The global automotive ethernet market size was US$2.1 billion in 2021. The global automotive ethernet market is forecast to grow to US$ 11.1 billion by 2030, registering a compound annual growth rate (CAGR) of 20.1% during the forecast period from 2022 to 2030. 

Automotive ethernet is a device that connects the components available in the vehicle. Automotive ethernet offers services like navigation, smartphone connectivity, high-powered infotainment systems, driver safety systems, etc. 

COVID-19 Impact Analysis

Due to the COVID-19 pandemic, the automotive industry observed a significant decline in sales. As a result, the demand for other connected parts, such as automotive ethernet, decreased. 

Moreover, manufacturing plants stopped the production activities in order to avoid further losses. During the pandemic, governments of various countries banned import-export activities. Thus, it hampered the growth of the global automotive ethernet market. 

Factors Influencing

• Automotive ethernet enhances the safety of the vehicle. Increasing consumer awareness and favorable government regulations pertaining to safety are forecast to have a positive impact on the market. The European Commission announced a new regulation related to the implementation of Intelligent Speed Assistance (ISA) for light vehicles. Thus, it will boost market growth. 
• Rising disposable income will increase the demand for luxury vehicles offering advanced services. Moreover, the increasing popularity of ADAS systems and the emergence of MEMS technology will lead the automotive ethernet market towards growth. 
• The high implementation and maintenance cost of automotive ethernet is forecast to hamper the market growth. 
• Trends, such as increasing demand for the Internet of Things (IoT) in automotive, will boost the automotive ethernet market growth during the study period. 
• The increasing demand for lightweight, electronic and hybrid vehicles will offer significant growth opportunities for the market growth.

Geographic Analysis

The Asia Pacific holds the highest share in the global automotive ethernet market and is forecast to dominate during the study period. The growth of the region is attributed to the high vehicle production, mainly in India, China, Japan, and South Korea. 

The market is witnessing high investment in the Asia-Pacific region from Original Equipment Manufacturers (OEMs). Thus, increasing advancements will help obtain a high customer base.As a result, it will ultimately increase business revenue. 

The growth of the passenger vehicles segment is expected to benefit the Asia-Pacific automotive ethernet market. Ford, Mercedes-Benz, and Volkswagen are working on expanding their reach to India. As a result, it will enhance the manufacturing capacity and offer lucrative growth opportunities for the growth of the global automotive ethernet market.

Competitors in the Market

• Broadcom
• NXP Semiconductors
• Marvell
• Cadence Design Systems, Inc.
• Molex
• Aukua Systems Inc.
• Vector Informatik GmbH
• TTTech Auto AG
• System-on-CChip Engineering S.L.
• Microchip Technologies Inc.
• Other prominent players

Market Segmentation

The global automotive ethernet market is segmented on the basis of component, vehicle type, bandwidth, application, and Region. 

Insight by Component

• Hardware
• Software
• Services

Insight by Vehicle Type

• Passenger Vehicles
• Commercial Vehicles
• Farming
• Off-Highway Vehicles

Insight by Bandwidth

• 0Mbps
• 100Mbps
• 1Gbps
• 2.5/5/10Gbps

Insight by Application

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

Insight by Region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America