Automotive Communication Technology Market size worth $18 Bn by 2024

Automotive Communication Technology Market size is set to exceed USD 18 billion by 2024; according to a new research report by Global Market Insights Inc.
 

The increasing demand for automotive electronics is expected to drive the automotive communication technology industry growth. Over the last decade, the total contribution toward automotive electronics has increased from around 20% to 45%. Inventions such as automatic transmission, anti-lock brakes, telematics, and infotainment capabilities are revolutionizing the automotive industry. The electronic systems also assist in meeting the safety regulations such as adaptive cruise control, blind spot detection, and lane chase assist, encouraging manufacturers to incorporate these systems into their vehicles.
 

All these subsystems are connected to the central gateway through various bus modules including CAN, MOST, and Ethernet, enhancing in-vehicle communication and safety. Furthermore, the growing purchasing power, rapid urbanization, economic growth, and rise in the per capita ratio are the major factors contributing to the growth in the sales of luxury vehicles, having a positive impact on the automotive communication technology market. The government has also established various regulations for improving the fuel economy of cars and augmenting vehicle safety.
 

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The MOST bus segment held a market revenue of around USD 1 billion in 2017. The MOST bus is used to provide in-vehicle infotainment and multimedia systems with precise communication during the transmission of data, audio, video, and control information. The MOST bus offers data efficient communication infrastructure for interconnecting infotainment and multimedia devices such as GPS navigation, radio, video display, and active speakers. The latest version MOST150 offers a speed of around 150 Mbps, enabling its usage in various automotive communication applications.
 

However, as the MOST bus is provided by a limited number of suppliers, the cost is relatively high due to which automotive manufacturers are now shifting toward the Ethernet network as it acts as a cheaper and flexible alternative.
 

Browse key industry insights spread across 260 pages with 290 market data tables & 27 figures & charts from the report, “Automotive Communication Technology Market Size By Bus Module (Local Interconnect Network [LIN], Controller Area Network [CAN], FlexRay, Media Oriented Systems Transport [MOST], Ethernet), By Vehicle Class (Economy, Mid-Sized, Luxury), By Distribution Channel (OEMs, Distributors), By Application (Powertrain, Body and Comfort Electronics, Infotainment and Communication, Safety and ADAS), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2018 - 2024” in detail along with the table of contents:

https://www.gminsights.com/industry-analysis/automotive-communication-technology-market
 

The automotive communication technology market from economy car segment is projected to exhibit 16% CAGR through 2024 driven by rising demand for vehicular safety from the economy class vehicle consumers and stringent government regulations for emission reduction. Hence, the economy car manufacturers are working with various automotive industry standards organizations to develop efficient networking solutions thereby meeting the stringent design constraints. This has contributed to the introduction of features such as ADAS, advanced safety, and user-friendly infotainment system into the cars, driving their adoption rates. The introduction of networking technologies in these vehicles is growing rapidly, contributing to the market growth.
 

The distributors segment is poised to witness growth rate of more than 17% CAGR till 2024. The communication technology providers mainly align with the distributors to provide its technology to automotive manufacturers worldwide. The distributors dominate the aftermarket landscape by developing strategies to deepen their relationship with customers, driving the company sales. They also provide an insightful understanding regarding the prevailing market conditions and the changing customer requirements, which enable companies to bring about necessary transformations in its offerings, contributing to the market revenue.
 

The safety & ADAS segment dominates the automotive communication technology market with a projected revenue of above USD 8 billion by 2024. The automotive systems have become more sophisticated as they include ADAS applications from collision avoidance, automatic emergency braking, and lane departure warning to autonomous driving, making the system bandwidth critical. To meet this high bandwidth and latency requirements, it is essential for automotive manufacturers to provide high-performance network connectivity. The use of automotive Ethernet in these systems delivers a single in-vehicle network, enabling a seamless cross-domain communication and accelerating their adoption rates.  
 

Europe held over 26% of the automotive communication technology market share in 2017 propelled by the rising awareness regarding automotive safety among citizens and stringent government regulations. The region is also the home for leading automotive semiconductor providers such as Elmos Semiconductor, NXP Semiconductor, STMicroelectronics, and Vector Informatik, which contributes to the regional industry demand. Poland is one of the fastest growing countries and is anticipated to be the second largest automotive hub in Europe after Germany.
 

The companies operating in the market are focusing on bringing about innovations in production technologies, resulting in the development of advanced solutions. Major players functioning in the automotive communication technology market include On Semiconductor, NXP Semiconductor, Microchip, Continental, Broadcom, Intel, Qualcomm, Renesas, Vector Informatik, Robert Bosch, Elmos Semiconductor, Xilinx, STMicroelectronics, Melexis, Infineon, Cypress Semiconductor, and Texas Instruments.
 

These players are also entering into strategic partnerships with various automotive manufacturers to expand their presence and gain a competitive edge in the automotive communication technology industry.