How Big Is the Automotive IOT Market | Trends & Forecast 2025

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Code: MTA3703

Publication Date: Jun 2025

Automotive IOT Market Size Growth Rate

According to 6Wresearch, Global Automotive IOT Market Size is anticipated to expand from USD 121.8 Billion in 2024 and is expected to reach USD 265.4 Billion by 2031, growing at a compound annual growth rate of 9.15%. One of the drivers accelerating this growth is the increasing integration of V2X communication technologies, which enhance real-time data sharing for safety.

How Big Is the Automotive IOT Market?

Automotive IoT industry is rapidly growing segment of the economy, powered by increasing rates of smart technology adoption in vehicles. The market is anticipated to have a good compound annual growth rate. Growth is due to the increasing demand for connected vehicles, the evolution of 5G technology, an increased need to improve safety, efficiency, and user satisfaction. The industries and governments around the world are investing into IoT-based automotive solutions showing how fundamental IoT will be and what role it will play in the future of transportation.

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Emerging Technologies Fueling Automotive IoT Expansion

There are many cutting-edge technologies driving the advancement of automotive IoT. These include sensors, artificial intelligence (AI), and edge computing when connected to cellular technologies. This allows for the ability to process data in real-time and make decisions in the vehicle, thanks to 5G capabilities with connecting and communicating with other vehicles (V2V) and connecting and communicating with infrastructure (V2I), paving the way for smart and safer transportation systems.Â

Electric vehicles (EVs) and self-driving or autonomous driving are also making use of IoT to support the more intelligent management of energy and accurately get to the selected destinations. These new technologies are increasingly contributing to the overall executable and usable IoT ecosystem, delivering significantly increased levels of safety, efficiency and sustainability.

Capitalize on Automotive IoT Trends Transforming Transportation

For businesses and innovators, following automotive IoT trends is crucial to seizing opportunities that arrive via the Internet of Things. From personalized user experiences to predictive maintenance systems, the application of IoT in transportation continues to redefine how vehicles operate and interact. IoT fleet management enables route planning for optimal efficiency and fuel consumption, OTA (over the air) updates ensure that software systems are always up to date.Â

If companies can find solutions that incorporate IoT, they will be able to optimize operations and save money while staying competitive in the connected future. As industries adapt to IoT, transportation is no longer just a better way to travel safely. It is an opportunity for more sustainable transportation system for everyone.