Automotive Ethernet Market Current Scenario and Future Growth Analysis by 2029

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The automotive ethernet market is expected to grow in double digits CAGR during the forecast period 2021-2031. The sector is expected to grow and reach newer heights in 2021, over 2020. Rapid advancement in development of autonomous vehicles and cost effective ethernet has led to the immense boost of automotive ethernet.Automotive ethernet is a faster networking protocol enabling multiple ECUs to communicate with others and routes the traffic to different nodes within a network. Automotive ethernet is fuelling the emerging technologies like self- driving cars, infotainment systems, advanced driver assistant systems, etc.


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Innovation in Electric Vehicles

Growth of Electric Vehicles is witnessing a huge surge among the masses. Government authorities are also investing in production of electric vehicles so as to combat air pollution. Availability of batteries, building charging infrastructures all over has fuelled the interest of purchasing electric vehicles. Requirement of ethernet in electric vehicles is a key growth prospect for boost of automotive ethernet.

Automotive Ethernet Market

Growing Demand for Advanced Driver Assistance system

Autonomous driving highly depends on maps having information like lane sizes, crosswalks, and road signs. Ethernet is needed to connect these sensors to maintain efficient data transfer, record and assist with correct information. Rising demand of such accurate assistance system is boosting the growth of automotive ethernet.

Difficulty in switching from traditional vehicles to automotive

Despite electric vehicles becoming popular, more than half of the population still is not ready to transform as they are not able to understand technology. However, some technologies are insufficient in providing high bandwidth and low latency for infotainment systems.

Competitive Landscape

  • Broadcom
  • Vector Informatik GmbH
  • Texas Instruments
  • Auto AG
  • Excelfore
  • DASAN Networks
  • Embedded Systems Pvt. Ltd.
  • Keysight Technologies
  • Tektronix, Inc
  • Aukua Systems Inc
  • Realtek Semiconductor Corporation
  • Xena Networks
  • ACTIA Group

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Recent developments by the leading manufacturers include:

  • Argus Cyber Security, an automotive cyber security provider in March 2020 partnered with NXP Semiconductors, an automotive semiconductor supplier for an integrated solution allowing carmakers to protect Ethernet network communication based on NXP S32G vehicle processor.
  • In 2019, Broadcom launched BCM8956X, a family of automotive multilayers Ethernet switches that addresses the need for security, bandwidth, and time sensitive networking among consumers.
  • Marvell Technology Group Ltd. in 2019 acquired Aquantia. The acquisition addresses the portfolio of copper and optical physical layer product extending its position in the Multi-Gig 2.5G/5G/10G Ethernet segments.

Regional Outlook

Asia Pacific is projected to be holding the largest market share globally. Increase in production and sales of vehicles in Asia Pacific due to high demand. Renowned automakers are planning their expansion in Asian countries like India, thus, contributing towards growth in the region. Continuous miniaturization is helping the companies to make the hardware components cost effective helping the market to grow among masses.


By Type

  • Automotive Ethernet Network
  • Automotive Ethernet Testing

By Component

  • Hardware
  • Software
  • Services

By Bandwidth

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

By Application

  • Advanced Driver Assistance System
  • Infotainment
  • Powertrain
  • Body and Comfort
  • Chassis

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles
  • Farming and off-highway Vehicles

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • Latin America

1) By application, which segment is projected to be high in demand?
Demand of advanced driver assistance system (ADAS) for HD maps can be met by automotive ethernet and thus, this segment may drive the growth of the automotive ethernet sector.

2) What are the features of ADAS?
Emergency brake assistant, adaptive cruise control, blind spot detection, rear cross traffic alert, intelligent lights, intelligent speed assists, road departure alert, etc.

3) Which companies are highly manufacturing the automotive ethernet?
Tektronix, Inc, Aukua Systems Inc, Realtek Semiconductor Corporation, Xena Networks, ACTIA Group are the companies focussing on research and launches for technological advancements.

4) Which region to hold the largest share during the forecast period?
Asia Pacific is expected to remain high owing to vast population and majority of them being youth generation interested in new technologies and comfort.

5) How covid-19 impacted the automotive ethernet sector?
Covid-19 have had a negative impact on production of vehicles, be it traditional or automotive ones. The decline in demand and lockdown made companies to stop the production and shut down their plants for some time. However, with the successful vaccination going around, the manufacturers are predicting better growth during the forecast period.

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