NEW YORK, July 15, 2021 /PRNewswire/ -- Around the world, governments are mandating the installation of advanced driver assistance systems (ADAS) in automobiles, while the demand for connected cars is also rising. These factors, along with the lower cost of the Ethernet technology, are predicted to drive the global automotive Ethernet market to $9,885.1 million in 2030, at a 19.4% CAGR between 2021–2030, according to the market research firm P&S Intelligence.
For the most part of 2020, automotive production and sales had come to a halt due to the COVID-19 pandemic. This was a result of factory shutdowns and reluctance of people in spending on non-essential things, which ultimately led to a reduced demand for Ethernet connectivity in vehicles. However, since the lifting of the lockdowns and resumption of manufacturing operations, the automotive Ethernet market has started to grow again, especially from the fourth quarter of 2020.
During 2021–2030, the fastest growth in the automotive Ethernet market, under segmentation by application, will be likely witnessed in the infotainment category. With vehicle infotainment systems being integrated with artificial intelligence, the passenger experience is getting enhanced.
The 1 Gbps category will observe the highest CAGR in the bandwidth segment of the automotive Ethernet market in the years to come. Automakers are looking to offer low-latency and high-speed internet connectivity in vehicles, for which 1-Gbps Ethernet is ideal. This is why even the automotive technology providers are investing in Ethernet that supports data transmission at 1 Gbps.
In the past, Asia-Pacific (APAC) dominated the automotive Ethernet market, a situation that will not change till 2030. The key reasons driving the industry growth in the region are the burgeoning production of automotive batteries and passenger cars and installation of connected devices in automobiles. China is the world's largest auto producer, manufacturing 21.3 million passenger cars in 2019, according to Organisation Internationale des Constructeurs d'Automobiles (OICA).
Browse detailed report with COVID-19 impact analysis on Automotive Ethernet Market Research Report: By Component (Hardware, Software, Services), Bandwidth (1 Mbps, 100 Mbps, 1 Gbps, More Than 1 Gbps), Vehicle Type (Passenger Vehicle, Commercial Vehicle), Application (ADAS, Infotainment System, Powertrain) – Global Industry Analysis and Growth Forecast to 2030 @ https://www.psmarketresearch.com/market-analysis/automotive-ethernet-market
In order to expand their share in the global automotive Ethernet market, industry players, such as Broadcom Inc., NXP Semiconductors N.V., Marvell Technology Group Ltd., Microchip Technology Inc., Molex LLC, Texas Instruments Inc., Cadence Design Systems Inc., TTTech Computertechnik AG, System-on-Chip Engineering S.L., and Vector Informatik GmbH, are launching new products and entering into partnerships.
For instance, a multi-gigabit ethernet switch, named NXP SJA1110, was launched by NXP Semiconductors N.V. in January 2020. This switch will enable the deployment of connected vehicles by providing the high-speed internet connectivity required in them. A component of a comprehensive networking solution that includes the VR5510 power management integrated circuit (IC), SJA1110 is compatible with the S32G vehicle network processor developed by NXP.
Additionally, Molex LLC entered into a partnership with AllGo Embedded Systems Pvt. Ltd. in January 2019 to create an infotainment head unit that will make the access to media smoother and help tackle challenges with the connected solutions embedded in high-speed vehicles. This unit uses an Ethernet gateway to offer remote access to the media hub.
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