In-Vehicle Networking Market Report 2026

The in-vehicle networking market size has grown strongly in recent years. It will grow from $34.16 billion in 2025 to $36.94 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to growth of automotive electronics, early CAN and LIN adoption, infotainment system expansion, diagnostic networking needs, vehicle safety system integration.

The in-vehicle networking market size is expected to see strong growth in the next few years. It will grow to $50.77 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to autonomous vehicle development, connected car penetration, electric vehicle architecture evolution, software defined vehicle adoption, cybersecurity regulation growth. Major trends in the forecast period include high speed vehicle data networks, integration of ADAS communication, shift toward ethernet based networking, wireless in vehicle connectivity, enhanced vehicle cybersecurity.

The rise of electric and autonomous vehicles is expected to drive the growth of the in-vehicle networking market in the coming years. Electric and autonomous vehicles are eco-friendly, electric-powered vehicles designed to operate independently with the help of advanced technologies such as AI, sensors, and machine learning. The growth of these vehicles is driven by increasing environmental awareness and supportive government policies. In-vehicle networking plays a key role by facilitating seamless communication between various vehicle systems, sensors, and external networks, ensuring optimal performance, safety, and real-time data processing. For instance, in June 2024, the International Energy Agency reported that in 2023, electric cars accounted for more than 35% of total domestic car sales in China, an increase from 29% in 2022. Additionally, the National Association of Insurance Commissioners projected that the number of self-driving vehicles in the U.S. will reach 4.5 million by 2030. Therefore, the growth of electric and autonomous vehicles is fueling the expansion of the in-vehicle networking market.

Companies in the in-vehicle networking market are focusing on developing innovative products, such as Ethernet switches, to improve data transfer efficiency and support advanced vehicle systems. Ethernet switches are networking devices that connect multiple devices within a local area network (LAN) using Ethernet technology. For example, in October 2024, NXP Semiconductors Inc., a Netherlands-based automobile semiconductor design and manufacturing company, launched the S32J Ethernet switches and network controllers. The S32J family of high-performance Ethernet switches and network controllers are designed to enhance automotive Ethernet connectivity by enabling fast and reliable data transmission across various in-vehicle systems, supporting advanced features such as advanced driver-assisted systems (ADAS) and autonomous driving.

In April 2024, Microchip Technology Inc., a U.S.-based semiconductor manufacturing company, acquired VSI Co. Ltd. for an undisclosed amount. This acquisition aims to strengthen Microchip's automotive networking portfolio by integrating VSI's ASA Motion Link technology, which caters to the growing demand for Advanced Driver Assistance Systems (ADAS) and supports the development of next-generation software-defined vehicles. VSI Co. Ltd., a South Korea-based semiconductor company, specializes in automotive networking technologies and develops products for the automotive industry.

Major companies operating in the in-vehicle networking market report include Toyota Motor Corporation, Volkswagen AG, Mercedes-Benz AG, Ford Motor Company, General Motors Company, Tesla Inc., Robert Bosch GmbH, Denso Corporation, Qualcomm Incorporated, Continental AG, NVIDIA Corporation, Texas Instruments Incorporated, STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., ON Semiconductor Corporation, Harman International Industries Inc, Microchip Technology Incorporated, Elektrobit Automotive GmbH, Elmos Semiconductor SE, Cisco Systems Inc., Advanced Micro Devices Inc.

North America was the largest region in the in-vehicle networking market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the in-vehicle networking market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the in-vehicle networking market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The in-vehicle networking market consists of revenues earned by entities by providing services such as data management and security services, network infrastructure services, and embedded software development. The market value includes the value of related goods sold by the service provider or included within the service offering. The in-vehicle networking market also includes sales of wiring harnesses, ECUs (electronic control units), sensor systems and networking hardware. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

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