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.