Vehicle Networking Global Market Report 2024

The vehicle networking market size has grown strongly in recent years. It will grow from $1.08 billion in 2023 to $1.18 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The growth observed in the historical period can be attributed to several key factors. These include the increasing complexity of vehicle systems necessitating more advanced networking solutions, the rise of Intelligent Transportation Systems (ITS) influencing vehicle communication and connectivity, heightened consumer demand for connectivity features in vehicles, the implementation of 5G connectivity enhancing communication capabilities, and the emergence and growing popularity of electric and hybrid vehicles in the automotive market. These factors collectively contributed to the advancements and expansion of vehicle networking technologies.

The vehicle networking market size is expected to see strong growth in the next few years. It will grow to $1.61 billion in 2028 at a compound annual growth rate (CAGR) of 8.0%. The anticipated growth in the forecast period is expected to be driven by several significant factors. These include the continued implementation of 5G connectivity, ongoing developments in autonomous vehicle technology, increasing concerns and focus on cybersecurity measures within vehicle networking, integration of vehicle systems into smart city infrastructure, and the growing initiatives towards environmental sustainability within the automotive industry. Key trends projected for the forecast period encompass the expansion of Over-the-Air (OTA) updates enabling remote software updates for vehicles, the development of an expanding ecosystem of connected services and applications, a significant shift towards electrification and the advancement of autonomous vehicles, an emphasis on standardization and interoperability among various vehicle systems, and the integration of edge computing to enhance processing capabilities within vehicle networks. These trends are expected to shape the future landscape of vehicle networking and its associated technologies.

The growing demand for autonomous vehicles is anticipated to drive the expansion of the vehicle networking market. Autonomous vehicles, characterized by their ability to navigate and operate without human intervention, are gaining traction in the vehicle networking sector. These vehicles contribute to improved safety, efficiency, and convenience for both drivers and passengers. For instance, Nissan Motor Co. Ltd., a Japanese automotive manufacturer, reported in September 2022 that 55% of small businesses anticipate having a fully autonomous fleet within the next two decades. This rising demand for autonomous vehicles is a significant driver for the vehicle networking market.

The surge in automobile production is set to propel the growth of the vehicle networking market. Automobile production encompasses the manufacturing process of various vehicles, including cars, trucks, buses, and other motor vehicles. With increased automobile production, there is a greater opportunity to integrate advanced connectivity features into vehicles, such as telematics, infotainment systems, and vehicle-to-vehicle (V2V) communication - all falling under the domain of vehicle networking. Notably, the European Automobile Manufacturers Association reported a global production of 79.1 million motor vehicles in 2021, indicating a 1.3% increase. In India, the automobile industry produced 22.93 million vehicles from April 2021 to March 2022, as reported by Invest India. This surge in automobile production is a key factor driving the vehicle networking market.

Technological advancements play a crucial role in shaping the landscape of the vehicle networking market. Major companies in this market are actively embracing and focusing on technological innovations to remain competitive and stay at the forefront of the industry. For example, in December 2021, Marvell Technology, Inc., a semiconductor and technology company based in the United States, introduced a multi-gig Ethernet camera bridge solution, the 88QB5224. This solution facilitates the distribution of uncompressed video through in-vehicle networks, supporting autonomous driving and contributing to the evolution of automotive architectures. The launch of such Ethernet devices exemplifies the commitment to standardizing in-vehicle video distribution.

Major players in the vehicle networking market are emphasizing product development and launches to bolster their market position. Automotive Ethernet switch firmware is a notable innovation in this context, enabling secure and high-performance communication within vehicles. In November 2021, Elektrobit, a Germany-based provider of embedded and connected software for automobiles, introduced the EB Zoneo SwitchCore, representing the industry's first automotive Ethernet switch firmware. This software is designed for switches from major hardware vendors and has already been deployed in electric vehicles currently in production. The EB Zoneo SwitchCore simplifies the creation of advanced communication systems, ensuring faster and more reliable connectivity in the rapidly evolving automotive landscape.

In August 2022, Nexar, a US-based provider of powered dash cams, successfully acquired Veniam, a fellow US-based software company specializing in vehicle networking services. Through this strategic acquisition, Nexar aims to fortify its position by providing original equipment manufacturers (OEMs) with an advanced platform, fostering the rapid integration of data-rich mobility applications. The acquisition is anticipated to enhance Nexar's capabilities and offerings in the dynamic field of connected vehicle solutions.

Major companies operating in the vehicle networking market report are NXP Semiconductors NV, Texas Instruments Incorporated, Robert Bosch GmbH, Microchip Technology Inc., Xilinx Inc., Infineon Technologies AG, Melexis N.V., STMicroelectronics N.V., Spirent Communications plc, Toshiba Corporation, Renesas Electronics Corporation, Broadcom Inc., Continental AG, Sierra Wireless Inc., NVIDIA Corporation, Vector Informatik GmbH, Aptiv plc, Intel Corporation, BlackBerry Limited, Harman International Industries Incorporated, Marvell Technology Group Ltd., Cypress Semiconductor Corporation, Analog Devices Inc., Maxim Integrated Products Inc., ON Semiconductor Corporation, Qualcomm Technologies Inc., Samsung Electronics Co. Ltd., LG Electronics Inc., Huawei Technologies Co. Ltd., ZTE Corporation, Telefonaktiebolaget LM Ericsson, Nokia Corporation.

North America was the largest region in the vehicle networking market in 2023. The regions covered in the vehicle networking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle networking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary connectivity types within vehicle networking include Controller Area Network (CAN), Local Interconnect Network (LIN), Radio Frequency (RF), FlexRay, Ethernet, and Media Oriented Systems Transport (MOST). CAN is a communication protocol facilitating serial communication among electronic devices within a vehicle. Vehicles encompass various types including Passenger Vehicles (PV), Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV), and Automated Guided Vehicles (AGV). These vehicle networking technologies find applications across various functions such as powertrain safety, body electronics, chassis systems, infotainment, and other vehicle functionalities.

The vehicle networking market research report is one of a series of new reports that provides vehicle networking market statistics, including vehicle networking industry global market size, regional shares, competitors with a vehicle networking market share, detailed vehicle networking market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle networking industry. This vehicle networking 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 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.


This product will be delivered within 3-5 business days.