Vehicle Networking Market Size

Vehicle Networking Market Size

Vehicle Networking Market size surpassed USD 1 billion in 2021 and is anticipated to record a CAGR of about 9.5% from 2022 to 2030.

Networking protocols can ensure proper functionality and protect the systems from incorrect sub-system behavior. With the strong governments focus on boosting the production and sales of auto components, the requirement for vehicle ethernet networks will surge.

Vehicle manufacturers and OEMs have also been gaining financial support from governments to amplify their output and meet the ever-increasing demand. In-vehicle networking architecture is therefore expected to gain traction since it enables OEMs to cope with the rising volume of data that must be stored and transferred around the car.

Semiconductor manufacturing companies have been making considerable investments in R&D, to design technologically advanced products. For example, Analog Devices increased its R&D expenditure from USD 1.05 million to USD 1.29 million between 2020 and 2021. To improve vehicle design, auto companies have also been increasing their spending on automotive in-vehicle networking fields, providing lucrative opportunities.

Lack of autonomous mobility infrastructure to impede industry growth

Vehicle networking components are widely used in autonomous and connected vehicles. The adoption of autonomous vehicles requires the consistent upgradation of existing infrastructure. The lack of infrastructure for autonomous mobility may hamper vehicle networking market development, especially in underdeveloped and developing countries. Moreover, issues regarding poor road infrastructure and low government funding can lead to a slower integration of vehicle networking solutions.