New York, USA, Aug. 31, 2022 (GLOBE NEWSWIRE) -- According to the report published by Research Dive, the global automotive Ethernet market is expected to generate a revenue of $6,494.8 million and grow at 20.8% CAGR over the forecast period from 2020-2027. The extensive report provides a concise layout of the market’s current framework including prime aspects of the market such as growth elements, challenges, restraints and various opportunities during the predicted timeframe of 2020-2027. The report also provides all the market figures to help new participants analyze the market easily.
Dynamics of the Market
Drivers: The emergence of autonomous and connected vehicle technology along with the adoption of Ethernet technology are some major factors estimated to drive the growth of the global automotive Ethernet market during the forecast period. Moreover, rising number of notable cable and connector manufacturers, leading automotive OEMs, and automotive tier-1s is also anticipated to boost the adoption of automotive Ethernet by 2027.
Opportunities: The growing emphasis on reducing carbon footprint and the consequent adoption of ‘two low-power’ versions of automobile Ethernet are some factors predicted to create abundant growth opportunities for the global automotive Ethernet market during the 2020-2027 analysis timeframe. Furthermore, increasing technological innovations in the automobile Ethernet technology is also projected to augment the market growth by 2027.
Restraints: High cost of installing automotive Ethernets is the prime factor to hinder the market growth.
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Covid-19 Impact on the Market
The onset of the devastating covid-19 pandemic has had a negative impact on the global automotive Ethernet market mainly due to disruptions in supply chains and lack of availability of raw materials. Moreover, strict lockdowns and travel restrictions imposed by governments worldwide also led to decreased labor force in the automobile manufacturing industries. However, some significant automotive Ethernet companies like NXP Semiconductors, Broadcom Inc., etc. came up with multiple strategic alliances like collaborations, product launches, acquisitions, etc. to help the market revive its growth post the catastrophic chaos.
Segments of the Market
The report has divided the automotive Ethernet market into multiple segments based on component, vehicle type, application, and regional analysis.
Component: Hardware Sub-segment to be the Most Dominant
The hardware sub-segment is estimated to hold the highest market share and generate a revenue of $4,357.8 million during the analysis years due to the increasing demand for automotive Ethernet hardware components like bridges, repeaters, routers, gateway, etc. Furthermore, rising strategic alliances like innovative product launches, partnerships, etc. among key market players and the wide array of benefits of automotive Ethernet hardware components like scalability, speed, low latency, higher bandwidth, etc. are some other factors anticipated to bolster the sub-segment’s growth by 2027.
Vehicle Type: Commercial Vehicles Sub-segment to be Highly Lucrative
The commercial vehicles sub-segment of the global automotive Ethernet market is expected to have a prominent growth rate and garner a revenue of $2,073.3 million during the forecast period mainly due to increasing digitization and infrastructural investments across the world. In addition, increasing strategic product innovations by data communications and commercial automobiles technology leaders like Molex, Aquantia, etc. is also predicted to escalate data bandwidth in autonomous and connected vehicles.
Application: Driver Assistance Sub-segment to be Highly Lucrative
The driver assistance sub-segment is projected to have a dominant market share of $2,642.7 million during the 2020-2027 analysis timeframe due to growing demand for fuel-efficient and safe automobiles. In addition, the surging requirement for vehicle infrastructure integration with high-tech smart devices is also driving OEMs to build in-car infrastructure, thus propelling the sub-segment’s growth by 2027.
Region: Market in the Asia-Pacific Region to Witness Better Growth Opportunities
The automotive Ethernet market in the Asia-Pacific region is estimated to have the fastest growth rate and register a revenue of $2,175.8 million by 2027 due to significant economic growth, increasing technological innovations, and growing manufacturing and sales of vehicles. Moreover, surging disposable income and mass consumer base in countries like India, China, Malaysia, etc. is also anticipated to uplift the market growth during the forecast period.
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Key Market Players:
Some key automotive Ethernet market players include
- Aukua Systems
- Cadence Design Systems
- NXP Semiconductors N.V.
- Molex
- Microchip Technology Inc.
- Keysight Technologies, Inc
- Broadcom Inc.
- Vector Informatik GmbH
- Texas Instruments Incorporated
- Marvell Semiconductor, Inc.
These key players are undertaking various strategies such as product development and enhancement, merger and acquisition, partnerships and collaborations to sustain the market growth.
For example, in January 2020, NXP Semiconductors, an American-Dutch semiconductor manufacturing company, announced the launch of safe automotive Ethernet multi-gigabit switch for effective time sensitive networking (TSN). This strategic product launch further boosted the market growth, thus catering to the costumer’s growing automotive requirements.
The report also summarizes many important facets including financial performance of the key market players, SWOT analysis, product portfolio, and the latest strategic developments. Buy the Full Report Here!
More about Automotive Ethernet Market:
- What are the 7 Technologies Essential for Automotive Ethernet?
- The Global Automotive Ethernet Market to Witness Negative Impact during the Covid-19 Pandemic
