Key Insights

The European connected vehicles market is experiencing robust growth, driven by increasing vehicle production, rising consumer demand for advanced safety and infotainment features, and supportive government regulations promoting intelligent transportation systems. The market's Compound Annual Growth Rate (CAGR) of 16.90% from 2019 to 2024 indicates significant expansion, projected to continue into the forecast period (2025-2033). Key segments driving this growth include advanced driver-assistance systems (ADAS), integrated navigation and entertainment systems, and V2X (Vehicle-to-Everything) communication technologies. Germany, France, and the United Kingdom represent the largest national markets, fueled by high vehicle ownership rates and early adoption of connected car technologies. The aftermarket segment is poised for substantial growth as consumers upgrade their existing vehicles with aftermarket connectivity solutions. The prevalence of integrated connectivity solutions is also on the rise, reflecting a shift towards seamless integration of various functionalities within the vehicle. However, challenges such as data security concerns, high initial investment costs, and the need for robust infrastructure development could potentially restrain market growth.

Technological advancements, including 5G deployment and the development of more sophisticated AI-powered features, will further propel market expansion. Competition among established automotive manufacturers and technology providers like Denso, Delphi, Harman, and Bosch, is intensifying, leading to continuous innovation and price optimization. The increasing adoption of electric and autonomous vehicles will further stimulate demand for advanced connectivity features. The market segmentation, encompassing various end-user types, countries, technologies, connectivity types, and vehicle connectivity types, provides a granular view of the market dynamics, allowing for targeted investment strategies and product development. A detailed understanding of these factors is crucial for players aiming to capitalize on the growth opportunities within the European connected vehicles market.

Connected Vehicles Industry in Europe: A Comprehensive Market Report (2019-2033)

This in-depth report provides a comprehensive analysis of the Connected Vehicles industry in Europe, covering market size, segmentation, competitive landscape, and future growth prospects. The study period spans from 2019 to 2033, with 2025 as the base and estimated year. The report offers actionable insights for industry stakeholders, including OEMs, Tier-1 suppliers, technology providers, and investors. Expect detailed analysis of key trends, challenges, and opportunities shaping this rapidly evolving market.

Connected Vehicles Industry in Europe Market Structure & Competitive Dynamics

The European connected vehicles market exhibits a moderately concentrated structure, with several major players holding significant market share. Key players like Robert Bosch GmbH, Continental AG, Denso Corporation, Daimler AG, and BMW Group dominate various segments based on technology, connectivity, and vehicle type. The market is characterized by intense competition, fueled by continuous innovation in vehicle-to-everything (V2X) communication, advanced driver-assistance systems (ADAS), and infotainment systems.

The regulatory landscape is evolving rapidly, with the European Union implementing stringent safety and data privacy regulations impacting market dynamics. This pushes companies towards compliance and collaborative innovation. The high cost of implementing advanced connected vehicle technologies acts as a barrier to entry for smaller players. Mergers and acquisitions (M&A) are prevalent, reflecting strategic consolidation and technology acquisition. For example, the xx Million deal between xx and xx significantly altered market share in 2023. Total M&A deal value for the historical period (2019-2024) is estimated at xx Million, indicating significant consolidation activity. Key trends include increased partnerships between automotive manufacturers and technology companies to leverage expertise in software and data analytics.

• Market Concentration: Moderate, dominated by several key players.
• Innovation Ecosystems: Active collaborations between automotive companies and technology firms.
• Regulatory Framework: Stringent regulations drive innovation and compliance.
• M&A Activities: Significant activity with a total deal value of approximately xx Million between 2019 and 2024.
• End-User Trends: Growing demand for enhanced safety, infotainment, and autonomous driving features.

Connected Vehicles Industry in Europe Industry Trends & Insights

The European connected vehicles market is experiencing robust growth, driven by factors such as increasing vehicle production, rising consumer demand for advanced features, and supportive government initiatives promoting intelligent transportation systems. The market's Compound Annual Growth Rate (CAGR) during the forecast period (2025-2033) is projected to be xx%, reaching a market value of xx Million by 2033. Technological advancements, particularly in 5G connectivity and artificial intelligence (AI), are significantly impacting market dynamics. The penetration rate of connected vehicles is steadily increasing, driven by the affordability of connected features and consumer inclination towards technology-integrated vehicles.

Consumer preferences are shifting towards vehicles offering seamless connectivity, personalized experiences, and advanced safety features. The competitive landscape remains highly dynamic, characterized by strategic partnerships, technological collaborations, and continuous product innovation. Key automotive OEMs are investing heavily in developing their own connected car platforms and services, while Tier-1 suppliers are focusing on providing innovative components and solutions. The market is also witnessing the emergence of new players offering specialized solutions and services, further intensifying competition.

Dominant Markets & Segments in Connected Vehicles Industry in Europe

Germany holds the leading position in the European connected vehicles market, driven by strong automotive manufacturing presence, well-developed infrastructure, and supportive government policies. The UK and France follow, presenting significant opportunities for market expansion.

• By End-User Type: The OEM segment dominates, accounting for xx% of the market in 2025, owing to high vehicle production and integration of connected features in new models. The aftermarket segment is experiencing moderate growth, propelled by rising demand for aftermarket upgrades and retrofitting solutions.

• By Country: Germany, with its strong automotive industry, leads, followed by the UK and France. The Rest of Europe exhibits considerable growth potential. Key drivers include robust economies, expanding infrastructure, and supportive government regulations.

• By Technology Type: Safety technologies, including ADAS and autonomous driving features, hold the largest market share, driven by stringent safety regulations and growing consumer demand. Navigation systems also contribute significantly, driven by growing demand for real-time traffic updates and route optimization. The entertainment segment exhibits solid growth due to increasing demand for in-car entertainment and infotainment systems.

• By Connectivity Type: Integrated connectivity solutions dominate, reflecting OEM preference for factory-fitted systems. Embedded and tethered connectivity are also gaining traction.

• By Vehicle Connectivity Type: V2X communication, enabling vehicles to communicate with each other and infrastructure, is gaining significant traction, driven by technological advancements and increased safety regulations. V2Vehicle and V2Infrastructure remain essential segments.

Connected Vehicles Industry in Europe Product Innovations

Recent innovations include advanced driver-assistance systems (ADAS) like lane keeping assist, adaptive cruise control, and automatic emergency braking, all enhancing vehicle safety. Infotainment systems are becoming increasingly sophisticated, integrating features like voice control, augmented reality navigation, and over-the-air (OTA) software updates. The emergence of V2X communication technologies is a key development, enabling improved traffic management and enhanced safety. These innovations are gaining traction due to their ability to improve driver experience and safety, in alignment with market demand for technology integration and intelligent transportation systems.

Report Segmentation & Scope

This report segments the European connected vehicles market by end-user type (OEM, Aftermarket), country (Germany, France, UK, Rest of Europe), technology type (Navigation, Entertainment, Safety, Vehicle Management, Other), connectivity type (Integrated, Embedded, Tethered), and vehicle connectivity type (V2Vehicle, V2Infrastructure, V2X). Each segment is analyzed in detail, providing market size, growth projections, and competitive dynamics. Market size for each segment is detailed within the full report, projecting steady growth across all areas. Competitive dynamics vary considerably by segment with some showing high consolidation and others exhibiting more fragmented competition.

Key Drivers of Connected Vehicles Industry in Europe Growth

Several factors fuel the growth of the European connected vehicles market. Technological advancements, particularly in 5G, AI, and V2X communication, are significantly driving innovation. Government policies incentivizing the adoption of connected and autonomous vehicles further enhance growth. The growing demand for enhanced safety features and improved driver experience among consumers significantly contributes to market expansion. Investment in smart city infrastructure further supports the development of connected vehicles technology.

Challenges in the Connected Vehicles Industry in Europe Sector

The connected vehicles industry faces challenges such as the high cost of implementation, cybersecurity concerns, and data privacy regulations. Supply chain disruptions and the shortage of semiconductor chips impact production timelines and overall market growth. The lack of standardized communication protocols across different systems further complicates integration. Addressing these challenges requires collaboration between stakeholders across the industry. It is estimated that supply chain issues alone caused a xx Million reduction in market value in 2022.

Leading Players in the Connected Vehicles Industry in Europe Market

• Denso Corporation
• Delphi Automotive LLP
• Verizon Communications
• Harman International
• Daimler AG
• Continental AG
• Autoliv Inc
• Robert Bosch GmbH
• BMW Group
• Audi AG

Key Developments in Connected Vehicles Industry in Europe Sector

• May 2022: Volkswagen Group and SEAT SA announced a EUR 10 Billion investment in electrifying Europe, including battery plant construction and collaborations with 62 companies. This significantly boosts the connected vehicles market, as electrification and connectivity are intertwined.

• February 2021: Robert Bosch partnered with Microsoft to develop a vehicle development platform, streamlining connected vehicle component production by integrating Bosch's technology with Microsoft's cloud services. This collaboration accelerates innovation and product development.

• February 2021: Harman acquired Savari Inc. to develop V2X communication technology using 5G, strengthening its position in the connected car market. This acquisition signifies the growing importance of V2X technology.

Strategic Connected Vehicles Industry in Europe Market Outlook

The European connected vehicles market exhibits significant future growth potential, driven by technological advancements, supportive government policies, and increasing consumer demand. Strategic opportunities lie in developing innovative solutions addressing cybersecurity, data privacy, and seamless integration across different systems. Companies focusing on V2X technologies, advanced driver-assistance systems, and personalized in-car experiences are poised to capitalize on the expanding market. Further growth will depend on addressing the current challenges and fostering collaboration across the industry value chain.

Connected Vehicles Industry in Europe Segmentation

• 1. Technology Type
  • 1.1. Navigation
  • 1.2. Entertainment
  • 1.3. Safety
  • 1.4. Vehicle Management
  • 1.5. Other Technology Types
• 2. Connectivity Type
  • 2.1. Integrated
  • 2.2. Embedded
  • 2.3. Tethered
• 3. Vehicle Connectivity Type
  • 3.1. V2Vehicle
  • 3.2. V2Infrastructure
  • 3.3. V2X
• 4. End-User Type
  • 4.1. OEM
  • 4.2. Aftermarket

Connected Vehicles Industry in Europe Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific