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The global automotive ethernet market size is predicted to be valued at $8,765.8 million by 2031, surging from $2,135.1 million in 2021, at a noteworthy CAGR of 14.4%.
During COVID-19 pandemic the automotive industry had been adversely affected all over the globe. The worldwide lockdown and social distancing norms forced the automotive industry vendors to shut down their business operations in the first half of 2020. It also led to disruption in the supply chain of major industries across the globe. The decline in sales of the vehicle led to losses in revenue for the automotive companies. Due to all these factors, the automotive ethernet market growth was also impacted. The post-COVID-19 outlook of the automotive sector is positive as all the major economies have eased lockdowns. Automakers are witnessing substantial levels of vehicle production across the globe as customers are returning to vehicle showrooms. This, in turn, is anticipated to drive the growth of the automotive ethernet market during the forecast period.
Ethernet is being increasingly used in vehicles for many functions including diagnosis and flashing of ECU's. In addition, Ethernet is being used as a bus system in vehicles to implement other functions like driver assistance. Automation is on a rise in the automotive sector and hence, there is an increasing demand for bandwidth, flexibility, and cost-effectiveness. For meeting these demands, Ethernet is emerging as a preferred choice among automotive companies. The rise of electric vehicle (EVs) sales worldwide is expected to expand the automotive ethernet market growth during the forecast period. Automotive OEMs have been heavily investing in the design and manufacturing of EVs. Technical developments, government policies, growth in disposable income, and OEM investments are the primary drivers of growing EV manufacturing. Ethernet is an important technology for communication networks in EVs as it offers powerful data transmission. EV communication architectures that are built on ethernet networks will accelerate activities for creating standards to promote ethernet technology in the automotive industry. The use of Ethernet in EVs will enable V2I and V2V communication, where the communicating nodes are charging stations, vehicles, or base stations that can exchange information. These aspects are anticipated to have positive impact on the automotive ethernet market outlook in the upcoming years.
Various tests that are required to ensure hardware interoperability may hinder the automotive ethernet market during the forecast period. These tests are time-consuming and expensive. Typically, these compliance tests include Distortion Measurement, Return Loss Measurement, Jitter and Transmit Clock Frequency Measurements, Droop Measurement, Power Spectral Density (PSD) Measurement, and MDI Jitter Measurement.
Standardization of the high bandwidth ethernet allows connected automobiles and IoT application developers to design innovative applications that demand high bandwidth. The growth of such applications is projected to significantly increase the requirement for high bandwidth connectivity for computer systems within the car. High-speed Ethernet offers many opportunities to application developers. This increases the automotive ethernet market opportunity which can lead to significant investments.
The global automotive ethernet is segmented based on component, vehicle type, application, region.
Component:
The component segment is further classified into hardware, software, and services. Among these, the hardware component sub-segment is anticipated to have a dominant automotive ethernet market share during the forecast period. The substantial rise in the demand for infotainment and driver assistance system is encouraging the automotive original equipment manufacturers (OEMs) to use various ethernet hardware components such as gateway, repeaters, and bridge routers. Automotive ethernet is useful to achieve higher bandwidth and low latency that facilitates the processing of a high volume of data with minimal delay. This low latency supports operations that need near real-time access to rapidly changing data which is expected to propel the growth of component sub-segment during the forecast period.
Application:
Based on application, the market has been divided into chassis, infotainment, driver assistance, powertrain, body and comfort, and others. The driver assistance sub-segment of the global automotive ethernet market is projected to have the fastest growth during the forecast period. Various cameras and sensors are installed in vehicles for supporting advanced driver-assistance systems (ADAS). Automotive Ethernet is increasingly being used for the transfer of LiDAR and other sensor data. The complexity of electrical and electronic components is increasing in vehicles. To enable vehicle automation, ADAS function, in-vehicle sensors, etc., there is a requirement for high bandwidth with faster data transmission. Automotive Ethernet, an in-vehicle communication protocol with very high bandwidth is a necessity for the automotive industry to support high-end vehicular features.
Vehicle type:
The vehicle type segment is further classified into passenger cars and commercial vehicles. The automotive ethernet market size for the passenger cars sub-segment is the most dominating globally. Technological advancements in passenger cars along with the increasing disposable income worldwide fueling extensive growth of the passenger cars sub-segment for the automotive ethernet industry. Automotive ethernet offers various features such as low cost, and higher bandwidth which is highly suitable for both passenger cars. These factors are major drivers to boost the growth of the passenger cars sub-segment during the projected timeframe.
Region:
The market for automotive ethernet in Asia-Pacific is the most dominant and fastest growing. The automotive ethernet industry is evolving on account of increasing technological advancement and strong economic growth in the Asia-Pacific region. The availability of a mass customer base in countries such as China and India have been propelling the automobile business in the Asia-Pacific region. Thus, the automotive ethernet market demand is anticipated to rise in the Asia-pacific region during the forecast period.
Key Players in the Global Automotive Ethernet Market
Some of the leading automotive ethernet market players are
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