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The automotive central gateway module market is estimated to grow at a CAGR of 7.09% between 2022 and 2027. The size of the market is forecast to increase by USD 1,152.23 million. The growth of the market depends on several factors, including the increasing government support to promote EVs, the growing importance of crash tests and NCAP ratings, and the importance of automotive network security driving CGM adoption.
This report extensively covers market segmentation by application (passenger cars and commercial vehicles), type (LIN central gateway module, CAN central gateway module, and ethernet central gateway module), and Geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global automotive central gateway module market as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increasing government support to promote EVs is notably driving the market growth, although factors such as low consumer awareness toward advanced safety technologies inhibit the revenue growth of CGM may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Automotive Central Gateway Module Market Driver
Increasing government support to promote EVs is a key driving factor impacting the global automotive central gateway module market growth. Oil dependency, climate change, and clean air are the most crucial factors for governments across the world to promote EVs among consumers. The governments are offering monetary benefits to consumers to drive the adoption of EVs. The growing adoption of EVs is crucial for the revenue growth of the automotive CGM market. The CGM is an important component in these vehicles as there is a need for real-time secure communication of battery status within vehicles.
Hence, the functionality of CGMs remains the same for both EVs and ICE-based vehicles, with differences in data. As EVs are adopters of high electronic content, CGM should support various networking technologies and should be capable of communicating securely with the external world. Thus, EVs require sophisticated CGM that adheres to all requirements, which will contribute to market growth.
Significant Automotive Central Gateway Module Market Trend
The development of integrated cybersecurity solutions is a key trending factor impacting the global automotive central gateway module market growth. Cybersecurity has become a topic of discussion for the automotive ecosystem from the time automated technologies started penetrating the automotive industry. The electrification of vehicles has significantly increased the risk of hacking. Therefore, the automotive ecosystem is working on enhancing cybersecurity solutions for modern vehicles. CGM is crucial for secure data communication in modern vehicles.
Since cybersecurity threats are dynamic, OTA updates are necessary for cybersecurity solutions such as CGM. Infineon Technologies AG and Argus Cyber Security offer integrated cybersecurity solutions in the form of CGM. This CGM has an AURIX multicore microcontroller from Infineon Technologies and Intrusion Detection and Prevention System (IDPS) and a remote cloud platform from Argus Cyber Security. This CGM has an in-built hardware security module (HSM) that protects in-vehicle software and data communication. In addition to security, this CGM has more scalability and rich feature compatibility for the latest connectivity. Such factors will increase the market growth during the forecast period.
Major Automotive Central Gateway Module Market Challenge
Low consumer awareness toward advanced safety technologies inhibits revenue growth of CGM will be a major challenge negatively impacting the global automotive central gateway module market growth. Although ADAS has the potential to transform the automotive sector, its adoption is still limited to selected variants. The reason attributed is that most of the ADAS technologies are still being refined or are expensive, which limits them to the premium segment. These factors impact the revenue of the global automotive CGM market as these technologies require high computing and flexible CGM that support various networking technologies and secure external communication.
Owing to the limitation of technologies to premium cars, most of the ADAS technologies are unfamiliar to the customer. Hence, the automotive ecosystem should focus on increasing customer awareness for ADAS technologies as our research shows that customers tend to prefer vehicles with ADAS technologies if they are well-informed about the benefits of the technology. Currently, automotive OEMs are facing challenges in introducing ADAS technologies in the mass segment vehicles owing to the high cost of ADAS technologies.
Key Automotive Central Gateway Module Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Central Gateway Module Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
aptiv.com - The company offers an automotive central gateway modules that helps in unlocking safety, comfort, and convenience functionality through deep power, data, and integration capabilities.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the passenger cars segment will be significant during the forecast period. In this segment, the automakers are focusing on increasing the safety level of passenger cars and are adopting advanced safety functions that need secure communications. Hence, the demand for automotive CGM is increasing at a rapid rate during the forecast period.
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The passenger cars segment was valued at USD 2,140.10 million in 2017 and continue to grow by 2021. Over the past decade, passenger vehicles witnessed rapid electrification of mechanical components with the introduction of advanced features in safety, security, propulsion, connectivity, and environment. These innovations have been introduced because of factors such as increasing consumer expectations, higher competition leading OEMs to add features to maintain market share, and various government regulations demanding additional safety, fuel efficiency, and security features. This resulted in an increased number of ECUs in passenger vehicles (60-80 ECUs). As a result, CGM became crucial to handle data communication among ECUs. This is driving the growth of the passenger cars segment of the global automotive central gateway module market.
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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The automotive central gateway module market in APAC is expected to register the fastest growth rate during the forecast period. Moreover, in India and China to increased disposable income the penetration of luxury vehicles has been increasing exponentially. Apart from that these countries will also enjoy a cost advantage compared to other developed nations owing to proximity to manufacturing plants. Due to low labor costs, the South-Asian region has become a manufacturing hub for automotive electronics and other components. This can be considered a major factor in reducing the cost of vehicle manufacturing in the sub-continent. Hence, the reduced cost of ownership will result in increased demand for luxury vehicles equipped with advanced features. This will push the adoption of CGM with high networking power, which will support various networking technologies.
The COVID-19 pandemic negatively impacted the growth of the market, as the demand for new cars declined in 2020. However, developed economies in APAC, namely Japan, South Korea, and Australia, were able to control COVID-19 after the vaccination, which supported market growth in these countries. China has also resumed manufacturing automobile and automotive components and accessories. These factors are expected to drive the demand for automotive central gateway modules and propel market growth in APAC during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automotive Central Gateway Module Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.09% |
Market growth 2023-2027 |
USD 1,152.23 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.45 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aptiv Plc, Beijing Jingwei Hirain Technologies Co. Inc., Continental AG, DENSO Corp., FEV Group GmbH, Flex Ltd., Hitachi Ltd., Infineon Technologies AG, Lear Corp., MarkLines, MRS Electronic GmbH and Co. KG, NXP Semiconductors NV, OMRON Corp., Panasonic Holdings Corp., Renesas Electronics Corp., Robert Bosch GmbH, STMicroelectronics NV, Tata Elxsi Ltd, TDK Corp., and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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