Vehicle Networking Market size is anticipated to cross USD 3 billion by 2030, according to a new research report by Global Market Insights Inc.
The report reveals that the burgeoning sales of electric vehicles will be a prominent factor boosting the vehicle networking components demand. Based on data from the International Energy Agency, sales of EVs, including plug-in hybrids and fully electric, reached a record level of 6.6 million in 2021. Customers are also shifting their preference toward EVs due to environmental concerns.
As per the Mobility Consumer Index, it was predicted that more than 50% of consumers planning to purchase a car would choose either a plug-in hybrid, hybrid, or fully electric vehicle in May 2022. For efficient and safe operation, it is imperative that the components and systems in autonomous vehicles are in communication with one another. It will bolster the need for in-vehicle networking architecture owing to the ability to ensure secure connections within vehicles.
Get more details on this report - Request Free Sample PDF
E-commerce sector growth to influence light commercial vehicle production
The vehicle networking market revenue from the LCV segment worth USD 410 million in 2021. One key factor driving the segment forecast is the expansion of e-commerce businesses during the COVID-19 pandemic. As per the U.S. Census Bureau of the Department of Commerce, retail e-commerce sales for the second quarter of 2022 were estimated at USD 257.3 billion, a rise of 2.7% from the first quarter. The rise in demand for e-commerce services will result in the deployment of vehicle network communication technologies in LCVs, which are critical for delivery and logistics applications.
Browse key industry insights spread across 200 pages with 244 market data tables and 35 figures & charts from the report “Vehicle Networking Market Size By Vehicle (Passenger Vehicles [PV], Light Commercial Vehicles [LCV], Heavy Commercial Vehicles [HCV], Automated Guided Vehicles [AGV]), By Connectivity Standard (Controller Area Network [CAN], Local Interconnect Network [LIN], Radio Frequency [RF], FlexRay, Ethernet, Media Oriented Systems Transport [MOST]), By Application (Powertrain Safety, Body Electronics, Chassis, Infotainment), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2030”, in detail along with the table of contents:
Powertrain networking applications to gain momentum led by rise in HEV sales
The powertrain application segment held over 27% of the vehicle networking market share in 2021, due to the increasing sales of hybrid-electric vehicles. According to estimates from the U.S. Department of Energy, sales of HEVs rose by 76% from 2020 to 2021. As a result, the demand for hybrid vehicle powertrains is likely to increase. This will also lead to higher installations of powertrain networking systems, as automakers seek to reduce fuel consumption and enhance vehicle performance, including regenerative braking.
Rising usage of automotive IoT to fuel the integration of RF connectivity standard
The vehicle networking market share from the RF connectivity standard segment is poised to depict more than 6% CAGR through 2030. The solution offers various safety and comfort features to enhance driver experience. The integration of RF connectivity protocols for vehicle communication can provide features such as TPMS (tire pressure monitoring system) and RKE (remote keyless entry). Moreover, with the escalating usage of IoT in automotive systems, the demand for RF vehicle networking connectivity protocols will rise.
Investments in chip production across the APAC region
The Asia Pacific vehicle networking industry is set to exhibit growth rate of around 10% through 2030. The emergence of countries such as Taiwan and South Korea as chip manufacturing hubs is among the prominent reasons for this growth. For instance, Taiwan is responsible for the production of nearly 65% of the world’s semiconductors. This factor is expected to present benefits for the regional industry. These include heightened investment interest, since semiconductors are one of the essential raw materials of vehicle networking systems.
Business expansion strategies to define the competitive landscape
The strategic landscape of the vehicle networking market will witness varied business expansion activities among the companies. Analog Devices, Bosch, ElectRay Technologies Pvt. Ltd., Elmos Semiconductor AG, Melexis NV, Microchip Technology Inc, Sierra Wireless Inc, STMicroelectronics NV, Wurth Elektronic, and Xilinx Inc. are some of the major industry players discussed in the report.