Automotive Ethernet Market Outlook:
Automotive Ethernet Market size was over USD 3 billion in 2025 and is anticipated to cross USD 18.89 billion by 2035, witnessing more than 20.2% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of automotive ethernet is assessed at USD 3.55 billion.
The increasing investments by many major automakers across the globe have made multiple investments in smart vehicle integration. According to the World Internet Conference and CSIS report, through February 2020, 30 of the biggest AV businesses had spent USD 16 billion on creating entirely autonomous technology. In January 2024, China’s top automaker, BYD announced its plan to invest USD 14 billion in smart vehicle technology, including driver assistance systems and software. The company plans to remold and design smart energy vehicles and improve its ADAS.
The growing demand for communication technology in smart cars is a key factor expected to fuel automotive ethernet market growth in the coming years. Ethernet currently offers 100 Mbps and is expected to increase to 150 Mbps compared to media-oriented systems transport. This network has been used mostly for infotainment and media systems. Modern cars use high-tech components that serve as a foundation for in-vehicle communication. Also, through ethernet technology, customers can benefit from better bandwidth, scalability, speed, and reduced latency. To ensure a seamless operation of the vehicle system and infotainment, ethernet technology offers a variety of functions and functionalities.
