Vehicle Networking Market, By Component, By Communication Protocol, By Network Type, By Application, By Country, and By Region – Global Industry Analysis, Market Size, Market Share & Forecast from 2025-2032

REPORT HIGHLIGHT

Vehicle Networking Market size was valued at US$ 1,843.92 Million in 2024, expanding at a CAGR of 10.11% from 2025 to 2032.

The Vehicle Networking Market focuses on the integration of electronic systems within vehicles to enable efficient communication between components and with external infrastructure. Increasing demand for connected vehicles, government regulations on vehicle safety, and rising adoption of ADAS features are encouraging automakers to incorporate advanced networking technologies such as CAN, LIN, Ethernet, and FlexRay. For instance, in 2023, more than 90% of new vehicles sold in Europe featured at least one form of vehicle connectivity, according to the European Commission. However, high implementation costs and compatibility issues with legacy vehicle architectures continue to challenge the growth potential. Meanwhile, growing interest in autonomous mobility and V2X (Vehicle-to-Everything) communication is creating long-term opportunities. Expansion of 5G infrastructure and increased collaboration between telecom and automotive sectors are further expected to support the integration of real-time vehicle data processing and communication across smart transport ecosystems.

Vehicle Networking Market- Market Dynamics

Rising Integration of Connected Technologies to Accelerate Vehicle Networking Adoption
The surge in connected vehicle infrastructure is reshaping transportation, with the European Commission mandating that all new cars be equipped with advanced connectivity features by 2025 under its General Safety Regulation. This policy, along with U.S. DOT initiatives like V2X (Vehicle-to-Everything) testing corridors, is accelerating the adoption of vehicle networking technologies. According to the International Transport Forum, over 90% of new passenger vehicles in Japan already have some level of embedded connectivity. This rapid shift is driven by the demand for real-time data sharing between vehicles, road infrastructure, and cloud platforms to enhance road safety, traffic flow, and in-vehicle experiences. Moreover, initiatives like India’s Automotive Industry Standard (AIS-140), which mandates GPS and emergency buttons in public transport, further underscore the global momentum. As software-defined vehicles become the norm, robust networking protocols are emerging as the backbone of intelligent mobility ecosystems.

Vehicle Networking Market- Key Insights

As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 10.11% over the forecast period (2025-2032)
Based on Component segmentation, Hardware was predicted to show maximum market share in the year 2024
Based on Communication Protocol segmentation, Vehicle-to-Vehicle (V2V) was the leading Communication Protocol in 2024
Based on Network Type segmentation, Automotive Ethernet was the leading Network Type in 2024
On the basis of region, North America was the leading revenue generator in 2024

Vehicle Networking Market- Segmentation Analysis:

The Global Vehicle Networking Market is segmented on the basis of Component, Communication Protocol, Network Type, Application, and Region.
The market is divided into three categories based on Component: Hardware, Software, and Services. Hardware components like ECUs, gateways, and routers ensure seamless in-vehicle data transmission. Software, including middleware and protocol stacks, manages communication protocols. Services such as data communication, geolocation tracking, vehicle diagnostics, and safety alerts support real-time monitoring and enhance vehicle performance and safety.
The market is divided into two categories based on Communication Protocol: Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), and Vehicle-to-Everything (V2X). Vehicle-to-Vehicle (V2V) enables direct communication between vehicles for collision avoidance. Vehicle-to-Infrastructure (V2I) connects vehicles with road infrastructure for traffic management. Vehicle-to-Everything (V2X) integrates V2V and V2I, enhancing overall connectivity and driving safety across networks.

Vehicle Networking Market- Geographical Insights

The Vehicle Networking Market exhibits varying growth dynamics across regions due to infrastructure readiness, regulatory support, and the pace of automotive digitization. North America, especially the United States, is advancing rapidly with the deployment of V2X technologies and smart highway projects supported by federal transportation initiatives. Europe, led by Germany, France, and the Netherlands, shows strong momentum driven by stringent safety norms and widespread adoption of connected vehicles, including mandates for embedded connectivity in new cars. In Asia-Pacific, countries like China, Japan, and South Korea are emerging as major hubs, with aggressive investments in autonomous mobility and smart city infrastructure. China's push for intelligent transportation systems and electric vehicles supports the large-scale integration of networking components. Meanwhile, India is showing increasing adoption due to government mandates like AIS-140, boosting in-vehicle communication. Latin America and the Middle East are witnessing gradual adoption, mainly in urban areas with improving digital infrastructure.

