Automotive Communication Protocol Market Research Report By Component (Hardware, Software, Services), By Bus Type (CAN (Controller Area Network), LIN (Local Interconnect Network), MOST (Media Oriented Systems Transport), FlexRay), By Vehicle Type (Passenger Cars, Commercial Vehicles (Light and Heavy Duty), Two Wheelers, Off-Highway Vehicles) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Automotive Communication Protocol Market Overview:

As per MRFR analysis, the Automotive Communication Protocol Market Size was estimated at 1.5 (USD Billion) in 2022. The Automotive Communication Protocol Market Industry is expected to grow from 1.6 (USD Billion) in 2023 to 2.9 (USD Billion) by 2032. The Automotive Communication Protocol Market CAGR (growth rate) is expected to be around 7.4% during the forecast period (2024 - 2032).

Key Automotive Communication Protocol Market Trends Highlighted

Due to a growing need to improve the level of connectivity and add safety and efficiency features to automobiles, the Automotive Communication Protocol Market is about to see a historic rise. Advanced driver-assistance systems (ADAS) and infotainment systems, as well as autonomous driving technologies, have made it necessary to establish secure and uninterrupted interaction among components of vehicles in a more efficient manner. More recently, tethered connections have given way to mobile wireless connectivity as Ethernet vehicles are standard high-speed data communications protocols.

In particular, diffusion of technology such as Wireless Fidelity (Wi-Fi) systems together with Bluetooth, which are short-range radio frequency communication units, have been observed. Also, the use of standardized protocols like Flexible Data Rate Controller Area Network (CAN FD) has been observed, which was developed in response to the growing demand for high data transmission capabilities.

There are also prospects for the creation of new protocols designed to facilitate the interaction of automotive units with other vehicles or Russian Federation vehicles with external infrastructure facilities, e.g., V2V and V2X protocols. Also, as the demand for solutions that protect high-level security and privacy for data increases, there exists room for vendors to provide these solutions in the market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Communication Protocol Market Drivers

Increasing Demand for Connected and Autonomous Vehicles

One of the major drivers of the growth of the Automotive Communication Protocol Market Industry is the increasing demand for connected and autonomous vehicles. As vehicles become more connected and autonomous, they require more sophisticated communication protocols. These enable the vehicles to communicate with each other and with their surrounding infrastructure. In order to ensure the safe and efficient operation of connected and autonomous vehicles, a wide range of automotive communication protocols are in demand.

Growing Adoption of Advanced Driver Assistance Systems (ADAS)

The increasing implementation of Advanced Driver Assistance Systems is another factor contributing to the expansion of the Automotive Communication Protocol Market Industry. Features such as lane departure warning, adaptive cruise control, automatic emergency braking, etc., are used in ADAS, and the latter requires communication protocols to offer security and safety control communications properly. Thus, as the demand for ADAS features grows, the consumption of automotive communication protocols will increase gradually.

Rising Popularity of Electric Vehicles

Another factor driving the growth of the Automotive Communication Protocol Market Industry is the rising popularity of electric vehicles. Electric vehicles require different communication protocols that help them manage the process of charging and communicating with the electrical grid. With the growing number of electric vehicles taking over roads, the demand for automotive communication protocols is also growing.

Automotive Communication Protocol Market Segment Insights:

Automotive Communication Protocol Market Component Insights

The Automotive Communication Protocol Market is classified into three main components, namely hardware, software, and services. The hardware segment dominated the market in 2023 and is projected to continue dominating the market over the forecast period. The growth of this segment is associated with the increasing adoption of ADAS and autonomous vehicles. ADAS and autonomous vehicles require a wide range of sensors, cameras, and other hardware to collect and process data from their environment. The software segment is also projected to grow significantly over the forecast period as automakers invest in developing software platforms to support the latest ADAS and autonomous vehicle technologies.The market is driven by the increasing adoption of ADAS and autonomous vehicles and the growing demand for connected and convenient features in every vehicle. The market is also expected to be driven by the increasing adoption of electric vehicles, which require specialized communication protocols to manage the charging and discharging of batteries.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Communication Protocol Market Bus Type Insights

The Automotive Communication Protocol Market is segmented by Bus Type into CAN (Controller Area Network), LIN (Local Interconnect Network), MOST (Media Oriented Systems Transport), and FlexRay. The CAN segment held the largest market share in 2023 and is projected to continue to lead the market through 2032. The growth of the CAN segment is attributed to its wide adoption in various automotive applications, including engine control, transmission control, and body electronics. The LIN segment is expected to witness the highest CAGR during the forecast period due to its increasing adoption of low-cost and entry-level vehicles.The MOST segment is expected to grow steadily, driven by its use in high-end vehicles and its ability to support multimedia applications. The FlexRay segment is expected to witness moderate growth due to its high cost and complexity, which limits its adoption to high-performance vehicles.

