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Nov 18, 2020 (AB Digital via COMTEX) —
MarketsandMarkets expects the Automotive Ethernet Market to grow from USD 1.6 billion in 2019 to USD 4.4 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 21.7% during the forecast period. Major factors expected to drive the growth of the automotive Ethernet market include low-cost Ethernet technology, rise in demand for Advanced Driver Assistance Systems (ADAS) and infotainment systems, and advancement in Ethernet technology.
Based on component, services segment to record the highest growth during the forecast period
Base on component, the services segment is expected to grow at a higher rate during the forecast period. The services segment has a major influence on the automotive Ethernet market’s growth. The demand for services is increasing with the growing adoption of automotive Ethernet by passenger car as well as commercial vehicle segment. These services assist end users in reducing costs, increasing overall revenues, and improving business performance. With the help of these services, automotive Original Equipment Manufacturers (OEMs) can track, evaluate, and analyze the requirements of their business to make better-informed decisions.
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Among vehicle type, the farming and off-highway vehicles segment to grow at the highest CAGR during the forecast period
In the automotive Ethernet market by vehicle type, the farming and off-highway segment is expected to grow at the higher CAGR during the forecast period. Currently, the Ethernet adoption across farming and off-highway OEMs is emerging and expected to grow during the forecast period. Rapid technology adoption in farming and off-highway segment is expected to drive the automotive Ethernet market. OEMs are looking to Ethernet as an alternative technology to Controller Area Network (CAN). As per industry experts, farming and off-highway is one of the growing segments in the automotive Ethernet market. This segment will carry significant opportunities for Ethernet vendors during the forecast period.
Autonomous and connectivity trend is common across the automobile sector over the past few years. Automotive Original Equipment Manufacturers (OEMs) are working toward simplifying in-vehicle connectivity to support emerging trends such as connected cars and autonomous vehicles. The number of sensors and amount of data has been increased in the vehicle; hence, OEMs are in dire need of flexible connectivity, which will provide higher bandwidth and low latency. The traditional in-vehicle communication technologies, namely, Control Area Network (CAN), FlexRay, and Local Interconnect Network (LIN) operates at lower bandwidth. However, Ethernet offers gigabyte connectivity essential for ADAS and infotainment systems. Automotive Ethernet provides connectivity for various automotive applications such as powertrain, chassis, body and comfort, ADAS, and infotainment systems. It supports high bandwidth applications operating at high or low speed. Moreover, it also reduces cable and labor cost by simplifying the network complexities that includes configuration, management, and optimization aligned with in-vehicle networks.
Key and emerging market players include Broadcom (US), NXP (Netherlands), Marvell (US), Microchip (US), Vector Informatik (Germany), Dryv.io (US), System-on-Chip Engineering S.L. (SoC-E) (Spain),