The vehicle networking market size has grown strongly in recent years. It will grow from $1.16 billion in 2024 to $1.25 billion in 2025 at a compound annual growth rate (CAGR) of 8%. The growth in the historic period can be attributed to rising complexity of vehicle systems, rise of intelligent transportation systems (its), increased consumer demand for connectivity, 5g connectivity implementation, emergence of electric and hybrid vehicles.
The vehicle networking market size is expected to see strong growth in the next few years. It will grow to $1.76 billion in 2029 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to 5g connectivity implementation, autonomous vehicle development, cybersecurity concerns, smart city integration, environmental sustainability initiatives. Major trends in the forecast period include expansion of over-the-air (ota) updates, growing ecosystem of connected services, shift toward electrification and autonomous vehicles, emphasis on standardization and interoperability, integration of edge computing.
The growing demand for autonomous vehicles is anticipated to drive the expansion of the vehicle networking market. Autonomous vehicles, characterized by their ability to navigate and operate without human intervention, are gaining traction in the vehicle networking sector. These vehicles contribute to improved safety, efficiency, and convenience for both drivers and passengers. For instance, Nissan Motor Co. Ltd., a Japanese automotive manufacturer, reported in September 2022 that 55% of small businesses anticipate having a fully autonomous fleet within the next two decades. This rising demand for autonomous vehicles is a significant driver for the vehicle networking market.
The rise in automobile production is projected to drive the growth of the vehicle networking market. Automobile production involves the manufacturing of various vehicles, including cars, trucks, buses, and other motor types. As vehicle production ramps up, there are more opportunities to integrate advanced connectivity features into automobiles. This encompasses technologies such as telematics, infotainment systems, and vehicle-to-vehicle (V2V) communication, all of which are components of vehicle networking. For example, a report by ACEA (European Automobile Manufacturers Association), a Belgium-based organization representing the automobile industry, indicated that global vehicle production reached 85.4 million units in 2022, marking a 5.7% increase from the previous year. Thus, the growing demand for automobile production is fueling the vehicle networking market.
Technological advancements are a significant trend gaining traction in the vehicle networking market. Key players in the market are increasingly focusing on technological innovations to maintain their competitive edge by adopting new technologies. For example, in 2023, Chevrolet, a US-based automobile manufacturer, introduced the $30,000 Equinox EV, aimed at making electric vehicles more accessible to a broader audience. This model is built on GM's Ultium platform and boasts an estimated range of up to 300 miles, combining advanced technological features with a competitive price to attract budget-conscious consumers seeking sustainable transportation options.
Major companies in the vehicle networking market are concentrating on product development and launches, including automotive Ethernet switch firmware, to maintain their market position. Automotive Ethernet switch firmware is software designed to facilitate secure and high-performance communication within vehicles. For instance, in February 2022, NXP Semiconductors, a Netherlands-based semiconductor firm, launched the S32G Vehicle Integration, which aims to enhance the performance and security of automotive applications. This advanced processor enables high-speed data processing and communication for critical vehicle functions, supporting applications such as advanced driver assistance systems (ADAS) and vehicle-to-everything (V2X) connectivity. The S32G platform is designed to accelerate the development of next-generation vehicle architectures that consolidate multiple functionalities within a single chip, thereby optimizing design efficiency and cost for automotive manufacturers.
In August 2022, Nexar, a US-based provider of powered dash cams, successfully acquired Veniam, a fellow US-based software company specializing in vehicle networking services. Through this strategic acquisition, Nexar aims to fortify its position by providing original equipment manufacturers (OEMs) with an advanced platform, fostering the rapid integration of data-rich mobility applications. The acquisition is anticipated to enhance Nexar's capabilities and offerings in the dynamic field of connected vehicle solutions.
Major companies operating in the vehicle networking market include NXP Semiconductors NV, Texas Instruments Incorporated, Robert Bosch GmbH, Microchip Technology Inc., Xilinx Inc., Infineon Technologies AG, Melexis N.V., STMicroelectronics N.V., Spirent Communications plc, Toshiba Corporation, Renesas Electronics Corporation, Broadcom Inc., Continental AG, Sierra Wireless Inc., NVIDIA Corporation, Vector Informatik GmbH, Aptiv plc, Intel Corporation, BlackBerry Limited, Harman International Industries Incorporated, Marvell Technology Group Ltd., Cypress Semiconductor Corporation, Analog Devices Inc., Maxim Integrated Products Inc., ON Semiconductor Corporation, Qualcomm Technologies Inc., Samsung Electronics Co. Ltd., LG Electronics Inc., Huawei Technologies Co. Ltd., ZTE Corporation, Telefonaktiebolaget LM Ericsson, Nokia Corporation.
North America was the largest region in the vehicle networking market in 2024. The regions covered in the vehicle networking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle networking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Vehicle networking involves the exchange of data and information among diverse electronic systems within a vehicle, aiming to enhance vehicle functionality, safety, and efficiency by enabling seamless communication and data sharing between different systems.
The primary connectivity types within vehicle networking include Controller Area Network (CAN), Local Interconnect Network (LIN), Radio Frequency (RF), FlexRay, Ethernet, and Media Oriented Systems Transport (MOST). CAN is a communication protocol facilitating serial communication among electronic devices within a vehicle. Vehicles encompass various types including Passenger Vehicles (PV), Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV), and Automated Guided Vehicles (AGV). These vehicle networking technologies find applications across various functions such as powertrain safety, body electronics, chassis systems, infotainment, and other vehicle functionalities.
The vehicle networking market research report is one of a series of new reports that provides vehicle networking market statistics, including vehicle networking industry global market size, regional shares, competitors with a vehicle networking market share, detailed vehicle networking market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle networking industry. This vehicle networking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The vehicle networking includes revenues earned by entities by providing services through engine control, navigation systems, vehicle-to-vehicle communication (V2V), Vehicle-to infrastructure communication (V2I), telematics, and remote vehicle control. The market value includes the value of related goods sold by the service provider or included within the service offering. The vehicle networking market also includes sales of powertrain, chassis, automotive ethernet, transceivers which are used in providing vehicle networking services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
The vehicle networking market size is expected to see strong growth in the next few years. It will grow to $1.76 billion in 2029 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to 5g connectivity implementation, autonomous vehicle development, cybersecurity concerns, smart city integration, environmental sustainability initiatives. Major trends in the forecast period include expansion of over-the-air (ota) updates, growing ecosystem of connected services, shift toward electrification and autonomous vehicles, emphasis on standardization and interoperability, integration of edge computing.
The growing demand for autonomous vehicles is anticipated to drive the expansion of the vehicle networking market. Autonomous vehicles, characterized by their ability to navigate and operate without human intervention, are gaining traction in the vehicle networking sector. These vehicles contribute to improved safety, efficiency, and convenience for both drivers and passengers. For instance, Nissan Motor Co. Ltd., a Japanese automotive manufacturer, reported in September 2022 that 55% of small businesses anticipate having a fully autonomous fleet within the next two decades. This rising demand for autonomous vehicles is a significant driver for the vehicle networking market.
The rise in automobile production is projected to drive the growth of the vehicle networking market. Automobile production involves the manufacturing of various vehicles, including cars, trucks, buses, and other motor types. As vehicle production ramps up, there are more opportunities to integrate advanced connectivity features into automobiles. This encompasses technologies such as telematics, infotainment systems, and vehicle-to-vehicle (V2V) communication, all of which are components of vehicle networking. For example, a report by ACEA (European Automobile Manufacturers Association), a Belgium-based organization representing the automobile industry, indicated that global vehicle production reached 85.4 million units in 2022, marking a 5.7% increase from the previous year. Thus, the growing demand for automobile production is fueling the vehicle networking market.
Technological advancements are a significant trend gaining traction in the vehicle networking market. Key players in the market are increasingly focusing on technological innovations to maintain their competitive edge by adopting new technologies. For example, in 2023, Chevrolet, a US-based automobile manufacturer, introduced the $30,000 Equinox EV, aimed at making electric vehicles more accessible to a broader audience. This model is built on GM's Ultium platform and boasts an estimated range of up to 300 miles, combining advanced technological features with a competitive price to attract budget-conscious consumers seeking sustainable transportation options.
Major companies in the vehicle networking market are concentrating on product development and launches, including automotive Ethernet switch firmware, to maintain their market position. Automotive Ethernet switch firmware is software designed to facilitate secure and high-performance communication within vehicles. For instance, in February 2022, NXP Semiconductors, a Netherlands-based semiconductor firm, launched the S32G Vehicle Integration, which aims to enhance the performance and security of automotive applications. This advanced processor enables high-speed data processing and communication for critical vehicle functions, supporting applications such as advanced driver assistance systems (ADAS) and vehicle-to-everything (V2X) connectivity. The S32G platform is designed to accelerate the development of next-generation vehicle architectures that consolidate multiple functionalities within a single chip, thereby optimizing design efficiency and cost for automotive manufacturers.
In August 2022, Nexar, a US-based provider of powered dash cams, successfully acquired Veniam, a fellow US-based software company specializing in vehicle networking services. Through this strategic acquisition, Nexar aims to fortify its position by providing original equipment manufacturers (OEMs) with an advanced platform, fostering the rapid integration of data-rich mobility applications. The acquisition is anticipated to enhance Nexar's capabilities and offerings in the dynamic field of connected vehicle solutions.
Major companies operating in the vehicle networking market include NXP Semiconductors NV, Texas Instruments Incorporated, Robert Bosch GmbH, Microchip Technology Inc., Xilinx Inc., Infineon Technologies AG, Melexis N.V., STMicroelectronics N.V., Spirent Communications plc, Toshiba Corporation, Renesas Electronics Corporation, Broadcom Inc., Continental AG, Sierra Wireless Inc., NVIDIA Corporation, Vector Informatik GmbH, Aptiv plc, Intel Corporation, BlackBerry Limited, Harman International Industries Incorporated, Marvell Technology Group Ltd., Cypress Semiconductor Corporation, Analog Devices Inc., Maxim Integrated Products Inc., ON Semiconductor Corporation, Qualcomm Technologies Inc., Samsung Electronics Co. Ltd., LG Electronics Inc., Huawei Technologies Co. Ltd., ZTE Corporation, Telefonaktiebolaget LM Ericsson, Nokia Corporation.
North America was the largest region in the vehicle networking market in 2024. The regions covered in the vehicle networking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle networking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Vehicle networking involves the exchange of data and information among diverse electronic systems within a vehicle, aiming to enhance vehicle functionality, safety, and efficiency by enabling seamless communication and data sharing between different systems.
The primary connectivity types within vehicle networking include Controller Area Network (CAN), Local Interconnect Network (LIN), Radio Frequency (RF), FlexRay, Ethernet, and Media Oriented Systems Transport (MOST). CAN is a communication protocol facilitating serial communication among electronic devices within a vehicle. Vehicles encompass various types including Passenger Vehicles (PV), Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV), and Automated Guided Vehicles (AGV). These vehicle networking technologies find applications across various functions such as powertrain safety, body electronics, chassis systems, infotainment, and other vehicle functionalities.
