Global Vehicle Networking Market Overview
As per MRFR analysis, the Vehicle Networking Market Size was estimated at 3.45 (USD Billion) in 2022.The Vehicle Networking Market Industry is expected to grow from 3.86(USD Billion) in 2023 to 10.41 (USD Billion) by 2032. The Vehicle Networking Market CAGR (growth rate) is expected to be around 11.67% during the forecast period (2024 - 2032).
Key Vehicle Networking Market Trends Highlighted
The key drivers of growth in the market for vehicle networking are connected and automated vehicles, better safety and efficiency in transport, and more interest in cloud services.
The vehicle networking market has opportunities which include development of innovative applications and services, convergence of vehicle networking with other upcoming technologies, and expansion of the market.
Statistics include recent trends such as gradual up taking of 5G technology, introduction of new V2X communication protocols and the advent of software defined vehicles.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Vehicle Networking Market Drivers
Rising Demand for Connected and Autonomous Vehicles
One of the main drivers of growth in the Vehicle Networking Market Industry is the increased adoption of connected and autonomous vehicles. CAVs require reliable vehicle-to-vehicle and vehicle-to-infrastructure communication networks to transmit data and make decisions in real-time. As CAVs become more widely deployed, the demand for vehicle networking solutions is expected to rise, as these vehicles heavily rely on data sharing and communication.
Government Regulations and Initiatives
In addition to the increasing usage of vehicle networking market for road safety and traffic congestion, a number of government regulations and initiatives are also playing a key role in boosting the demand for this market. These regulations and initiatives mandate the use of vehicle networking technologies in new vehicles. For example, the European Union has mandated that all new vehicles sold in the region should be enabled with V2V and V2I technologies by 2023.Such regulations are expected to pave the way for greater acceptance of vehicle networking in the coming years.
Advancements in Wireless Communication Technologies
Advancements in wireless communication technologies, such as 5G and C-V2X, are also contributing to the growth of the Vehicle Networking Market Industry. 5G technology offers high bandwidth, low latency, and increased reliability, which are critical for supporting the real-time data exchange required for vehicle networking applications. C-V2X technology is specifically designed for vehicle-to-vehicle and vehicle-to-infrastructure communication, providing enhanced range, reliability, and security.These technological advancements are enabling the development of more sophisticated and effective vehicle networking solutions.
Vehicle Networking Market Segment Insights
Vehicle Networking Market Network Connectivity Insights
The Vehicle Networking Market is segmented by Network Connectivity into Cellular Vehicle-to-Everything (C-V2X), Dedicated Short Range Communications (DSRC), Wi-Fi, and Bluetooth. Cellular Vehicle-to-Everything (C-V2X) is a technology that allows vehicles to communicate with each other and with roadside infrastructure. It is expected to be a major driver of growth in the Vehicle Networking Market, with a market size of USD 4.5 billion by 2024. Dedicated Short Range Communications (DSRC) is a technology that allows vehicles to communicate with each other over short distances.It is currently used in some vehicle safety systems, such as lane departure warning and blind spot monitoring. The DSRC market is expected to grow to USD 1.5 billion by 2024. Wi-Fi is a technology that allows vehicles to connect to the internet and to each other. It is expected to be used in a variety of applications, such as infotainment, navigation, and vehicle diagnostics. The Wi-Fi market is expected to grow to USD 1.0 billion by 2024. Bluetooth is a technology that allows vehicles to connect to each other and to other devices, such as smartphones and tablets.It is expected to be used in a variety of applications, such as hands-free calling, music streaming, and vehicle diagnostics. The Bluetooth market is expected to grow to USD 0.5 billion by 2024. The growth of the Vehicle Networking Market is being driven by a number of factors, including the increasing adoption of autonomous vehicles, the growing demand for connected cars, and the increasing need for vehicle safety.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Vehicle Networking Market Vehicle Type Insights
Passenger Cars is the most prominent market sharing segment. The increased demand for connected cars and advanced driver-assistance systems is primarily responsible for the growth of this segment. The rising popularity of ride-sharing services with infotainment systems integration is also fuelling growth in this segment. The Passenger Cars segment was valued at USD 1.45 billion in 2023 and is expected to exceed USD 3.78 billion by 2032, with a CAGR of 11.2% for the 2023 and 2032 cumulative period. The sale of vehicles such as trucks, buses, and vans, known as Commercial Vehicles, is another prominent market-sharing segment.The high number of data obtained by commercial vehicles for fleet management and driver and passenger safety implementations results in increasing vehicle networking. The Commercial Vehicles segment increases from USD 1.02 billion in 2023 to USD 2.67 billion in 2032, with a CAGR of 11.5%. Vehicles for public transit, such as buses and trains, are also experiencing increased exposure to vehicle networking technologies. The Public Transit Vehicles market segment is growing because it is incorporating real-time passenger information systems, automated fare collection systems, and vehicle tracking systems with video surveillance.Public Transit Vehicles segment expands from USD 0.41 billion in 2023 to USD 1.18 billion in 2032, with a CAGR of 12.3%.
