Vehicle networking market size to surpass $3bn by 2030

17th March 2023
Kiera Sowery

As per the report by Global Market Insights “Worldwide Vehicle Networking market was valued $1 billion in 2021 and will surpass a revenue collection of $3 billion by 2030 with an annual growth rate of 9.5 % over 2022 to 2030.”

This growing popularity of connected vehicles is influencing original equipment manufacturers to undertake strategic initiatives to facilitate a seamless supply of auto components. To cite an instance, in August 2022, II-VI Incorporated and Infineon Technologies AG inked a multi-year agreement for Sick (silicon carbide) wafers.

Through this initiative, Infineon intended to expand its portfolio of semiconductor materials to capitalise on its increasing customer demand for automotive applications. As a result, the production of auto components is likely to surge, augmenting the need for vehicle network communication technology. With regards to the vehicle, the passenger vehicle segment held more than 50.5% of the industry share in 2021, due to the mounting adoption of SUVs, sedans, vans, hatchbacks, and other vehicles. In 2021, passenger cars also accounted for nearly 50% of the total motor vehicle sales. As a result, the popularity of in-vehicle networking architecture will increase for use in passenger cars.

Based on connectivity standards, the industry share from the MOST (Media Oriented Systems Transport) segment was valued at over $72 million in 2021. This is considering the ability of MOST systems to provide plug-and-play functionality, enabling a seamless and user-friendly removal and addition of a MOST device. The deployment of MOST is likely to further increase, owing to the rising need for the transfer of high-quality video, audio, and data in automobiles.

With respect to the application spectrum, the vehicle networking market from the body electronics segment is poised to exhibit over 11.5% CAGR through 2030. The escalating usage of electronic equipment in vehicles and the need for fuel efficiency are expected to boost the utilissation of automotive networking solutions in body electronics.

Semiconductor manufacturing companies have been rapidly launching integrated circuit devices for vehicle applications. To cite an instance, in 2020, Infineon Technologies introduced the Traveo II Body, a microcontroller family, for use in vehicle body electronics. Furthermore, the shifting consumer focus towards enhanced security and comfort is anticipated to product demand from the body electronics segment.

Regionally speaking, North America accounted for more than 33% of the industry share in 2021. This was credited to the increased funding from governments to support electric mobility and enhance vehicle charging infrastructure.

For example, in February 2022, the U.S. Department of Transportation and Energy introduced funding worth $5 million under the NEVI (National Electric Vehicle Infrastructure) Formula Program. This initiative was intended to establish a national EV charging network to make it more accessible to the public. These initiatives are further expected to proliferate the adoption of systems in autonomous vehicles.

The Vehicle Networking market consists of Wagonex Limited, Tata Motors, Toyota, and Volkswagen.

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