Next Generation In-Vehicle Networking Market By Technology (Automotive Ethernet, CAN (Controller Area Network), FlexRay, LIN (Local Interconnect Network), MOST (Media-Oriented Systems Transport)); By Component (Switches, Gateways, Microcontrollers, Cables and Connectors); By Application (Infotainment, Advanced Driver-Assistance Systems (ADAS), Powertrain Control, Telematics); By Vehicle Type (Passenger Vehicles, Commercial Vehicles, Electric Vehicles); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The next-generation in-vehicle networking market was valued at USD 2.5 billion in 2023 and is expected to reach USD 7.8 billion by 2030, with a compound annual growth rate of 17.8% during the forecast period 2024–2030. This growth is attributed to the growing use of self-driving cars, the augmented need for advanced driving aids, and technological innovations in automotive connectivity.

 

Next-generation in-vehicle Networking (IVN) involves the scale and hierarchy of connectivity between vehicle onboard systems, including infotainment, telematics, ADAS, and powertrain control. The development of IVN is key to attaining smart, connected, and cooperative automobiles that are fast becoming the foundation of most transportation systems.

 

Market Drivers

Rising Adoption of Autonomous and Connected Vehicles: The adoption of self-driving cars has led to a huge surge in demand for IVN that is complex and thus requires enhanced solutions. New-age cars require real-time information transfer between sensors, cameras, electronic equipment, and the like, which the next-gen IVN provides. Example: Electric cars Tesla claims to have a highly reliable vehicle network to handle autopilot and over-the-air (OTA) in self-driven cars. In 2023, the growth of connected and autonomous vehicles increased by 15% globally, increasing the need for complex IVN structures.

 

Increased Focus on Infotainment and Connectivity: The desire of the consumer to have better infotainment systems, including the use of applications like real-time navigation, voice command, and internet integration, has been the reason for the integration of next-generation IVN. Example: In 2022, a Japanese carmaker launched a new car with a 5 G-supported infotainment system backed by a next-generation vehicle-to-everything communication system.

 

Advancements in Communication Protocols: Next-generation IVN has been made possible due to new high-speed communication protocols such as automotive Ethernet, CAN FD, and FlexRay with better data management inside vehicles. Example: In 2023, one IVN solution provider from the United States introduced an efficient new gigabit Ethernet solution specifically for electric and self-driving cars.

 

Market Opportunities

Integration of 5G Technology: 5G network deployment represents a major opportunity for IVN to improve data transfer rates and facilitate vehicle connectivity. For example, in 2023, a South Korean automaker decided to cooperate with a telecom giant to improve vehicle connectivity through 5G-based IVN systems.

 

Demand for Electric Vehicles (EVs): With the increasing uptake of EVs, there is a business opportunity for IVN providers to design highly specific solutions to support electric powertrain and battery management systems. In 2023, there was a global market of 10 million EVs, an improvement of 20% from the previous year.

 

Emergence of Software-Defined Vehicles (SDVs): The shift toward SDVs, where software update options control several functionalities, requires a strong IVN system capable of OTA updates and effective software integration. Example: In 2022, a European luxury car maker developed an SDV that is underpinned by a scalable IVN platform to enable real-time software updates.

 

Market Restraints

High Costs of Deployment: The implementation of these next-generation IVN models is expensive, and this often poses a problem for many automotive makers, who fear that they will not be able to recover the cost of implementing the IVN solutions.

 

Challenges that Exist with Retrofitting Existing cars: Integrating sophisticated IVN systems in new vehicle models can be technically demanding, making it difficult to implement in the aftermarket segment.

