Analysis: Global Automotive IoT Market Expected to Grow 12 Percent Annually Through 2034

The “Automotive Internet of Things (IoT)” market is set to grow significantly over the coming decade. According to a recent analysis by the market research company Fortune Business Insights, the market is expected to expand from 2026 onward with an average annual growth rate (CAGR) of 11.9% through 2034 — a development that will affect manufacturers, suppliers, and service providers alike.

The report covers the global market for connected vehicle solutions. This includes sensors, communication modules, and software and service offerings in the areas of telematics, infotainment, advanced driver assistance systems (ADAS), predictive maintenance, and vehicle-to-infrastructure communication (V2X). The goal is to provide a clear and structured overview of market volume, growth, segments, and regional trends through 2034.

Even today, the market value stands in the mid tens of billions of dollars (figures vary depending on the study). Growth is driven by multiple factors:

• Increasing adoption of connected vehicles (Connected Cars).
• Expansion of mobile networks, enabling stable and high-bandwidth connectivity.
• The shift toward software-defined vehicles (SDV), where functions can be added via software updates.
• Growing demand for services related to comfort, safety, and vehicle maintenance.

Analyses from multiple market studies indicate that growth is not only driven by technology but also by rising customer expectations, infrastructure investments, and regulatory pressure. Major automakers, suppliers, semiconductor companies, and software providers are increasingly required to strategically align their offerings — particularly in software, cloud services, and communication technologies.

At the same time, challenges are emerging: requirements for cybersecurity, data protection, and the integration of complex systems are increasing. For companies, the associated effort and costs can be substantial.

With a CAGR of 11.9% through 2034, the Automotive IoT market is on a strong growth trajectory — driven by connectivity, digitalization, and new mobility concepts. For manufacturers and suppliers, this creates a strategically important field. At the same time, they must align technology, regulation, and market demands to remain competitive in the medium term.

Summary (tl;dr)

• The global Automotive IoT market is expected to grow around 12% annually through 2034.
• Connected vehicle features such as telematics, infotainment, and ADAS drive demand.
• 5G expansion and software-defined vehicles further accelerate the market.
• Rising cybersecurity and data management requirements remain key challenges.
• Manufacturers and suppliers face a strategically important future market.