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Vehicle Networking Market Size

Report ID: GMI5374
Published Date: Dec 2024
Report Format: PDF

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Vehicle Networking Market Size

The global vehicle networking market size was valued at USD 1.8 billion in 2024 and is projected to grow at a CAGR of 10.4% between 2025 and 2034, driven by advancements in connected car technologies, including the integration of Internet of Things (IoT) and 5G networks, which enable real-time data transmission and improved communication between vehicles and infrastructure. The growing demand for autonomous vehicles is another key factor, as seamless vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication are critical for safety and efficiency.

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Additionally, the increasing emphasis on vehicle safety, navigation, and infotainment systems accelerates the adoption of networking solutions. Regulatory initiatives aimed at enhancing road safety and reducing traffic congestion also contribute to market growth. Consumer demand for smarter, more personalized in-car experiences further fuels the expansion of the market. Lastly, the rise of electric vehicles (EVs) and smart city initiatives are creating new opportunities for vehicle networking technologies.

Vehicle Networking Market Report Attributes
Report Attribute	Details
Base Year:	2024
Vehicle Networking Market Size in 2024:	USD 1.8 Billion
Forecast Period:	2025 - 2034
Forecast Period 2025 - 2034 CAGR:	10.4%
2034 Value Projection:	USD 4.9 Billion
Historical Data for:	2021 - 2024
No. of Pages:	180
Tables, Charts & Figures:	200
Segments covered:	Vehicle, Connectivity, Application
Growth Drivers:	Government focus on reducing carbon emissions Growing sales of electric vehicles Government support for automotive components industry Strategic initiatives by market players
Pitfalls & Challenges:	Increasing consumption of semiconductors in electric vehicles Lack of autonomous mobility infrastructure in developing and underdeveloped countries

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For instance, according to GMI, Automotive Vehicle-to-Everything (V2X) Market size surpassed over USD 2.5 Billion in 2022 and is anticipated to grow at 25% CAGR from 2023 to 2032 owing to the development of smart cities and Intelligent Transportation Systems (ITS). Thus, this surge in adoption of connected vehicles is anticipated to generate demand for vehicle networking components.

Another significant driver of the vehicle networking market is the growing emphasis on vehicle diagnostics and predictive maintenance. Advanced networking technologies enable continuous monitoring of vehicle health, allowing for real-time detection of potential issues. This reduces downtime, lowers maintenance costs, and enhances vehicle performance. As a result, both consumers and fleet operators are increasingly adopting connected vehicle solutions for better reliability and efficiency.

Authors: Preeti Wadhwani, Satyam Jaiswal

Frequently Asked Questions (FAQ) :

The market size of vehicle networking reached USD 1.8 billion in 2024 and is set to grow at a 10.4% CAGR from 2025 to 2034, driven by advancements in connected car technologies like IoT and 5G integration.

The Controller Area Network segment held over 25% of the market share in 2024 due to its robustness, reliability, and cost-effectiveness, making it ideal for real-time data transmission in critical automotive systems.

The U.S. market accounted for 90% of the revenue share in 2024 and is expected to exceed USD 1.5 billion by 2034, led by a strong automotive industry and high adoption of advanced technologies like autonomous vehicles and 5G.

The key players in the industry include Broadcom, Continental, ElectRay, Elmos Semiconductor, Infineon, Marvell Semiconductor, Melexis NV, Microchip Technology, NXP Semiconductors, and Toshiba.