Vehicle Networking Market Application Area Insights
The Vehicle Networking Market revenue is segmented based on Application Area into Traffic Management, Fleet Management, Predictive Maintenance, Automated Driving, and others. Among these segments, Traffic Management is expected to hold the largest market share during the forecast period. The growth of this segment can be attributed to the increasing demand for real-time traffic information and the need to improve traffic efficiency. Fleet Management is another major segment, and its growth is driven by the growing adoption of telematics solutions by fleet operators.Predictive Maintenance is a promising segment, as it has the potential to reduce vehicle downtime and maintenance costs. Automated Driving is a relatively new segment, but it is expected to grow rapidly in the coming years as self-driving cars become more common. The Vehicle Networking Market segmentation data and statistics provide valuable insights into the market dynamics and help stakeholders make informed decisions.
Vehicle Networking Market Deployment Model Insights
The Vehicle Networking Market segmentation by Deployment Model is broadly divided into On-Board Unit (OBU) Based, Smartphone Based, and Cloud Based. The On-Board Unit (OBU) Based segment is projected to hold the largest market share during the forecast period due to growing demand for advanced driver assistance systems (ADAS) and increasing adoption of vehicle-to-everything (V2X) communication systems. The Smartphone Based segment is expected to witness substantial growth owing to the rising penetration of smartphones and the availability of various vehicle networking applications.The Cloud Based segment is anticipated to gain traction in the coming years due to the increasing adoption of cloud computing services and the growing need for data storage and processing in vehicle networking systems.
Vehicle Networking Market Service Type Insights
The Vehicle Networking Market is segmented by Service Type into Data Communication, Geolocation Tracking, Vehicle Diagnostics, and Safety Alerts. Among these segments, Data Communication holds the largest market share and is projected to maintain its dominance throughout the forecast period. The growth of this segment is attributed to the increasing adoption of connected vehicles and the rising demand for real-time data exchange between vehicles and infrastructure. Geolocation Tracking is another significant segment, driven by the growing popularity of location-based services and the need for efficient fleet management.Vehicle Diagnostics is expected to witness substantial growth due to the increasing adoption of predictive maintenance and remote diagnostics solutions. Safety Alerts is a rapidly growing segment, driven by regulatory mandates and the increasing focus on road safety. The Vehicle Networking Market revenue is expected to reach USD 10.41 billion by 2032, exhibiting a CAGR of 11.67% during the forecast period (2024-2032).
Vehicle Networking Market Regional Insights
The regional segmentation of the Vehicle Networking Market showcases distinct growth patterns across key geographic regions. North America leads the market with a significant share, driven by advanced automotive technologies and a favorable regulatory environment. Europe follows closely, with a mature automotive industry and a focus on connected and autonomous vehicles. APAC exhibits promising growth potential, particularly in China and India, due to rising vehicle production and increasing demand for connected car features. South America and MEA represent emerging markets with growing adoption of vehicle networking solutions.By 2024, the Vehicle Networking Market revenue is projected to reach $4.23 billion, with a CAGR of 12.1% from 2024 to 2032. These regional insights provide valuable information for market players to tailor their strategies and capitalize on growth opportunities in specific regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Vehicle Networking Market Key Players and Competitive Insights
The leading companies in the Vehicle Networking Market are adopting various strategies, such as partnerships and other agreements, to gain a competitive edge in the market. The market is also driven by the increasing trend of leading Vehicle Networking Market players investing in research and development activities. Moreover, the growth of the Vehicle Networking Market is influenced by factors such as the increasing popularity of connected vehicles, the rising demand for advanced driver assistance systems, and the growing demand for autonomous vehicles.One of the leading organizations in the Vehicle Networking Market is Qualcomm Inc. The company is one of the leading players in the Vehicle Networking Market and offers a variety of V2X products and services, including chipsets, modules, and software. The V2X solutions, developed by Qualcomm, enable vehicles to communicate with each other, with pedestrians, with cyclists, and with road-side infrastructure. The company has also implemented key contracts and agreements with major automakers and Tier 1 suppliers that plan to implement its technology in their new vehicles. Furthermore, the company is also engaged in the development and the promotion of new communication standards for the purposes of V2X communication.Another major player in the same market is Continental AG. The company has also signed contracts with automakers and developed its own V2X solutions, which are designed to increase the safety, efficiency, and convenience of driving. Furthermore, Continental is also an active member of several industrial consortia, whose mission is the development and the promotion of new standards for V2X communication.
