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The automotive communication protocols market size is estimated to grow by USD 637.98 million at a CAGR of 7.11% between 2023 and 2028. Market growth hinges on several factors, notably the accelerating shift toward vehicle electrification, the expanding integration of Advanced Driver Assistance Systems (ADAS), and government initiatives promoting telematics adoption. The surge in electric vehicle (EV) demand propels innovations in telematics, aiming to enhance EV performance, safety, and user experience. ADAS, encompassing technologies like collision avoidance and lane-keeping assistance, increasingly standard in modern vehicles, drives telematics integration to augment functionality and safety features. Government incentives and regulations further propel market growth, encouraging automakers to integrate telematics for enhanced vehicle tracking, diagnostics, and connectivity. These factors collectively drive market expansion, as telematics becomes integral to the automotive industry's future. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The passenger cars segment is estimated to witness significant growth during the forecast period. There is an increasing focus by automakers on enhancing the safety level of passenger cars and are adopting advanced safety functions that need secure communications. As a result, it will fuel the demand for automotive communication protocols at a rapid pace. Furthermore, there has been rapid electrification of mechanical components, with the introduction of advanced features in safety, security, propulsion, connectivity, and the environment.
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The passenger cars segment was the largest segment and was valued at USD 1.10 billion in 2018. Moreover, these innovations have been introduced due to various factors, such as increasing consumer expectations, the addition of new features by OEMs to gain market share, and various government regulations requiring additional safety, fuel efficiency, and security features. In addition, this has significantly increased the number of ECUs in passenger vehicles (60 to 80 ECUs). Therefore, the communication protocol became crucial to handle data communication among various domain ECUs. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 57% 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. One of the main countries that is significantly contributing to the market growth in APAC is China due to the the high-volume adoption of vehicles in the region. In addition, there is an increasing penetration of luxury vehicles especially in India and China due to the increasing disposable income.
Furthermore, these countries enjoy a cost advantage compared to developed countries owing to proximity to manufacturing plants. Therefore, South Asia has become a manufacturing hub for automotive electronics and other components which has become an important factor in reducing the cost of manufacturing vehicles in the sub-continent. Hence, such factors are driving the market growth in APAC during the forecast period.
The market for industrial and military applications is witnessing a transformation driven by advancements in automotive communication technology. Bus modules and Vehicle class specifications, such as Automotive Open System Architecture and Driver and Vehicle Standards, are crucial for the seamless integration of fuel cell systems. One Pair Ether Net (OPEN) and Ethernet protocol facilitate communication between Electronic Control Units (ECUs) in vehicles, enhancing vehicle functionality. Fuel cell systems rely on Media Oriented Systems Transport and other advanced communication protocols for efficient data exchange among ECUs, sensors, infotainment systems, and telematics units. Technologies like Local Interconnect Network (LIN) further streamline communication, optimizing fuel cell performance in industrial and military settings. Our researchers analyzed the data with 2023 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.
One of the key factors driving the market growth is the government initiatives encouraging the use of telematics. Passenger vehicles comprise the largest installers of telematic systems owing to the increased demand for vehicle tracking and navigation services in passenger vehicles. In addition, the main area of focus for regulatory bodies across the world is the services offered by telematics solutions for passenger vehicles, emergency calls, and stolen vehicle tracking.
Moreover, the increasing emphasis on these functions is driving the adoption of connected services by automotive OEMs. In addition, several regulatory organizations have adopted the eCall initiative to make assistance quickly available to passengers involved in accidents. which includes the installation of a telematics device in the vehicle, which automatically informs the roadside assistance team about different parameters, such as GPS coordinates, airbag deployment, and impact sensor information if the vehicle meets with an accident. Hence, such factors drive the market growth during the forecast period.
A key factor shaping the market growth is the use of Ethernet to lay the backbone network of vehicles. Address-based messaging is one of the essential features of Ethernet, which makes it a suitable contender to be used for backbone networks of vehicles. In addition, this is used by switches in an Ethernet network to send data packets to the appropriate recipient in the network. However, software for gateways is installed in the ECU, and it needs to be updated once the network topology is altered which acts as a disadvantage.
As a result, many manufacturers are developing a vehicle backbone network with the help of Ethernet. Therefore, this enhanced version, RTPGE, can be used to design the network backbone of future cars. Hence, the use of Ethernet to lay the backbone network of vehicles will positively impact the market. Therefore, it is expected to drive the market growth during the forecast period.
Data security concerns are one of the key challenges hindering the market growth. Automotive telematics applications in interchangeable virtual instrumentation (IVI) utilize wireless communication systems that are vulnerable to hacking and theft of information. Even though these systems provide Internet connectivity combined with real-time updates and information, access to such information may trigger a breach of information and pose a threat to malicious software.
Moreover, the main concern is the passage of malware through IVI systems to other in-car networks including controller area network (CAN) bus. In addition, this malware may link the in-vehicle entertainment and information systems to critical functions via the onboard ECUs, which allows hackers to seize control of central functions, such as the engine and brakes, by connecting the laptop or mobile devices to the onboard diagnostic port. Hence, such factors hinder the market growth during the forecast period.
The market research 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 Market Customer Landscape
Companies 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.
Broadcom Inc: The company offers automotive communication protocols such as signal integrity, multi row BTB, and high speed edge card.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is rapidly evolving with the advent of autonomous driving capabilities and the growing demand for Premium vehicles. This market encompasses various stakeholders, including semiconductor manufacturers, automotive suppliers, and communication protocol developers, who are driving innovations in electronic components and engine control units (ECUs). The shift towards electric vehicles and connected vehicles is fueling the demand for advanced communication technologies such as 5G and ethernet technology.
Furthermore, these technologies enable intelligent transportation systems, Internet of Things (IoT) connectivity, and features like facial recognition and artificial intelligence for enhanced safety and convenience. The market landscape depends on the Bus module, advanced driver assistance system, smart parking system, advanced engine control system, powertrain, mid size vehicle class. As the automotive industry embraces machine learning for EV batteries optimization and adaptive cruise control, the need for smart parking systems, advanced engine control systems, and body control and comfort features is increasing. This market is particularly prominent in the Luxury cars segment and the mid-size vehicle class, driving collaboration among semiconductor manufacturing companies and other key players.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.11% |
Market Growth 2024-2028 |
USD 637.98 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.69 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 57% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Broadcom Inc., Continental AG, Elmos Semiconductor AG, Infineon Technologies AG, Melexis NV, Microchip Technology Inc., NXP Semiconductors NV, ON Semiconductor Corp., Renesas Electronics Corp., ROHM Co. Ltd., Softing Automotive Electronics GmbH, Speedgoat GmbH, Texas Instruments Inc., Toshiba Corp., Amphenol Communications Solutions, Analog Devices Inc., Aptiv Plc, Robert Bosch GmbH, STMicroelectronics International N.V., and Vector Informatik GmbH |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market 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 market research report to meet your requirements.
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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