The increase in the adoption of connected infotainment systems and mandatory norms related to the integration of advanced driver-assistance systems (ADAS) in vehicles, along with the cost-effectiveness of the ethernet technology, are the major drivers boosting the demand for ethernet solutions. Thus, the global automotive ethernet market is projected to reach ~$10 billion by 2030, growing at a CAGR of 19.4% during the forecast period (2021–2030).
The outbreak of COVID-19 has significantly impacted the automotive ethernet industry. Due to the non-availability of workers and halted production during the lockdown phase, the integration of ethernet decreased in automobiles. However, from the last quarter of 2020, vehicle sales started picking up, thereby helping the industry recover to some extent.
The infotainment category is expected to witness the fastest growth during the forecast period, on the basis of application. As key players in the industry are providing artificial intelligence (AI) software for in-vehicle infotainment systems, it is increasing the customer satisfaction and enhancing the driving experience.
With original equipment manufacturers (OEM) seeking to implement high-speed and low-latency networks with good connectivity in vehicles, the 1 Gbps category is expected to witness the fastest growth during the forecast period, on the basis of bandwidth. Furthermore, key players in the automotive ethernet market are heavily investing in the development of 1-Gbps-bandwidth networking solutions to offer smooth functioning and high-speed data transmission.
Geographically, the Asia-Pacific (APAC) region held the largest share in the automotive ethernet market in 2020, and it is expected to witness the same trend in the coming years. The increase in the production of passenger cars in the region, along with that of batteries, and integration of connected equipment in the vehicles by OEMs, is a key factor supporting the growth of the market. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China produced nearly 21.3 million passenger cars in 2019.
Some of the major players operating in the automotive ethernet market are Broadcom Inc., Marvell Technology Group Ltd., NXP Semiconductors N.V., Microchip Technology Inc., Texas Instruments Inc., Molex LLC, Cadence Design Systems Inc., System-on-Chip Engineering S.L., TTTech Computertechnik AG, and Vector Informatik GmbH.
In recent years, key players in the automotive ethernet market have been actively involved in the development of new technologies. For instance, in January 2020, NXP Semiconductors N.V. announced the launch of a multi-gigabit ethernet switch, NXP SJA1110, designed to help automakers deliver the high-speed networks required in connected vehicles. Optimized for integration with NXP’s S32G vehicle network processor, the SJA1110 switch is part of an overall networking solution that includes the VR5510 power management integrated circuit (IC). It offers solutions for scalability, passenger safety, automobile security, and traffic engineering.
Similarly, in January 2019, Molex LLC and AllGo Embedded Systems Pvt. Ltd. entered into a partnership to develop an infotainment head unit solution that will provide better access to media, and tackle the challenges arising out of high-speed in-vehicle connected solutions. It helps in remote access to the media hub through the ethernet gateway.