Automotive Ethernet Market Research Report: By Component (Hardware, Software, Services), Bandwidth (1 Mbps, 100 Mbps, 1 Gbps, More Than 1 Gbps), Vehicle Type (Passenger Vehicle, Commercial Vehicle), Application (ADAS, Infotainment System, Powertrain) – Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global automotive ethernet market was valued at ~$2 billion in 2020, and it is expected to grow at a CAGR of 19.4% during the forecast period (2021–2030). The major factors responsible for the growth of the market include the declining cost of the ethernet technology and increasing use of smart infotainment systems and advanced driver assistance systems (ADAS) in vehicles. Furthermore, investments in the connected car concept can provide lucrative opportunities to the players operating in the market.

However, the COVID-19 pandemic has significantly impacted the market for automotive ethernet systems. The overall automotive industry has seen the adverse effect of the pandemic. However, from the last quarter of 2020, the automotive sector started recovering and witnessing growth. The sales of passenger and commercial vehicles increased in the last three months of 2020 in North America, Asia-Pacific (APAC), and Europe. Along with this, government schemes and initiatives regarding the integration of advanced safety features and deployment of connected vehicles play an important role, as they minimize the overall cost to manufacturers and customers.

With Increasing Integration of Advanced Technologies in Vehicles, Services Category To Witness Fastest Growth

The services category is expected to witness the fastest growth during the forecast period, on the basis of component. The challenges faced during the deployment of ethernet in vehicles have propelled the demand for implementation, consulting, and training & support services. To simplify the complexity, the demand for consulting services has increased among original equipment manufacturers (OEMs).

ADAS Accounted for Major Share in 2020 due to Increasing Demand for Safety Features

The ADAS category accounted for the major share in 2020, on the basis of application, due to the increasing demand for advanced safety features and improved fuel efficiency of vehicles. In this regard, the rising number of regulations for integrating ADAS into automobiles, such as the mandates for anti-lock braking systems (ABS) in all new passenger cars in the European Union (EU) and the U.S., are driving the growth of the automotive ethernet market in this category.

Rising Focus on Technological Development Is Expected to Drive APAC Market at Highest CAGR

Globally, APAC is expected to grow with the highest CAGR in the market for automotive ethernet during the forecast period. The key factors responsible for this growth would be the technological developments, favorable regulations, and positive economic growth in regional countries. Moreover, the number of manufacturers in the region is increasing annually. China and India are the fastest-growing nations in terms of population, so the demand for automobiles is naturally high.

Advent of Autonomous Vehicles and Connected Solutions Is Major Trend in Market

The sale of autonomous vehicles is consistently increasing across the world due to the rapid technological advancements and added features they offer over conventional vehicles. These include smartphone connectivity within the vehicle, roadside assistance, traffic and collision warnings, and automobile diagnostics, coupled with higher levels of autonomy to reduce risky and dangerous driver behavior. In this regard, automotive ethernet can replace traditional cabling for connectivity, as it connects the vehicle components with lighter and more-effective wires, thus reducing the connectivity cost and cabling weight. Therefore, the advent of autonomous and connected vehicles is a major trend being witnessed in the automotive ethernet market.

Increased Demand of Connected Solutions for Greater Passenger Convenience in Vehicles Is Expected to Drive Market

The integration of advanced solutions, such as communication, connected devices, and the artificial intelligence (AI) technology, in connected vehicles is radically guiding the automotive industry toward innovation, thereby increasing customer satisfaction and enhancing the driving experience. Moreover, several proprietary standards for communication are used in automobiles, with each component typically using a dedicated cable or wire. By moving to a single standard, all the communications from the different components can coexist on the same switched ethernet network, with a single pair of wires going to each location in the vehicle from a central switch.

In addition, with the advancements in technologies, the electronic systems of vehicles are becoming more complex, with more controllers, sensors, and interfaces, which require a higher bandwidth. These electronic components need to continuously communicate with each other in the connected vehicle, thus resulting in a high demand for automotive ethernet solutions in coming years.

Rising Integration of Safety and Security Systems to Make Vehicles Safer Is Further Expected To Support Market Growth

Several factors associated with human drivers, such as the failure to pay attention, inappropriate speed, and unsafe distance from the vehicle moving in front, are responsible for road accidents. Thus, various countries have issued regulations regarding the integration of safety systems in vehicles, which is why key players are integrating connected safety and security systems into vehicles. Moreover, the integration of real-time connectivity with tire pressure monitoring systems, lane departure warning systems, and road-side assistance is resulting in the automotive ethernet market growth.

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Market Players’ Recent Developments to Gain Competitive Edge

In recent years, players in the market for automotive ethernet have launched several new electronic components to gain a competitive edge over other players. Moreover, the companies are focusing on improving their existing products and investing on new developing new technologies to expand their reach.

• In February 2020, Marvell Technology Group Ltd. launched the second-generation automotive ethernet physical layer (PHY), which consumes less power. This instrument broadens the product line of Marvel by adding the PHY transceiver to it.
• In January 2020, NXP Semiconductors N.V launched the multi-gigabit ethernet switch, NXP SJA1110, which is designed to help automakers deliver the high-speed networks required for connected vehicles, with built-in safety capabilities. It offers integrated 100BASE-T1 PHYs, hardware-assisted security, and multi-gigabit interfaces.

Key Players in Automotive Ethernet Industry Include:

Market Size Breakdown by Segments

The automotive ethernet market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Component

• Hardware
• Software
• Services
  • Consulting
  • Implementation
  • Training & support

Based on Bandwidth

• 1 Mbps
• 100 Mbps
• 1 Gbps
• More than 1 Gbps

Based on Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

Based on Application

• Advanced Driver-Assistance Systems (ADAS)
• Infotainment System
• Powertrain

Geographical Analysis

• North America
  • U.S. 
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa

Market Segment Analysis of Countries

• Further breakdown of 16 listed countries will be provided as per below segmentation:
  • By component
  • By bandwidth
  • By vehicle type
  • By application