Automotive Internet Of Things Market 2030: The Role of AI in Automotive Tech

Automotive Internet of Things (IoT) Market Overview

The global automotive Internet of Things (IoT) market was valued at USD 164.06 billion in 2023 and is projected to reach USD 379.05 billion by 2030, growing at a CAGR of 11.8% from 2024 to 2030. The increasing demand for connected vehicles that enhance user comfort, convenience, and safety is a major factor driving the growth of the automotive IoT market.

As consumer expectations for in-vehicle experiences rise, automakers are integrating IoT solutions to deliver enhanced features, including infotainment, real-time vehicle diagnostics, and advanced safety systems. These integrations are significantly influencing vehicle design and functionality, contributing to the expansion of IoT applications across the automotive sector.

Further fueling this growth are advancements in wireless communication technologies, particularly the rollout of 5G networks. These networks provide faster data transmission, lower latency, and more reliable connectivity—essential components for connected vehicle ecosystems. As a result, real-time communication between vehicles and infrastructure is becoming increasingly seamless, laying the groundwork for autonomous driving and more sophisticated vehicle-to-everything (V2X) communication systems.

Additionally, government regulations mandating improved safety and emissions standards are pushing automakers to adopt IoT technologies. Requirements such as the inclusion of eCall (emergency call) systems and emission monitoring tools underscore the role of IoT in achieving compliance with safety and environmental goals. These legislative measures, combined with rising consumer awareness of sustainable and safe driving, are accelerating the market’s momentum.

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Key Market Trends & Insights

• North America held the highest revenue share in the global market, accounting for over 36% in 2023.
• The U.S. automotive IoT market is expected to grow at a CAGR of over 8% from 2024 to 2030.
• Hardware was the dominant component segment, representing around 58% of revenue in 2023.
• By application, telematics accounted for the largest market share in 2023.
• The embedded system segment held the highest revenue share among all system types in 2023.

Market Size & Forecast

• 2023 Market Size: USD 164.06 Billion
• 2030 Projected Market Size: USD 379.05 Billion
• CAGR (2024–2030): 11.8%
• Largest Regional Market in 2023: North America

Key Automotive IoT Company Insights

Several major technology firms and automotive suppliers are driving innovation in the automotive IoT space through the development of advanced connectivity solutions and strategic industry collaborations.

Leading Companies:

• IBM Corporation A global leader in technology and consulting, IBM delivers integrated AI and cloud computing solutions across various industries, including automotive. IBM’s expertise supports the development of connected vehicle systems through smart infrastructure and big data applications.
• Microsoft Corporation Microsoft provides a comprehensive suite of cloud and software solutions, including Azure, which is widely used in the automotive sector for enabling IoT connectivity, real-time data processing, and advanced analytics. The company supports digital transformation across a range of industry verticals, including automotive.

Emerging Players:

• Robert Bosch GmbH Bosch offers a broad portfolio spanning automotive parts, technology solutions, and consumer goods. Its ongoing investment in IoT innovation, particularly within vehicle connectivity and automation, positions it as a strong contributor to the market.
• HARMAN International Industries, Inc. HARMAN specializes in connected car systems and smart technologies, delivering integrated infotainment and telematics platforms. The company plays a crucial role in the evolution of in-car IoT applications.

Key Automotive Internet of Things Companies

The following companies are recognized as major players shaping the automotive IoT industry. These organizations hold significant market share and lead in innovation, partnerships, and technology deployment:

• NXP Semiconductors N.V.
• HARMAN International Industries, Inc.
• Robert Bosch GmbH
• Thales S.A.
• IBM Corporation
• Texas Instruments Incorporated
• Microsoft Corporation
• Intel Corporation
• Verizon Communications Inc.
• QUALCOMM Incorporated

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Conclusion

The global automotive Internet of Things (IoT) market is witnessing strong growth, driven by a combination of technological advancement, regulatory mandates, and shifting consumer preferences. As vehicles become increasingly connected, the demand for integrated systems that improve safety, performance, and user experience continues to rise.

The deployment of 5G, the emergence of V2X communication, and the integration of IoT with autonomous driving technologies represent transformative trends shaping the industry’s future. Additionally, the support of government regulations and growing investments from leading tech companies are reinforcing the role of IoT as a core component of next-generation mobility solutions.

Looking ahead, the market is expected to remain dynamic and innovation-driven, with opportunities expanding in areas such as embedded systems, telematics, and edge computing. Companies that prioritize adaptability, data security, and seamless integration will be well-positioned to lead in this rapidly evolving sector.