|Status : Published||Published On : Nov, 2021||Report Code : VRAT9607||Industry : Automotive & Transportation||Available Format :||Page : 200|
The global automotive ethernet market was USD 1.77 billion in 2020 and is anticipated to grow to USD 5.8 billion by 2027, witnessing a CAGR of 21.2% during the forecast period 2021-2027. Automotive ethernet refers to a physical network that is used in connecting components within a vehicle via wired technology. Automotive ethernet provides smartphone connectivity, navigation, high-powered infotainment systems, driver safety systems, and other advanced features. Factors attributing to the growth of the automotive ethernet market are the low-cost ethernet technology, increasing demand for Advanced Driver Assistance System (ADAS) and infotainment systems, and development of ethernet technology.
The COVID-19 pandemic has resulted in a decline in the growth of the global automotive Ethernet market as many manufacturing plants have to stop their production owing to lockdown in various countries and are facing losses due to the completion of sales target in 2020. However, the industry players are adopting strategies like R&D and product development to sustain the automotive sector.
Insight by Component
Based on component, the global automotive ethernet market is divided into hardware, software, and services. The services segment is sub-divided into consulting, implementation, and training and support. The services segment is anticipated to have high growth during the projected period owing to the increasing adoption of automotive ethernet in passenger cars and commercial vehicles which has resulted in reducing the cost, growing overall revenues, and enhancing the business performance.
Insight by Vehicle Type
Based on vehicle type, the global automotive ethernet market is segmented into passenger vehicles, commercial vehicles, farming, and off-highway vehicles. Farming and off-highway vehicles are anticipated to have high CAGR during the projected period owing to the robust technology adoption. Commercial vehicles are anticipated to have substantial growth owing to digitalization and growing infrastructural investments globally will elevate the demand for commercial vehicles.
Insight by Bandwidth
Based on bandwidth, the global automotive ethernet market is segregated into 10Mbps, 100Mbps, 1Gbps, and 2.5/5/10Gbps. The 1 Gbps segment is projected to have the largest market share owing to the strong bandwidths and low latency particularly in the ADAS and infotainment systems, that drives the OEMs to invest in high-speed data transmissions for the proper functioning of in-vehicle connectivity.
Insight by Application
Based on application, the global automotive ethernet market is categorized into advanced driver assistance systems, infotainment, powertrain, body and comfort, and chassis. The advanced driver assistance systems (ADAS) is anticipated to have a high CAGR owing to the change in consumer preference and increasing demand for safe and fuel-efficient vehicles. In addition, the mounting regulations on ADAS integration into vehicles, including stringent regulations for anti-lock braking systems (ABS) in new EU and US vehicles, will drive the automotive Ethernet market in this segment.
The increasing sale of autonomous and connected vehicles owing to the technological development and extra features such as smartphone connectivity in the vehicle, roadside assistance, traffic and collision warnings, and automobile diagnostics along with a high level of autonomy in reducing the risk and dangerous driver behavior are the trends expected in the automotive ethernet market.
The rising demand for ADAS systems, the introduction of MEMS technology, technological development of infotainments, and IoT equipment will lead to growth in electronic control unit content in automobiles. Moreover, government regulations concerning safety and security, increase in disposable income of individuals will let them choose luxury vehicles, rising number of notable cable and connector manufacturers, leading automotive OEMs, and automotive tier-1s adopting ethernet are the other factors propelling the growth of the automotive Ethernet market. For example, In March 2019, the European Commission issued a new regulation requiring Intelligent Speed Assistance (ISA) for light vehicles manufactured in 2022. Euro NCAP and the US NHTSA safety assessment are extra forces behind ADAS adoption that includes the convenience and performance of safety assistant systems in their ratings.
Challenges faced by the automotive ethernet market includes interoperability among components and application computability, huge cost of implementation and maintenance will hamper the growth of the automotive ethernet market.
The rising adoption of IoT in an automotive, increasing emphasis on reduction of carbon footprint will create opportunities for growth in the global automotive Ethernet market.
Geographically, APAC dominates the automotive ethernet market owing to the increasing production of vehicles in various countries like China, Japan, India, and South Korea. The growth in the automotive sector will propel the growth of the automotive ethernet market in the region. Moreover, OEMs are investing massively in the APAC region owing to the increasing customer base and increasing business revenue. In addition, the increasing production of passenger vehicles will drive growth in the APAC region. For instance, automakers, like Mercedes-Benz, Ford, and Volkswagen, are progressing their expansion plans in India to enhance their manufacturing capacity and output, resulting in increasing the growth of the automotive ethernet market.
The industry players are focusing on product launch, product development, M&A, technological development, and strategic collaborations in the global automotive ethernet market. Furthermore, the industry is highly competitive and players are adopting innovations so as to sustain themselves in the market and enhance customer base and business expansion.
Broadcom is leading the way in automotive Ethernet innovation by providing solutions for building future "entertainment, business offices and data centers" on wheels. Broadcom segment Automotive Ethernet is the fastest growing in the In-Vehicle Networking technologies that drive new applications like ADAS, Infotainment, Telematics, Gateways, Compute platforms, Rear-view cameras, and Surround-view cameras.
Microchip Technologies, Inc., is the leading provider of automotive-grade Ethernet solutions that are adopted in an extensive range of applications, including diagnostics, in-vehicle connectivity and backbone, Advanced Driver Assistance Systems (ADAS), Infotainment, and Telematics.
NXP Semiconductors launched its first multi-gigabit ethernet switch, which is specially designed to help automakers deliver high-speed networks required for connected vehicles.
Marvell introduced its second generation automotive ethernet PHY, having the lowest power consumption in the industry. This product launch broadens the physical layer transceiver product line of Marvell.
Some of the key players operating in the automotive ethernet market: Broadcom, NXP Semiconductors, Marvell, Microchip Technologies Inc., Cadence Design Systems, Inc., Molex, Aukua Systems Inc., Vector Informatik GmbH, TTTech Auto AG, and System-on-CChip Engineering S.L.
Source: VynZ Research