Global Automotive Ethernet Market TOC
Automotive Ethernet Market size is estimated to cross USD 17.51 billion by the end of 2033, expanding at a CAGR of 21.3% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of automotive ethernet was USD 2.11 billion. The increased investment by many major automakers across the globe has made multiple investments in smart vehicle integration. According to World Internet Conference and CSIS report, through February 2020, 30 of the biggest AV businesses had spent USD 16 billion on creating entirely autonomous technology. Volkswagen Group of Germany and Japanese carmaker Toyota Motor have significantly invested in this field. The American automaker Ford Motor Company recently said it will spend more than USD 4 billion on research, development, and applications for autonomous vehicles by 2023.
The growing demand for communication technology in smart cars drives the market growth. Ethernet currently offers 100 Mbps and is expected to increase to 150 Mbps compared to media-oriented systems transport. This network has been used mostly for infotainment and media systems. Modern cars use high-tech components that serve as a foundation for in-vehicle communication. Also, through ethernet technology, customers can benefit from better bandwidth, scalability, speed, and reduced latency. To ensure a seamless operation of the vehicle system and infotainment, ethernet technology offers a variety of functions and functionalities.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
21.3% |
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Base Year Market Size (2022) |
USD 2.11 Billion |
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Forecast Year Market Size (2033) |
USD 17.51 Billion |
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Regional Scope |
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Automotive Ethernet Type (One Pair Ethernet, Energy-Efficient Ethernet, Power Over Ethernet, Gigabit Ethernet)
The one pair ethernet segment in the automotive ethernet market is anticipated to garner the largest revenue of USD 6.70 billion by the end of 2035. Besides, the gigabit ethernet is the fastest growing segment in the market owing to increasing 5G connectivity demand and faster ADAS support system. Link weight is reduced by using a single pair of gigabit ethernets as a high-speed spine for 1TCPE traffic. Additionally, GIG-E serves as a direct connection between the system spine and diagnostics, ADAS cameras, infotainment video, and other applications with data requirements greater than 100Mbps. The GIG-E technology supports 15 meters over unshielded vehicle cabling and complies with car framework EMC requirements. Additionally, GIG-E has an IEEE standardized standard gigabit ethernet MAC interface (SGMII/RGMII/GMII).
Vehicle Type (Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle)
Automotive ethernet market from the passenger car segment is expected to garner a significant share with a CAGR of 21.8 % in the upcoming years. Factors attributing to the segment's growth are the growing demand for passenger cars across the globe and essential automakers turning towards automotive ethernet for connectivity modulation and customer needs for internet on wheels. According to OICA, around 56.4 million passenger cars were sold across the globe in 2021, accounting for 68.4% of global car sales. Moreover, by 2020, there were close to 400 million vehicle ethernet ports in use. The total number of automotive ethernet ports is anticipated to surpass all other ethernet ports by 2023.
Our in-depth analysis of the global market includes the following segments:
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Automotive Ethernet Type |
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Vehicle Type |
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APAC Market Forecast
The Asia Pacific automotive ethernet market is projected to hold the largest market share of USD 8,246.5 million by the end of 2033. The expansion in passenger car production is one of the main factors influencing the industry in APAC. Manufacturing centers include China, Japan, South Korea, and India for the automotive sector. China, Indonesia, Malaysia, Taiwan, Thailand, Japan, India, and South Korea collectively produced more than 45 million automobiles in 2021, according to figures from the Organisation Internationale des Constructeurs d'Automobiles (OICA). The demand for in-car networking components is anticipated to rise throughout the projection period as vehicle manufacturing rises. In turn, this is expected to fuel the expansion of the market in the area. By 2025, it is estimated that all automobiles will be connected, and 35% will be self-driving. Japan and Korea are expected to lead the ASEAN countries in technology adoption. Every OEM in the Asia Pacific region is interested in automotive ethernet for next-generation automobiles' in-vehicle networks.
North American Market Statistics
The automotive ethernet market in North America garnered a revenue of USD 601.9 million in 2022, which is expected to increase to USD 4,904 million by the end of 2033. The region’s market is anticipated to grow at a CAGR of 21.1% over the forecast period. The market growth in the region is attributed growing adoption of smart and advanced technologies. Further, to deliver these services, suppliers, and manufacturers are taking initiatives to boost its production and deployment, owing to which market is further expanding in the region. Besides this, the growing production of vehicles in the region will also contribute to its market growth. In 2022, the vehicle industry produced around 10 million motor vehicles, it includes light commercial vehicles, passenger automotives, big buses, trucks, and coaches.
Author Credits: Abhishek Verma, Hetal Singh
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