Global Automotive Ethernet Industry Outlook, 2025 with an Assessment of COVID-19's Impact on the Markets
DUBLIN, Aug. 5, 2020 /PRNewswire/ -- The "Automotive Ethernet Market - Growth, Trends, and Forecasts (2020-2025)" report has been added to ResearchAndMarkets.com's offering.
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The Global Automotive Ethernet Market is expected to grow at a CAGR of 23.5% during the forecast period (2020-2025).
The increased deployment of Advanced Driver Assistant System (ADAS), infotainment, rapid progress in the development of autonomous vehicles, and the low cost of ethernet has led to the immense growth of automotive ethernet as it serves the purpose of connecting in-vehicle electronic system efficiently as compared to traditional harness.
The component segment is led by ethernet hardware as it supports high bandwidth applications and reduces labor cost and cable cost. For instance, In February 2020, NXP launched a multi-gigabyte ethernet switch named "SJA1110" that enables automotive manufacturers to deliver high-speed networks required for evolving connected cars.
The growing demand for integration of personal mobile devices, web-based services, and the new trend of Human Machine Interface (HMI) such as in-car payment systems that require high data transmission rate boosting the adoption of automotive ethernet. For instance, in September 2019, Hyundai partnered with Xevo - an automotive software company, to offer in-vehicle commerce. However, interoperability among components and application compatibility can hinder the growth of the market.
With the recent outbreak of COVID 19, the automotive ethernet market is witnessing a decline in growth in the short run due to major automotive manufacturing plants have entirely stopped their production in response to lockdown being enforced by many countries across the world. As of March 2020, major manufacturers in North America and Europe have extended their plant shutdowns. For instance, Toyota, Honda, and Fiat Chrysler Automobiles, Ford, have decided to hold production. This is suggestive of a slowed requirement of ethernet in automotive applications.
Key Market Trends
Increased Demand for Advanced Driver Assistance System (ADAS) to Boost Market Growth
-- it has been estimated that as the number of vehicles equipped with
autonomous driving increases in the future, automotive ethernet is
expected to witness increased opportunities for growth. Autonomous
driving heavily depends on HD maps with road-based information like lane
sizes, crosswalks, and road signs. HD maps are built with data collected
from sensors and ethernet is needed to connect these components in order
to maintain efficient data transfer and therefore will contribute to the
growth of automotive ethernet.
-- The growing adoption of IoT solutions in automotive is providing growth
opportunities to a wide range of highly connected modern ADAS and
autonomous driving functions. Having vehicles connected to everything in
their vicinity or Vehicle-to-Everything (V2X) is an essential step
toward a connected network of autonomous vehicles. Ethernet
compatibility advantages when connecting vehicles to smart
infrastructure does make it an important part of the vehicle.
-- According to the International Organization of Motor Vehicle
Manufacturers (OICA), 92 million vehicles were produced in 2019 across
the world. With growing volumes of vehicles and the rising demand for
safety features, designed to avoid collisions and accidents, companies
are offering technologies that alert the driver about potential
problems. ADAS is highly adopted by many vehicle manufacturers for
providing customers with Emergency Brake Assist, Adaptive Cruise
Control, Blind Spot Detection, Rear Cross-Traffic Alert, Traffic Sign
Assist, Intelligent Lights, Intelligent Speed Assist, and Lane/Road
Departure Alert.
-- Government regulations revolving around safety and security are also one
of the major drivers for the growth of automotive ethernet. While many
of these systems are embedded in current models of cars, some of them
will become mandatory as they contribute towards road safety. For
instance, in March 2019, the European Commission announced a new rule to
make Intelligent Speed Assistance (ISA) mandatory for all newly
manufactured light vehicles starting in 2022. Euro NCAP and the US NHTSA
safety assessment are additional driving forces behind ADAS adoption
which include the availability and the performance of safety assistant
systems in their ratings.