Key Companies in the Vehicle Networking Market Include
- Bosch
- Cisco Systems
- Huawei
- Thales Group
- Iteris
- Aptiv
- Intel
- HERE Technologies
- Qualcomm
- Nvidia
- Continental Automotive
- Harman International
- Elektrobit
- TomTom
- Denso Corporation
Vehicle Networking Market Industry Developments
The Vehicle Networking Market is projected to grow from USD 3.86 billion in 2023 to USD 10.41 billion by 2032, at a CAGR of 11.67%. The market is driven by factors such as increasing demand for connected and autonomous vehicles, rising adoption of advanced driver-assistance systems (ADAS), and growing government initiatives to promote vehicle networking.Recent news developments in the market include the launch of new products and services by major players such as Qualcomm, NXP Semiconductors, and Cisco. For instance, in 2023, Qualcomm announced the launch of its new Snapdragon Digital Chassis platform, which is designed to support a range of vehicle networking and connectivity features. Additionally, governments around the world are investing in research and development of vehicle networking technologies. For example, the European Union has launched a new initiative called the Cooperative, Connected, and Automated Mobility (CCAM) program, which aims to promote the development and deployment of vehicle networking technologies.
Vehicle Networking Market Segmentation Insights
-
Vehicle Networking Market Network Connectivity Outlook
- Cellular Vehicle-to-Everything (C-V2X)
- Dedicated Short Range Communications (DSRC)
- Wi-Fi
- Bluetooth
-
Vehicle Networking Market Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
- Public Transit Vehicles
-
Vehicle Networking Market Application Area Outlook
- Traffic Management
- Fleet Management
- Predictive Maintenance
- Automated Driving
-
Vehicle Networking Market Deployment Model Outlook
- On-Board Unit (OBU) Based
- Smartphone Based
- Cloud Based
-
Vehicle Networking Market Service Type Outlook
- Data Communication
- Geolocation Tracking
- Vehicle Diagnostics
- Safety Alerts
-
Vehicle Networking Market Regional Outlook
-
North America
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Europe
-
South America
-
Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
3.45(USD Billion) |
| Market Size 2023 |
3.86(USD Billion) |
| Market Size 2032 |
10.41(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
11.67% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Bosch, Cisco Systems, Huawei, Thales Group, Iteris, Aptiv, Intel, HERE Technologies, Qualcomm, Nvidia, Continental Automotive, Harman International, Elektrobit, TomTom, Denso Corporation |
| Segments Covered |
Network Connectivity, Vehicle Type, Application Area, Deployment Model, Service Type, Regional |
| Key Market Opportunities |
·        Autonomous vehicle development ·        Telematics and infotainment integration Connected logistics and fleet management Cybersecurity and data protection 5G ·        cellular vehicle to CV2X technologies |
| Key Market Dynamics |
·        Increased connected vehicle adoption ·        surging demand for advanced driver assistance systems ADAS ·        government initiatives to promote vehicle networking ·        growing focus on vehicle safety and security technological advancements |
| Countries Covered |
North America, Europe, APAC, South America, ME |
Frequently Asked Questions (FAQ) :
The Vehicle Networking Market is expected to reach a valuation of USD 3.86 billion in 2023.
The Vehicle Networking Market is projected to grow at a CAGR of 11.67% from 2024 to 2032.
North America is expected to hold the largest market share in the Vehicle Networking Market in 2023.
Key applications of Vehicle Networking include traffic management, safety systems, and infotainment.
Some of the key competitors in the Vehicle Networking Market include Qualcomm, NXP Semiconductors, and Intel.
The Vehicle Networking Market is expected to reach a valuation of USD 10.41 billion by 2032.
Factors driving the growth of the Vehicle Networking Market include increasing demand for connected vehicles and the growing adoption of autonomous driving technologies.
Some of the challenges facing the Vehicle Networking Market include security concerns and the need for standardization.
Key trends in the Vehicle Networking Market include the adoption of 5G technology and the development of new use cases.
5G technology is expected to have a significant impact on the Vehicle Networking Market by enabling faster and more reliable data transmission.
