electric and connected vehicles. For instance,

• Detroit, Michigan, is spearheading an initiative to craft intelligent intersections. By harnessing the city's traffic camera network and integrating AI software, the goal is to predict and prevent traffic mishaps.
• States like Arizona, Michigan, Texas, and Utah are rolling out connected vehicle projects, spotlighting advancements in transit prioritization and bolstering safety for both pedestrians and cyclists.

NHSTA (National Highway Traffic Safety Administration) recently unveiled a report highlighting that a staggering 94% of car accidents are attributed to driver error. In contrast, vehicles, environmental conditions, and other unidentified factors each account for 2% of incidents.

As several automakers debut new models in the U.S. — replete with state-of-the-art connectivity and safety features — the market is set for significant growth in the coming years. For instance,

• In January 2023, Qualcomm Inc. teamed up with cloud software giant Salesforce Inc. to roll out an innovative connected vehicle platform tailored for automakers.

North America Connected Car Industry Overview

In North America, the Connected Car market sees a moderate level of consolidation. Dominating the landscape are sizable global players, alongside local entities that have forged long-term supply agreements with leading infrastructure firms. These players actively pursue joint ventures, mergers, acquisitions, and product innovations, all aimed at broadening their brand portfolios and solidifying their market foothold.

Leading the charge in the global arena are industry giants like General Motors, Ford Motor Co., Toyota Motor Corp., Stellantis NV, and Tesla Inc. These key players are not just passively observing the market dynamics; they're proactively engaging in mergers, acquisitions, and unveiling new products to fortify their market stance. For instance,

• In January 2023, Project Arrow, proudly touted as Canada's inaugural all-zero-emission connected vehicle, made its debut at the Consumer Electronics Show, having been meticulously designed and crafted in Ontario.

North America Connected Car Market Leaders

North America Connected Car Market News

• June 2023: Plus, a company at the forefront of automated and fully autonomous driving, has selected Luminar to supply its long-range LiDAR technology. This move is set to bolster PlusDrive, the company's assisted driving system tailored for commercial vehicles.
• January 2023: Hyundai Motor America has unveiled Bluelink+, a connected car services program that waives almost all subscription fees for its new vehicle owners.