Daijiworld Media Network - New Delhi

New Delhi, Mar 12: India has emerged as the fastest-growing market for connected cars, recording a 25% year-on-year (YoY) growth in 2024, according to a new report by Counterpoint Research.

The surge is driven by domestic automakers increasingly integrating connectivity features into their vehicles, making smart mobility more accessible to consumers.

Globally, the connected car market expanded by 8% YoY, with nearly 75% of all passenger vehicles sold in 2024 featuring embedded cellular connectivity—up from 71% the previous year.

“The rising adoption of connectivity in mass-market vehicles has been a key factor behind this growth,” said Greg Basich, Associate Director at Counterpoint. He highlighted how automakers are enhancing vehicles with advanced telematics, real-time navigation, and connected entertainment to improve safety and user experience.

Global Leaders and Market Trends

Toyota Group retained its position as the global leader in connected car sales in 2024, followed by Volkswagen Group and Hyundai Kia Automotive Group. Meanwhile, BYD Group saw the highest YoY growth at 34%, driven by its strategy of embedding connectivity across all models.

India stood out as the fastest-growing market, while the United States and Germany also remained key players in the segment.

“Automakers worldwide are integrating connectivity to enhance user experience, vehicle safety, and overall performance,” said Parv Sharma, Senior Analyst at Counterpoint. “As connected features become standard, consumer demand is reshaping the automotive industry.”

5G Connectivity on the Rise

Currently, 4G-enabled Telematics Control Units (TCUs) dominate the market, powering 94% of all connected cars sold in 2024. However, the transition to 5G is gaining momentum, especially in luxury and premium models.

Counterpoint predicts that by 2028, over half of all new cars globally will feature embedded 5G connectivity, enabling faster data transmission, enhanced vehicle-to-everything (V2X) communication, and advancements in autonomous driving technology.