Automotive Ethernet Market Overview & Defination

“The Global Automotive Ethernet Market is expected to grow rapidly at a 22.02% CAGR consequently, it will grow from its existing size of from $4.18 Billion in 2023 to $12.18 Billion by 2030.”

Automotive Ethernet is a form of Ethernet network that includes an physical layer specifically designed for automobile use scenarios. The cost of the cable is decreased by the using advanced Phy transceivers that provide an infrastructure that can meet the requirements of achieving automotive electromagnetic compatibility and requirements for immunity in the automotive environment.

It can provide higher baud rates communications than conventional automotive networks and allows for the reuse for Internet Protocol (IP) software technologies that are used in various industries, either directly or adapting to the automotive environment, including cybersecurity, functional safety and cyber security, among others.

In-vehicle connectivity is growing in rapid speed because of the advances connected driving, autonomous and other technologies, which is pushing the auto industry forward. There are more features that must be incorporated to improve efficiency as well as safety and of course, the experience of driving. In the process, demands for data bandwidth as well as the number of cables, along with other aspects like complexity and flexibility, as well as cost effectiveness are becoming more difficult.

In order to enable autonomy in driving, a mix of technologies should be seamlessly integrated inside the car. This includes long-range radar short/medium range radars, LIDAR, cameras, ultrasound sensors as well as GPS each operating with different data rates and protocols for communication. This is why these networks that are decentralized are becoming centralized networks.

Automotive Ethernet is becoming the preferred option for the next generation of vehicle networking. What is it, and how does it affect current network design?

Why Automotive Ethernet?

Automotive Ethernet can be described as the latest physical layer standard that utilizes the Ethernet standard for an in-vehicle networking technology. It comes with the highest immunity, lower cabling, and high-speed speed data transmission. Low cabling and high immunity are two major innovations that brought Ethernet into the vehicle. Without the capability of high immunity and the basic Ethernet that is used in our daily lives 100Base, 100Base-T, and 100Base-TX would not be able to stand up to the extreme electromagnetic environment within the vehicle.

Benefits of Automotive Ethernet

• In cars, automotive Ethernet components can provide many benefits such as:
• High data rates allow high-speed, high volume data communications
• Low latency offers an extremely low interruption for the real-time system, such as ADAS
• High reliability and good noise resistance
• Lightweight, space-efficient, and cost-effective cabling

Based on established standards from reliable bodies of standards

Furthermore, automotive Ethernet is a well-tested technology that meets the requirements for both capacities and integration. Contrary to non-automotive Ethernet cables, the cables used for automotive Ethernet use PAM3/PAM4 to attain high data rates and high reliability. While CAN, CAN-FD LIN and various other networks could remain important in the near future but automotive Ethernet is able to transfer data approximately 100 times faster than a CAN network and is better suited for serving the needs of the futuristic automotive network.

Recent technology developments make Ethernet viable for use in cars

The advancement of technology in cars is rapid. What was once science-fiction is fast becoming science fact. Connectivity to smartphones, powerful entertainment systems and navigation systems and feedback from interactive systems and driver responsiveness

The list of technological advancements continues. The software in cars is becoming more complex - and connected. All these expanding automotive applications are increasing the requirements for bandwidth. As a result, car manufacturers are introducing new computer-based applications, systems and connections.

The cost of these devices and wiring harnesses that help them with wiring, network interfaces and on-board computing power - are increasing. Ethernet deployment is able to be a good way to lower the cost. Recent advancements in technology enable Ethernet feasible for use in vehicles.

Around 400 million automobile Ethernet ports will be available by 2020, according to estimates by Frost & Sullivan and Strategy In 2022, the total amount ports for automotive Ethernet ports is predicted to exceed the number of other Ethernet ports. Automotive Ethernet isn't just meant for those in the "luxury" car market - recent trends suggest that a substantial majority of car makers plan to switch to Ethernet for all types of vehicles.

While BMW is the leading contender in the adoption of the technology, every automobile manufacturer is moving towards this goal. This is evident by Hyundai making use of the automotive Ethernet to connect infotainment devices for upcoming vehicles as well as Volkswagen making use of automotive Ethernet for driver assistance systems.