Asia-Pacific to Witness Significant Growth
-- Increased production of passenger vehicles is one of the major factors
driving the growth of the market in the Asia Pacific Region. India is
ranked as the world's sixth-largest automotive market; world-class
automakers, like Mercedes-Benz, Ford, and Volkswagen, are rolling out
expansion plans in India to maximize manufacturing capacity and output
to minimize the supply-demand gap in the local market. With these plans,
the Indian market for time-sensitive in-vehicle networking components
will increase, and thus the automotive ethernet market is poised for
strong growth through the 2020s.
-- The increase in production can be attributed to a reduced cost as well
as continuous miniaturization of hardware components, which has helped
this market to increase over the past few years. According to OICA, in
2019, more than 40 million vehicles were produced within the region. In
2019, China was the biggest market for passenger car vehicles, with
around 21.44 million vehicles sold and commercial vehicle sales of
approximately 4.3 million.
-- Faster GDP growth and the highly aspirational Asian consumers are the
two major growth drivers for most of the regions such as China, India,
Malaysia, and the other developing markets in Southeast Asia in the
coming years. In terms of consumption of connected and autonomous
vehicles, North America and Europe remain the prominent regions owing to
the presence of significant players such as Marvell Technology Group
Ltd., Broadcom Incorporated among others, high acceptance rate of
advanced technology and increasing adoption Ethernet in-vehicle networks
for mainstream models.
-- However, closure trends in India led the SIAM to estimate that nearly
over INR 2,300 crore per day as revenue loss for Indian automakers and
component manufacturers amidst the pandemic. Significant players like
Maruti Suzuki India, Hyundai, Honda, Mahindra, Toyota Kirloskar Motor,
Tata Motors, Kia Motors, and MG Motor India have put their plants on
temporary shutdown. The market is very likely to suffer from potential
component supply chain disruption, leading to reduced sales and
production of an automotive ethernet.
Competitive Landscape
The Automotive Ethernet market is fragmented in nature due to high competition. Despite the fragmentation, the market is primarily tied by the regulatory requirements for establishment and operation. Further, with increasing innovation, acquisitions, and partnerships, the rivalry in the market tends to be rising in the future. Recent industry developments:
-- In March 2020, Argus Cyber Security, a provider of automotive
cybersecurity, and NXP Semiconductors, a supplier of automotive
semiconductors, announced in partnership, a new integrated solution that
allows the carmakers to protect Ethernet network communications based on
the NXP S32G vehicle processor.
-- In September 2019, Marvell announced the launch of the family of the
high-port count, claiming it to be ultra-low latency automotive switches
with multi-gigabit routing throughput capabilities. This portfolio
combines the industry's first high-port count aggregation switch,
offering all ports at gigabit capacity enabling clustering of
safety-critical sensor data in an Advanced Driver Assistance System
(ADAS) and data transfer over highspeed PCIe host uplink.
Key Topics Covered
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.4 Market Drivers
4.4.1 Increased Demand for Infotainment and ADAS
4.4.2 Rapid Adoption of Low Cost Ethernet Technology
4.5 Market Restraints
4.5.1 Interoperability Among Components and Application Computability
4.6 Assessment of Impact of COVID-19 on the Industry
5 MARKET SEGMENTATION
5.1 By Component
5.1.1 Hardware
5.1.2 Software and Services
5.2 By Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.2.3 Other Vehicle Types (Farming and Off-Highway Vehicles)
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia Pacific
5.3.4 Latin America
5.3.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Broadcom Inc.
6.1.2 NXP Semiconductors N.V.
6.1.3 Marvell Technology Group Ltd.
6.1.4 Molex Incorporated
6.1.5 Microchip Technology Inc.
6.1.6 Texas Instruments Inc.
6.1.7 Cadence Design Systems, Inc.
6.1.8 TTTech Auto AG
6.1.9 System-On-Chip Engineering S.L. (SoC-E)
6.1.10 Xilinx, Inc.
6.1.11 TE Connectivity, Ltd.
6.1.12 Toshiba Corporation
6.1.13 Realtek Semiconductor Corp.
6.1.14 DASAN Networks, Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/36csw7
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