Automotive Communication Protocols Market Size 2024-2028

The automotive communication protocols market is poised for significant growth, estimated to expand by USD 637.98 million, with a compound annual growth rate (CAGR) of 7.11% from 2023 to 2028. Key factors driving this growth include the accelerating shift toward vehicle electrification, the expanding integration of Advanced Driver Assistance Systems (ADAS), and government initiatives promoting telematics adoption. These developments are particularly fueled by the rising demand for electric vehicles (EVs), which drive innovations in telematics and enhance EV performance, safety, and user experience.

The market is also benefiting from the increasing standardization of ADAS technologies like collision avoidance and lane-keeping assistance, driving telematics integration in modern vehicles. Government incentives and regulations encouraging telematics adoption further fuel this trend, enhancing vehicle tracking, diagnostics, and connectivity capabilities.

For more details about the industry, get the PDF sample report for free

Market Segmentation

By Application

• Passenger Cars: The passenger cars segment is projected to witness significant growth during the forecast period. Increasing consumer expectations and automakers’ focus on enhancing safety and security functions are driving the demand for secure communications. These innovations are facilitated by rapid electrification, advanced safety features, and the growing importance of telematics in vehicles. The passenger cars segment was valued at USD 1.10 billion in 2018 and is set to grow due to these factors.
• Commercial vehicles

By Type

• LIN 
• CAN 
• Flexray 
• MOST 
• Ethernet

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Rest of Europe
• APAC
  • China
  • India
• South America
  • Chile
  • Argentina
  • Brazil
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • Rest of the Middle East & Africa

Market Dynamics

Key Market Driver Government initiatives encouraging telematics adoption in passenger vehicles are a primary driver. The increased demand for vehicle tracking, navigation services, and emergency response systems such as the eCall initiative are propelling the growth of telematics in vehicles. These regulations facilitate safer vehicle environments by enabling automatic reporting in case of accidents, directly enhancing market expansion.

Major Market Trends The use of Ethernet for vehicle backbone networks is becoming increasingly significant. Ethernet's address-based messaging makes it a suitable candidate for these networks, and many manufacturers are implementing Ethernet in their systems to enhance vehicle functionality. This trend is expected to positively impact the market growth during the forecast period.

Significant Market Challenge Data security concerns present a significant challenge to market growth. Automotive telematics applications are vulnerable to hacking and information theft, especially in systems with wireless communication. The risk of malware spreading through in-vehicle networks, such as the controller area network (CAN) bus, poses a threat to vehicle functionality and data security, potentially hindering market growth.

Get more details by ordering the complete report

Key Players

• Broadcom Inc.: Specializes in automotive communication protocols, including signal integrity, multi-row BTB, and high-speed edge cards.
• Continental AG
• Elmos Semiconductor AG
• Infineon Technologies AG
• Melexis NV
• Microchip Technology Inc.
• NXP Semiconductors NV
• ON Semiconductor Corp.
• Renesas Electronics Corp.
• ROHM Co. Ltd.
• Softing Automotive Electronics GmbH
• Speedgoat GmbH
• Texas Instruments Inc.
• Toshiba Corp.
• Amphenol Communications Solutions
• Analog Devices Inc.
• Aptiv Plc
• Robert Bosch GmbH
• STMicroelectronics International N.V.
• Vector Informatik GmbH