Automotive Communication Technology Market, By Bus Module (Local Interconnect Network (LIN), Controller Area Network (CAN), FlexRay, Media-oriented Systems Transport (MOST), and Ethernet), By Vehicle Class (Economy, Mid-Sized, and Luxury), By Distribution Channel (OEM and Distributors), By Application (Powertrain, Body and Comfort Electronics, Infotainment and Communication, and Safety and ADAS), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Automotive Communication Technology Market was valued at US$ 15.3 billion in 2024 and is projected to grow at a CAGR of 17.0% to reach US$ 64.2 billion by 2034.

Automotive communication technology refers to the computer networks that enable automobiles and roadside units to exchange data and information, including traffic and safety alerts. It presents the fine print on traffic congestion and prevents accidents which is highly advantageous. It is a part of intelligent transportation, which makes it possible for the customer to join a more dependable transportation system. It has increased safety and decreased the number of excessive traffic collisions and is widely applicable in the powertrain. Vehicles can receive information from automotive communication systems, including the location of other vehicles, traffic jams, and safety alerts.

Many different parties are involved in the worldwide automotive communication technology industry, such as automakers, suppliers, technology companies, and service providers. It is fueled by the development of driverless vehicles, linked car services, the growing need for advanced driver assistance systems (ADAS), and the complexity of vehicle electronics. Due to rising disposable income and greater urbanization, the automobile sector has experienced tremendous expansion in recent years, driving up demand for both passenger and commercial vehicles.

The global automotive production levels have increased as a result, propelling the growth of the automotive communication technology market. In order to manufacture cost-effective products, leading industry players are also making significant investments in research and development, which is anticipated to open up new market potential. The growing use of intelligent transportation systems, which give drivers access to real-time traffic reports, toll information, and the best routes, has also helped the industry. These systems improve efficiency and safety on the roads.

There are certain restraining factors that could prevent the market from growing as a whole. The market's growth is being restricted by elements like the high cost of connection nodes and the intricacy of electrical designs. Additionally, it is predicted that during the projection period, electronics architecture will become less reliable and more sophisticated, impeding progress. However, there are plenty of prospects for expansion due to the advancements in technology, the increase in sales of luxury cars, and the unrealized potential in emerging markets.

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Automotive Communication Technology Market Key Drivers:

Increase in the usage of electronic systems in vehicles  

• Automotive communication technology suppliers have potential as a result of the rise in adoption of electric vehicles. Advanced communication systems are essential for controlling battery performance, maximizing energy efficiency, and enabling smart charging features in electric vehicles. From infotainment systems and advanced driver-assistance systems (ADAS) to powertrain management, modern cars have an abundance of electronic features. Robust communication solutions are necessary to enable seamless data flow across these electronic systems due to their growing sophistication.

 A greater focus on the security and safety of vehicles

• The automotive industry is driven by safety and security concerns when it comes to the deployment of communication technology. Real-time data sharing is made possible by cutting-edge communication technologies like ethernet and flexRay for safety-critical applications like automated emergency braking and lane departure warning. Vehicles can connect with networks (V2N), infrastructure (V2I), pedestrians (V2P), and other vehicles (V2V) through the use of V2X technology. This tendency makes it easier to implement cutting-edge safety technologies like cooperative adaptive cruise control and collision warnings, which enhance traffic safety and lower accident rates.

Automotive Communication Technology Market Restrains:

Substantial deployment costs along with technical difficulties

• The installation of software, hardware, and other processes all come at a large expense when implementing sophisticated communication technologies in automobiles. A wide range of procedures, norms, and protocols define the automobile communication technology environment, creating complexity and interoperability issues. Vehicle structure and software development become more difficult when several communication protocols, like LIN (Local Interconnect Network), and MOST (Media Oriented Systems Transport), are integrated. This might result in higher development costs and a longer project duration.

Automotive Communication Technology Market Opportunities:

• There is an immense amount of potential for the automotive communication technology sector when 5G networks are deployed. 5G is suited for applications in connected cars, driverless vehicles, and V2X communication because it offers ultra-high-speed, low-latency, and high-reliability connectivity. Technologies that facilitate the smooth integration of 5G networks with automotive systems present opportunities for improved connectivity, new services, and data sharing. The growing amount of data produced by vehicle communication systems presents prospects for the use of artificial intelligence (AI) and data analytics. All things considered, the market for automotive communication technology presents immense chances for businesses to create and supply cutting-edge communication solutions that meet the changing demands of the automotive sector and promote innovation, safety, and connectivity in automobiles.

Automotive Communication Technology Market is segmented based on bus module, vehicle class, distribution channel, application, and region.

Bus Module Insights

• Local Interconnect Network (LIN): Local interconnect network (LIN) is a flip-flop switch with a single master and several slaves, which serves as the foundation for the LIN, a Universal Asynchronous Receiver-Transmitter (UART) networking architecture. It was created for networking applications involving automotive sensors and actuators.
• Controller Area Network (CAN): Controller area network (CAN) is a dominating segment of this sector for the target market. Electronic Control Units (ECUs) can have a single CAN interface instead of multiple analogue and digital inputs to every device in the system due to CAN's robust and affordable network that facilitates communication between multiple CAN devices. CAN is predicted to have the largest revenue share globally during the forecast period due to its special benefits, which include flexible data rate and low integration costs.
• FlexRay: FlexRay is used for sophisticated in-vehicle control applications, wherein the FlexRay automotive communications system uses a bus protocol with a dual channel data throughput of 10 Mbps. Although the protocol is more costly than the CAN protocol, it is intended to be speedier and more dependable. It functions using a deterministic communications method.
• Media-oriented Systems Transport (MOST): Media-oriented systems transport (MOST) is a vehicle networking method which uses the high-speed multimedia network technology. It is used for voice transmission and functions as a synchronous data communication with ring topology. It is used to transmit data and video signals via the physical layers of optical and electrical fibres.
• Ethernet: Ethernet protocol is used to provide ethernet and IP-based routing in automobiles. Since automotive ethernet provides more flexibility, is less expensive, and can transmit data more powerfully than comparable network technologies, it is important and is used in a variety of car applications.

Vehicle Class Insights

• Economy: Economy vehicle class focuses on affordable options for fundamental communication needs, such as LIN and CAN.
• Mid-Sized: Mid-Sized vehicle class uses a combination of Ethernet, FlexRay, and CAN to balance functionality and cost. This is mostly explained by the average car price range, which is appropriate for the majority of individuals around the world. 
• Luxury: Luxury vehicle class type is a dominating segment of this sector for the target market. It makes use of cutting-edge technology, such as Ethernet and FlexRay, to support intricate features and safety systems.

Distribution Channel Insights         

• OEM: OEM distribution channel type provides communication technology straight to automakers for incorporation into their cars.
• Distributors: Distributors is a distribution channel type which provides aftermarket repair shops and customization companies access to communication technology to be installed in their vehicles.  

Application Insights

• Powertrain: Powertrain segment is expanding due to rising need for powerful engines and smooth driving. The powertrain segment has accelerated because of the growing demand for safer and smoother driving. Additionally, the need to increase vehicle engine economy has been brought on by new government regulations aimed at lowering the pollution rate from passenger cars. This has a bigger impact on the expansion of the powertrain segment as well.
• Body and Comfort Electronics: Body and comfort electronics segment emphasizes on using communication technology to control many aspects of the body and comfort characteristics of the vehicle. It makes data interchange for items like windows, airbags, and lighting mechanisms much easier.
• Infotainment and Communication: Infotainment and communication segment supports the vehicle's features like connectivity functions, entertainment systems, and it’s mapping ability.   
• Safety and ADAS: Safety and ADAS is a dominating segment of this sector for the target market. It guarantees real-time communication for functions such as autonomous driving and collision prevention. The reasons driving the demand for this segment in the automobile industry are those that might be linked to the growing government demands for safety standards.

Regional Insights:

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Automotive Communication Technology Market Regional Insights

• North America market is estimated to witness a major focus on entertainment, connection, and safety features of vehicles. This region consists of early users of cutting-edge communication technologies as a result of the implementation of strict laws and a strong desire for security features.
• Asia Pacific market is estimated to witness a significantly high revenue share over the forecast period, owing to increasing government regulations which are pertaining to the active and passive safety of automobiles, as well as an increase in vehicle manufacturing, are responsible for the expansion of the market in this region. Furthermore, it is anticipated that the region's market will rise due to rising sales of luxury cars, construction activities, and infrastructure investments.
• Europe market is expanding steadily due to the growth in the worldwide automotive communication technology market and can also be attributed to customers' increasing awareness in European countries about the advantages of cutting-edge automotive electronics and the importance of security measures in cars.
• Latin America market is an emerging region which is expected to grow as a result of increasing urbanization and disposable revenue. It is further aided by rising automobile sales, the developing infrastructure, and legislative measures taken in the region.
• Middle East & Africa market is in its developmental stages and is seeing an increase in the need for automotive communication technologies as a result of rising infrastructure spending, economic expansion, and urbanization.

Report Scope:

Attribute	Details
Market Size 2024	US$ 15.3 billion
Projected Market Size 2034	US$ 64.2 billion
CAGR Growth Rate	17.0%
Base year for estimation	2023
Forecast period	2024 – 2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Market Segmentation	By Bus Module - Local Interconnect Network (LIN), Controller Area Network (CAN), FlexRay, Media-oriented Systems Transport (MOST), and Ethernet By Vehicle Class - Economy, Mid-Sized, and Luxury By Distribution Channel- OEM and Distributors By Application - Powertrain, Body and Comfort Electronics, Infotainment and Communication, and Safety and ADAS
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the Automotive Communication Technology Market report based on bus module, vehicle class, distribution channel, application, and region:

Automotive Communication Technology Market, By Bus Module:

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

Automotive Communication Technology Market, By Vehicle Class:

• Economy
• Mid-Sized
• Luxury

Automotive Communication Technology Market, By Distribution Channel:

• OEM
• Distributors

Automotive Communication Technology Market, By Application:

• Powertrain
• Body and Comfort Electronics
• Infotainment and Communication
• Safety and ADAS

Automotive Communication Technology Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Automotive Communication Technology Market includes, Toshiba Corp., Texas Instruments, Inc., STMicroelectronics, Inc., Renesas Electronics Corp., Microchip, Inc., Cypress Semiconductor, Inc., Xilinx, Inc., Elmos Semiconductor, Intel Corp., and Qualcomm, Inc.

• In March 2023, Toshiba created a new communication driver/receiver integrated circuit (IC) for the CXPI standard. Steering switches, instrument cluster switches, light switches, door locks, exterior mirrors, and other applications are among its common usage. The most recent development offers the physical layer interface for car communication protocols that comply with CXPI. Additionally, it provides a range of defect detection features, including low voltage and overheating detection.

• Toshiba Corp.*
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Texas Instruments, Inc.
• STMicroelectronics, Inc.
• Renesas Electronics Corp.
• Microchip, Inc.
• Cypress Semiconductor, Inc.
• Xilinx, Inc.
• Elmos Semiconductor
• Intel Corp.
• Qualcomm, Inc.

“*” marked represents similar segmentation in other categories in the respective section.

Research Objective and Assumption

• Preface
• Research Objectives
• Study Scope
• Years Considered for the study
• Assumptions
• Abbreviations

Research Methodology

• Research data
• Primary Data
  • Primary Interviews
  • Primary Breakdown
  • Key data from Primary Sources
  • Key Thickness Insights
• Secondary Data
  • Major Secondary Sources
  • Secondary Sources
• Market Estimation
• Top-Down Approach
  • Approach for estimating Market Share by Top-Down Analysis (Supply Side)
• Bottom-Up Approach
  • Approach for estimating market share by Bottom-up Analysis (Demand Side)
• Market Breakdown and Data Triangulation
• Research Assumptions

Market Preview

• Executive Summary
• Key Findings—Global Outlook for medical carts Strategies
  • Key Questions this Study will Answer
  • Market Snippet, By Type
  • Market Snippet, By Application
  • Market Snippet, By Region
• Opportunity Map Analysis
• Executive Summary—3 Big Predictions

Market Dynamics, Regulations, and Trends Analysis

• Market Dynamics
  • Drivers
  • Restrains
  • Market Opportunities
  • Market Trends
• DR Impact Analysis
• PEST Analysis
• Porter’s Five Forces Analysis
• Opportunity Orbit
• Market Investment Feasibility Index
• Macroeconomic Factor Analysis

Market Segmentation, By Type, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Hardware Devices  
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Software System
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Application, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Passenger Car
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Commercial Vehicle 
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Global Region, By Region, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • U.S.
    • Canada
• Europe
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application , Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • UK
    • France
    • Germany
    • Russia
    • Italy
    • Rest of Europe
• Asia Pacific
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application , Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific
• Latin America
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application , Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
• Brazil
• Mexico
• Rest of Latin America
• Middle East & Africa
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application , Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East

Competitive Landscape

• Heat Map Analysis
• Market Presence and Specificity Analysis

Company Profiles

• ACITA Group
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Continental AG
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• IntegraBus Ltd.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Luminator Technology Group
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Robert Bosch GmbH
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies

The Last Word

• Future Impact
• About Us
• Contact