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Automotive Ethernet Market to Grow at 18% CAGR, Reaching $6.59 Billion by 2029

09-08-2025 08:50 AM CET | Logistics & Transport

Press release from: The Business Research Company

Automotive Ethernet Market

Automotive Ethernet Market

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Automotive Ethernet Market Outlook: How is the Market Expected to Grow by 2025?
The market size for automotive ethernet has expanded swiftly over the last few years. The market, which was valued at $2.87 billion in 2024, is projected to reach $3.4 billion in 2025, registering a compound annual growth rate (CAGR) of 18.5%. The growth during the historic period can be credited to factors such as the requirement for bandwidth, data transmission speed, cost efficiency, standardization and interoperability, reliability and safety, and scalability.

Automotive Ethernet Market Forecast: What Size Will It Reach By 2029?
In the forthcoming years, the automotive ethernet market is projected to witness a significant expansion. The market is forecasted to reach a valuation of $6.59 billion in 2029, growing at a Compound Annual Growth Rate (CAGR) of 18.0%. The growth during this period can be credited to various factors such as the development of new automotive usage cases, investment in research & development for connected vehicles, the emphasis on standardization and compatibility, requirement for over-the-air updates, as well as regulations promoting vehicle efficiency. Throughout this period, we could observe key trends such as industry collaboration & innovation, adoption of subscription-based services, a heightened focus on environmental impact, the evolution of automotive software architectures, as well as increasing demand for in-vehicle connectivity.

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Which Key Market Drivers Will Shape Automotive Ethernet Industry Trends in 2025-2029?
The growth of the automotive ethernet market during the prediction period has been fuelled by the heightened demand for automobiles. The integration of advanced solutions like AI technology and connected devices into vehicular systems spurs innovation within the automotive sector, consequently driving up the need for automotive ethernet solutions. For instance, a study by the Belgium-based European Automobile Manufacturers Association disclosed that global automobile production in 2021 amounted to 79.1 million vehicles, a 1.3% increase from the year before. As such, the growing demand for automobiles is anticipated to stimulate a high demand for automotive ethernet, thus propelling the market during this period.

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What Are the High-Growth Segments in the Automotive Ethernet Market?
The automotive ethernet market covered in this report is segmented -

1) By Component: Hardware, Software And Services
2) By Application: Advanced Driver Assistance Systems (ADAS), Infotainment, Powertrain, Body And Comfort, Chassis
3) By Vehicle Type: Passenger Cars, Commercial Vehicles, Farming And Off-Highway Vehicles

Subsegments:
1) By Hardware: Ethernet Switches, Connectors And Cables, Network Interface Controllers (NICs), Gateways, Transceivers
2) By Software: Network Management Software, Security Software, Communication Protocol Software, Diagnostic And Monitoring Software
3) By Services: Consulting Services, Integration Services, Maintenance And Support Services, Training And Development Services

Which Global Trends Are Driving Automotive Ethernet Market Expansion?
In the automotive Ethernet market, the primary trend is the development of cutting-edge technologies. To establish superior, high-capacity communication systems for futuristic vehicles, firms are giving priority to smart automotive ethernet solutions. For example, Marvell, a semiconductor designing and manufacturing company based in the US, launched the Brightlane Ethernet Switch in May 2022. This switch is designed to boost security and reliability of in-vehicle networks and improve in-vehicle networking abilities, backing sophisticated applications such as Advanced Driver Assistance Systems (ADAS) and central gateways. Offering lockstep dual-core Arm processing redundancy, enhanced security attributes, and amplified bandwidth, it adheres to the ISO 26262 ASIL-B safety criteria and comes in two models: the 88Q5152/51 and the 88Q5192. This switch forms part of Marvell's extensive spectrum of automotive Ethernet products.

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Who Are the Fastest-Growing Companies in the Automotive Ethernet Industry?
Major companies operating in the automotive ethernet market include Broadcom Inc., Texas Instruments Incorporated, TE Connectivity Ltd., STMicroelectronics N.V., NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, ON Semiconductor Corp., Microchip Technology Inc., Marvell Technology Group, Keysight Technologies Inc., Marvell Technology Group Ltd., Visteon Corporation, Realtek Semiconductor Corp., Molex LLC, Cadence Design Systems Inc., Vector Informatik GmbH, Spirent Communications plc, ACTIA Technologies Group, TTTech Computertechnik AG, Excelfore Corp., Ruetz System Solutions GmbH, AllGo Embedded Systems Private Limited, Inova Semiconductors GmbH, KDPOF SL, System-on-Chip Engineering S.L., TSN Systems GmbH, Aukua Systems Inc., Acome Group

What Is the Regional Outlook for the Automotive Ethernet Market by 2029?
Asia-Pacific was the largest region in the automotive Ethernet market in 2024. North America is expected to be the fastest growing region in the forecast period. The regions covered in the automotive ethernet market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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