The next-generation in-vehicle networking (IVN) market comprises automotive communication protocols and networks that enable seamless communication between various electronic control units and systems within modern vehicles. Advanced IVN interfaces help maximise data transfer speed, optimise bandwidth utilisation and ensure reliable transmission of critical safety and driver assistance data. The growing connectivity within modern cars has significantly increased the amount of data generated and shared between different interfaces on a real-time basis. As a result, next-gen networking standards such as Ethernet, CAN FD and FlexRay are being increasingly adopted as they support high-speed gigabit data transfer and help implement sophisticated driver assistance systems.
The Global Next-Generation In-vehicle Networking (IVN) Market is estimated to be valued at US$ 1789.54 Mn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the next-generation in-vehicle networking (IVN) market are Pfizer Inc., Teva Pharmaceuticals, Mylan N.V., Dr. Reddy’s Laboratories, Zydus Cadila, Sun Pharmaceutical Industries, Aspen Pharmacare, Apotex Inc., Sandoz (a division of Novartis), Lupin Limited. The growing demand for connected vehicle technologies and autonomous driving functions is driving automakers to focus on advanced automotive networking systems. This has resulted in heavier reliance on Ethernet, CAN FD and other reliable high-speed networking interfaces to support technologies such as adaptive cruise control, lane keep assist, automatic braking and self-parking systems.
The global automotive industry is witnessing significant rise in the demand and integration of advanced driver assistance systems and connectivity solutions. As modern vehicles get equipped with sophisticated ADAS and infotainment systems, the need for scalable and robust in-vehicle networking with high-speed data transfer capabilities is surging exponentially. This growing demand is expected to significantly fuel the adoption of next-generation IVN standards in the coming years.
Geographically, the Asia Pacific region dominates the global next-generation in-vehicle networking market and the trend is expected to continue owing to massive automobile production and sale volumes in China and India. Moreover, growing focus of regional automakers on incorporating connected car technologies and ADAS is supporting the market growth. Europe and North America are other major regions witnessing heavy investment in the development of 5G cellular vehicle-to-everything (C-V2X) communication technologies.
Market key trends
One of the key trends gaining traction in the Next Generation In-Vehicle Networking Market Demand is the growing implementation of Ethernet networking. As Ethernet supports high-speed gigabit data transmission rates with relatively lower installation costs, leading automakers are incorporating Ethernet switches to efficiently manage networking of sophisticated driver assistance and infotainment systems. Ethernet’s widespread adoption in other industries and its ability to co-exist with other in-vehicle network interfaces is driving its increasing popularity among automotive OEMs.
Porter’s Analysis
Threat of new entrants: High capital requirements for R&D and testing creates barriers for new companies to enter the market.
Bargaining power of buyers: Automotive OEMs have significant bargaining power over IVN suppliers given the competitiveness in the automotive industry.
Bargaining power of suppliers: A few large technology companies dominate the market, giving them strong bargaining power over automotive companies.
Threat of new substitutes: No close substitutes currently exist for IVN systems used in modern vehicles.
Competitive rivalry: Intense competition exists among top players to gain market share through innovative product development and strategic partnerships.
Geographical Regions
North America currently holds the largest share of the IVN market value owing to significant vehicle production and early adoption of new connectivity technologies by automakers in the region. Asia Pacific is poised to become the fastest growing regional market during the forecast period supported by rising vehicle production and sales in major countries like China and India. Steadily growing purchasing power and demand for connected driving experiences will drive further IVN deployment across new vehicle models.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it