Application of Advanced Driver Assistant Systems (ADAS), infotainment, development of driverless vehicles, and the low cost of Ethernet, along with the development of a connected car, propel the automotive ethernet market to reach $ 8.13 billion by 2028.
As per the recent report published by Verified Market Research - Automotive Ethernet Market by type, component, application and geography, the market was valued at $ 1.70 billion in 2020 and set to grow at 21.61% CAGR from 2021 to 2028.
The expansion of electric vehicles (EVs) has been promising worldwide in recent years. Automobile manufacturers have made significant expenditures on electric vehicle development. In addition, the government has made several steps to speed up the manufacture of electric vehicles for both the consumer and business markets.
The major players in the market are Broadcom, Marvell, Microchip Technology, Texas Instruments, Cadence Design Systems, IXilinx, TE Connectivity, Toshiba Corporation, ACTIA Group, and NXP Semiconductors.
The advancement of technology and the development of the complete ecosystem, including improvements in chipsets and modules, the availability of lithium-ion batteries, and the upgrading of charging infrastructure, have fueled the global adoption of electric vehicles.
The primary forces promoting EV manufacturing are technological improvements, government policies, consumer economic growth, and OEM expenditures. Automotive Ethernet provides connectivity for powertrain, chassis, body and comfort, ADAS, and infotainment systems, among other applications.
It tackles the issues designers and engineers encounter when integrating multiple systems by providing high bandwidth applications that can run at high or low speeds. The growing bandwidth available for in-vehicle data connections has fueled the market for ethernet installations. However, migration from existing in-vehicle communication systems to Ethernet is difficult, which may hinder market expansion. The adjustment of high-bandwidth Ethernet allows connected car and IoT application developers to create high-bandwidth apps. The expansion of these applications is likely to drive up demand for high-bandwidth connectivity for vehicle computer systems, the report said.
Courtesy: Verified Market Research. NB: Photo is representational; courtesy: NXP Semiconductors.