Global Automotive Ethernet Market Size, Share & Trends Analysis Report By Vehicle Type (Passenger Cars, and Commercial Vehicles), By Component (Hardware, Software, and Services), By Application, By Regional Outlook and Forecast, 2023 - 2030

Global Automotive Ethernet Market Size, Share & Trends Analysis Report By Vehicle Type (Passenger Cars, and Commercial Vehicles), By Component (Hardware, Software, and Services), By Application, By Regional Outlook and Forecast, 2023 - 2030

The Global Automotive Ethernet Market size is expected to reach $6.4 billion by 2030, rising at a market growth of 14.2% CAGR during the forecast period.

From real-time sensor data processing to instant adjustments in suspension systems, the chassis relies on efficient communication for optimal functionality. Consequently, the chassis segment captured $210.20 million revenue in the market in 2022. The modern chassis is evolving into a hub of data-intensive applications, demanding a robust and high-speed communication network. Automotive Ethernet, with its ability to handle large volumes of data at high speeds, becomes the backbone of these applications, ensuring responsiveness and accuracy in the chassis operations. Thus, the segment will expand rapidly in the upcoming years.

The major strategies followed by the market participants are Mergers & Acquisition as the key developmental strategy to keep pace with the changing demands of end users. For instance, In July, 2023, Microchip Technology Incorporated launched LAN8670/1/2 10BASE-T1S Ethernet PHYs. The LAN8670/1/2 10BASE-T1S Ethernet PHYs are functional safety ready and make it possible to connect low-speed devices in automotive applications. Additionally, In November, 2023, Molex, LLC launched Single Pair Ethernet (SPE) technology as a new offering in its future product portfolio. This device was designed to bridge connection and control gaps in industrial networks, driving Molex's commitment to SPE as the new Ethernet paradigm.

Based on the Analysis presented in the KBV Cardinal matrix; Broadcom, Inc. is the forerunners in the Market. For Instance, In November, 2020, Broadcom Inc. launched its automotive AEC-Q100 compliant multigigabit Ethernet PHY transceiver family (BCM8989X) and multilayer Ethernet switch family (BCM8957X) with 802.1AE MACsec support. The BCM8989X is the industry's first IEEE 802.3ch standard compliant automotive 10G/5G/2.5GBASE-T1 MACsec PHY, while the BCM8957X is the first automotive L2/L3 switch with MACsec support and PHY interfaces accommodating data rates from 10 Mbps to 10 Gbps. Companies such as Microchip Technology Incorporated, NXP Semiconductors N.V., Keysight Technologies, Inc. are some of the key innovators in Market.

Market Growth Factors

It offers high data transfer rates, providing the necessary bandwidth to accommodate the large volume of data generated and exchanged by diverse electronic systems in a vehicle. This is crucial for advanced driver assistance systems (ADAS), infotainment, and sensor data processing applications. With the advancement of autonomous driving in the automotive industry, electronic system complexity has increased substantially. It provides the communication infrastructure for autonomous vehicles to process and exchange data between sensors, lidar, radar, and other components essential for safe and reliable autonomous operation. Hence, these factors will lead to increased demand for automotive Ethernet.

Additionally, for applications including sophisticated driver assistance systems, parking assistance, and surround-view monitoring, the proliferation of high-definition cameras in vehicles necessitates a communication infrastructure capable of transmitting vast quantities of visual data. Its high data transmission rates enable seamless and real-time streaming of high-quality video feeds. In addition, its ability to handle large volumes of data positions it as a future-proof solution for emerging technologies. As vehicles continue to evolve with new features and functionalities, the robust data transmission capabilities of Ethernet support the integration of cutting-edge technologies. Thus, these factors will fuel the demand in the market.

Market Restraining Factors

Automotive architectures often comprise diverse systems and communication protocols designed to meet specific functions. The introduction of Ethernet requires a comprehensive understanding of these existing systems, making integration complex due to the inherent diversity in legacy architectures. Legacy automotive systems commonly operate on proprietary communication protocols. The integration process demands rigorous testing and validation to ensure the reliability and safety of the adapted systems. Comprehensive testing becomes complex due to the need to validate the interoperability of legacy components with newly integrated Ethernet elements, adding to the overall complexity of the transition. Therefore, these factors will decrease demand for this Ethernet in the coming years.

