Next-Generation in-vehicle Networking (IVN) Market Report 2025

The next generation in-vehicle networking (IVN) market size has grown rapidly in recent years. It will grow from $2.1 billion in 2024 to $2.39 billion in 2025 at a compound annual growth rate (CAGR) of 13.9%. The growth during the historic period can be attributed to factors such as the rising demand for connected cars, an increasing focus on vehicle electrification, a growing number of government initiatives, a surge in demand for advanced connectivity features, and rising disposable income.

The next generation in-vehicle networking (IVN) market size is expected to see rapid growth in the next few years. It will grow to $3.97 billion in 2029 at a compound annual growth rate (CAGR) of 13.5%. In the forecast period, growth is expected to be driven by factors such as the increase in vehicle production, higher demand for passenger cars, the need for stronger networking infrastructure, rising demand for data processing power within vehicles, and growing environmental awareness. Key trends for the forecast period include the development of advanced electronic control units, the adoption of cutting-edge network technologies, strategic collaborations, the rise of software-defined vehicles, and the integration of artificial intelligence.

The increasing demand for electric vehicles (EVs) is expected to drive the growth of the next-generation in-vehicle networking (IVN) market. EVs, which are powered either fully or partially by electricity rather than traditional internal combustion engines (ICE) that use gasoline or diesel, are becoming more popular due to their ability to reduce carbon emissions, lower operating costs, and promote energy independence. As concerns about climate change grow, both governments and consumers are increasingly focusing on eco-friendly transportation options. EVs produce zero tailpipe emissions, making them an appealing solution for reducing air pollution and supporting global carbon reduction targets. Next-generation in-vehicle networking (IVN) is critical for EVs as it enables smooth communication between various electronic systems within the vehicle, facilitates the integration of advanced features, and ensures optimal vehicle performance. For example, the International Energy Agency (IEA) reported in April 2023 that global electric vehicles accounted for 14% of all new car sales in 2022, up from 9% in 2021. As a result, the growing demand for EVs is contributing to the expansion of the next-generation in-vehicle networking (IVN) market.

In the next-generation IVN market, companies are focusing on developing innovative components such as multi-gigabit Ethernet chipsets to improve high-speed automotive connectivity. Multi-gigabit Ethernet chipsets are advanced networking solutions that provide fast, low-power, and scalable data transmission for automotive and industrial applications. For instance, in May 2024, Aeonsemi, a U.S.-based integrated circuit (IC) design company, introduced Nemo, the most comprehensive IEEE 802.3ch-compliant multi-gigabit Ethernet chipset for IVN. Nemo includes the world’s first automotive switch with integrated 10GBASE-T1 PHYs, which enables energy-efficient, symmetric, and asymmetric Ethernet connectivity over long distances, reducing power consumption and enhancing performance in next-generation automotive networks.

In April 2024, Microchip Technology Inc., a U.S.-based semiconductor manufacturer, acquired VSI Co. Ltd. for an undisclosed amount. This acquisition is aimed at strengthening Microchip's automotive networking portfolio by incorporating VSI's ASA Motion Link technologies for high-speed camera, sensor, and display connectivity in next-generation software-defined vehicles (SDVs). VSI Co. Ltd., based in South Korea, specializes in next-generation vehicle networking technology.

Major players in the next-generation in-vehicle networking (ivn) market are Robert Bosch GmbH, Broadcom Inc., Aptiv PLC, TE Connectivity PLC, STMicroelectronics NV, Infineon Technologies AG, Molex LLC, NXP Semiconductors NV, Analog Devices Inc., Renesas Electronics Corporation., ON Semiconductor Corporation, HARMAN International Industries Inc., Microchip Technology Inc., TEKTRONIX INC., Marvell Technology Inc., Nexperia BV, HMS Networks AB, ARASAN CHIP SYSTEMS INC, ElectRay Technologies Pvt. Ltd, Dorle Controls LLC, tQCS Inc., Embien Technologies India Pvt Ltd.

North America was the largest region in the next generation in-vehicle networking (IVN) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in next-generation in-vehicle networking (IVN) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the next-generation in-vehicle networking (IVN)market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Next-generation in-vehicle networking (IVN) refers to advanced communication systems in modern vehicles that connect various electronic control units (ECUs), sensors, infotainment systems, and other devices within the vehicle. It facilitates high-speed data transfer between these components, supporting functions such as autonomous driving, advanced driver-assistance systems (ADAS), infotainment, and vehicle diagnostics.

The main types of next-generation IVN include infotainment, climate control, navigation, driver assistance systems (DAS), and more. Infotainment systems combine information and entertainment services such as navigation, media playback, and internet connectivity within the vehicle. Connectivity standards used in IVN include Controller Area Network (CAN), Local Interconnect Network (LIN), FlexRay, Radio Frequency (RF), Ethernet, and Media-Oriented Systems Transport (MOST), installed in passenger cars, light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and automated guided vehicles (AGVs). The applications of IVN span across powertrain, safety, body electronics, chassis, and infotainment, serving industries such as aerospace, agriculture, automotive, construction, manufacturing, and pharmaceuticals.

The next-generation in-vehicle networking (IVN) market research report is one of a series of new reports that provides next-generation in-vehicle networking (IVN) market statistics, including next-generation in-vehicle networking (IVN) industry global market size, regional shares, competitors with a next-generation in-vehicle networking (IVN) market share, detailed next-generation in-vehicle networking (IVN) market segments, market trends and opportunities, and any further data you may need to thrive in the next generation in-vehicle networking (IVN) industry. This next-generation in-vehicle networking (IVN) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the industry's current and future scenarios.

The next generation in-vehicle networking (IVN) market consists of revenues earned by entities by providing services such as high-speed data communication, advanced driver-assistance systems (ADAS) integration, vehicle-to-everything (V2X) connectivity, in-cabin infotainment, and automotive cybersecurity. The market value includes the value of related goods sold by the service provider or included within the service offering. The next generation in-vehicle networking (IVN) market also includes sales of automotive Ethernet switches, SerDes chipsets, telematics control units (TCUs), gateway modules, and high-speed communication transceivers. 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 and 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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