In-vehicle Networking Market Outlook Key Analysis and Forecast by 2025
Vehicles today use more electronics to cater to the diversified needs of drivers and passengers and for addressing the concerns about environmental deterioration and fuel conservation. In the automotive sector, communications and networking pertaining to in-vehicle, vehicle-to-vehicle, and vehicle-to-infrastructure are gaining traction for safety and bandwidth needs. This involves setting up of multiple electronic control units (ECU) that are connected by several in-vehicle local area networks (LANs) that differ in transferal speed and communication protocol as per the features required for each application and for information exchange. Automotive companies, as well as standards organizations, are successfully addressing major design challenges in order to meet fault tolerance, demanding bandwidth, determinism, and reliability requirements.
In-vehicle networking involves the transfer of data among distributed electronic modules by means of a serial data bus. The utilization of a combination of hardware and software has led to a marked improvement in several communications and control protocol.
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The in-vehicle networking market can be segmented by connectivity standard, vehicle type, application, and region.
Global In-vehicle Networking Market: Trends and Opportunities
The increasing vehicle production and increasing use of electronics in vehicles are primarily driving the in-vehicle networking market. The rising demand for advanced safety features, convenience, and comfort systems are also bolstering the market’s growth. In addition, increasing environmental concerns due to Co2 emissions from vehicles is also favoring the deployment of in-vehicle networking solutions.
Passenger cars are expected to be the dominant vehicle type segment in the near future. With the increasing demand for passenger cars, especially in countries such as China, the U.S., India, South Korea, Mexico, and Brazil, the demand for automotive semiconductor receives a boost. Passenger cars include hatchbacks, sedans, station wagons, multi-utility vehicles (MUVs), sports utility vehicle (SUVs), and vans. Passenger cars are the largest segment in the automotive industry, hence this segment is the most promising for the in-vehicle networking market.
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The infotainment application segment is expected to gain momentum in the near future. The increasing complexities in automotive infotainment applications due to the demand for higher interaction between infotainment equipment and the vehicle is expected to favor the growth of infotainment application segment of the market.
However, factors such as price considerations from manufacturers of low-end cars and from emerging markets are restraining the growth of the in-vehicle networking market. Nevertheless, the rising demand for electric and hybrid vehicles will benefit the growth of this market.
Global In-vehicle Networking Market: Regional Outlook
The global in-vehicle networking market can be analyzed with respect to the regional segments of North America, Europe, Asia Pacific, and Rest of the World. Asia Pacific stands as a significant in-vehicle networking market due to the presence of several established automobile manufacturers and increased vehicle sales. While Asia Pacific stood as the leading region in the recent past, North America holds promise for the growth of the market and is expected to display the fastest growth in the near future. Traditionally, North America has an advanced automotive industry and the region displays a high demand for high-end cars with high semiconductor content.
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Global In-vehicle Networking Market: Regional Outlook
Some of the key players in the global in-vehicle networking market are NXP Semiconductor NV, Texas Instruments Inc., Xilinx Inc., ON Semiconductor Corp., Microchip Technology Inc., Melexis Semiconductors, Infineon Technologies AG, Robert Bosch GmbH, ST Microelectronics NV, Atmel Corporation, and Elmos Semiconductor AG among others. Product development, partnerships, mergers, and collaborations are some of the growth strategies that top players in this market are focused on.
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