The majority of automobile manufacturers are involved in the field of automotive Ethernet. They are in industry associations, standards bodies and publishing test results and even promoting the standards. The primary driving factors are efficiency, cost reduction and shorter the time from market.

Demand Outlook

The development in electric vehicle (EVs) has shown promise across the globe over the last few years. Automobile manufacturers have made substantial investments in the development of electric vehicles. The government has taken several initiatives to accelerate the production of electric vehicles that are suited to the business and consumer markets.

Technology advancements and the growth of the entire ecosystem such as advancements in chipsets and modules as well as battery technology that is lithium-ion and the modernization of charging infrastructure are a major factor in the worldwide acceptance for electric cars. In the case of a casing factors driving EV production are technological advances along with government policies, growth in consumer spending and OEM spending. Automotive Ethernet provides connectivity for chassis, powertrain and body, ADAS, and infotainment systems, as well as other functions.

It solves the problems that engineers and designers have to face when integrating various systems by offering high-bandwidth apps which can be operate at low or high speeds. The increasing bandwidth available for data connections in vehicles has increased demand for Ethernet-based installations.

The transition from the existing in-vehicle communications devices to Ethernet is not simple, and could slow market growth. The adaptation of high-bandwidth Ethernet permits connected cars and IoT developers to build applications with high bandwidth. The growing popularity of these apps is expected to increase the need for high-bandwidth connectivity for car computers.

The 100 BASE T1 Physical Layer (PHY) standard for 100 Mbps high-speed Ethernet was created in the Institute of Electrical and Electronics Engineers (IEEE) in the year 2015. For developers of applications, high-speed Ethernet provides a variety of possibilities.

It also allows real-time connectivity to the outside world and have an influence on car's functional design. Connecting to the world outside in a connected vehicle offers the consumer more choices in selecting applications from third-party app suppliers, OEMs or even partners. In 2019, 92 million vehicles were built around the world, according to International Organization of Motor Vehicle Manufacturers (OICA).

The number of cars in the roadway increases, so will the need for security strategies to avoid accident-related collisions. Therefore, companies are developing technologies that alert drivers to potential problems. Safety Brake Assist, Adaptive Cruise Control Blind Spot Detection Rear Cross Traffic Alert as well as traffic sign Assist, Intelligent Lights, Intelligent Speed Assist, and Lane/Road Departure Alert are only a few options offered by ADAS.

One of the primary factors behind the growth automobile ethernets is the government standards for security and safety. Although many connected devices have been integrated into the current models of cars but some are likely to become mandatory in the future as they enhance the safety of roads.

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Market Dynamics

Growth Drivers

A growing demand of Advanced Driver Assistance Systems (ADAS)-

ADAS systems require reliable and high-speed communication networks that enable real-time information processing as well as decision-making. Automotive Ethernet offer the capacity and speed, as well as low latency that is required in order for ADAS systems to work efficiently. According to major automakers from Asia in Asia and across the Pacific growing use of ADAS will require more standardized cables and connectors that can support the greater data rate.

Growing Demand for Automobiles - The need for automotive ethernet solutions has enhanced by the incorporation of modern solutions in connected cars and other connected devices, including as well as artificial intelligence (AI) and other technologies. The number of cars manufactured in the USA between January and September 2021 was 9.164 million units, up from 8.82 million in the year 2020 over the same timeframe, according to reported from the International Organization of Motor Vehicle Manufacturers. In the end, the market for automotive ethernet will be driven by increasing demand for cars and the need for automobile internet.

The growing use of the Power Over Data Lines (PODL) PoDL can provide up to 500 milliamps of power, which is enough for certain sensors, such as an upgraded satellite camera. In turn, the design is easier and lighter for car manufacturers as they only need to run a single pair of wires to select the sensors. Because the IEEE standard was in compliance with the specifications for vehicle EMI because of its slow data transmission (27MHz transfer speed, compared with 62.5MHz to 100BASET), Broadcom started promoting it to the automotive industry.