Automotive Communication Protocol Market Vehicle Type Insights

The Automotive Communication Protocol Market is segmented by Vehicle Type into Passenger Cars, Commercial Vehicles (Light and Heavy Duty), Two Wheelers, and Off-Highway Vehicles. Among these segments, Passenger Cars held the largest market share in 2023, accounting for over 55% of the Automotive Communication Protocol Market revenue. The growth of this segment is attributed to the increasing production and sales of passenger cars globally. The commercial Vehicles (Light and Heavy Duty) segment is expected to witness significant growth over the forecast period, owing to the rising demand for commercial vehicles in emerging economies.Two Wheelers segment is also expected to grow at a steady pace, driven by the increasing popularity of two-wheelers in developing countries. Off-Highway Vehicles segment is expected to witness moderate growth over the forecast period due to the increasing demand for off-highway vehicles in the mining, construction, and agriculture industries.

Automotive Communication Protocol Market Regional Insights

The regional segmentation of the Automotive Communication Protocol Market offers insights into the market's geographic distribution and growth potential. North America has been a dominant region in the market, owing to the presence of major automotive manufacturers and the early adoption of advanced communication technologies. In 2023, the region accounted for approximately 38.5% of the Automotive Communication Protocol Market revenue. Europe follows closely behind, with a significant market share of around 32.7%. The region is home to several leading automotive companies and has a well-established automotive industry.APAC region is projected to witness the fastest growth during the forecast period, with a CAGR of 14.3%. The increasing production of vehicles in countries such as China, India, and Japan is driving the growth in this region. South America and MEA regions are expected to have a moderate growth rate due to the growing adoption of automotive communication protocols in these regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Communication Protocol Market Key Players And Competitive Insights:

The measured companies are simultaneously participating in developing new technology or offering new market solutions. Innovations seem to be the most transformative factor that shifts the balance of power in a given industry. Automotive Communication Protocol Market companies are no exception. As a matter of fact, it is vital to develop or implement such solutions as high-speed data transmission, higher security levels, and lower levels of latency. The current technologies, including 5G V2X communication, seem to promote the development of the Automotive Communication Protocol Market.

One of the leaders among the companies that provide automotive communication technologies is NXP Semiconductors. Due to its high-quality products and orgnizational culture of highly supportive service to customers, the company is well-known among a large number of automotive manufacturing companies. The company provides a wide range of communication solutions from CAN to FlexRay and Ethernet protocols. Importantly, the company is particularly aimed at developing new technologies that meet the emerging needs of the industry.

Among the leaders in providing automotive communication protocols, it is possible to name Infineon Technologies. The company provides comprehensive solutions for communication protocols, including CA, CAN FD, and Ethernet interfaces. Infineon Technologies is a company that gained international recognition due to the high quality of its products and particularly the high safety and security levels that these products offer. It is an EU-based company that is becoming increasingly popular worldwide. Importantly, Infineon Technologies is an innovative company that establishes high-quality standards for other companies in the international arena and responds effectively to the needs and requirements of consumers.

Key Companies in the Automotive Communication Protocol Market Include:

• Infineon Technologies


• Continental AG


• Bosch


• KIA Motors


• Valeo


• Magna International


• ZF Friedrichshafen AG


• Toyota Tsusho Corporation


• Lear Corporation


• Texas Instruments


• Aptiv


• NXP Semiconductors


• Denso Corporation


• Hella


• Hyundai Mobis

Automotive Communication Protocol Market Industry Developments

The Automotive Communication Protocol Market is poised to expand significantly over the forecast period, driven by rising demand for advanced driver-assistance systems (ADAS) and autonomous vehicles. In 2023, the market was valued at USD 12.48 billion and is projected to reach USD 39.2 billion by 2032, exhibiting a CAGR of 13.57% from 2024 to 2032. The increasing adoption of electric vehicles and the growing need for improved vehicle safety and connectivity further fuel market growth. Moreover, government regulations mandating the deployment of communication protocols in vehicles are expected to drive market expansion. Key industry players are focusing on developing innovative solutions and strategic partnerships to cater to the evolving needs of the automotive sector.

Automotive Communication Protocol Market Segmentation Insights

Automotive Communication Protocol Market Component Outlook

• Hardware


• Software


• Services

Automotive Communication Protocol Market Bus Type Outlook

• CAN (Controller Area Network)


• LIN (Local Interconnect Network)


• MOST (Media Oriented Systems Transport)


• FlexRay

Automotive Communication Protocol Market Vehicle Type Outlook

• Passenger Cars


• Commercial Vehicles (Light and Heavy Duty)


• Two Wheelers


• Off-Highway Vehicles

Automotive Communication Protocol Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa