According to the Market Statsville Group (MSG), the global automotive ethernet connector market size is expected to grow from USD 2517.90 million in 2022 to USD 18537.43 million by 2033, at a CAGR of 19.9% from 2023 to 2033. Automotive ethernet is a physical network used to connect automotive parts via cabling (wired network). Automotive ethernet provides a variety of critical functions, including Diagnostic Over Internet Protocol (DoIP-based) diagnostics, in-vehicle communication, and connectivity between electric vehicles and charging stations. Furthermore, as compared to traditional wiring harnesses, automotive ethernet dramatically saves vehicle weight and expense. General Motors, Hyundai, and Volkswagen, among others, are adopting ethernet technology across all automotive vehicles, including passenger cars and commercial vehicles.

Definition of the Global Automotive Ethernet Connector Market

Automobile Ethernet is a type of Ethernet network with a physical layer designed specifically for automotive use cases. The adoption of advanced Phy transceivers reduces cable costs by offering a system capable of vehicle electromagnetic compatibility and immunity standards in car environments. It offers greater baud rate communications than previous automotive network technologies and enables the direct or modified re-use of Internet Protocol (IP) software technology from other sectors for automotive usage, functional safety, cyber security, and so on.

The physical layer distinguishes Ethernet from automotive Ethernet. The communication described above is IP, as are other Ethernet kinds. The physical layer has been optimized for automotive use cases, 100Base-T1 and 1000Base-T1 are switched networks like standard Ethernet, but the Phy transceivers and cables are different, using lower cost single twisted pair with full duplex communication, rather than dual twisted pair, which can be Shielded (STP) or Un-shielded (UTP) depending on needs. With expanded software capability in automobiles, communication among electronic control units (ECUs) has gotten more complicated, and network throughput has increased in bandwidth. Ethernet connector-based connection provides increased capacity and flexibility for integrating cloud services and consumer items. While it may introduce a more sophisticated set of standards and protocols, they are more scalable than specialized automotive networks that use the same communication software to provide changes over time.

COVID-19 Impact on the Global Automotive Ethernet Connector Market

The COVID-19 pandemic has had a profound impact on the automotive industry and has created new challenges for the automotive ethernet connector market. The pandemic has adversely impacted the automotive sector all over the globe. The nationwide lockdown and social distancing norms have encouraged automotive ecosystem vendors to shut down business operations in the first six months of 2020. Advancements in the COVID-19 vaccination, governments' stimulus packages and the recovery in the global economy have initiated a growth trend in the automotive sector. Vehicle sales have increased in Q3 and Q4 of 2020 in North America, APAC, and Europe. This increasing trend is driven by strong customer demand in passenger cars and commercial vehicle segments. Electric Vehicles (EVs) can garner a maximum market share in the future due to development in EV infrastructures, government initiatives, and cost-effectiveness.

Global Automotive Ethernet Connector Market Dynamics

Drivers: Prevalence and rise in demand of electric vehicles

The global adoption of electric vehicles (EVs) has shown progress in recent years. Automobile manufacturers have spent much on the development of electric automobiles. The federal government has launched many measures to accelerate the manufacturing of electric cars for both the consumer and business markets. The broad acceptance of electric cars has been fueled by technological advancements and the expansion of the entire ecosystem, such as advancements in chipsets and modules, the availability of lithium-ion batteries, and the upgrading of charging infrastructure. Automotive Ethernet Connectors provide a wide range of applications, including advanced driving assistance systems (ADAS), entertainment, body and comfort, and engines. Ethernet is a critical technology for EV communication networks since it enables high-speed data transmission and in all these processes the connectors connect the whole cables or wires which makes the connection successful.

The growing demand for ethernet connectors in the electrical vehicle market for the transmission of the data from both the end has boost the market growth of automotive ethernet connector over the forecasting period.

Restraints: Intricacy in-migration from traditional in-vehicle connectivity technologies to ethernet connectors and interoperability or fake connectors

Connectivity is critical in the in-car infrastructure. CAN, LIN, FlexRay, and Radio Frequency (RF) have dominated the in-vehicle communication sector during the previous few decades. Traditional technologies for the in-car network are widely used by automotive OEMs and Tier 1 suppliers. These are low-profile protocols that provide end-to-end connection for automotive ECUs. MOST and FlexRay, for example, were developed to serve new application areas like infotainment and ADAS. Technologies, however, are insufficient to deliver high bandwidth and low latency for infotainment applications.

Moreover, one of the primary problems of the automotive ethernet connector business is interoperability between components offered by various providers. Significant efforts have been made by vehicle manufacturers and ethernet providers to create standards that can offer interoperability for automotive Ethernet components. Interoperability across diverse components is critical because it allows automotive firms and consumers to put different goods from different vendors into the vehicle. Because high-end, mid-range, and low-end automobiles have varying safety features, application developers and automotive manufacturers must ensure that apps generated or made available are compatible with the vehicle's safety system. These low-end products have created a lot of securities concern in these vehicles, and this has hampered the market growth over the forecast period in all over the world.

Opportunities: Growing investment in OEMs

The growth in the consumer economy and increase in OEM’s investments has boost the market growth over the forecast period. Over the last three years, the global electric vehicle (EV) market has grown at an especially rapid pace. Electric vehicle sales reached 6.6 million in 2021, more than tripling their market share from the past two years earlier. According to newly revised electric product range projections revealed by automakers, the entire shift to EV manufacturing for major OEMs might occur as soon as possible. According to global technology intelligence firm ABI Research, auto OEMs will invest an estimated USD 515 billion in EV-related technologies and manufacturing plant upgrades over the next 5 to 10 years. In additional government are also investing in OEM. OEM deals in makes systems or components that are used in another company’s end product. OEMs can save time and money. Third-party components enable an enterprise to focus on its core business instead of having to develop each tertiary part or system. For instance, when a car is manufactured the parts used are from an original manufacturer and the aftermarket parts are produced by vendors which do not have the same level of quality and are not compatible in the same manner with the vehicle.

Scope of the Global Automotive Ethernet Connector Market

The study categorizes the automotive ethernet connector market based on type and application area at the regional and global levels.

By Type Outlook (Sales, USD Billion, 2019-2033)

• Common Connector
• High-Speed Connector

By Application Outlook (Sales, USD Billion, 2019-2033)

• Passenger Car
• Commercial Vehicle

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Cloud based segment accounts for the largest market share by type

Based on the type, the market is bifurcated into on-premises and cloud based. The high-speed connector segment is expected to dominate the market share in 2022 in the global automotive ethernet connector market. There are basically two types of connected presented in the market such as common connector and high-speed connector. These connectors are used in passengers’ cars and commercial cars. High-speed connectors and contacts are interconnecting devices that have been optimized for compatibility with popular data transmission protocols ranging from aerospace-standard data bus protocols like ARINC 1553 and CAN bus to networking protocols like 1000BASE-T Ethernet and peripheral and display protocols like USB 3.0 and SATA. Due to this reasons this segment has register the largest market growth over the forecast period.

North America is projected to account for the highest market share by Region

Based on the regions, the global automotive ethernet connector market has been segmented across North America, Europe, Asia-Pacific, Middle East & Africa, and South America. North America is projected to account the highest market share in 2022. The growing automotive industry outlook covers the demand of this market over the forecast period. The market is likely to be driven by increased electric mobility across key North American nations. Furthermore, rising government assistance in the form of beneficial initiatives and policies is likely to stimulate market demand.

Key Market Players in the Global Automotive Ethernet Connector Market

The automotive ethernet connector market is extremely cutthroat, and significant competitors in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global automotive ethernet connector market are:

• TE Connectivity
• Aptiv
• Japan Aviation Electronics Industry, Ltd.
• Rosenberger High Frequency Technology GmbH & Co. KG
• J.S.T. Mfg. Co. Ltd.
• Sumitomo Electric Industries, Ltd.
• KYOCERA Corporation
• Amphenol Corporation
• Molex, LLC
• Shenzhen Deren Electronics Co. LTD
• LEMO
• Microchip Technology Inc.
• Keysight Technologies
• Bel Fuse Inc.

Recent Development

• In May 2022, TE Connectivity and Phoenix Contact had announced joint development agreement for single pair ethernet M12 hybrid cable assemblies. The agreement brings together innovation from two global companies with high expertise in connectivity with the shared goal of driving market adoption of SPE in the industrial space.
• In December 2022, Aptiv PLC a global technology company focused on making mobility safer, greener, and more connected, had completed the acquisition of Intercable Automotive Solutions from Intercable S.r.l. Intercable Automotive Solutions has enhance Aptiv's position as a global vehicle architecture system.

Key Issues Addressed

• What is the market size by various segmentation of the automotive ethernet connector by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the automotive ethernet connector market?
• What are the key opportunities and trends for manufacturers involved in the automotive ethernet connector supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of automotive ethernet connector in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.