The health and likely future success of the Connected Car Device market is best illustrated by the fact that there are multiple drivers — demand for advanced telematics, real-time vehicle diagnostics, and intelligent infotainment systems — according to a report from Verified Market Reports.

The firm says that the connected car device market will enjoy a compound annual growth rate (CAGR) of 10.5% between 2026 and 2033. This will drive the value of the worldwide market from $40 billion to $100 billion by 2033.

North America now dominates market share with high penetration of telematics, broad 4G/5G availability, and a strong original equipment manufacturer (OEM) environment push toward subscription-based services. Federal transportation policies promoting autonomous testing are accelerating adoption.

By 2030, the report says that connected car devices are projected to become standard across nearly all new vehicles sold in advanced economies. Penetration rates will exceed 90% in North America, Europe, and China.

Markets profiled in the report and presumably key players in the sector are Harman, Continental, Panasonic, Visteon, DENSO, ZF, Delphi, and Valeo.

The connected car device market and the technology that drives it are maturing in tandem, the report said. The migration from 4G to 5G and the related rollout of advanced LTE approaches are major growth catalysts. The report says that low-latency communication and high bandwidth enable real-time telematics, vehicle-to-everything (V2X) services, and uninterrupted over-the-air updates to be feasible.

Great care must be taken as vehicles are more connected and take a more central role in safety and other vital operations. Vehicles are now becoming cyber targets. The report said cybersecurity integration is a requirement as the connected car device evolves into edge-computing hubs, leveraging AI-powered analytics for predictive maintenance, driver fatigue detection, and incident prevention.