The automotive ethernet market has witnessed exponential growth, escalating from $2.41 billion in 2023 to $2.91 billion in 2024, demonstrating a remarkable compound annual growth rate (CAGR) of 20.5%. This growth in the historic period is attributed to factors such as increased bandwidth demand, data transmission speed, cost efficiency, standardization, interoperability, reliability, and safety, along with scalability. Looking ahead to 2028, the market is anticipated to further expand to $5.81 billion, with a CAGR of 18.9%. Projected growth in the forecast period is linked to emerging automotive use cases, research and development investments in connected cars, standardization efforts, compatibility requirements, the demand for over-the-air (OTA) updates, and regulatory initiatives promoting vehicle efficiency. Major trends in the forecast period include industry collaboration and innovation, the rise of subscription-based services, heightened environmental focus, evolving automotive software architectures, and increased demand for in-vehicle connectivity.
Major Driver In The Automotive Ethernet Market
The automotive ethernet market experiences growth attributed to the increased demand for motor vehicles. Innovative solutions like connected devices and artificial intelligence (AI) integrated into vehicles drive innovation in the automotive industry, spurring demand for automotive Ethernet solutions. According to data from the International Organization of Motor Vehicle Manufacturers, vehicle production surged to 57.2 million units from January to September 2021, up from 52.1 million units during the same period in 2020. This heightened demand for automobiles is anticipated to generate substantial demand for automotive Ethernet, propelling the market forward during the forecast period. The market size for 2023 reflects promising growth, with expectations of further expansion by 2024 and a significant projection by 2028.
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Automotive Ethernet Market Competitive Landscape
Broadcom Inc., Texas Instruments Incorporated, TE Connectivity Ltd., STMicroelectronics N.V., NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, ON Semiconductor Corp., Microchip Technology Inc., Marvell Technology Group, Keysight Technologies Inc., Marvell Technology Group Ltd., Visteon Corporation, Realtek Semiconductor Corp., Molex LLC, Cadence Design Systems Inc., Vector Informatik GmbH, Spirent Communications plc, ACTIA Technologies Group, TTTech Computertechnik AG, Excelfore Corp., Ruetz System Solutions GmbH, AllGo Embedded Systems Private Limited, Inova Semiconductors GmbH, KDPOF SL, System-on-Chip Engineering S.L., TSN Systems GmbH, Aukua Systems Inc., Acome Group
Key Automotive Ethernet Market Trend
Technological advancements are a key trend gaining popularity in the automotive Ethernet market. Companies are focusing on intelligent automotive ethernet solutions to develop the advanced, high-bandwidth communications systems required by next-generation vehicles. For instance, in November 2021, Germany-based automotive software company Elektrobit launched the first automotive ethernet switch firmware for secure, high-performance, in-vehicle communications required for EVs, sophisticated ADAS, and self-driving vehicles. The firmware adds a layer of intelligence to automotive ethernet switches, enabling them to handle the immense network functions required to enhance the scalability, safety, and security of vehicles. It provides advanced network management and network security functions such as routing, gateways, firewalls, and network intrusion detection and prevention systems.
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Automotive Ethernet Market Segmentation
The automotive ethernet market covered in this report is segmented –
1) By Component: Hardware, Software and Services
2) By Application: Advanced Driver Assistance Systems (ADAS), Infotainment, Powertrain, Body and Comfort, Chassis
3) By Vehicle Type: Passenger Cars, Commercial Vehicles, Farming and Off-Highway Vehicles
By Geography:The regions covered in the automotive ethernet market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Asia-Pacific was the largest region in the automotive Ethernet market in 2023.
The Automotive Ethernet Global Market Report 2024 furnishes information about the global automotive ethernet market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
