Publishing: November 2021 | Report Code: AT11795 | Available Format: PDF
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.
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).
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.
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.
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.
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.
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.
|Base Year (2020) Market Size||~$2 Billion|
|Market Size Forecast in 2030||~$10 Billion|
|Forecast Period CAGR||19.4%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Analysis, Strategic Developments, Impact of COVID-19, Company Profiling|
|Market Size by Segments||Component, Bandwidth, Vehicle Type, Application, Region|
|Market Size of Geographies||U.S., Canada, Germany, U.K., France, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil, Mexico, Saudi Arabia, South Africa|
|Secondary Sources and References (Partial List)||American Trucking Associations (ATA), Association for the Advancement of Artificial Intelligence (AAAI), Automotive Parts Manufacturers Association (APMA), Bureau of Transportation Statistics (BTS), European Automobile Manufacturers Association (ACEA), Insurance Regulatory and Development Authority of India (IRDAI), Mobile Technology Association of Michigan (MTAM), National Highway Traffic Safety Administration (NHTSA), Society of Automotive Engineers (SAE), Telecommunications Industry Association (TIA)|
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.
The automotive ethernet market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Component
Based on Bandwidth
Based on Vehicle Type
Based on Application
Market Segment Analysis of Countries
The market for automotive ethernet solutions will likely value ~$10 Billion in 2030.
Within the application segment of the automotive ethernet industry, the ADAS category held the largest share in 2020.
APAC is the largest and fastest-growing market for automotive ethernet solutions.
The key growth driver for the automotive ethernet industry is the adoption of advanced connected solutions in automobiles for enhanced passenger safety and experience.
Most players in the market for automotive ethernet solutions are launching new electronic and networking components.
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