Next Generation In-vehicle Networking (IVN) Market Is Estimated a High Growth Due To Growing Demand For Advanced Driver-Assistance Systems (ADAS) And Connected Vehicles
The Next Generation In-vehicle Networking (IVN) Market is estimated to be valued at USD 1.61 Bn in 2024 and projected to expand at a CAGR of 8.8% during the forecast period 2024-2031. The growth of the market can be attributed to the increasing development of autonomous and electric vehicles globally. Furthermore, the rising demand for advanced driver assistance technologies such as parking assistance, blind-spot detection, and adaptive cruise control is fueling the adoption of next-generation automotive networking platforms.
Market Dynamics:
Growing Demand for Advanced Driver-Assistance Systems (ADAS):
The rising demand for ADAS technologies equipped with features such as adaptive cruise control, lane departure warning, emergency braking, and blind-spot monitoring is a key driver boosting the next generation IVN market. As advanced IVN systems allow smooth data transfer between different electronic control units in a vehicle, their adoption is growing with the increasing integration of ADAS functions.
Increasing Demand for Connected Vehicles
One of the major drivers for the next generation IVN market is the rising demand for connected vehicles. As vehicles are becoming more advanced with added comfort, convenience and safety features, there is a growing need for high-speed networking within automotives. Manufacturers are focusing on integrating connectivity capabilities that allow interaction of the vehicle with external networks and devices. This is driving the adoption of next generation networks that can support applications like telematics, infotainment, navigation and over-the-air updates. The increasing uptake of advanced driver-assistance systems (ADAS) and autonomous driving technologies will further propel the next generation IVN market.
Stringent Safety and Security Regulations
Automotive safety and cybersecurity regulations around the world have been tightened in recent years. Regulatory bodies are mandating automakers to deploy communication networks within vehicles that meet strict data security, reliability and functional safety standards. The ISO and SAE have published several standards for in-vehicle networking and security. Compliance to such standards is necessary to ensure safety of vehicle electronics and protect against cyber threats. OEMs are opting for next generation IVNs that are ASIL certified to address virtual threats and satisfy regulatory protocols. This growing focus on safety and data protection is boosting the next generation IVN industry.
High Development Costs
Transitioning to next generation automotive networks demands huge investments in research and development. Designing new network architectures, protocols, semiconductors and software/controllers to deliver higher bandwidth and lower latency is a complex and expensive process. It also requires collaboration between OEMs and suppliers during product development and testing phases. The high initial costs associated with setting up the necessary infrastructure and workforce to support advanced IVNs acts as a deterrent, especially for smaller players.
Backward Compatibility Issues
A major challenge in adopting new in-vehicle networks is maintaining backward compatibility with existing electronic control units (ECUs) and legacy systems. Next generation IVNs may not be compatible with older network architectures present on the vehicle. This can disrupt the normal functioning of existing applications and components. Considerable redesign efforts and additional hardware may be needed to ensure interoperability between new and old systems. The complexity of enabling a smooth transition towards newer standards without disruption poses technical and financial burdens on automakers.
Growth of Over-the-Air Technology
The rise of software-defined and connected vehicles has opened up opportunities for leveraging over-the-air (OTA) technology capabilities. OTA allows wireless updating of embedded software, firmware, and data in vehicles. This helps automakers reduce costs associated with recalls and repairs by remotely diagnosing issues and delivering software patches. It also improves the driver experience through ongoing feature enhancements. The emergence of next generation IVNs that support high-speed data transfers creates a favorable environment for extensive adoption of OTA technology across diverse vehicle domains.
Integration with Advanced Features
Next generation in-vehicle networks are well-positioned to support the integration of advanced driver-assistance systems, autonomous driving technologies, telematics solutions, VR/AR-based infotainment, and blockchain applications. Automakers are focusing on electrification and development of self-driving cars equipped with high-performance sensors and computing power. The introduction of 5G connectivity will further fuel innovations in mobility. State-of-the-art IVNs can fulfil bandwidth and latency needs of such advanced automotive functionalities, thereby opening up new revenue opportunities.
Key Developments:
- In September 2024, STMicroelectronics Introduced a new family of automotive-grade system-on-chips (SoCs) designed for IVN applications, offering high integration and low power consumption to meet the demands of modern vehicle architectures.
- In October 2024, Microchip Technology Inc. released a new series of automotive Ethernet PHYs that provide robust and reliable connectivity solutions for in-vehicle networks, supporting the industry's shift towards Ethernet-based architectures.
- In November 2024, Analog Devices announced the development of a next-generation IVN transceiver that supports multi-gigabit data rates, enabling high-speed communication for data-intensive applications such as autonomous driving and advanced infotainment systems.
Key Players:
Acome, Aricent Inc, Agilent Technologies, AISIN AW Co Ltd, Analog Devices, Broadcom, Bosch, Daimler AG, Freescale, Harman, NXP, Renault SA, Renesas, Visteon, Wurth Elektronik, and Yazaki Corporation.
