Profiling Top 10 Firms in the Connected Cars Market 2025

Technology has transformed nearly every aspect of our lives, and the automotive industry is no exception. One of the most exciting developments in recent years is the rise of connected cars, a type of vehicle equipped with internet access, smart sensors, and artificial intelligence (AI) that enable real-time communication with other vehicles, infrastructure, and cloud-based systems. These advanced cars are reshaping how we drive, offering improved safety, enhanced convenience, and greater efficiency. From self-driving capabilities to predictive maintenance and seamless infotainment, connected cars are setting the stage for the next generation of smart mobility.

Many leading automobile manufacturers and tech companies are investing heavily in this technology, aiming to create safer and more efficient transportation systems. In this blog, we’ll explore what connected cars are, how they work, their key features, the benefits they offer, and the major companies driving innovation in this space.

What Are Connected Cars?

Connected cars are vehicles that use internet connectivity and advanced communication technologies such as 5G services to interact with their surroundings. These vehicles can exchange data with other cars, traffic signals, cloud networks, and even pedestrians, making driving smarter and more efficient.

There are different types of connectivity in connected cars. Some types are explained below.

• Vehicle-to-Vehicle (V2V) Communication

Cars can communicate with each other, sharing information about speed, location, and road conditions. Vehicles equipped with V2V technology broadcast basic safety messages (BSMs) about their speed, location, heading, and brake status. Vehicles use the radiofrequency spectrum to exchange information.

• Vehicle-to-Infrastructure (V2I) Communication

Vehicle-to-infrastructure (V2I) communication in connected cars refers to the wireless exchange of data between a vehicle and roadside infrastructure like traffic lights, road signs, and lane markings, allowing the car to receive real-time information about road conditions, potential hazards, and traffic patterns, ultimately enhancing safety, mobility, and efficiency on the road.

• Vehicle-to-Cloud (V2C) Communication

Vehicle-to-cloud (V2C) communication refers to the ability of a connected car to send and receive data with a cloud-based server, allowing for real-time information exchange, analysis, and remote access to features like traffic updates and vehicle diagnostics. Essentially, enabling a car to interact with cloud services for enhanced driving experiences and safety features.

• Vehicle-to-Everything (V2X) Communication

Vehicle-to-Everything (V2X) communication refers to a technology that allows cars to exchange real-time information with other vehicles, pedestrians, road infrastructure, and other elements in their surrounding environment, essentially enabling cars to "talk" to everything around them, improving road safety, traffic efficiency, and paving the way for autonomous driving capabilities.

Key Features of Connected Cars

Autonomous Driving & AI Assistance

These algorithms for object detection are based on artificial intelligence (AI) and Machine Learning (ML). These are used to gather information, examine items, and make precise choices while traveling.

Advanced Navigation & Real-Time Traffic Updates

Advanced navigation and real-time traffic updates in connected cars use GPS, sensors, and communication technology to provide drivers with information about traffic conditions and road hazards. This information helps drivers avoid congestion and choose the best routes.

Remote Vehicle Monitoring & Control

Remote vehicle monitoring and control (RVC) allows drivers to monitor and control their vehicles remotely using a smartphone app. This feature enhances security and convenience.

Predictive Maintenance & Diagnostics

Predictive maintenance and diagnostics in connected cars use data analysis to identify and address potential issues before they become major problems. This helps to extend the life of a vehicle and reduce the frequency of maintenance.

Major Market Participants

1. Tesla

Tesla was founded in San Carlos, California, USA in 2003. The company's headquarters are currently in Austin, Texas, USA. The company was originally called Tesla Motors, but the name was shortened in 2017. Tesla is a leader in smart and autonomous vehicle technology. Its Autopilot system, over-the-air updates, and AI-powered safety features make Tesla one of the most advanced connected car brands.

2. BMW

The company's name stands for Bayerische Motoren Werke, which translates to Bavarian Engine Works Company. Its headquarters are based in Munich, Germany. The company was founded in 1916. BMW’s ConnectedDrive system provides features like real-time traffic alerts, AI-powered voice control, and cloud-based navigation, enhancing the driving experience.

3. General Motors (GM)

General Motors (GM) has been investing in connected car technology since 1996. GM was founded in 1908 and is headquartered in Detroit, Michigan, USA. GM’s OnStar service offers emergency assistance, vehicle diagnostics, and remote access to ensure a safer and smarter driving experience.

4. TOYOTA

Toyota Motor Corporation was founded in 1937. Toyota became the world's largest automobile manufacturer in 2008, surpassing General Motors. The company's headquarters are located in Toyota City, Aichi, Japan. Toyota’s Safety Sense technology offers adaptive cruise control, lane departure alerts, and pre-collision braking to improve road safety.

5. Mercedes-Benz

The Mercedes-Benz headquarters and main production facilities are in Stuttgart, Germany. The company was originally part of Daimler Motoren Gesellschaft (DMG) and was founded in 1926. Mercedes-Benz’s MBUX infotainment system includes AI-driven gesture controls, voice assistants, and augmented reality navigation. Mercedes-Benz vehicles are manufactured in 17 countries on five continents.

Benefits of Connected Cars

Connected cars offer numerous advantages that enhance the driving experience for individuals and improve overall road safety.

Increased Safety

Connected cars can improve safety by providing real-time information to drivers and emergency services. With real-time alerts and next-generation emergency response systems, connected cars significantly reduce the risk of road accidents.

Better Traffic Management

Connected cars can improve traffic management by sharing real-time data with traffic management systems. This data can help traffic managers respond to incidents and optimize traffic flow.

Fuel & Energy Efficiency

Connected cars can improve fuel and energy efficiency by sharing data and using advanced technologies to optimize driving behavior. This can lead to reduced emissions, improved air quality, and better traffic flow.

Future of Connected Cars

The future of connected cars looks incredibly promising. With advancements in 5G technology, AI, and autonomous driving, we can expect cars to become even smarter and more efficient in the coming years. Connected cars are revolutionizing the way we drive, offering a blend of safety, convenience, and efficiency. With leading automakers and tech companies investing heavily in this space, the future of smart mobility is closer than ever. Whether it’s self-driving technology, AI-powered safety features, or seamless connectivity, connected cars are set to redefine our relationship with transportation.