Connected Cars Drive Growth in the Automotive Industry

Three megatrends in the world that include connectivity autonomous driving, autonomous driving and electrification transform cars into top smart device. Connectivity is the most important aspect of all three. In EVs, networking happens inside automobiles. For autonomous vehicles, network communication occurs between vehicles and other vehicles, cloud services, as well as smart cities as well as intelligent transportation system (ITS) infrastructure.

The first step in automotive connectivity was Global Positioning System (GPS) technologies satellite radios Bluetooth as well as Wi-Fi connections. The next step in automobile connectivity is to use smartphone apps that can identify parking spots, pay tolls or even communicate the status of charging for an electric vehicle.

The purpose of autonomous vehicles is that they relieve drivers from the need to make decisions in order to increase security and efficiency. Autonomous vehicles need access to live information on current conditions on the road as well as weather limitations on speed, weather conditions and other elements. Monitoring energy use is particularly important for EVs because their range is affected by the temperature, driving style the topography of the route, as well as the accessibility in charging facilities.

Challenges

• The weight and complexity is increasing of Ethernet Cable Looms One of the major challenges facing the business is the need to incorporate an additional set of sophisticated and luxurious features to the vehicle. In-vehicle networking is primarily targeted specific areas of use like FlexRay for complex real-time communication subsystems, CAN and LIN for body controls along with comfort and body controllers. Because of the bandwidth requirements for video, cameras that are used for reverse parking as well as other applications have been added using another method, usually low-voltage differential signaling (LVDS) solutions. The cable loom is growing because of the different networking and signaling technology are merged to create attractive and innovative features.
• Inoperability Issue
• Development and Design challenges

Market Segment Analysis

The Global Automotive Ethernet Market is classified into four segments: type, component, application, and geography.

Based on type, the market is divided by type into Automotive Ethernet Network and Automotive Ethernet Testing. Automotive ethernet is a type of ethernet that is used in vehicles like automobiles. It is an actual network that utilizes wired networks to connect different components inside the car. The automotive Ethernet is an electrical connection utilized in vehicle systems.

Ethernet in automobiles is thought of as a way to reduce costs and make things simpler. Domain-based architectures are used to create the network infrastructure that is found in the automobile. Each function is assigned a domain, one for body control one for infotainment, another for telematics, a third for powertrains and the list goes on. These domains often employ various network protocols.

Based on Components, the market is divided into Software, Hardware, and Services. Any physical part of the computer system that has circuit boards, also known as ICs are known as hardware. The screen you're looking at this page is a fantastic illustration of hardware. In commercial and industrial establishments hardware is employed for repairs, installations and maintenance.

 A collection of instructions, data or programs that manage a computer and carry out specific tasks is referred to as software. In essence, the software instructs computers on how to function. It's a broad term that covers applications scripts, programs, and scripts that run on mobile phones, computers tablets, and other devices that are smart. Hardware is, however refers to those physical parts of computers which perform the task.

Based on the application, the market is classified in Advanced Driver Assistance Systems (ADAS), Infotainment, Powertrain, Body and Comfort, and Chassis. Advanced Driver Aid Devices (ADAS) comprise advanced devices that are housed in the vehicle and provide assistance to the driver in a variety ways. They can be utilized to give crucial information on road closures, traffic and blocks coming in near time and also the level of congestion and possible ways to avoid these.

They can also be utilized to detect human distracted and fatigued drivers and issue cautionary signs and also evaluate the performance of drivers and provide recommendations. These systems may take control from human drivers as they assess threats, and perform basic jobs (such like cruise controls) as well as more complicated moves (like parking and overtaking).

Competitive Landscape of the Automotive Ethernet Market

• Broadcom
• Marvell
• Microchip Technology Inc.
• Texas Instruments Inc.
• Cadence Design Systems Inc.
• Xilinx Inc.
• TE Connectivity Ltd.
• Toshiba Corporation
• ACTIA Group
• NXP Semiconductors NV

Recent Developments in Automotive Ethernet Market

Jan 24, 2023: UNH InterOperability Lab and Microchip Technology Partner to Expand 1000BASE-T1 PCS and PHY-C Automotive Compliance Testing

In September 2022, KPIT Technologies, an Indian Software company, acquired 4 subsidiaries of Technica Engineering for $82.2 million (€ 80 million). The acquisition would help KPIT in offering one stop solutions for automotive Ethernet industry. The acquired companies, Technica Engineering Gmbh, Germany, Technica Electronics Barcelona S.L., Spain and Technica Engineering Spain S.L., Spain, are all subsidiaries of Technicia Engineering, a Germany-based automotive Ethernet solutions manufacturer.

