Global In-Vehicle Networking Market - 2024-2031

Overview

Global In-Vehicle Networking Market reached US$ 2.1 Billion in 2023 and is expected to reach US$ 3.6 Billion by 2031, growing with a CAGR of 7.2% during the forecast period 2024-2031.

Systems for networking vehicles inside the car make it possible to integrate safety-critical functions including adaptive cruise control, lane departure warning, collision avoidance and vehicle-to-vehicle communication. The characteristics improve car safety, lower the chance of accidents and boost general driving effectiveness. Strict rules and regulations on car safety, emissions and connectivity features are being imposed by governments and regulatory authorities. Through the integration of necessary safety and connectivity elements into their vehicles, in-vehicle networking systems assist automobile manufacturers in adhering to these standards.

Growing product launches by the major key players help to boost market growth over the forecast period. For instance, on November 08, 2023, MaxLinear launched the single-port 1G ethernet PHY family aimed at both consumer and industrial IoT applications. The new family is offered in consumer and industrial variations, catering to diverse applications including gateways, routers, industrial PCs, media converters and SGMII to RGMII bridges. The products come with comprehensive documentation and development kits for ease of use.

Asia-Pacific is the dominating region in the market due to the growing technologically advanced product launches by major key players in the region over the forecast period. For instance, on March 31, 2023, SoftTech Engineers launched CivitBUILD, an exclusive Cloud-based and AI-Powered Construction ERP Software. The recently introduced solution, a cloud-powered, artificial intelligence (AI)-driven construction ERP based on the SaaS model, supports the growth of India's architecture, engineering and construction sector.

Dynamics

Technological Innovations in the In-Vehicle Networking

High-speed communication protocols and automotive Ethernet are examples of technological advancements that allow for quicker data transfer rates inside the car network. The makes it easier to integrate high-bandwidth apps like over-the-air updates, real-time navigation and streaming video, improving user experience overall and increasing demand for in-vehicle networking systems. Innovations in networking technologies and protocols improve the reliability and performance of in-vehicle networking systems, ensuring seamless communication between various electronic control units (ECUs) and components within the vehicle. The reliability is essential for critical safety systems, autonomous driving features and real-time vehicle diagnostics, driving market growth by meeting the stringent requirements of automotive manufacturers and consumers.

For instance, on June 08, 2023, Marvell Technology, Inc. delivered the industry's highest capacity central automotive ethernet switches for in-vehicle networks. The Switch family incorporates a sophisticated array of security technologies to enhance encryption and thwart attacks such as man-in-the-middle and others. The Brightlane Q622x switch family provides almost double the bandwidth of commercially available solutions, boasting an impressive 90 Gbps capacity.

Rising Demand for Connected Vehicles

Customers started to demand connection features in cars that are comparable to those seen in other electronic devices. Infotainment systems, navigation, smartphone integration, Wi-Fi hotspot capabilities and remote access functions are some examples of these features. The need for sophisticated in-car networking systems is driven by the need for connected automobiles with these characteristics. By providing users access to real-time traffic data, weather reports, individualized entertainment options and seamless smartphone and other device integration, connected cars improve the driving experience. The seamless integration and communication of these functions are made possible by in-car networking technologies, which enhance the convenience and enjoyment of driving.

Growing merger and acquisition strategies by major key players help to boost the market growth of the In-Vehicle networking market. For instance, on February 26, 2024, HARMAN, a global leader in connected vehicle solutions worked with Qualcomm to drive automotive innovation with a new ready-connect 5G TCU for connected cars. The HARMAN Ready Connect 5G TCU, which is based on the Snapdragon Auto 5G Modem-RF Gen 2, is a major development in automotive connection that will save OEM engineers time and effort while providing rich in-cabin experiences for customers.

Security and Privacy Concerns

Systems for in-car networking are susceptible to viruses, hacking and illegal access, among other cybersecurity risks. The risks have the potential to severely compromise car safety, privacy and data integrity. It also results in data theft, remote vehicle control or tampering with vital vehicle systems. Huge quantities of data are gathered and sent by in-vehicle networking systems, including sensitive and private information on the health of the car, the occupants and the driving patterns of the driver. Concerns over the techniques utilized to collect, store and exchange this data are impeding the adoption of connected automobile technology.

Additional safety risks are introduced by connected services like telematics, over-the-air upgrades and remote vehicle access. Malicious actors take advantage of these systems' flaws to obtain illegal access to cars or compromise the reliability of the software and firmware inside them. Authorities are responding to privacy and security concerns by imposing stricter guidelines and standards on data privacy and cybersecurity in automobiles. Compliance with these regulations increases the level of detail and cost of in-vehicle networking system development and deployment, thus impeding the market's expansion.

Segment Analysis

The global In-vehicle networking market is segmented based on connectivity, vehicle, application and region.

Growing Adoption of Passenger Cars Globally

Based on the vehicle, the In-vehicle networking market is segmented into passenger cars, light commercial vehicles, heavy commercial vehicles, automated guided vehicles and others. The demand for connected features in cars is growing among consumers; these features include internet access, smartphone integration, improved entertainment systems and navigation. The integration of these elements improves passenger convenience and the driving experience via in-car networking systems. As several passenger vehicles are growing globally the demand for the In-vehicle networking market is growing.

