PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514946
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514946
Automotive Ethernet Market size was valued at USD 2,415.2 Million in 2023, expanding at a CAGR of 20.50% from 2024 to 2032.
Automotive Ethernet is a high-speed networking technology that facilitates data transmission across different electrical systems and components in automobiles. In comparison to more conventional automotive communication buses like CAN and LIN, it offers quicker data transmission rates, lower latency, and increased bandwidth through the use of Ethernet protocols. Advanced driver assistance systems (ADAS), entertainment systems, vehicle-to-vehicle (V2V) and, vehicle-to-infrastructure (V2I) connectivity, and autonomous driving features are all made possible by this technology. Automotive Ethernet improves connectivity, safety, and efficiency on the road by enabling cars to integrate developing technology and manage the growing complexity of electronic systems.
Automotive Ethernet Market- Market Dynamics
Increasing Use of ADAS in Automobiles to Propel Market Growth
The market for automotive ethernet is anticipated to increase in the future due to the increasing use of ADAS in automobiles. For ADAS systems to facilitate real-time data processing and decision-making, dependable, high-speed communication networks are necessary. The bandwidth and low latency needed for these systems to function properly are provided by automotive Ethernet. Major Asian and Pacific manufacturers claim that increased ADAS usage will require more standardized cables and connectors in order to support the higher data rates. Additionally, automotive ethernet-which has a maximum speed of 1 gigabit per second (Gbps)-is utilized to manage the enormous data streams produced by ADAS sensors. In real-time decision-making, where milliseconds matter, this is essential. For instance, in December 2022, the US-based non-profit National Association of Insurance Commissioners predicted that by 2025, there would be 3.5 million autonomous vehicles on US roads, and by 2030, there will be 4.5 million. Consequently, the market for automotive Ethernet is expanding due to the increasing use of ADAS in automobiles.
Automotive Ethernet Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 20.50% over the forecast period (2024-2032)
Based on type segmentation, the automotive ethernet network category was predicted to show maximum market share in the year 2023
Based on component segmentation, the service category was predicted to show maximum market share in the year 2023
Based on bandwidth segmentation, the 1 Gbps category was predicted to show maximum market share in the year 2023
Based on application segmentation, the infotainment category was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Automotive Ethernet Market is segmented on the basis of Type, Component, Bandwidth, Application, Vehicle Type and Region.
The market is divided into three categories based on component: Hardware, Software, and Service. The service category dominates the market because of its broad range of solutions, particularly for complex Ethernet-based systems, including design, testing, maintenance, consulting, and integration. With automobiles becoming increasingly connected, autonomous, and data-centric, the demand for specialized services is rising. These services are required to ensure rigorous adherence to automotive standards and dependable integration. The increasing complexity of automotive networks necessitates robust testing and integration services. Furthermore, as vehicles become more networked, ensuring seamless communication between components is crucial for both optimal performance and safety. Strict regulatory regulations necessitate rigorous testing and validation services to ensure compliance with industry standards.
The market is divided into the following categories based on application: Advanced Driver Assistance Systems (ADAS), Infotainment, Powertrain, Chassis, Body and Comfort. The infotainment category dominates the market and is likely to maintain its dominance during the forecast period. Vehicles equipped with infotainment systems mix entertainment and informational elements to improve the ride in the car. They provide connectivity, communication services, multimedia entertainment, and navigation. Streaming services, music, and videos can be enjoyed by passengers due to this technology. They also have smartphone connectivity for hands-free calls, messaging, and app access, as well as GPS navigation for instructions and traffic updates. With Ethernet connectivity, infotainment systems can provide smooth multimedia streaming, quicker app launches, and high-resolution screens. Live traffic updates, entertainment options, and navigation updates can all be done simultaneously and without stuttering due to Ethernet's capacity to manage numerous data streams.
Automotive Ethernet Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Over the course of the forecast period, Asia Pacific is anticipated to hold the greatest share of the global market for automotive ethernet. The Asia-Pacific region's automotive market has skilled a significant transformation due to steady socio-political circumstances, advancements in technology, and noteworthy economic expansion. Asia-Pacific is the region that originates and sells the majority of vehicles worldwide. The automotive sector has been driven by rising disposable income and a substantial consumer base in developing nations like China, Malaysia, and India. Consequently, there are several chances for revenue growth for automotive original equipment manufacturers (OEMs) and Ethernet companies involved in the industry, including NEXCOM International Co., Ltd., Mitsubishi, and DASAN Networks Inc.
In addition, the automotive ethernet market is anticipated to expand at the fastest rate in the world during the projected period in Europe. Europe's automotive ethernet market is expanding quickly, and major players in the sector include France, Germany, the United Kingdom, Spain, and others. This increase is being propelled by the automotive industry's emphasis on technical invention with strict protection criteria. European automotive ethernet development is also being fueled by a burgeoning market for connected vehicles and a shared commitment to safety regulations. Because of these reasons, automotive ethernet is becoming an essential technology in Europe's drive toward more technologically advanced, safer cars. Prominent firms in the automotive Ethernet sector, like Rohde & Schwarz, NXP Semiconductors, and Spirent Communications plc, are proactively enhancing their range of products to fulfill the growing needs of automobile manufacturers.
The need for automotive Ethernet is fragmented, and the presence of multiple players such as Aukua Systems, Broadcom, Keysight Technologies, Cadence Design Systems Inc., and Marvell, among others, is expected to cause rivalry. To stay ahead of the competition and to guarantee effectiveness, honesty, and safety, major service providers in the industry are always updating their technologies. In order to obtain a competitive advantage over their rivals and secure a substantial portion of the market, these firms concentrate on cooperation, product improvements, and partnerships.
February 2024: By utilizing the Automotive SerDes Alliance Motion Link Ethernet (ASA-MLE) draft protocol, AVIVA Links, Inc. unveiled the AVIVA AXP410xU and PS480xU devices, which enable fast data transfer across vehicle domains such as the driver assistance systems and central domain controller.
October 2023: The Detroit Automotive Technology Center located in Novi, Michigan, is set to expand, as disclosed by Microchip Technology Inc. Covering 24,000 square feet, the new facility will have more E-mobility and high-voltage laboratories along with technical training rooms to help automotive customers develop and improve solutions.
June 2023: In order to provide the most capacity in a newly emerging device category, Marvell Technology, Inc. unveiled the Brightlane Q622x family of central automotive Ethernet switches. These switches allow software-defined services to be delivered to next-generation automobiles and enhance safety through powerful computing architectures.
GLOBAL AUTOMOTIVE ETHERNET MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Aukua Systems
Broadcom
Cadence Design Systems Inc
Spirent Communications plc
Rohde & Schwarz
Keysight Technologies
Marvell
Microchip Technology Inc
Molex Incorporated
NXP Semiconductors
Mitsubishi
NEXCOM International Co., Ltd.
DASAN Networks Inc.
Texas Instruments Incorporated
Toshiba Corporation
Others