Global Automotive Ethernet Market to Observe Enormous Growth Due to Growing Demand for High-End Vehicular Functions

There have been spectacular developments in the automotive sector in the last few years. The complexity of electrical and electronic modules is increasing in new-age automobiles. Automobile manufacturers are constantly working on advancing the high-end vehicular functions to offer a smooth driving experience. The integration of automotive ethernet in vehicles is one of the substantial advancements the automotive industry has perceived in the recent years. Automotive Ethernet is a super-quick in-vehicle communication technology that offers very high bandwidth, which is highly required for to support high-end vehicular functions.

In high-tech autonomous and connected cars, it is essential that all the technologies have proper communication within the automotive infrastructure. The implementation of automotive ethernet can facilitate high bandwidth of data in real-time and enable smooth functioning of the in-vehicle systems. These days, the demand for automotive ethernet in vehicles has surged tremendously, which is driving the revenues of the global automotive ethernet market.

Newest Insights in the Automotive Ethernet Market

The growing integration of digital technologies and high-end features in vehicles by automakers is augmenting the global automotive ethernet market. As per a report by Research Dive, the global automotive ethernet market is expected to surpass $8,765.8 million by 2031 and grow with a remarkable CAGR of 14.4% in the 2022–2031 timeframe. The Asia-Pacific automotive ethernet market is expected to perceive dominant and fastest growth in the coming years. This is because of the gigantic demand for automotive ethernet in vehicles, rising disposable income of people, and increasing demand for high-tech features in cars in the region. Moreover, the rising adoption of autonomous vehicles in this region is also accountable for the growth of the market.

How are the Market Players Responding to the Growing Demand for Automotive Ethernets?

Market players are significantly executing revolutionary business strategies and investing in novel developments to fulfil the rising demand for automotive ethernet. Some of the leading players in the automotive ethernet market are Vector Informatik GmbH, Microchip Technology Inc., NXP Semiconductors, Broadcom, Aukua Systems Inc., Marvell, Keysight Technologies, Cadence Design Systems, Inc, Texas Instruments Incorporated., Molex, and others. These players are focused on planning and devising tactics such as mergers and novel advances, acquisitions, collaborations, and partnerships to attain a robust position in the global market.

For instance,

• In November 2021, Elektrobit, an automotive software company, launched an industry-leading Automotive Ethernet Switch Firmware for enabling high-performance, secure, in-vehicle communications.
   
• In December 2021, Marvell, a leading provider of data infrastructure technology, launched the 88QB5224, an industry-first multi-gig Ethernet camera bridge solution for top-class video distribution in connected vehicles.
   
• In May 2022, Broadcom Inc., an American designer, manufacturer, and supplier of a huge range of semiconductor and infrastructure software products, announced that it has offered its BCM8958X, a high bandwidth monolithic automotive Ethernet switch device, which is specifically designed to fulfil the growing need for the bandwidth for in-vehicle networking applications and boost the adoption of software defined vehicles (SDV).

COVID-19 Impact on the Global Automotive Ethernet Market

The outbreak of the coronavirus pandemic in 2020 has adversely impacted the global automotive ethernet market. The demand for automobiles declined significantly during the pandemic owing to travel restrictions and economic collapse in several countries. Moreover, a sudden slowdown in the operations of the automotive industry owing to lockdown restrictions delayed the manufacturing of automotive ethernet during the pandemic. All these factors extensively deterred the market growth during the pandemic period. However, as the pandemic is relaxing since the end of 2021, the market is expected to witness a massive growth in the upcoming years owing to the increasing advancements by market players in automotive ethernet technologies.