How Big is the Smart Vehicle Market | Industry Opportunities & Future Growth 2025

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Code: MTA8714

Publication Date: Sep 2025

What is the size of Smart Vehicle Market?

According to 6Wresearch internal database and industry insights, the smart vehicle market was estimated at USD 98.4 billion in 2024 and is projected to reach USD 245.7 billion by 2031, growing at a CAGR of 14.1% during the forecast period 2025-2031.

The smart vehicle market is rapidly growing, as connected car technologies, autonomous driving technologies, and new safety features are evolving globally. The increasing consumer demand for convenience, efficiency, and sustainability is injecting additional momentum for market growth in both developed and developing spaces.

Growth Factors for Smart Vehicle Market

Accelerating connected car platforms and IoT-enabled systems adoption
Rising investments in autonomous and electric vehicles
Government regulations promoting vehicle safety, and emission reduction.
Demand for in-car infotainment, navigation, and smart mobility services.
Advancements in AI, machine learning, and sensor technology.

Smart Vehicle Market Trends

The smart vehicle market is influenced by several positive trends related to autonomous driving, vehicle-to-everything (V2X) communications, and AI-powered driver assistance systems. Based on industry investments and press releases, it appears that automobile manufacturers are investing heavily in EV-smart technology convergence, such as predictive maintenance, over-the-air updates, and cloud connectivity. In addition, the smart vehicle market is witnessing increasing collaboration between automobile manufacturers and technology companies in the smart vehicle market.

Emerging Developments in the Smart Vehicle Market

The smart vehicle sector is evolving with the advancement of Level 4 and Level 5 autonomous vehicles, blockchain-enabled data-sharing capabilities, and AI-enabled traffic management systems. With the evolution of fifth-generation (5G) technology, smart vehicles can connect and make real-time decisions. Additionally, the emergence of mobility-as-a-service (MaaS), shared fleets of smart vehicles, and cleaner energy and energy-efficient options are changing the face of the transportation ecosystem globally. Cybersecurity solutions, real-time traffic integration, and smart fleet management systems are increasingly important developments that are shaping the industry.