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 The global connected car sales grew 12 per cent (year-on-year) in 2022, with the share of connected cars in the overall car sales exceeding 50 per cent, a new report has shown.

Volkswagen Group led in connected car sales, closely followed by Toyota Group, according to Counterpoint Research.

The US remained the strongest market for connected cars, followed by China and Europe. In 2022, these three markets accounted for nearly 80 per cent of the total connected car sales globally.

Despite having a small share of connected car sales, Japan saw the highest growth in connected car penetration.

"With consumers' focus shifting to connectivity in the car, non-connected car shipments are steadily declining. The top five automotive groups accounted for nearly half of the connected cars sold in 2022. Volkswagen Group led the charts in terms of connected car sales volume, closely followed by Toyota Group. Tesla broke into the top 10 for the first time," said Research Analyst Abhilash Gupta.

Moreover, the report said that 4G cars captured more than 95 per cent of connected car sales in 2022.

Elon Musk-run Tesla broke into the top-10 connected car sales rankings for the first time.

"Currently, 4G dominates the connected car market with almost 95 per cent share. But as the automotive market is transitioning towards electrification, software-defined vehicles and autonomy, the need for seamless and faster in-vehicle connectivity will be fulfilled through 5G," said Senior Analyst Soumen Mandal.

"By 2030, more than 90 per cent of connected cars sold will have embedded 5G connectivity. Connected car sales are expected to grow at a CAGR of 13 per cent between 2022 and 2030," he added.