Automotive Ethernet Market Share was valued at USD 1,418 Million in 2019 and is expected to register a CAGR of 21.2% during the forecast period. GMI Research foresees that the automotive ethernet market is estimated to witness tremendous growth over the forecast period due to the rising adoption of ADAS and infotainment system in vehicles. An increase in disposable income promotes individuals to go for luxury vehicles, as luxury vehicles have the highest usage of automotive ethernet technology.
Introduction of the Automotive Ethernet
Automotive Ethernet is the physical network join components inside the car by wired networks. It is mainly designed to reach the dynamic demand of the automotive sector, such as the robust demand for connectivity and automation. The Ethernet technology is utilized for measurement, in-vehicle communication, diagnostics through DoIp, and calibration. The automotive ethernet is very cost-effective, gives higher scalability, and is light-weighted.
Automotive Ethernet Market Dynamics
The notable factors expanding the growth of the Global Automotive Ethernet Market are the in-vehicle infrastructure high complexity, along with the radical increase in the implementation of infotainment systems and ADAS in the vehicles. The swiftly growing per capita income of individuals is supporting them to go for luxury vehicles. Therefore, the luxury and premium vehicle sector is one of the vastest sectors utilizing ethernet technology in their vehicles. It is displaying perpetual growth in the Automotive Ethernet Market Opportunities.
For instance, the global giants, including Jaguar and BMW, are increasingly adopting ethernet technology in their upcoming models. Moreover, the automotive Ethernet technology offers exceptional benefits like minimizing the overall cost of procurement and surging the profit margins of original equipment manufacturers (OEMs), which in turn, is encouraging many OEMs to choose this technology. On the other hand, the cost of implementing and maintaining automotive Ethernet is very high, which is one of the crucial factors that will restrain the automotive ethernet market size in the upcoming years.
Automotive Ethernet Market Segmentation
Component Market Drivers
The services segment is predicted to grow at a faster CAGR over the forecast period. The services segment involves implementation, training & support, and consulting. The substantial demand for consulting services amongst the OEMs to streamline the in-vehicle network complexities is the critical factor propelling the segment growth. In addition, the increasing occurrences of hurdles faced throughout the implementation of ethernet in vehicles further promote the requirement for training and support services.
Bandwidth Market Drivers
Based on bandwidth, the 1Gbps segment is expected to lead the market during the forecast period. It is attributed to the high need for bandwidths, which in turn, is encouraging the OEMs to spend on high-speed data transference for stable functioning for in-vehicle connectivity. The 1Gbps ethernet provides higher bandwidth and lower latency for automotive uses, primarily in infotainment systems and the ADAS.
Application Market Drivers
The advanced driver assistance systems segment is estimated to increase at a faster CAGR over the forecast period based on the application. The factors that act as the propellers in boosting the ADAS segment in the market are a paradigm shift in the consumer’s preference and robust demand for secure and fuel-efficient vehicles. The prompt increment in the requirement for integrating vehicles with automated devices is rising the OEMs to build in-car infrastructure according to the growing demand for next-generation connected cars and autonomous vehicles amongst the target audience.
Based on region, the Asia-Pacific region is projected to dominate the market during the forecast period. It is due to the constant technological advancement in the automotive industry, coupled with the actual economic growth of the Asian countries and steady socio-political conditions in the region. Therefore, the mass consumer base in developing countries, such as India, China, and Malaysia, also promotes the rising demand of the market. With the increasing disposable income of individuals, the OEMs have countless growth opportunities in the APAC market by primarily concentrating on enriching customer experience and intensifying safety and security features.
Automotive Ethernet Market Segmentation
Market Segmentation by Component
Market Segmentation by Bandwidth
Market Segmentation by Vehicle Type
Market Segmentation by Application
Market Segmentation by Region
About GMI Research
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