 

Market Segmentation

By Technology:

• Automotive Ethernet

• CAN (Controller Area Network)

• FlexRay

• LIN (Local Interconnect Network)

• MOST (Media-Oriented Systems Transport)

 

By Component:

• Switches

• Gateways

• Microcontrollers

• Cables and Connectors

 

By Application:

• Infotainment

• Advanced Driver-Assistance Systems (ADAS)

• Powertrain Control

• Telematics

 

By Vehicle Type:

• Passenger Vehicles

• Commercial Vehicles

• Electric Vehicles

 

By Region:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

 

Segment Analysis of Next Generation In-Vehicle Networking Market

By Technology:

Leading Segment: CAN (Controller Area Network)

CAN is the leading technology in the next-generation in-vehicle networking market. CAN has been the standard for in-vehicle communication for over three decades, and its robustness, reliability, and low-cost implementation make it the most widely used technology in vehicles. It is primarily used for communication between various vehicle components such as the engine control unit (ECU), transmission control, and various sensors. CAN’s dominance is attributed to its proven track record and adoption in the automotive industry, particularly for lower-speed networks.

Fastest-Growing Segment: Automotive Ethernet

Automotive Ethernet is the fastest-growing technology in the in-vehicle networking market, driven by the increasing demand for higher data transmission speeds to support advanced applications such as infotainment, autonomous driving, and vehicle-to-vehicle communication. Automotive Ethernet supports the large bandwidth requirements of next-generation technologies like ADAS (Advanced Driver-Assistance Systems) and autonomous driving systems. As vehicles become more connected and data-driven, Ethernet's scalability & ability to handle large volumes of data make it a critical enabler of the industry's future growth. The market for automotive Ethernet is expected to grow significantly, with a projected CAGR of over 20% from 2024-2030.

 

By Component:

Leading Segment: Microcontrollers

Microcontrollers are the leading component in the next-generation in-vehicle networking market. They serve as the "brain" for in-vehicle networking systems, processing information & enabling communication between different ECUs in a vehicle. Microcontrollers’ importance is magnified as vehicles become more connected, requiring sophisticated computational tasks for everything from engine control to infotainment systems. Their market dominance is driven by their ability to handle complex tasks, low power consumption & cost-effectiveness, making them indispensable in the automotive sector.

Fastest-Growing Segment: Gateways

Gateways are the fastest-growing component segment, facilitating the communication between different networks within a vehicle. As vehicles evolve to feature multiple networking protocols (such as CAN, Ethernet, & FlexRay), gateways are becoming essential for translating & routing data between these disparate systems. The rise in connected vehicles & the increasing complexity of in-vehicle networks contribute to the growing demand for gateways. Gateways play a crucial role in vehicle-to-vehicle (V2V) communication, telematics & data security, making them a rapidly expanding segment.

 

By Application:

Leading Segment: Infotainment

Infotainment remains the leading application for next-generation in-vehicle networking. As consumers demand more integrated multimedia experiences, the automotive industry is investing heavily in advanced infotainment systems that provide entertainment, navigation, voice assistance & connectivity features. Infotainment systems require high data bandwidth for streaming and real-time communication, making automotive Ethernet a key enabler. Examples of companies investing in this sector include Tesla, which integrates cutting-edge infotainment systems in its vehicles, and other automakers like Audi and Mercedes-Benz, which feature advanced in-car entertainment systems.

Fastest-Growing Segment: Advanced Driver-Assistance Systems (ADAS)

ADAS is the fastest-growing application segment, driven by increasing safety regulations & consumer demand for enhanced safety features. Technologies such as lane-keeping assistance, automatic braking, adaptive cruise control & collision avoidance require seamless communication between various vehicle components. The need for high-speed, low-latency networking solutions to handle the large volume of data generated by sensors & cameras used in ADAS is propelling this growth. As governments & regulatory bodies enforce stricter safety standards, the adoption of ADAS in new vehicles is expected to accelerate.

