How Has the Automotive Communication Technology Market Evolved Historically and What is its Current Size?
The automotive communication technology market has seen considerable growth due to a variety of factors.
• The market size of automotive communication technology has witnessed a rapid expansion in the past few years. It is projected to increase from $12.86 billion in 2024 to $14.9 billion in 2025, with a compound annual growth rate (CAGR) of 15.8%.
The substantial growth during the historical period can be credited to the acceptance of the CAN (controller area network) as a standard communication protocol, implementation of LIN (local interconnect network) for affordable communication in basic vehicles, introduction of FlexRay for high-velocity data transmission in sophisticated automotive systems, incorporation of Ethernet for enhanced bandwidth and connectivity in contemporary vehicles, and the employment of MOST (media oriented systems transport) for superior quality multimedia streaming in premium vehicles.
What Is The Projected Growth Of The Automotive Communication Technology Template Market?
The automotive communication technology market is expected to maintain its strong growth trajectory in upcoming years.
• The market for automotive communication technology is projected to undergo swift expansion in the following years, reaching a valuation of $26.68 billion in 2029, growing at a compounded annual growth rate (CAGR) of 15.7%.
Factors contributing to this upswing during the forecast period include the increased prevalence of connected and autonomous vehicles, a rising demand for communication technologies, the integration of 5G connectivity for improved and reliable communication between vehicles and infrastructures, and the development of edge computing to facilitate real-time data processing in automotive applications. Additional factors include the heightened focus on cybersecurity solutions to safeguard connected vehicles against cyber threats, and the emergence of electric vehicles (EVs) propelling the need for communication technologies to support battery management and charging infrastructures. Key trends during this period include a move towards centralized vehicle architectures to simplify communication and decrease complexity, a growing propensity for OTA (over-the-air) updates for software and firmware enhancement in vehicles, the emergence of vehicle-to-everything (v2x) communication to improve safety and efficiency on the road, the adoption of AI (Artificial Intelligence) and machine learning for predictive maintenance and personalized driving experiences, and the integration of blockchain technology to ensure safe and transparent data sharing in the automotive sector.
What Are The Key Drivers Fueling Growth In The Automotive Communication Technology Market?
The proliferation of connected cars, anticipated to spur the expansion of the automotive communication technology market in the future, refers to vehicles with internet and communication capabilities, allowing for interactions with external networks, other vehicles, and infrastructure. Rising consumer interest, enriching safety features, environmental consciousness, and overall value are fueling the demand for connected cars. These cars utilise automotive communication technology to offer uninterrupted connectivity, data sharing, and integrated functionality, thereby enhancing the safety, convenience, and overall driving experience. For example, the Otonomo Report in March 2022 from an Israel-based firm offering a cloud-based SaaS solution for auto manufacturers, predicted a surge in the number of connected cars, from approximately 237 million in 2021 to more than 400 million by 2025. Consequently, the mounting demand for connected cars is propelling the automotive communication technology market's growth.
What Are The Principal Market Segments In The Global Automotive Communication Technology Industry?
The automotive communication technology market covered in this report is segmented –
1) By Bus Module: Controller Area Network (CAN), Local Interconnect Network (LIN), Media-Oriented Systems Transport (MOST), FlexRay, Ethernet
2) By Vehicle Class: Luxury, Mid-Size, Economy
3) By Application: Powertrain, Infotainment Ans Communication, Body Control And Comfort, Safety And Advanced Driver Assistance System
Subsegments"
1) By Controller Area Network (CAN): High-Speed CAN (CAN HS), Low-Speed CAN (CAN LS), Fault-Tolerant CAN
2) By Local Interconnect Network (LIN): LIN 2.x, LIN 1.x
3) By Media-Oriented Systems Transport (MOST): MOST150, MOST25, MOST50
4) By FlexRay: FlexRay Standard (High-Speed), FlexRay Low-Speed
5) By Ethernet: Automotive Ethernet 100BASE-T1, Automotive Ethernet 1000BASE-T1, Time-Sensitive Networking (TSN) Ethernet
Pre-Book The Automotive Communication Technology Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Emerging Trends Are Influencing The Growth Of The Automotive Communication Technology Market?
Leading entities in the automotive communication technology market are concentrating on creating unique facilities, like centers of excellence, to remain pertinent, competitive, and adaptable to changing consumer necessities and regulations. These centers are revolutionizing the parameters of ingenuity and customer gratification, setting a new standard for smart communications in the automobile industry. For example, in February 2024, US-based software firm CallRevu LLC, introduced a center of excellence (COE) in this sector to rejuvenate the standards of innovation and customer contentment. The new technology introduced includes an AI training model, improved security, operational effectiveness, pioneering solutions, better accessibility, inclusivity, and data analytics. This move shows CallRevu's dedication towards the amalgamation of sophisticated technology with strategic alliances, endorsing a technology-neutral approach that focuses on exceptional, scalable, and pertinent solutions.
Who Are the Key Players In The Automotive Communication Technology Market?
Major companies operating in the automotive communication technology market are:
• Huawei Technologies Co. Ltd.
• Hitachi Ltd.
• Siemens AG
• General Electric Company
• Schneider Electric Inc.
• Honeywell InternationalInc.
• ABB Ltd.
• Emerson Electric Co.
• Enbridge Inc.
• The Williams CompaniesInc.
• Wipro Enterprises (P) Ltd.
• Rockwell Automation Inc.
• Xylem Inc.
• Moxa Technologies
• Targa Resources Corp.
• KROHNE Group
• BRUGG Group AG
• ORBCOMM
• PSI Software
• Optasense
• Microflex
• LLC
• Pure Technologies Ltd.
• Necon Group
• Sensornet
• Open Access Technology International Inc.
What Are The Regional Insights Into The Automotive Communication Technology Market?
Asia-Pacific was the largest region in the automotive communication technology market in 2024. The regions covered in the automotive communication technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
