The global automotive communication technology market, valued at 5.84 billion dollars in 2017, is on target to hit 19.99 billion dollars by 2025, with a huge annual growth equal to 16.7 %.

This data appears in the report “Automotive Communication Technology Market by Bus Module (LIN, CAN, FlexRay, MOST, and Ethernet), Application (Powertrain, Body Control & Comfort, Infotainment & Communication, and Safety & ADAS), Vehicle Class, and Region-Global Forecast to 2025" published by MarketsandMarkets.

A summary of the MarketsandMarkets report

Starting with 2017 data, the study takes into consideration the period 2018 - 2025 to develop this forecast and to estimate the future dimensions of the automotive communication technology market.

The report analyses and forecasts market dimensions, both in terms of value (billions of dollars) and volume (hubs), for the automotive communication technology market, segmenting according to bus module, application, vehicle class and region.

There is also a detailed analysis of the various forces that act upon the market. These highlight, for example, how the increase in state mandates and regulations on the industry to reduce emissions and improve vehicle safety, and the increase in the number of electronic systems inside the vehicles, are in fact key factors that should not be undervalued.

Among the sources used in developing the report, the following should be mentioned:

• Automotive Open System Architecture (AUTOSAR);
• Automotive Electronics Council (AEC);
• Driver and Vehicle Standards Agency (DVSA);
• International Council on Clean Transportation (ICCT);
• National Highway Traffic Safety Administration (NHTSA);
• GENIVI Alliance;
• One-Pair Ether-Net (OPEN) Alliance;
• Japan Automobile Manufacturers Association (JAMA);
• European Automobile Manufacturers Association (ACEA);
• Canadian Automobile Association (CAA);
• Korea Automobile Manufacturers Association (KAMA).

Experts from related industries, in-vehicle network architecture vendors, and protocol license providers were interviewed in order to gain insight into future trends of the automotive communication technology market.

The aim of the report

As stated by MarketsandMarkets, the aim of the report is to identify markets trends by observing 4 macro-categories:

Bus Module:

• Local Interconnect Network (LIN)
• Controller Area Network (CAN)
• FlexRay
• Media-Oriented Systems Transport (MOST)
• Ethernet

Application:

• Powertrain
• Body Control & Comfort
• Infotainment & Communication
• Safety & ADAS

Vehicle class:

• Economy
• Mid-Size
• Luxury

Region:

• Asia Pacific
• Europe
• North America
• Rest of the World (RoW)

The strength of the Asia Pacific region

From the report the dimensions of the Asia Pacific area can be noted, which appears to be ready to hold the lion’s share of the automotive communication technology market by 2025.

This growth can for a large part be attributed to the use of advanced technology in production facilities, government programmes designed to encourage the production and use of electric cars to reduce CO2 emissions, and improvement in vehicle safety features.

Second place is not held by the North American market, but by the European one, due to increasing awareness about the advantages of electric cars and motors.

Growth of the CAN (Controller Area Network) segment

According to forecasts an influential force for the period under analysis will be the CAN (Controller Area Network).

Increased use of electronic components in Powertrain and Body Control & Comfort applications are driving the CAN segment in the global market for automotive communications technology.

The Ethernet segment, on the other hand, is showing the sharpest increase in growth during the period covered by the forecast, due to the rise in the installation of related technologies, safety systems and ADAS (Advanced Driver-Assistance Systems).

Growth in the luxury car market

The luxury car segment will be the largest in the market for automotive communications technology during the 2017 - 2025 time frame.

The factors that give rise to these results (and bear in mind that they are simply plausible estimates) are to be found mostly in the increased demand for premium vehicles with advanced comfort and safety features.

Who is dominating the sector?

Dominating the automotive communication technology scene are several key players established on a global level such as Robert Bosch (Germany), Toshiba (Japan), Broadcom (USA), Texas Instruments (USA) and NXP (The Netherlands).