By Vehicle Type Analysis

Based on vehicle type, the market is divided into passenger cars and commercial vehicles. The passenger cars segment recorded the maximum revenue share in the market in 2022. The segment is witnessing a surge in demand for high-quality multimedia content, streaming services, and interactive features. Ethernet's ability to handle large data volumes at high speeds ensures a smooth and immersive infotainment experience, enhancing the overall driving pleasure for passengers. Hence, these factors will lead to enhanced growth in the segment.

By Component Analysis

Based on component, the market is segmented into hardware, software, and services. In 2022, the software segment garnered a significant revenue share in the market. There are numerous electronic systems and components in contemporary automobiles, including infotainment, telematics, and advanced driver assistance systems (ADAS). The growing complexity of these in-vehicle systems necessitates sophisticated software solutions to manage, coordinate, and optimize their performance. The Ethernet, with its high data transfer capabilities, relies on advanced software algorithms to ensure the efficient functioning of these intricate systems. Therefore, the segment will expand rapidly in the upcoming years.

By Application Analysis

On the basis of application, the market is divided into chassis, infotainment, powertrain, driver assistance, body & comfort, and others. The driver assistance segment procured the maximum revenue share in the market in 2022. Driver Assistance Systems have evolved beyond basic functionalities, embracing higher complexity to offer a comprehensive suite of safety features. A robust, high-speed communication network becomes paramount as these systems incorporate more sensors, cameras, and LiDAR technologies. Therefore, these aspects will fuel the demand in the segment.

By Regional Analysis

By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured the highest revenue share in the market in 2022. The Asia Pacific region is a major hub for automotive manufacturing, with countries such as China, Japan, South Korea, and India being prominent players. The continuous growth in automotive production and the integration of advanced technologies in vehicles drive the demand for its solutions. Hence, these factors will lead to increased demand in the segment.

Recent Strategies Deployed in the Market

• Jan-2024: NXP Semiconductors N.V. expanded its product portfolio by extending its automotive radar one-chip family. The latest SAF86xx combines a powerful radar transceiver with a MACsec hardware engine for secure data transmission via Automotive Ethernet, all on one chip. This expansion will enhance its market presence and provide radar solutions for various radar-supported functions, including up to level 4 automated driving.
• Jan-2024: Keysight Technologies, Inc. signed a partnership with VSI, a South Korean automotive chipset maker, to introduce standardized automotive SerDes with unified testing methods. This partnership aims to develop physical media attachment test techniques, enabling rapid market entry for car SerDes devices by chipset suppliers and original equipment manufacturers (OEMs).
• Sep-2023: Cadence Design Systems, Inc. completed the acquisition of Rambus Inc., a premier chip and silicon IP provider of the SerDes and memory interface PHY IP business. This acquisition expands the reach across geographies and vertical markets, such as the aerospace and defense market. Additionally, the acquisition has provided the complete subsystem solutions that meet the demands of the worldwide customers.
• Jul-2023: Microchip Technology Incorporated launched LAN8670/1/2 10BASE-T1S Ethernet PHYs, to provide OEMs with automotive-qualified Ethernet solutions. The LAN8670/1/2 10BASE-T1S Ethernet PHYs are functional safety ready and make it possible to connect low-speed devices in automotive applications.
• Jul-2023: Keysight Technologies, Inc. introduced AresONE-M 800GE, offering the most comprehensive Layer 1-3 Ethernet performance test platform in the industry. This platform supports data center interconnect speeds ranging from 10GE to 800GE, addressing the need for a single solution that covers networking and infrastructure testing across Layer 1-3 Ethernet at DCI speeds.

List of Key Companies Profiled

• Broadcom, Inc.
• NXP Semiconductors N.V.
• Marvell Technology Group Ltd.
• Microchip Technology Incorporated
• Vector Informatik GmbH
• Molex, LLC (Koch Industries, Inc.)
• Texas Instruments, Inc.
• Cadence Design Systems, Inc.
• Keysight Technologies, Inc.
• Aukua Systems Inc.

Global Automotive Ethernet Market Report Segmentation

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Component

• Hardware
• Software
• Services

By Application

• Driver Assistance
• Infotainment
• Powertrain
• Chassis
• Body and Comfort
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA