Automotive Ethernet Market Research Report Information By Component (Hardware, Software, and Services), By Bandwidth (10Mbps, 100Mbps, 1Gbps, and 2.5/5/10Gbps), By Vehicle Type (Passenger Cars, Commercial Vehicles, and Farming & Off-highway Vehicles), By Application (Advanced Driver Assistance Systems, Infotainment, Powertrain, Body & Comfort, and Chassis), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

Automotive Ethernet Market Overview:

Global Automotive Ethernet Market Size was valued at USD 2.3 Billion in 2023. The Automotive Ethernet market industry is projected to grow from USD 2.9 Billion in 2024 to USD 12.86 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 24.00% during the forecast period (2024 - 2032). Autonomous and connected vehicles are becoming more common, and automotive electronics are becoming more complex; these are the key market drivers boosting the expansion of the market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Ethernet Market Trends

The booming connected car trend is driving market growth

Market CAGR for Automotive Ethernet is being driven by the booming connected car trend. Automotive Ethernet is a type of physical network that is mostly utilized for wiring (wired network) connections between vehicle components. Several vital features are provided by automotive ethernet, including in-car communication, Diagnostic Over Internet Protocol (DoIP-based) diagnostics, and the ability to link electric cars to charging stations. Additionally, automotive ethernets dramatically lower the weight and cost of vehicles compared to traditional wiring harnesses. All automobiles, including passenger cars and commercial vehicles, are being equipped with Ethernet technology by top automakers like General Motors, Hyundai, and Volkswagen.

Additionally, the rise of connected and driverless vehicles is driving considerable growth in the automotive Ethernet market. Critical applications, including advanced driver assistance systems (ADAS), real-time sensor connection, and smooth in-car entertainment, require high-speed, dependable data transfer in these vehicles. Conventional protocols like FlexRay and CAN do not have the speed and bandwidth needed for these kinds of applications. As a result, automotive Ethernet is becoming a vital component of connected automobiles. When it comes to facilitating vehicle-to-vehicle (V2V) communication for enhanced safety and traffic management, its high bandwidth and low latency characteristics are essential. Vehicle performance data and diagnostics can be efficiently transferred for remote monitoring and predictive maintenance using telematics systems that are outfitted with automotive Ethernet.

A software-defined vehicle (SDV) is a kind of vehicle where the majority of its features and functions are software-driven. This category of vehicles is susceptible to the ongoing transition of cars from mostly hardware-based to software-centric electronic gadgets on wheels. A vehicle classified as an SDV is one that can be updated over time through a centralized architecture, improving its functionality and incorporating new apps. Automotive Ethernet is essential to this transition because it allows for effective, high-bandwidth data transfer in these software-defined systems. For instance, a major provider of microcontroller, Flash-IP, and mixed-signal solutions, Microchip Technology Inc., has announced that the energy-efficient LAN8770 EtherGREEN technology will formally launch in July 2020. Together with low-power operation, this also provides ultra-low wake-up and power sleep modes. Thus, the result is driving the Automotive Ethernet market revenue.

Automotive Ethernet Market Segment Insights:

Automotive Ethernet Component Insights

The global Automotive Ethernet market segmentation, based on Component, includes Hardware, Software, and Services. In 2023, the services segment dominated the market. Services cover a broad spectrum of solutions specifically tailored for complex Ethernet-based systems, including design, testing, integration, maintenance, and support. The need for specialized services is growing as cars become more autonomous, data-centric, and connected. These services are necessary to guarantee reliable integration and strict adherence to automotive standards.

Automotive Ethernet Bandwidth Insights

The global Automotive Ethernet market segmentation, based on Bandwidth, includes 10Mbps, 100Mbps, 1Gbps, and 2.5/5/10Gbps. In 2023, the 1Gbps category generated the most income. Automotive Ethernet's 1 Gbps bandwidth marks a substantial improvement in data transfer rates, allowing for high-speed communication that is essential for demanding applications inside of vehicles.

Automotive Ethernet Vehicle Type Insights

The global Automotive Ethernet market segmentation, based on Vehicle Type, includes Passenger Cars, Commercial Vehicles, and Farming & Off-highway Vehicles. In 2023, the Passenger Cars segment dominated the market. The automotive ethernet market's passenger cars subsegment has grown significantly as a result of the strengthening economy, technical developments in passenger cars, such as the addition of a driver assistance system, and rising disposable incomes.

Figure 1: Global Automotive Ethernet Market by Vehicle Type, 2023 & 2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Ethernet Application Insights

The global Automotive Ethernet market segmentation, based on Application, includes Advanced Driver Assistance Systems, Infotainment, Powertrain, Body & Comfort, and Chassis. In 2023, the Infotainment category generated the most income. The term "infotainment" refers to the combination of entertainment and information systems in cars that improve the ride for passengers. Numerous features are included, including in-car communication systems, multimedia entertainment, navigation, and connection.

Automotive Ethernet Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America dominates the Automotive Ethernet market. The automobile industry has experienced a notable shift in the automotive Ethernet market due to the growing complexity and requirement for connectivity. Modern cars are becoming complex digital platforms; thus, having cutting-edge communication technologies is essential.

Further, the major countries studied in the market report are South Korea, China, Japan, India, Australia, Germany, France, the UK, Italy, and Spain.

Figure 2: Global Automotive Ethernet Market Share By Region 2023 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe Automotive Ethernet market has the second-largest portion of the market because of strict safety regulations and a focus on technological innovation. Further, the German Automotive Ethernet market had the biggest market share, and the UK Automotive Ethernet market was the European market with the quickest rate of growth.

The Asia-Pacific Automotive Ethernet Market is anticipated to expand between 2024 and 2032 at the quickest CAGR. Technological developments, stable socio-political conditions, and notable economic expansion have caused a discernible shift in the Asia-Pacific auto industry. Moreover, China’s Automotive Ethernet market had the biggest market share, and the Indian Automotive Ethernet market was the Asia-Pacific region's fastest-growing market.

Automotive Ethernet Key Market Players & Competitive Insights

Leading market players are putting a lot of money into research and development to expand their product lines, which will drive the market for Automotive Ethernet to expand even further. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure an increasingly cutthroat and dynamic market, the Automotive Ethernet industry must provide reasonably priced goods.

Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the global Automotive Ethernet industry to help customers and expand the market segment. In recent years, the Automotive Ethernet industry has provided some of the biggest benefits to medicine. Major players in the Automotive Ethernet market, including NXP V, Marvell Semiconductor, Inc., Elektrobit, Broadcom Inc., Microchip Technology Inc., Aukua Systems, Keysight Technologies., and others, are engaging in research and development activities in an effort to boost market demand.

America's Marvell Technology, Inc. is a semiconductor and associated technology developer and manufacturer whose main office is located in Wilmington, Delaware. The corporation was established in 1995, and as of 2024, it employed over 6,500 people, held over 10,000 patents globally, and generated $5.5 billion in sales for the fiscal year. In September 2023, Marvell is planning a new research and development center in Pune, India. It is anticipated that this new facility will triple the existing labor capacity.

Microchip Technology Incorporated is an openly traded American company that produces integrated circuits for microcontrollers, mixed-signal, analog, and Flash-IP applications. Its product line includes linear, interface, wireless, radio frequency (RF), thermal, power, and battery management analog devices, embedded security devices, microcontrollers (PIC, dsPIC, AVR, and SAM), serial EEPROM, serial SRAM, and other devices. In October 2023, Novi, Michigan's Detroit Automotive Technology Center, is getting bigger, according to Microchip Technology Inc. Along with technical training rooms for automotive clients to develop and enhance solutions, the new 24,000-square-foot building has extra-high-voltage and E-mobility labs.

Key Companies in the Automotive Ethernet market include

• NXP V


• Marvell Semiconductor, Inc.


• Elektrobit


• Broadcom Inc.


• Microchip Technology Inc.


• Aukua Systems


• Keysight Technologies


• Cadence Design Systems, Inc


• Texas Instruments Incorporated


• Cadence Design Systems Inc


• TTTech Computertechnik AG


• Vector Informatik GmbH


• NVIDIA


• Delphi Technologies

Automotive Ethernet Industry Developments

November 2023: The completion of Broadcom's acquisition of VMware, Inc. (US) for about USD 61.0 billion was announced.

July 2023: NXP Semiconductors and VinFast (Vietnam) have established a partnership for the initial phases of new VinFast automotive projects. This partnership will use NXP's wide variety of system solutions for innovative applications.

June 2023: Texas Instruments Incorporated declared plans to build two new assembly and testing facilities in Kuala Lumpur and Melaka, Malaysia, to increase the company's internal manufacturing footprint.

Automotive Ethernet Market Segmentation:

Automotive Ethernet Component Outlook

• Hardware


• Software


• Services

Automotive Ethernet Bandwidth Outlook

• 10Mbps


• 100Mbps


• 1Gbps


• 5/5/10Gbps

Automotive Ethernet Vehicle Type Outlook

• Passenger Cars


• Commercial Vehicles


• Farming & Off-highway Vehicles

Automotive Ethernet Application Outlook

• Advanced Driver Assistance Systems


• Infotainment


• Powertrain


• Body & Comfort


• Chassis

Automotive Ethernet Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
    
    
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
    
    
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
    
    
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America