The vehicle networking market research report is one of a series of new reports that provides vehicle networking market statistics, including vehicle networking industry global market size, regional shares, competitors with a vehicle networking market share, detailed vehicle networking market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle networking industry. This vehicle networking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The vehicle networking includes revenues earned by entities by providing services through engine control, navigation systems, vehicle-to-vehicle communication (V2V), Vehicle-to infrastructure communication (V2I), telematics, and remote vehicle control. The market value includes the value of related goods sold by the service provider or included within the service offering. The vehicle networking market also includes sales of powertrain, chassis, automotive ethernet, transceivers which are used in providing vehicle networking services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Vehicle Networking Market Characteristics3. Vehicle Networking Market Trends and Strategies4. Vehicle Networking Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market32. Global Vehicle Networking Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Vehicle Networking Market34. Recent Developments in the Vehicle Networking Market
5. Global Vehicle Networking Growth Analysis and Strategic Analysis Framework
6. Vehicle Networking Market Segmentation
7. Vehicle Networking Market Regional and Country Analysis
8. Asia-Pacific Vehicle Networking Market
9. China Vehicle Networking Market
10. India Vehicle Networking Market
11. Japan Vehicle Networking Market
12. Australia Vehicle Networking Market
13. Indonesia Vehicle Networking Market
14. South Korea Vehicle Networking Market
15. Western Europe Vehicle Networking Market
16. UK Vehicle Networking Market
17. Germany Vehicle Networking Market
18. France Vehicle Networking Market
19. Italy Vehicle Networking Market
20. Spain Vehicle Networking Market
21. Eastern Europe Vehicle Networking Market
22. Russia Vehicle Networking Market
23. North America Vehicle Networking Market
24. USA Vehicle Networking Market
25. Canada Vehicle Networking Market
26. South America Vehicle Networking Market
27. Brazil Vehicle Networking Market
28. Middle East Vehicle Networking Market
29. Africa Vehicle Networking Market
30. Vehicle Networking Market Competitive Landscape and Company Profiles
31. Vehicle Networking Market Other Major and Innovative Companies
35. Vehicle Networking Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Vehicle Networking Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on vehicle networking market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for vehicle networking ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The vehicle networking market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- the market characteristics section of the report defines and explains the market.
- the market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- the forecasts are made after considering the major factors currently impacting the market. These include:
- the forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- the regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- the competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- the trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Connectivity Standard: Controller Area Network [CAN]; Local Interconnect Network [LIN]; Radio Frequency [RF]; FlexRay; Ethernet; Media Oriented Systems Transport [MOST]2) by Vehicle: Passenger Vehicles [PV]; Light Commercial Vehicles [LCV]; Heavy Commercial Vehicles [HCV]; Automated Guided Vehicles [AGV]
3) by Application: Powertrain Safety; Body Electronics; Chassis; Infotainment; Other Applications
Subsegments:
1) by Controller Area Network (CAN): CAN 2.0; CAN FD (Flexible Data-Rate)2) by Local Interconnect Network (LIN): LIN 1.3; LIN 2.0; LIN 2.1
3) by Radio Frequency (RF): RF-Based Vehicle Communication; RFID Applications in Vehicles
4) by FlexRay: FlexRay Communications Protocol; Time-Triggered and Event-Triggered Communication
5) by Ethernet: Automotive Ethernet (BroadR-Reach); IEEE 802.1 and 802.3 Standards
6) by Media Oriented Systems Transport (MOST): MOST150; MOST25; MOST50
Key Companies Mentioned: NXP Semiconductors NV; Texas Instruments Incorporated; Robert Bosch GmbH; Microchip Technology Inc.; Xilinx Inc.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Vehicle Networking market report include:- NXP Semiconductors NV
- Texas Instruments Incorporated
- Robert Bosch GmbH
- Microchip Technology Inc.
- Xilinx Inc.
- Infineon Technologies AG
- Melexis N.V.
- STMicroelectronics N.V.
- Spirent Communications plc
- Toshiba Corporation
- Renesas Electronics Corporation
- Broadcom Inc.
- Continental AG
- Sierra Wireless Inc.
- NVIDIA Corporation
- Vector Informatik GmbH
- Aptiv plc
- Intel Corporation
- BlackBerry Limited
- Harman International Industries Incorporated
- Marvell Technology Group Ltd.
- Cypress Semiconductor Corporation
- Analog Devices Inc.
- Maxim Integrated Products Inc.
- ON Semiconductor Corporation
- Qualcomm Technologies Inc.
- Samsung Electronics Co. Ltd.
- LG Electronics Inc.
- Huawei Technologies Co. Ltd.
- ZTE Corporation
- Telefonaktiebolaget LM Ericsson
- Nokia Corporation
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | February 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 1.25 Billion |
| Forecasted Market Value ( USD | $ 1.76 Billion |
| Compound Annual Growth Rate | 8.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 33 |