Vehicle Networking Market- Competitive Landscape:

The competitive landscape of the Vehicle Networking Market is characterized by innovation, strategic alliances, and a strong focus on embedded technologies. Key players such as Bosch, Continental, Denso, Aptiv, and NXP Semiconductors are continuously developing next-generation networking solutions to support increasing vehicle connectivity demands. Automakers are partnering with tech firms to integrate vehicle-to-everything (V2X), Ethernet, and CAN-FD technologies to enhance safety, infotainment, and autonomous driving functions. Several startups and mid-sized players are entering the space with software-defined networking platforms, cloud-based diagnostics, and cybersecurity solutions tailored for in-vehicle communication. Additionally, the industry is witnessing increased collaboration between telecom providers and OEMs to accelerate 5G integration in connected vehicles. Open-source platforms and standardization efforts are also gaining traction, ensuring interoperability across manufacturers and systems. Overall, the market reflects a fast-evolving ecosystem driven by advancements in AI, IoT, and automotive electronics.

Recent Developments:

In June 2025, Verizon Business launched Edge Transportation Exchange, a 5 G-enabled Vehicle-to-Everything (V2X) platform for connected vehicles. The solution enables real-time data sharing between vehicles, infrastructure, and pedestrians, enhancing road safety and efficiency for automakers, governments, and technology partners.
In June 2025, the OpenGMSL Association was formed by leading automotive OEMs and technology partners to establish an open standard for high-speed in-vehicle connectivity. Based on GMSL technology, it aims to accelerate innovation in autonomous driving, ADAS, and infotainment systems worldwide.
In May 2024, Aeonsemi unveiled the Nemo™ platform, an IEEE 802.3ch-compliant multi-Gigabit Ethernet chipset for in-vehicle networking. Nemo™ features the industry’s lowest power 10GBASE-T1 PHYs, integrated switches, and enables seamless, energy-efficient Ethernet connectivity for advanced automotive sensors and zonal architectures.

SCOPE OF THE REPORT


The scope of this report covers the market by its major segments, which include as follows:

GLOBAL VEHICLE NETWORKING MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS

Aptiv PLC
Broadcom Inc.
Cisco Systems, Inc.
Continental AG
Delphi Technologies
Denso Corporation
Harman International Industries, Inc.
Infineon Technologies AG
Intel Corporation
LG Electronics Inc.
Marvell Technology Group Ltd.
NXP Semiconductors N.V.
Panasonic Corporation
Qualcomm Incorporated
Renesas Electronics Corporation
Robert Bosch GmbH
Samsung Electronics Co., Ltd.
STMicroelectronics N.V.
Texas Instruments Incorporated
Vector Informatik GmbH
Others

GLOBAL VEHICLE NETWORKING MARKET, BY COMPONENT- MARKET ANALYSIS, 2019 - 2032

Hardware
ECUs
Gateways
Routers
Software
Middleware
Protocol Stacks
Services
Data Communication
Geolocation Tracking
Vehicle Diagnostics
Safety Alerts

GLOBAL VEHICLE NETWORKING MARKET, BY COMMUNICATION PROTOCOL- MARKET ANALYSIS, 2019 - 2032

Vehicle-to-Vehicle (V2V)
Vehicle-to-Infrastructure (V2I)
Vehicle-to-Everything (V2X)

GLOBAL VEHICLE NETWORKING MARKET, BY NETWORK TYPE- MARKET ANALYSIS, 2019 - 2032

Controller Area Network (CAN)
Local Interconnect Network (LIN)
FlexRay
Media Oriented Systems Transport (MOST)
Automotive Ethernet

GLOBAL VEHICLE NETWORKING MARKET, BY APPLICATION- MARKET ANALYSIS, 2019 - 2032

Powertrain
Infotainment
Body Control & Comfort
Safety & Security
Telematics
Chassis

GLOBAL VEHICLE NETWORKING MARKET, BY REGION- MARKET ANALYSIS, 2019 - 2032

North America
U.S.
Canada
Europe
Germany
UK
France
Italy
Spain
The Netherlands
Sweden
Russia
Poland
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Australia
Indonesia
Thailand
Philippines
Rest of APAC
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of LATAM
The Middle East and Africa
Saudi Arabia
UAE
Israel
Turkey
Algeria
Egypt
Rest of MEA Show more