Australia Connected Car Market

Australia Connected Car Market Overview:

The Australia connected car market size reached USD 1,924.00 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 5,756.80 Million by 2033, exhibiting a growth rate (CAGR) of 12.95% during 2025-2033. The growth of the market is driven by expanding 5G connectivity, enabling real-time navigation and over-the-air updates. Government support for smart transportation and IoT integration accelerates development. Additionally, automakers are shifting toward subscription-based models, offering flexible, personalized services. Increasing consumer demand for advanced safety and infotainment features is further expanding the Australia connected car market share.

Australia Connected Car Market Trends:

Growth in 5G-Enabled Connected Car Services

A significant growth in the market is being witnessed as a result of the spread of 5G networks. High-end features such as real-time navigation, OTA software updates, and enhanced vehicle-to-everything (V2X) communication are dependent on the faster data speed and lower latency of 5G. Hence, the automotive players and telematics service providers are incorporating 5G connectivity to enhance safety, entertainment, and autonomous driving capabilities. Additionally, telecom providers are investing in 5G infrastructure, further supporting the adoption of connected car technologies. As of January 2024, Australia's 5G infrastructure is growing, led by Telstra with 5,082 sites, then Optus with 4,038, and TPG with 3,050. The rollout is concentrated in large cities, where 66.3% of Telstra's sites now support 5G. The expansion supports Australia's connected cars market by enhancing network capacity to enable fast and low-latency communication between cars. The demand for seamless in-car connectivity, including high-definition streaming and cloud-based services, is driving this trend. As 5G coverage expands across urban and regional areas, more consumers are opting for connected vehicles, propelling the Australia connected car market growth. Government initiatives promoting smart transportation and IoT integration are also accelerating this shift, marking 5G as a key driver in the market.

Rising Adoption of Electric Vehicles (EVs) with Connected Features

The rise of electric vehicles (EVs) in Australia is supporting the growth of connected car technologies. In 2024, Australia recorded an all-time high in electric vehicle (EV) sales at 114,000 units, of which 91,000 were battery electric vehicles (BEVs) and 23,000 plug-in hybrids (PHEVs), accounting for 9.65% of the market. This is up from 8.45% in 2023 and highlights the increasing consumer demand brought about by improved infrastructure and more models on offer. The shift to EVs is instrumental for the networked car market, as it raises the requirement for intelligent automotive technology and connectedness in networks. The growing popularity of EVs with embedded connectivity features offering real-time battery monitoring, charging station locators, and energy optimization is credited to the increasing adoption of sustainable mobility by consumers as well as businesses. To improve the EV ownership experience, manufacturers are adding increasingly advanced telematics to the vehicles in order to offer features such as remote climate control as well as predictive maintenance. This is also being encouraged by government incentives to accelerate EV adoption, as well as a growth in charging infrastructure overall. Furthermore, fleet operators also started utilizing connected EVs for better fuel management and route optimization. In Australia, electrification and connectivity are a significant interplay in the process towards the automotive landscape as a smart, data-driven corpus of EVs that are turning into a mainstream trend in the market.

Australia Connected Car Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on technology, connectivity solution, service, and end market.

Technology Insights:

• 3G
• 4G/LTE
• 5G

The report has provided a detailed breakup and analysis of the market based on the technology. This includes 3G, 4G/LTE, and 5G.

Connectivity Solution Insights:

• Integrated
• Embedded
• Tethered

A detailed breakup and analysis of the market based on the connectivity solution have also been provided in the report. This includes integrated, embedded, and tethered.

Service Insights:

• Driver Assistance
• Safety
• Entertainment
• Vehicle Management
• Mobility Management
• Others

The report has provided a detailed breakup and analysis of the market based on the service. This includes driver assistance, safety, entertainment, vehicle management, mobility management, and others.

End Market Insights:

• Original Equipment Manufacturer (OEMs)
• Aftermarket

A detailed breakup and analysis of the market based on the end market have also been provided in the report. This includes original equipment manufacturer (OEMs) and aftermarket.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Connected Car Market News:

• February 11, 2025: Renault Australia completed local tests of its totally redesigned Captur SUV, launching in the latter part of 2025. The vehicle will be the first Renault car available in Australia to include connected car services, such as Google Maps with real-time traffic updates, over-the-air software updates, and voice operation through Google Assistant. The Captur is anticipated to provide world-class technology, a spacious interior, and upgraded electronic safety features.
• May 07, 2024: Telstra partnered with Honda to provide enhanced connectivity for the recently launched Honda Accord in Australia, including Google built-in services including Google Maps, Assistant, and Play through Telstra's mobile network. This enhanced connectivity offers features such as real-time traffic information, vehicle telemetry data, and upcoming Vehicle-to-Everything (V2X) technology. This partnership is a significant step forward in connected car experiences, combining Telstra's IoT expertise with Honda's innovative spirit for a seamless in-car experience.

Australia Connected Car Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia connected car market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia connected car market on the basis of technology?
• What is the breakup of the Australia connected car market on the basis of connectivity solution?
• What is the breakup of the Australia connected car market on the basis of service?
• What is the breakup of the Australia connected car market on the basis of end market?
• What is the breakup of the Australia connected car market on the basis of region?
• What are the various stages in the value chain of the Australia connected car market? 
• What are the key driving factors and challenges in the Australia connected car market?
• What is the structure of the Australia connected car market and who are the key players?
• What is the degree of competition in the Australia connected car market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia connected car market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia connected car market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia connected car industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.