Next Generation In-vehicle Networking (IVN) Market is Estimated to Witness High Growth Owing to Opportunity for Improved Connected Vehicles

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Next Generation In-vehicle Networking (IVN) Market is Estimated to Witness High Growth Owing to Opportunity for Improved Connected Vehicles

The global Next Generation In-vehicle Networking (IVN) Market is estimated to be valued at US$ 1553.42 Mn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Next generation in-vehicle networking (IVN) refers to high-speed communication networks that connect electronic control units inside modern vehicles. It enables seamless data communication between various systems and components within vehicles for features like transmission control, advanced driver assistance, infotainment control and telematics. The rising demand for improved connectivity in vehicles to enable technologies like autonomous driving, advanced safety features and over-the-air updates has fueled adoption of next generation IVN solutions.

Market Opportunity:
The growing demand for connected vehicles infrastructure is one of the key market opportunities for next generation IVN solutions. As OEMs focus on introducing advanced connectivity features in vehicles, there is a need for high-speed and reliable in-vehicle communication networks. Next generation IVN technologies allow seamless integration of advanced driver assistance systems, infotainment controls and telematics solutions in connected vehicles. This is supporting automakers to comply with regulations for deploying vehicle-to-everything (V2X) communication capabilities. The rising demand for connected vehicles worldwide will propel adoption of next generation IVN technologies among automakers in coming years.

Porter's Analysis:

Threat of new entrants: The threat of new entrants in the next generation in-vehicle networking (IVN) market is moderate. The market currently has many established players and requires high R&D investments to develop innovative networking technologies and comply with industry standards.

Bargaining power of buyers: The bargaining power of buyers in the IVN market is high. Automotive OEMs hold strong negotiating power over IVN suppliers due to the fragmented nature of the market. Buyers can exert pressure on prices through competition among existing players.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While component manufacturers exist globally, their impact is balanced since OEMs have opportunities to find substitute suppliers.

Threat of new substitutes: The threat of substitutes is moderate. Emerging connectivity technologies can disrupt existing IVN offerings. However, implementing new substitutes requires overcoming design complexity and validation challenges.

Competitive rivalry: Rivalry in the market is high owing to the presence of numerous global and regional players offering customized networking solutions. Players compete based on technological innovation, product capabilities, and pricing.

SWOT Analysis:
Strengths: The market is driven by the rising demand for advanced driver-assistance systems, infotainment applications, and vehicle telematics. IVN technologies improve safety, connectivity, and comfort.
Weaknesses: High investment and longer validation periods pose challenges to innovations. Component integration complexities can delay product development.
Opportunities: Growing autonomous vehicles and mobility services present opportunities. Cooperative intelligent transport systems will drive connectivity upgrades.

Threats: Changing connectivity and cybersecurity standards threaten existing product life cycles. Delays in technology transfers to emerging nations hamper revenue generation.

Key Takeaways:

The Global Next Generation In-Vehicle Networking Market Size is expected to witness high growth over the forecast period, propelled by the rising demand for advanced connectivity in automobiles. Rapid developments in autonomous driving technologies, vehicle electrification, and mobility services are fueling the adoption of innovative in-vehicle networking solutions. The global Next Generation In-vehicle Networking (IVN) Market is estimated to be valued at US$ 1553.42 Mn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030.

North America currently dominates the global IVN market and is expected to maintain its lead through 2030. This can be attributed to robust investments by automotive giants such as GM, Ford, and Tesla in developing self-driving vehicles. Meanwhile, the Asia Pacific region is anticipated to emerge as the fastest-growing regional market, driven by the expanding electric vehicle markets in China, Japan, and South Korea.

Key players operating in the next generation in-vehicle networking (IVN) market include Acome, Aricent Inc, Agilent Technologies, AISIN AW Co Ltd, Analog Devices, Broadcom, Bosch, Daimler AG, Freescale, Harman, NXP, Renault SA, Renesas, Visteon, Wurth Elektronik, Yazaki Corporation. Major players are focused on introducing secured networking technologies and forming strategic partnerships to integrate advanced solutions across diverse vehicle segments.