Automotive Ethernet Sees A 5.6 Billion Market  By 2026

Trade Algo report assigns a Compound Annual Growth Rate (CAGR) of 20.9% to the Automotive Ethernet Market size during the forecast period, which means that it is expected to grow from USD 1.8 billion in 2020 to USD 5.6 billion by 2026, a 2.1% increase over the current year.

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The automotive original equipment manufacturers (OEMs) and car manufacturers have leveraged Ethernet technology over the past few years as a means of connecting in-vehicle systems in their vehicles. Due to the increased bandwidth and low latency of Ethernet, it has proven to be the best solution for in-vehicle connectivity. Moreover, it also minimizes the cost of the cabling, which, in turn, reduces the cost of labor in the long run. As compared to traditional in-vehicle technologies, Ethernet technology is expected to become more prevalent in the coming years as compared to traditional in-vehicle technologies in the future. To support the new technologies that are being developed in the automotive industry, such as connected cars, autonomous cars, and ADAS, there will also be a need for next-generation communication technologies in the car networking infrastructure to facilitate these systems. Automotive Ethernet Market is predicted to grow in the near future due to the increased production of vehicles, and the increase in demand for advanced infotainment systems, as well as driver assistance systems, among other things.

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During the forecast period, based on the components, it is anticipated that the services segment will grow at the fastest rate compared to the other components.  There is also a probability that the adoption of automotive Ethernet solutions will increase among automotive OEMs over the next few years as a result of the increased adoption of automotive Ethernet solutions. Depending on the services offered, the market has been segmented into consulting, implementation, training, and support segments. As a result of these services, end-users are able to manage and optimize their in-vehicle network infrastructure efficiently.

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Commercial vehicles are one of the most prominent segments in the Automotive Ethernet Market in terms of growth in terms of the vehicle type segment.  It has been observed that the commercial segment has a positive outlook when it comes to adopting advanced vehicle technologies. Several commercial auto manufacturers have already announced that they intend to invest in the Internet of Things (IoT) and innovative mobility solutions, which, in turn, will drive the need for higher bandwidth in the future. Thus, there will be an increase in the demand for Ethernet technology in the commercial segment as a result of this.

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During the forecast period, Europe is expected to grow at the highest CAGR. Europe is home to the world's top automotive OEMs, including Volkswagen, BMW, and Daimler Group. About 70% of the world's premium cars are manufactured by German OEMs. Over 100 automotive electronics-related study programs every year, as well as the region's vibrant Research and Development (R&D) landscape, justify the region's dominance in the field of connectivity, vehicle electronics, and self-driving cars. Several factors contribute to the growth of the Automotive Ethernet Market in the region, including increasing privatization, reducing trade barriers, and obtaining low-cost raw materials.

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Among the leading and emerging players in the Automotive Ethernet Market are Broadcom (US), NXP Semiconductors N.V. (Netherlands), Marvell (Bermuda), Microchip Technology Inc. (US), Vector Informatik GmbH (Germany), System-on-Chip Engineering S.L. (Spain), Molex, LLC (US), Texas Instruments (US), Cadence Design Systems, Inc. (US), TTTech Auto AG (Austria), Excelfore (US), DASAN Networks, Inc. (South Korea), ACTIA Group (France), NEXCOM International Co., Ltd. (Taiwan), AllGo Embedded Systems Pvt. Ltd. (India), Spirent Communications (UK), Keysight Technologies (US), Aukua Systems Inc (US), Intrepid Control Systems (US), RUETZ SYSTEM SOLUTIONS GMBH (Germany), TSN Systems GmbH (Germany), Xena Networks (Denmark), TEKTRONIX, INC (US), Rohde & Schwarz (Germany), and Realtek Semiconductor Corp. (Taiwan).