May 23, 2022: Broadcom Inc. (NASDAQ: AVGO) today announced it has delivered its high bandwidth monolithic automotive Ethernet switch device, the BCM8958X, designed to address the growing bandwidth need for in-vehicle networking applications and facilitate the adoption of software defined vehicles (SDV). The BCM8958X features 16 Ethernet ports of which up to six are 10 Gbps capable, as well as integrated 1000BASE-T1 and 100BASE-T1 PHYs, providing greater flexibility and switching capacity needed to support automotive zonal electronic control unit (ECU) and central compute ECU architectures.

In March 2019, BCM8956X is a new family of automobile multilayer Ethernet switches by Broadcom. This device will assist the organization in meeting its rising bandwidth, security, and Time-Sensitive Networking requirements (TSN).

On May 2019, Marvell purchased Aquantia, a Multi-Gig Ethernet connectivity provider to strengthen its position in the multi-Gig 2.5G/5G/10G Ethernet markets.

In January 2019, Molex has partnered up with AllGo to offer more versatile infotainment and connectivity solutions to automakers.

Regional Insights

Forecast for the APAC Market

The growth in passenger vehicle production is among the major factors that affect the automotive industry in APAC. Manufacturing centers comprise China, Japan, South Korea and India for the automotive industry. China, Indonesia, Malaysia, Taiwan, Thailand, Japan, India, and South Korea collectively produced more than 45 million cars in 2022, based on statistics of the Organisation Internationale des Constructeurs d'Automobiles (OICA).

The demand for in-car connectivity components is expected to increase over the forecast period as the production of vehicles increases. This is predicted to drive the growth of the market region. By 2030, it's predicted that all cars will be connected and 41% of them will be autonomous. Japan along with Korea are predicted to be the top two ASEAN countries in the adoption of technology. Every OEM within the Asia Pacific region is interested in automotive ethernets for the next generation of automotive networks in-vehicle.

North American Market Statistics

The market in the region is predicted to expand at a CAGR of 22.5 percent over the forecast. The increase in market share within the area is due to the increasing use of cutting-edge technology. In addition, to provide these services, the suppliers and manufacturers are implementing initiatives to increase production and deployment, thanks to which the market is growing within the region. In addition, the increasing vehicle production in the region will increase the market. In 2022 the vehicle industry will produce around the 10 million vehicles. that includes light commercial vehicles passenger cars, large trucks, buses, and coaches.

Segments Covered in the Automotive Ethernet Market

Automotive Ethernet Market by Type

• Automotive Ethernet Network
• Automotive Ethernet Testing

Automotive Ethernet Market by Component

• Hardware
• Software
• Services

Automotive Ethernet Market by Region

• North America
• Europe
• Asia Pacific
• Rest of the world

Frequently Asked Questions:

What are the major factors driving the growth of the automotive ethernet market?

Increasing demand for smart vehicles and the growing communication and electronics system needs in autonomous vehicles are the major factors driving the market growth.

What would be the CAGR & Size of the automotive ethernet market over the forecast period?

The Global Automotive Ethernet Market is expected to grow rapidly at a 22.02% CAGR consequently, it will grow from its existing size of from $4.18 Billion in 2023 to $12.18 Billion by 2030.

Who are the major players dominating the automotive ethernet market?

The major players in the market are Microchip Technology, Inc., Broadcom Limited, Vector Informatik GmbH, RUETZ SYSTEM SOLUTIONS GMBH, DASAN Network Solutions, Bosch Rexroth, Toshiba.

Which segment captures the largest market size in the automotive ethernet type segment in the automotive ethernet market?

The one pair ethernet segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.

Which region will provide more business opportunities for the growth of the automotive ethernet market in the future?

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2030 and provide more business opportunities in the future.