The growing passenger car sales across the world help to boost segment growth over the forecast period. For instance, according to the data given by, the global economy the average for 2022 based on 57 countries was 988605 passenger cars. China accounted largest market share in the sales of passenger cars globally, selling around 23563287 passenger cars and India sold around 3792356 passenger cars.

Geographical Penetration

Asia-Pacific is Dominating the In-Vehicle Networking Market

The Asia-Pacific has experienced rapid economic growth, which has raised urbanization and disposable income levels. The market for in-vehicle networking solutions is being pushed by the rising demand for automobiles as a result of this expansion, including trucks, passenger cars, and electric vehicles. The region is a major hub for the manufacturing of automobiles, home to major automakers from China, Japan, South Korea and India. Due to large R&D investments in the region's automotive sector, modern technology, particularly in-vehicle networking systems, has become simpler to incorporate into locally constructed automobiles.

The demand for hybrid and electric automobiles is expanding rapidly in the Asia-Pacific. The demand for in-car networking systems made specifically for electric drivetrains and battery management is being driven by governments in countries like South Korea, China, Japan and others who are enacting laws and incentives to encourage the use of electric vehicles. As to the weekly article, India's EV adoption rate is expected to increase by 82% by March 2023. Over one lakh EVs are expected to be sold each month in 2023, indicating the substantial increase the electric two-wheeler operations are seeing.

Competitive Landscape.

The major global players in the market include Advanced Micro Devices, Inc., Bosch Limited, Elmos Semiconductor SE, Infineon Technologies AG, Melexis., Microchip Technology Inc., NXP Semiconductors., STMicroelectronics, Texas Instruments Incorporated and Semiconductor Components Industries, LLC.

COVID-19 Impact Analysis

The pandemic's impact on international supply chains changed way car parts were made and sold, particularly those used in in-vehicle networking systems. Reductions in labor, limitations on transportation and closures of factories were some of the main factors contributing to shortages and delays of essential components. Lockdowns and social distance have prompted several auto plants across the world to temporarily limit or stop operations. Delays in automobile production resulted from this, which affected the incorporation of in-vehicle networking equipment into newly manufactured automobiles.

Priorities among consumers changed as a result of the pandemic's effects on lifestyle and the economy. The total market for in-vehicle networking systems was impacted by customers delaying non-essential purchases, which resulted in a decline in demand for new automobiles. The epidemic raised interest in linked and self-driving car technology. In-car networking systems, that offer connection, entertainment and remote monitoring capabilities, have become more important as individuals have evolved to working remotely and have looked for contactless solutions.

Russia-Ukraine War Impact Analysis

In the global automotive supply chain, which includes electronic components used in in-vehicle networking systems, Russia and Ukraine play a significant role. Any disturbances to the store network, such as active stoppages, send-out refusals or transportation delays that result in a shortage of critical parts, would impact the assembly of vehicles equipped with in-vehicle organizing frameworks. Businesses in the in-vehicle networking sector find it more challenging to make long-term investment choices due to geopolitical volatility, which affects their growth and expansion plans.

International strains and monetary approvals forced because of the conflict cause cash trade rates to differ, especially for the Russian ruble and Ukrainian hryvnia. Currency exchange rate fluctuations affect the price of imported components and materials for in-vehicle networking systems, which affects the income of manufacturers and suppliers. The market for in-vehicle networking systems was impacted by short-term challenges in the automotive manufacturing sector brought on by the conflict, such as labor shortages, plant closures or supply chain problems.

By Connectivity

• Controller Area Network (CAN)
• Local Interconnect Network (LIN)
• FlexRay
• Radio Frequency
• Ethernet
• MOST (Media Oriented Systems Transport)

By Vehicle

• Passenger Car
• Light commercial vehicle
• Heavy Commercial Vehicle
• Automated Guided Vehicle
• Others

By Application

• Powertrain
• Safety
• Body Electronics
• Chassis
• Infotainment
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On November 18, 2021, Elektrobit launched the industry-first automotive ethernet switch firmware for high-performance and secure in-vehicle communication. It is available for the top automotive switches. It helps to car manufacturers to accelerate the production of next-gen vehicles.
• On July 06, 2023, TTTech Auto, a technology leader in automotive safety software and ZettaScale extended their collaboration and launched Zetta Auto, a unified solution for in-vehicle and V2X communication.
• On September 18, 2023, Saudi Arabia, announced a launch of 5.9 gigahertz bandwidth for "vehicle-to-everything" technology. V2X technology utilizes sensors, cameras and wireless connectivity to enable communication between car drivers, co-drivers, pedestrians and even traffic lights.

Why Purchase the Report?

• To visualize the global In-vehicle networking market segmentation based on connectivity, vehicle, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of In-Vehicle Networking market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global in-vehicle networking market report would provide approximately 62 tables, 60 figures and 210 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies