Automotive Ethernet Global Market Report 2024

The automotive ethernet market size has grown exponentially in recent years. It will grow from $2.41 billion in 2023 to $2.91 billion in 2024 at a compound annual growth rate (CAGR) of 20.5%. The growth observed in the historical period can be attributed to the demand for bandwidth, the need for increased data transmission speed, cost efficiency, standardization and interoperability, reliability and safety considerations, and scalability.

The automotive ethernet market size is expected to see rapid growth in the next few years. It will grow to $5.81 billion in 2028 at a compound annual growth rate (CAGR) of 18.9%. Projected growth is driven by emerging automotive use cases, R&D investments in connected cars, standardization and compatibility, demand for over-the-air updates, and regulatory push for vehicle efficiency. Key trends include industry collaboration, the rise of subscription-based services, a focus on environmental impact, evolving automotive software architectures, and increased demand for in-vehicle connectivity.

The growth of the automotive Ethernet market during the forecast period is attributed to the heightened demand for motor vehicles. The integration of innovative solutions, including connected devices, artificial intelligence (AI), and advanced technology, into connected vehicles is fostering innovation in the automotive industry, consequently boosting the need for automotive Ethernet solutions. According to data from the International Organization of Motor Vehicle Manufacturers, the total production of vehicles from January to September 2021 increased to 57.2 million units compared to 52.1 million units during the same period in 2020. This surge in demand for automobiles is anticipated to result in a substantial need for automotive Ethernet, thereby propelling the market forward during the specified period.

The anticipated growth of the automotive Ethernet market is closely linked to the increasing adoption of Advanced Driver Assistance Systems (ADAS) in vehicles. ADAS encompasses a suite of intelligent technologies designed to assist drivers in operating their vehicles more safely and comfortably. Automotive Ethernet plays a crucial role in handling the substantial data streams generated by ADAS sensors, operating at speeds reaching up to 1 Gigabit per second (Gbps) and beyond. This high-speed capability is essential for real-time decision-making, where every millisecond is critical. As of December 2022, projections from the National Association of Insurance Commissioners, a US-based non-profit organization, indicate an expected presence of 3.5 million autonomous vehicles on American roads by 2025, increasing to 4.5 million by 2030. The growing adoption of ADAS in vehicles stands as a key driver propelling the growth of the automotive Ethernet market.

Technological advancements stand out as a prominent trend gaining traction in the automotive Ethernet market. Companies are directing their efforts towards the development of intelligent automotive Ethernet solutions to meet the requirements of advanced, high-bandwidth communication systems essential for next-generation vehicles. An illustrative example is the November 2021 launch by Germany-based automotive software company Elektrobit of the first automotive Ethernet switch firmware. This firmware is designed to ensure secure, high-performance, in-vehicle communications, particularly crucial for Electric Vehicles (EVs), sophisticated Advanced Driver Assistance Systems (ADAS), and self-driving vehicles. The introduced firmware enhances the capabilities of automotive Ethernet switches by adding a layer of intelligence, allowing them to efficiently manage extensive network functions. This includes scalability, safety, and security enhancements for vehicles, providing advanced network management features and network security functions such as routing, gateways, firewalls, and network intrusion detection and prevention systems.

Major companies within the automotive Ethernet market are strategically focusing on innovative solutions, such as multi-gig Ethernet camera bridge solutions, to address the rising demands for high-resolution, real-time video data processing, and transmission in autonomous vehicles. The multi-gig Ethernet camera bridge solution represents a technology that facilitates high-speed data transfer between multiple cameras and Electronic Control Units (ECUs) in automotive systems, utilizing Ethernet connectivity. In December 2021, Marvell Technology Inc., a US-based provider of data infrastructure semiconductor solutions, introduced the 88QB5224, recognized as the industry's first multi-gig Ethernet camera bridge solution. This solution is specifically designed to optimize video sharing within connected vehicles. The 88QB5224 offers key features such as IEEE 802.3ch-compliant 10GBASE-T1 PHY, IEEE 802.1AE MACsec for security, time synchronization, energy-efficient Ethernet for reduced power consumption, power-over-data line, and time-sensitive networking. With this Ethernet-based camera bridge, developers can create interoperable software supporting critical services through a multilayer communication stack, benefiting from a well-established ecosystem for software-based service delivery. Marvell's innovation in the form of the multi-gig Ethernet camera bridge underscores the industry's commitment to addressing the evolving needs of autonomous vehicles with advanced, high-performance solutions.

In September 2022, KPIT Technologies, a prominent Indian software company, successfully acquired four subsidiaries of Technica Engineering for a total amount of $82.2 million (€80 million). This strategic acquisition positions KPIT to provide comprehensive solutions for the automotive Ethernet industry. The acquired subsidiaries, namely Technica Engineering GmbH in Germany, Technica Electronics Barcelona S.L. and Technica Engineering Spain S.L. in Spain, were all part of Technica Engineering, a Germany-based manufacturer specializing in automotive Ethernet solutions.

Major companies operating in the automotive ethernet market report are Broadcom Inc., Texas Instruments Incorporated, TE Connectivity Ltd., STMicroelectronics N.V., NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, ON Semiconductor Corp., Microchip Technology Inc., Marvell Technology Group, Keysight Technologies Inc., Marvell Technology Group Ltd., Visteon Corporation, Realtek Semiconductor Corp., Molex LLC, Cadence Design Systems Inc., Vector Informatik GmbH, Spirent Communications plc, ACTIA Technologies Group, TTTech Computertechnik AG, Excelfore Corp., Ruetz System Solutions GmbH, AllGo Embedded Systems Private Limited, Inova Semiconductors GmbH, KDPOF SL, System-on-Chip Engineering S.L., TSN Systems GmbH, Aukua Systems Inc., Acome Group.

Asia-Pacific was the largest region in the automotive Ethernet market in 2023. North America is expected to be the fastest growing region in the forecast period. The regions covered in the automotive ethernet market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive ethernet market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components within automotive Ethernet encompass hardware, software, and services. Hardware plays a crucial role in testing and validating automotive electronic control units (ECUs) and various vehicle technology systems. This hardware category involves diverse tools such as media converters, switches, capture modules, and other related equipment. The applications of automotive Ethernet span across multiple functionalities including advanced driver assistance systems (ADAS), infotainment, powertrain, body and comfort, as well as chassis systems. These applications cater to a wide range of vehicle types such as passenger cars, commercial vehicles, and farming and off-highway vehicles.

The automotive ethernet market research report is one of a series of new reports that provides automotive ethernet market statistics, including automotive ethernet industry global market size, regional shares, competitors with a automotive ethernet market share, detailed automotive ethernet market segments, market trends and opportunities, and any further data you may need to thrive in the automotive ethernet industry. This automotive Ethernet market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive ethernet market include revenues earned by entities by one pair ethernet (OPEN), energy efficient ethernet, power over ethernet (PoE) and gigabit ethernet. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.