Automotive Ethernet Market Size - By Component (Hardware, Software, Service), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Application (ADAS, Powertrain, Chassis, Infotainment System), By Bandwidth & Forecast, 2024 - 2032

Automotive Ethernet Market Size

Automotive Ethernet Market size was valued at USD 2.9 billion in 2023 and is estimated to register a CAGR of over 17% between 2024 and 2032, attributed to the rise of autonomous vehicles and the increasing demand for connected cars with advanced features. Autonomous vehicles require robust communication networks for data exchange between various systems, subsequently propelling the need for automotive ethernet.
 

Similarly, the growing demand for connected cars for offering features like infotainment and telematics will drive the market growth as these functionalities rely on efficient and reliable in-vehicle networking solutions. For instance, in July 2023, Microchip unveiled its inaugural line of automotive-certified 10BASE-T1S Ethernet devices for catering to the evolving connectivity needs of the automotive sector.
 

The growth of the automotive ethernets market is also catalyzed by the electrification of vehicles and the increasing demand for real-time data processing. As the automotive sector is shifting towards electric vehicles (EVs), there is a greater need for sophisticated networking solutions to manage the battery performance, charging infrastructure integration, and overall vehicle connectivity.
 

Additionally, the demand for quick data processing, especially for critical applications like collision avoidance systems, is fueling the adoption of automotive Ethernet to ensure efficient and reliable communication networks in vehicles. For instance, in May 2022, Marvell launched Marvell Brightlane Ethernet Switch, an industry first automotive Ethernet switch with lockstep dual-core reliability for enhancing the vehicle safety.
 

In addition to sustained growth, the industry encounters initial hurdles, such as the significant implementation costs of integrating ethernet into vehicles, which can also highlight the potential for long-term efficiency and connectivity benefits. Likewise, the heightened concerns over cybersecurity threats are underscoring the importance of developing robust security solutions and fostering innovation in data protection.
 

Automotive Ethernet Market Trends

The emerging trend of software-defined vehicles (SDV) and the integration of advanced driver-assistance systems (ADAS) will play an ideal role in influencing the market growth. SDV adoption requires flexible and scalable networking solutions like automotive Ethernet to support software-defined functionality. Additionally, ADAS relies on high-speed data exchange between vehicle components, further emphasizing the need for reliable and efficient communication networks. These factors are likely to drive the demand for automotive ethernet, shaping its growth trajectory in the automotive industry.
 

For instance, in May 2022, Broadcom Inc. introduced BCM8958X, a high-bandwidth monolithic automotive ethernet switch device to meet the rising demand for bandwidth in in-vehicle networking applications and support the transition to SDV.
 

Automotive Ethernet Market Analysis

Based on component, the market is divided into hardware, software and services. The hardware segment dominates by surpassing a value of over USD 1.2 billion in 2023 and is projected to exceed USD 1.3 billion by 2032, fueled by the demand for reliable and high-speed networking components. Ethernet switches, connectors, and controllers are crucial for the seamless operation of advanced automotive systems. As vehicles become more connected and data-intensive, the need for robust hardware solutions is growing. This dominance is underscoring the critical role of hardware in supporting the expanding functionalities of modern vehicles, from infotainment to autonomous driving systems.
 

Based on the application, the automotive ethernet market is categorized into ADAS, Powertrain, Chassis, Infotainment System. The infotainment segment accounted for 38% of the market share in 2023, reflecting the increasing consumer demand for advanced in-car entertainment and connectivity. With vehicles evolving into mobile hubs for multimedia and communication, ethernet technology is enabling faster and more efficient data transfers. The pivotal role of infotainment systems in Ethernet is also facilitating the seamless integration of features like streaming services, navigation, and smartphone connectivity.
 

Europe automotive ethernet market recorded around 35% of the revenue share in 2023. In Europe, the market is experiencing a trend towards sustainable and technologically advanced solutions. Due to the presence of cutting-edge technological infrastructure and stringent automotive safety standards. Multiple European companies are excelling in innovating ethernet solutions tailored to the intricate needs of vehicle connectivity. With the strong focus on quality and reliability, these firms have gained significant traction in the global automotive networking sector. Rising advancements in the integration of ethernet technologies in modern vehicles will drive the regional industry growth.
 

Automotive Ethernet Market Share

Broadcom Inc., NVIDIA and NXP Semiconductors hold a significant market share of over 16% in the automotive ethernet industry. Broadcom, renowned for its extensive portfolio of networking solutions, offers a comprehensive suite of Automotive Ethernet products, including advanced Ethernet switch ASICs and PHY transceivers. These components form the backbone of high-speed and reliable in-vehicle networks, facilitating seamless communication between various automotive systems and components.
 

NVIDIA, a leader in AI computing, has made significant strides in the automotive industry with its advanced computing platforms and software solutions. Leveraging its expertise in AI, NVIDIA delivers Automotive Ethernet solutions that not only enable fast and efficient data transfer but also support the complex computational requirements of autonomous driving, advanced driver-assistance systems (ADAS), and in-vehicle infotainment (IVI) systems.
 

Meanwhile, NXP Semiconductors, recognized for its automotive-grade semiconductor solutions, offers a comprehensive range of Automotive Ethernet products, including PHY transceivers, switches, and microcontrollers. NXP's solutions prioritize safety, reliability, and compliance with automotive standards, making them ideal for critical automotive applications.
 

Automotive Ethernet Market Companies

Major companies operating in the automotive ethernet industry are:

• Analog Devices Inc.
• Broadcom Inc.
• Infineon Technologies AG
• NVIDIA
• NXP Semiconductors
• ON Semiconductor
• Qualcomm
• Realtek Semiconductor Corp.
• TE Connectivity
• Texas Instruments Incorporated
   

Automotive Ethernets Industry News

• In June 2023, Marvell Technology, Inc. introduced the Brightlane Q622x family of central automotive Ethernet switches for offering the highest capacity in an emerging device category. These switches enable advanced computing architectures for enhancing safety and delivering software-defined services for next-gen vehicles.
   
• In February 2024, AVIVA Links, Inc. introduced the AVIVA AXP410xU and PS480xU devices by leveraging the Automotive SerDes Alliance Motion Link Ethernet (ASA-MLE) draft specification, to facilitate high-speed data exchange between vehicle domains like the central domain controller and driver assistance systems.
   

The automotive ethernet market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2018 to 2032, for the following segments:

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Market, By Component

• Hardware
• Software
• Service

Market, By Bandwidth

• 10 Mbps
• 100 Mbps
• 1 Gbps
• 2.5/5/10 Gbps

Market, By Vehicle Type

• Passenger Cars
• Commercial Vehicles

Market, By Application

• ADAS
• Powertrain
• Chassis
• Infotainment System
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA