New Delhi, March 12: India has emerged as the fastest-growing market for connected cars, registering a 25 per cent year-on-year (YoY) increase in 2024, a new report said on Wednesday.

According to a Counterpoint Research report, the surge in adoption is driven by domestic automakers integrating connectivity features across their vehicle lineups.

Nearly 75 per cent of all passenger cars sold globally in 2024 came with embedded cellular connectivity, up from 71 per cent in the previous year.

The global connected car market saw an overall 8 per cent YoY growth, reflecting the increasing demand for smart mobility solutions.

“The growing penetration of connectivity features in mass-market cars has been a key driver of this expansion,” said Greg Basich, associate director at Counterpoint.

He added that automakers are incorporating advanced telematics, real-time navigation, and connected in-car entertainment features to enhance the driving experience and improve safety.

Globally, Toyota Group led connected car sales in 2024, followed by Volkswagen Group and Hyundai Kia Automotive Group.

However, BYD Group recorded the highest growth, with a 34 per cent YoY increase, driven by its strategy of offering embedded connectivity in all its models.

While, India stood out as the fastest-growing country in this segment, the United States and Germany followed as other key markets.

“Automakers worldwide are integrating embedded connectivity to enhance the in-car user experience, safety, and vehicle performance,” said Counterpoints’ senior analyst Parv Sharma.

He added that as connectivity becomes a standard offering, consumer demand continues to shape the automotive industry's evolution.”

Telematics Control Units (TCUs) that enable 4G connectivity continued to dominate, with 94 per cent of connected cars sold in 2024 relying on 4G networks.

However, the shift to 5G is gradually gaining momentum, particularly in luxury and premium models.

Counterpoint expects more than half of the cars sold globally to feature embedded 5G connectivity by 2028, enhancing vehicle-to-everything (V2X) communication, faster data transmission, and autonomous driving capabilities. (IANS)

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