Europe Connected Car Market Size: Analysis By Service Type (Mobility Management, Telematics, Infotainment, Navigation, Driver Assistance, Safety & Security, Vehicle Management, Well-being), By Connectivity Type, By Network Type, By Sales Channel: Europe and Regional Demand Supply Trends and Forecast: 2025-2030

Market Outlook

The Europe Connected Car market was valued at USD 3,369 Million in 2024 and is projected to grow to USD 9,638 Million by 2030, with a compound annual growth rate (CAGR) of 19.7% from 2025 to 2030. The Europe Connected Car Market is a part of the automotive industry that focuses on vehicles equipped with internet access and communication technologies. These vehicles can connect with external networks, devices, and even other cars. By using a mix of embedded, tethered, and integrated connectivity solutions, they enhance the driving experience, improve safety features, and provide various infotainment services.

This market includes both original equipment manufacturers (OEMs) and technology providers working together on advanced telematics, navigation systems, vehicle-to-everything (V2X) communication, and the ability to receive over-the-air (OTA) updates.

Right now, the Europe Connected Car Market is undergoing significant changes due to the increasing use of smart technologies and the demand for real-time data services. Governments and regulatory bodies are actively supporting the adoption of connected vehicle technologies to enhance road safety and lower emissions. Automakers are focusing on features like remote diagnostics, predictive maintenance, fleet management, and personalized infotainment options. These innovations are changing what users expect from their vehicles and pushing the entire automotive landscape toward more digital solutions.

Additionally, the growth of 5G infrastructure, along with advancements in cloud computing and artificial intelligence, is speeding up the uptake of connected car technologies across Europe. There's also a noticeable increase in collaboration between automotive companies and tech firms aiming to create innovative mobility solutions together.

Key Insights

In terms of Service Type, the Safety & Security segment dominate the Europe Connected Car Market with a share of 23.09%. The increasing emphasis on vehicle safety regulations, coupled with a growing demand for real-time emergency support, is driving the popularity of advanced driver assistance systems (ADAS). Today, features like automatic crash notifications, stolen vehicle tracking, and remote diagnostics have almost become standard, fueling growth in this area.

Additionally, the combination of connected safety technologies with autonomous and semi-autonomous driving systems is further enhancing this segment's appeal. Manufacturers are putting a strong focus on safety innovations, solidifying its status as the leading service category in Europe.

Market Dynamics

Drivers:

The expansion of 5G and V2X tech is enabling real-time communication between vehicles and infrastructure for safer, smarter driving.

The expansion of 5G networks and Vehicle-to-Everything (V2X) technology is greatly altering the landscape of the Europe Connected Car Market. This transformation allows for seamless, real-time communication between vehicles, infrastructure, pedestrians, and networks. The ultra-low latency and high-speed connectivity provided by these technologies are crucial for supporting advanced applications such as autonomous driving, real-time traffic management, collision avoidance, and remote diagnostics. Connected vehicles can thus make split-second decisions based on live data from their surroundings, enhancing road safety, reducing congestion, and improving overall mobility efficiency.

In the Europe Connected Car Market, the integration of 5G and V2X enables the deployment of Cooperative Intelligent Transport Systems (C-ITS). This system allows vehicles to communicate with one another (Vehicle-to-Vehicle or V2V), with traffic signals and road signs (Vehicle-to-Infrastructure or V2I), and with central traffic management systems (Vehicle-to-Network or V2N). This connected ecosystem introduces features such as dynamic navigation rerouting, emergency vehicle alerts, and smart intersection management. The European Union is actively investing in the rollout of 5G corridors and cross-border pilot projects to ensure these capabilities are available across member states.

Furthermore, the rise of these technologies also empowers automakers and service providers within the Europe Connected Car Market to create innovative services, including predictive maintenance and in-vehicle infotainment that is tailored to user behavior. While there are some regulatory and infrastructure deployment challenges to navigate, the momentum surrounding 5G and V2X continues to grow, positioning Europe as a global leader in connected mobility. These advancements are not only changing the driving experience but also setting the groundwork for future autonomous transport systems.

Connected systems expose vehicles to hacking and data theft, requiring robust cybersecurity and GDPR compliance.

