The Next Generation In-vehicle Networking (IVN) market includes technologies like controller area networks (CAN), Ethernet, and MOST that facilitate data transfer within automobiles. IVN allows various electronic control units and sensors placed within vehicles to communicate and exchange critical information for functions like infotainment, navigation, braking, ADAS and autonomous driving systems. The growing demand for connected vehicles with advanced driver-assistance features and future autonomous driving capabilities is driving automakers to upgrade existing wiring architectures and adoptEthernet and fiber optic cable networks that support high-speed data transfer with greater bandwidth.
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) 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 advanced driver assistance systems and autonomous driving capabilities from automakers is driving the Next Generation In-vehicle Networking (IVN) market. Major automotive companies are focusing on investments and collaborations for research and development of newer and versatile network architectures to support infotainment, navigation and self-driving functionalities in future vehicles.
The rising demand for connected vehicles from customers is also surging the Next Generation In-vehicle Networking (IVN) market globally. Consumers expect advanced functionalities including over-the-air updates, digital services, real-time traffic and navigation along with entertainment in vehicles. This is prompting automakers to focus on upgrading existing networks or developing new in-vehicle communication bus technologies.
The Next Generation In-Vehicle Networking Market Demand is estimated to grow at a significant rate owing to the expansion of electric vehicles and autonomous vehicles across regions like North America, Europe and Asia Pacific. Countries like US, Germany, China and Japan are major markets for connected and autonomous vehicles, driving the need for versatile and powerful in-vehicle networking platforms.
Market drivers
The primary driver boosting the Next Generation In-vehicle Networking (IVN) market is the increasing demand for connected and autonomous vehicles from consumers. As vehicles become more software-driven with advanced features, there is a growing need for fast, reliable and secure in-vehicle networking solutions. This is driving automakers to adopt Ethernet, fiber optic networks and evolutions of CAN technology that support data speeds over 1 Gbps in future. The rising sales of luxury and premium vehicles integrated with infotainment and driver-assistance functions is also driving the Next Generation In-vehicle Networking market.
Impact of Geopolitical Situation on the Next Generation In-vehicle Networking (IVN) Market Growth and Geographical Regions
The current geopolitical uncertainties across several regions are impacting the growth of the next generation in-vehicle networking market. The ongoing Russia-Ukraine war has disrupted automotive supply chains in Eastern Europe. Several key automotive component manufacturers have halted or reduced production due to shortage of raw materials. This has negatively impacted the demand for next generation in-vehicle networking solutions in the short term. Similarly, lockdowns imposed during Covid-19 waves in major automotive markets like China and trade restrictions between US and China are also hindering seamless supply of networking components, thereby restraining market expansion.
To overcome such challenges, OEMs need to diversify sourcing and establish partnerships with local suppliers in different geographies. They should also focus on leveraging alternate materials and invest in research for developing indigenous networking chipset technologies. Government incentives for local manufacturing of automotive electronic components can help reduce dependencies on limited regional supply bases. Cooperation between automotive firms and technology providers assuming long term demand forecasting can strengthen supply resilience in times of geopolitical turbulence.
Geographical Regions with Highest Concentration in the Next Generation In-vehicle Networking (IVN) Market
The markets in North America and Europe together hold over 60% share of the global next generation in-vehicle networking market in terms of value currently. This is due to high vehicle production and adoption of advanced driver assistance and connected car technologies by automakers in countries like US, Germany, UK and France. OEMs have been investing heavily in developing autonomous and semi-autonomous vehicles suited for congested city driving conditions prevalent in these regions. Hence networking infrastructure providers are focused on strengthening their distribution networks and customer base here. Additionally, presence of leading chipset and electronic component manufacturers encourage vehicle manufacturers to prioritize upgrading existing fleets here.
Fastest Growing Region in the Next Generation In-vehicle Networking (IVN) Market
The Asia Pacific region is poised to witness the highest growth in the next generation in-vehicle networking market during the forecast period. This is attributable to rising vehicle ownership, emerging economies pushing for localization in auto manufacturing and government incentives for electric vehicles. Countries like China, Japan and South Korea are ushering in stringent safety and emission regulations which necessitate seamless network connectivity between various vehicle control units. Additionally, increasing purchasing power is propelling demand for advanced infotainment and telematics solutions in the region. Thus networking solution providers are actively expanding their presence in Asia Pacific through partnerships with local Tier 1 suppliers and OEMs to tap into future growth opportunities emerging from this lucrative region.
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