Automotive Communication Technology Market Size & Share, by Application (Safety & ADAS, Powertrain, Infotainment & Communication, Body Control & Comfort); Bus Module (Ethernet, Controller Area Network (CAN), Local Interconnect Network (LIN), Media-Oriented Systems Transport (MOST), FlexRay); Vehicle Class - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

Growth Drivers

• Integration of AI & ML in Electronic Control Units (ECUs): The need for face recognition, artificial intelligence (AI), machine learning (ML), big data, and the Industrial Internet of Things (IIoT) allows smooth integration of vehicles with automotive manufacturers and dealers. Dell Technologies published a report on ECU stating that AI-integrated models allow vehicles to navigate safely and autonomously, make informed decisions, and interpret their surroundings using sensors such as LiDAR, RADAR, GNSS, and IMU.
  
  This allows real-time communication between control units, sensors, and vehicle components. Furthermore, the number of ECUs per vehicle has increased as a result of the automotive manufacturers' initiatives. For instance, Hitachi in 2022 stated that the integration of ECUs with automobiles would result in a 25-50% reduction in the cost of electric/electronic (E/E) vehicles when compared to previous automotive models.
• Demand for connected vehicles: Automakers emphasize converting older cars to electric vehicles, credited to the growing automotive communication technology. Features such as GPS, augmented reality windscreens and heads-up displays, intelligent speed adaptation, sleep prevention technologies, and the possibility of malfunctioning are some major advancements in vehicles after integrating information and communication technology in automobiles.
  
  Impelled by the growing need for automatic transmissions in cars to improve driving comfort, the revenue share is expected to boost as these vehicles do not require gearboxes. Moreover, the International Energy Agency in 2024 stated that sales of electric vehicles increased by 3.5 million in 2023 compared to 2022, a 35% annual increase. About 18% of all cars sold in 2023 were electric vehicles, up from 14% in 2022. The luxury vehicle share has increased, augmented by the rising demand for connected vehicles.

Challenges

• Less reliability on electronics: The expansion of IoT-connected devices and their applications, poses an increasing risk of security breaches. When designing automotive communication technology, security is the priority to prevent data breaches and unauthorized access. Manufacturers may find it costly and time-consuming to comply with several laws and regulations from the automotive industry, thus, hindering automotive communication technology market growth.
• Operational & maintenance issue: For an automotive communication technology to function consistently, an electric vehicle requires a stable power network. When external interference continuously interrupts the MCU's power supply, it may enter failure mode. A drop in the operating voltage may result in an MCU freezing or acting strangely.