 

By Vehicle Type:

Leading Segment: Passenger Vehicles

Passenger vehicles hold the largest market share in the next-generation in-vehicle networking market. As the demand for advanced connectivity, infotainment, and safety features grows among consumers, passenger vehicles are incorporating more sophisticated in-vehicle networking systems. The focus on electric vehicles (EVs), autonomous driving, and enhanced user experiences is driving the integration of advanced in-vehicle networking technologies in passenger cars. Leading examples include automakers like BMW, Ford, and Toyota, which offer advanced connectivity features in their premium models.

Fastest-Growing Segment: Electric Vehicles

Electric vehicles (EVs) represent the fastest-growing vehicle type for in-vehicle networking. EVs require more complex networks due to the integration of battery management systems, regenerative braking, electric powertrains, and autonomous driving technologies. The growth of the EV market, driven by increasing environmental awareness and government regulations supporting clean energy, is pushing demand for advanced in-vehicle networking solutions. Companies such as Tesla, Rivian & Lucid Motors are driving innovation in EVs, integrating advanced in-vehicle networking systems to support enhanced features like battery management, real-time data analytics & infotainment.

 

By Region:

Leading Region: North America

North America holds the largest market share in the next-generation in-vehicle networking market. The region is home to a large number of automotive manufacturers, including major players like General Motors, Ford, and Tesla, all of which are investing heavily in advanced networking technologies for connected and autonomous vehicles. The high adoption of electric vehicles and ADAS technologies, alongside significant investments in smart infrastructure, is propelling the demand for next-generation in-vehicle networking solutions in North America.

Fastest-Growing Region: Asia-Pacific

The Asia-Pacific region is the fastest-growing region for the next-generation in-vehicle networking market. This growth is driven by the rapidly expanding automotive industry in countries like China, Japan & India. Asia-Pacific is also a hub for many automotive manufacturers, including Toyota, Honda, and Hyundai, which are integrating cutting-edge networking technologies into their vehicles. The region's growing demand for electric vehicles, advancements in ADAS & a strong push towards smart cities & connected vehicles are all factors driving the market growth. Additionally, the Chinese government's push for autonomous driving technology & smart infrastructure is fostering a rapidly growing demand for in-vehicle networking solutions.

 

Key Players

• Bosch

• NXP Semiconductors

• Continental AG

• Texas Instruments

• Infineon Technologies

• Broadcom Inc.

• Qualcomm Technologies

• Renesas Electronics Corporation

• Vector Informatik

• Molex

 

Next-Generation In-Vehicle Networking (IVN) Market Report Coverage

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2023	USD 2.5 billion
Revenue Forecast in 2030	USD 7.8 billion
Overall Growth Rate	CAGR of 17.8%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2024 - 2030)
Segmentation	By Technology, By Component, By Application, By Vehicle Type, By Region
By Technology	Automotive Ethernet, CAN (Controller Area Network), FlexRay, LIN (Local Interconnect Network), MOST (Media-Oriented Systems Transport)
By Component	Switches, Gateways, Microcontrollers, Cables and Connectors
By Application	Infotainment, Advanced Driver-Assistance Systems (ADAS), Powertrain Control, Telematics
By Vehicle Type	Passenger Vehicles, Commercial Vehicles, Electric Vehicles
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	US, Canada, Germany, UK, France, China, Japan, India, etc.
Key Market Drivers	Rising adoption of autonomous and connected vehicles, increased focus on infotainment and connectivity, and advancements in communication protocols.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

 

Future Outlook

Due to the growing incorporation of intricate automotive connectivity technologies, demand for autonomous vehicles, and the need for effective communication within vehicles, the Next-Generation In-Vehicle Networking (IVN) market is on the verge of experiencing considerable growth. Consumers in different emerging market regions, such as Asia-Pacific and Latin America, will be the key drivers of growth. This will be supported by increased urbanization, automotive production growth, and awareness of connected vehicle technologies.

 

Those companies paying attention to cost efficiency, modularity, and compatibility with 5G and AI are expected to benefit more. Next-generation IVN will be the basic infrastructure of various modern vehicles, to be standardized by 2030 for multifunctional communication applications.