Automotive IoT Market Size | Growth Forecast, Trends & Industry Outlook

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Code: MTA5215

Publication Date: Jul 2025

How big is the automotive IoT market?

According to 6Wresearch internal database and industry insights, the automotive IoT market was valued at approximately USD 109.3 billion in 2024 and is projected to reach USD 297.6 billion by 2031. The market is expected to grow at a CAGR of 15.3% during the forecast period.

This growth is driven by the proliferation of connected cars, smart mobility solutions, and rising consumer demand for real-time vehicle communication and automation. IoT is transforming the automotive industry through improved vehicle tracking, safety, infotainment, diagnostics, and fleet management.

Key Growth Factors of the Automotive IoT Market

Increased use of vehicle-to-everything (V2X) and telematics technologies
Growing use of intelligent transportation and traffic control systems
Increasing demand for advanced driver assistance systems (ADAS) among consumers
Development of electric and driverless vehicles
IoT integration by OEMs for remote diagnostics and predictive maintenance
5G connectivity quick development to support IoT applications

Automotive IoT Market Trends

The market is witnessing rapid deployment of IoT-based vehicle tracking, infotainment, and fleet analytics solutions. OEMs and Tier 1 suppliers are investing in real-time location monitoring, remote diagnostics, and connected vehicle ecosystems. IoT platforms are evolving to support cybersecurity, edge computing, and seamless software upgrades, enhancing both consumer and commercial vehicle segments.

Emerging Developments in the Automotive IoT Market

Vehicle digital twins are being used for simulation and performance optimization. IoT-based in-car voice assistants are gaining adoption. Blockchain is being piloted for secure data sharing among IoT-enabled vehicles. Smart city integration is boosting demand for connected traffic infrastructure. EV charging stations are increasingly being managed through IoT platforms.