Connected systems in vehicles depend on continuous data exchange via telematics, infotainment, and V2X technologies, resulting in numerous digital entry points that are susceptible to hacking and data breaches. As vehicles evolve into software-centric platforms, vulnerabilities can be targeted by attackers, allowing them to access personal user information, alter vehicle functionalities, or interfere with communication between systems. These threats significantly endanger passenger safety and data privacy.

In the Europe Connected Car Market, where strict regulations like the General Data Protection Regulation (GDPR) are in place, manufacturers are compelled to implement strong cybersecurity measures. These include end-to-end encryption, secure over-the-air (OTA) updates, and real-time threat detection systems. Non-compliance with GDPR can lead to hefty fines and damage to a brand’s reputation. To foster consumer trust and stimulate market growth, all participants in the Europe Connected Car Market must prioritize the creation of secure, compliant ecosystems that safeguard user data while facilitating advanced connectivity features. Effective cybersecurity is crucial for the safe advancement of connected mobility in Europe.

Segmental Analysis

Based on Service Type, Europe Connected Car market is segmented into Mobility Management, Telematics, Infotainment, Navigation, Driver Assistance, Safety & Security, Vehicle Management, Well-being.

In the European Connected Car Market, the Safety & Security segment stands out as the most significant area. This is primarily because Europe has strict automotive safety regulations, a growing awareness among consumers about safety issues, and well-developed infrastructure that supports connected technologies. European nations have been pioneers in implementing vehicle safety requirements, like the eCall system. This regulation mandates that all new cars sold in the EU must have an emergency call feature, which automatically reaches out to emergency services if there's a crash. This has really accelerated the adoption of safety-focused connected features in vehicles.

The connected car systems that fall under the Safety & Security category typically offer a range of features, including emergency response systems, remote diagnostics, stolen vehicle tracking, collision detection, alarm notifications, and over-the-air (OTA) updates for safety protocols. These functionalities not only enhance the protection of drivers and passengers but also supply real-time data to insurers, fleet managers, and service providers. This helps them improve response times and keep vehicles well-maintained.

As the number of road accidents continues to rise, both consumers and manufacturers are putting a higher priority on safety features. Original Equipment Manufacturers (OEMs) in Europe are tapping into connected technologies not just to meet regulations but also to satisfy what customers want. As a result, Safety & Security features have become standard in most mid- to high-end car models. Plus, the introduction of AI-driven predictive safety systems, which monitor driver behavior and provide hazard alerts, underscores just how crucial this segment has become.

Regional Landscape

The Europe Connected Car Market is experiencing significant growth, driven by technological advancements, government regulations, and increasing consumer demand for smart mobility solutions. European countries are leading the way in automotive innovation by integrating connectivity features such as telematics, vehicle-to-everything (V2X) communication, and advanced infotainment systems into their vehicles. This trend is bolstered by a strong presence of automotive OEMs, tier-1 suppliers, and a well-established digital infrastructure throughout the region.

In Europe Connected Car Market, countries like Germany, the United Kingdom, France, and Italy are taking prominent roles. Germany, with its high concentration of automotive manufacturers, is making substantial contributions to the development and implementation of connected car technologies. The UK is concentrating on the testing of connected and autonomous vehicles, while France and Italy are focused on improving urban mobility and telematics infrastructure.

Regulatory support is also essential in shaping the Europe Connected Car Market. The European Union's strategic initiatives aimed at smart transportation, carbon emission reduction, and enhanced road safety are fostering the integration of connectivity features. Initiatives that support 5G infrastructure and data-sharing frameworks further enhance the capabilities of connected vehicles.

Consumer preferences in Europe prioritize safety, convenience, and environmental sustainability, leading to greater adoption of features such as real-time traffic updates, remote diagnostics, and emergency assistance. Furthermore, mobility-as-a-service (MaaS) and shared vehicle platforms are opening new avenues for connected services.

Competitive Landscape

Some of the major companies operating within the Europe Connected Car Market are: Continental AG, Robert Bosch GmbH, Harman International (Samsung), DENSO Corporation, Ericsson, Sierra Wireless, NXP Semiconductors, Qualcomm Technologies, Intel Corporation, Cisco Systems and Others.