Automotive Communication Technology Market Size By Bus Module (Local Interconnect Network [LIN], Controller Area Network [CAN], FlexRay, Media Oriented Systems Transport [MOST], Ethernet), By Vehicle Class (Economy, Mid-Sized, Luxury), By Distribution Channel (OEMs, Distributors), By Application (Powertrain, Body and Comfort Electronics, Infotainment and Communication, Safety and ADAS), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2018 - 2024

Industry Trends

Automotive Communication Technology Market size exceeded USD 7 billion in 2017 and is anticipated to grow at 14% CAGR through 2024. The growth in the demand for automotive electronics plays a vital role in the rising demand for automotive communication technology. Automotive industry has evolved rapidly over the past decade with the rising usage of Electronic Control Units (ECUs), which have positively influenced the way various automobile subsystems communicate. These automobiles have a large number of sensors, wires, and circuits with enormous dedicated wiring, leading to bulky, complex, and expensive wiring harnesses. This has led to the adoption of automotive communication technology as they provide higher bandwidth, security, determinism, and fault tolerance capabilities, reducing circuit complexity.
 

Get more details on this report - Request Free Sample PDF
 

The electronic systems assist in meeting the safety regulations such as adaptive cruise control, blind spot detection, and lane chase assist, encouraging manufacturers to incorporate these systems into their vehicles. All these subsystems are connected to the central gateway through various bus modules including CAN, MOST, and Ethernet, enhancing in-vehicle communication and safety. The powertrain, chassis, safety, infotainment, and body comfort are the major applications that use the automotive communication technology due to which car manufacturers have increased the adoption of in-vehicle electronics, in turn augmenting the automotive communication technology market growth.
 

Get more details on this report - Request Free Sample PDF
 

Market Analysis By Bus Module

The Ethernet bus module is expected to witness fastest growth rate of about 7% CAGR till 2024. Ethernet technology has introduced advanced features in the automotive industry. The major benefits offered by the Ethernet include low cost, higher bandwidth, synchronization, flexibility, and scalability suitable for the rapidly-changing platforms and emerging car series. The usage of the ethernet is also projected to rise for future technologies such as autonomous vehicles. With the rising adoption rate, the demand for in-vehicle networking technologies is growing at a fast pace, making the viability of automotive ethernet even more evident.
 

The deployment of low-cost ethernet will provide high-end features such as infotainment and ADAS features including lane departure warning and surrounded-view parking, accelerating its demand in the market.
 

Automotive Communication Technology Market, By Vehicle Class

The luxury car segment dominates the market with a revenue of around USD 4 billion in 2017. The rapidly evolving technology is setting the trend for the adoption of advanced communication technologies in this segment. Over the last decade, various high-end car manufacturers have installed the communication technology in their vehicles, delivering enhanced comfort and safety to their customers with applications such as adaptive cruise control, ADAS, active chassis stability, and infotainment.
 

Advanced communication and connectivity features in these vehicles have enabled manufacturers to reach consumers on an individualized basis thereby strengthening brand loyalty and long-term relationships. This has led to more intense brand and product experience for customers.
 

Get more details on this report - Request Free Sample PDF
 

Market Analysis By Distribution Channel

The OEM segment is projected to hold a higher automotive communication technology market share. The customers’ requirements across the geography vary as the needs of customers residing in developed countries are different from those in developing countries. To meet this rapidly growing diverse demand structure, OEMs are adopting communication technologies that provide customers with enhanced safety, security, and internet connectivity.
 

Companies appoint a direct sales force for serving large OEMs by embedding their technological offerings in leading hybrid vehicles. Various market players such as Broadcom and STMicroelectronics have established a strong relationship with various OEM customers.
 

Market Analysis By Application

The infotainment & communication application is estimated to grow at the fastest rate through 2024 impelled by factors such as the rapidly growing vehicle production, telematics regulations, and the growing demand for safe, luxurious, and smart vehicles. This application provides entertainment and information in the form of video and audio content, social networking, communication, games, navigation capabilities, rear parking assistance, and vehicle diagnostics, creating a higher market demand. This application majorly uses CAN and MOST networks, providing efficient and easy means of communication and enabling the transmission of all forms of infotainment information throughout an automobile.
 

However, with the evolving technology, these protocols are being replaced by the Ethernet as this technology can support the high data rates required by the next-generation infotainment systems along with reduced cabling, cost, and network interfaces.
 

Get more details on this report - Request Free Sample PDF
 

Asia Pacific dominates the automotive communication technology market share with the revenue is likely to reach more than USD 8 billion by 2024. The major factors contributing to the market growth include rapid improvements in communication capabilities, increasing demand for premium cars, rising FDI in the automotive sector, and increased government mandates for reducing CO2 emissions from powertrain systems. China accounts for the largest market revenue in AAPC with the country witnessing an increase in the car registrations with a corresponding growth in the automotive electronics market in 2017.
 

North America is forecast to observe 18% CAGR during the forecast period. Factors such as high standards of living, demand for advanced technologies, and growing government mandates for safe & secure vehicles have led to market growth in this region. The U.S. Environmental Protection Agency (EPA) has established standards for vehicle emissions to improve the air quality.
 

Competitive Market Share

The companies functioning in the global automotive communication technology market are concentrating on entering into strategic alliances with leading semiconductor providers, which provide them important benefits such as sharing of costs, access to additional production capabilities, and sharing of the technical know-how.
 

The major companies operating in the market are NXP Semiconductors, Robert Bosch, Texas Instruments, Toshiba, Broadcom, STMicroelectronics, Microchip, Qualcomm, Infineon, Continental, Cypress Semiconductor, Xilinx, Rohm Semiconductor, Vector Informatik, and Intel.
 

This market research report on automotive communication technology includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2013 to 2024, for the following segments:

Market, By Bus Module

• Local Interconnect Network (LIN)
• Controller Area Network (CAN)
• FlexRay
• Media-oriented Systems Transport (MOST)
• Ethernet

Market, By Vehicle Class

• Economy
• Mid-Sized
• Luxury

Market, By Distribution Channel

• OEM
• Distributors

Market, By Application

• Powertrain
• Body and Comfort Electronics
• Infotainment and Communication
• Safety and ADAS
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Poland
• APAC
  • China
  • Japan
  • Australia and New Zealand (ANZ)
  • South Korea
  • India
  • Singapore
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Qatar