Next Generation In-vehicle Networking (IVN) Market Size and Trends

Global Next Generation In-vehicle Networking (IVN) Market is estimated to be valued at USD 1.61 Bn in 2024 and is expected to reach USD 2.91 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.8% from 2024 to 2031.

Key Takeaways from the Next Generation In-vehicle Networking (IVN) Market Report:

Passenger cars dominate the Next Generation In-vehicle Networking (IVN) market with a share of 49.3% in 2024.
Controller Area Network (CAN) is expected to account for a market share of 40.3% in 2024.
North America is a dominant market with a projected leading share of 48.4% in 2024.

Market Overview:

The demand for next generation in-vehicle networking is increasing at a brisk pace. OEMs are increasingly integrating advanced network technologies in vehicles to enable features like connected cars and autonomous driving. This is driving investments in 5G technologies and standards like IEEE 802.11p for vehicle communications. Additionally, consumer demand for infotainment and comfort features that require high-speed in-vehicle networks is also promoting the need for extensive networking capabilities inside modern vehicles. The technological shifts in automotive technologies are projected to define the future growth trajectory of next generation in-vehicle networking market until 2031.

Next Generation In-vehicle Networking (IVN) Market Concentration By Players

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Key Developments:

In June 2024 Renesas Electronics Corporation expanded its IVN product portfolio with a new series of microcontrollers that offer increased processing power and support for multiple networking standards, catering to the growing complexity of vehicle systems.
In July 2024 Broadcom Inc., announced the development of a high-bandwidth automotive Ethernet switch, enabling faster data transfer rates to support advanced in-vehicle applications and improving overall network performance.
In August 2024, Qualcomm Technologies unveiled a new automotive connectivity platform that integrates 5G capabilities with existing IVN infrastructures, enhancing vehicle-to-everything (V2X) communication and supporting the evolution towards autonomous driving.

Top Strategies Followed by Next Generation In-vehicle Networking (IVN) Market Players

Established Players: Leading companies in the IVN market focus extensively on research and development to deliver high-performance innovative solutions. For example, companies like Bosch, Continental, and Denso invest over 5% of their annual revenues into R&D each year to develop cutting-edge network technologies, security solutions, and vehicle integration systems. These players also form strategic global partnerships with automakers to solidify their market presence. Bosch has partnerships with nearly all major automotive brands to provide customized networking systems tailored to each manufacturer’s needs and development timelines.
Mid-Level Players: Medium sized IVN solution providers focus on delivering quality cost-effective products. Companies such as Molex and Yazaki invest in low-cost manufacturing capabilities in Asia and Eastern Europe to offer affordable networking hardware and software modules. They additionally form technical collaborations, such as Molex partnering with Cloudify to integrate advanced cloud-based networking capabilities into their universal gateway modules. These partnerships help mid-tier players boost technologies and remain competitive against larger rivals.
Small-Scale Players: Emerging local players target niche automotive sub-sectors or geographically concentrated markets. For example, German company Anthropic focuses on developing AI-based cybersecurity tools for commercial vehicles, a niche with less competition. Meanwhile, French startup Oksi targets the domestic aftermarket by offering modular hardware upgrades tailored for popular French automobile models through local automotive shops across the country.

Emerging Startups - Next Generation In-vehicle Networking (IVN) Industry Ecosystem

Innovative Technologies: Startups are actively developing technologies like autonomous driving system provider Anthropic, which applies self-supervised learning techniques to computer vision problems. Aurora Innovations is developing a flexible, scalable “driving graph” to enable autonomous operation of vehicles without high-definition 3D maps. These types of advanced AI and connectivity solutions have potential to significantly impact industry technologies and business models in the coming years.
Sustainable Solutions: Startups also focus on sustainability, like Carlightful that collects and analyses in-car data to reduce emissions and improve driver safety through eco-driving tips and scoring. Eco motive upgraded older fleet vehicles with advanced networking and electrification solutions to decrease oil dependence and lower lifetime emissions.