Automotive Communication Technology Market Size to Reach USD 42.44 Billion by 2031, Driven by Rising ADAS Integration and Software-Defined Vehicles – Mordor Intelligence

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Automotive Communication Technology Market Size to Reach USD 42.44 Billion by 2031, Driven by Rising ADAS Integration and Software-Defined Vehicles – Mordor Intelligence

October 03
11:06 2026
Automotive Communication Technology Market Size to Reach USD 42.44 Billion by 2031, Driven by Rising ADAS Integration and Software-Defined Vehicles - Mordor Intelligence
Automotive Communication Technology Market
Mordor Intelligence has published a new report on the Automotive Communication Technology Market offering a comprehensive analysis of trends, growth drivers, and future projections.

Hyderabad – Oct 02, 2026 – According to Mordor Intelligence, the automotive communication technology market size is expected to grow from USD 24.94 billion in 2026 to USD 42.44 billion by 2031, registering a CAGR of 11.22% during the forecast period.

The automotive communication technology industry is expanding as vehicles generate increasing amounts of data through cameras, radar, lidar, infotainment systems, and connected features. Automakers are adopting higher-bandwidth communication technologies to support safety-critical applications and the growing requirements of modern vehicle architectures.

The transition toward software-defined vehicles is also increasing the need for reliable in-vehicle communication and secure over-the-air updates. At the same time, zonal electrical and electronic architectures and Time-Sensitive Networking are supporting the shift toward Ethernet-based automotive networks.

 

Key Trends Shaping the Automotive Communication Technology Market

Rising ADAS Integration Supporting Automotive Communication Technology Market Growth

One of the key automotive communication technology market trends is the increasing integration of advanced driver-assistance systems. Cameras, radar, and lidar generate large volumes of data that require high-bandwidth networks capable of supporting safety-critical communication with low latency.

Zonal E/E Architectures Driving Automotive Communication Technology Market Size Expansion

The emergence of zonal electrical and electronic architectures is supporting the expansion of the automotive communication technology market size. These architectures consolidate electronic control functions into regional computing nodes and increase demand for Ethernet backbones capable of handling multiple types of vehicle data.

Software-Defined Vehicles Accelerating Automotive Communication Technology Market Adoption

The shift toward software-defined vehicles is creating additional demand for advanced communication technologies. Secure over-the-air updates, remote diagnostics, and software-based feature deployment require IP-based networks capable of transferring large software payloads efficiently.

Time-Sensitive Networking Supporting Automotive Communication Technology Industry Expansion

The adoption of Time-Sensitive Networking is supporting the development of deterministic automotive Ethernet. TSN enables time-critical control traffic and high-bandwidth infotainment data to operate across common network architectures while maintaining predictable latency.

 

Automotive Communication Technology Market Segmentation Analysis

By Bus Module

  • Local Interconnect Network (LIN)

  • Controller Area Network (CAN)

  • FlexRay

  • Media-Oriented Systems Transport (MOST)

  • Automotive Ethernet

By Application

  • Powertrain

  • Body Control and Comfort

  • Infotainment and Communication

  • Safety and ADAS

By Communication Type

  • Vehicle-to-Vehicle (V2V)

  • Vehicle-to-Infrastructure (V2I)

  • Vehicle-to-Everything (V2X)

By Vehicle Type

  • Passenger Vehicles

  • Light Commercial Vehicles

  • Medium and Heavy Commercial Vehicles

By Propulsion Type

  • Internal Combustion Engine (ICE)

  • Battery Electric Vehicle (BEV)

  • Hybrid Electric Vehicle (HEV)

  • Plug-in Hybrid Electric Vehicle (PHEV)

  • Fuel-Cell Electric Vehicle (FCEV)

By Distribution Channel

  • Original Equipment Manufacturer (OEM)

  • Aftermarket

By Geography

  • North America

  • South America

  • Europe

  • Asia-Pacific

  • Middle East and Africa

 

Read this Report in Japanese version: https://www.mordorintelligence.com/ja/industry-reports/automotive-communication-technology-market?utm_source=abnewswire

 

Automotive Communication Technology Market Key Players and Competitive Landscape

The automotive communication technology market is moderately concentrated, with semiconductor companies, automotive technology suppliers, and communication technology providers competing across transceivers, switches, networking platforms, and related technologies.

Key players include:

  • NXP Semiconductors N.V.

  • Broadcom Inc.

  • Texas Instruments Inc.

  • Infineon Technologies AG

  • Renesas Electronics Corporation

  • Robert Bosch GmbH

  • Continental AG

  • Denso Corporation

  • Qualcomm Incorporated

  • STMicroelectronics N.V.

 

Conclusion

The automotive communication technology market forecast indicates steady growth through 2031, supported by rising ADAS integration, the emergence of zonal E/E architectures, software-defined vehicles, high-bandwidth infotainment, and the adoption of Time-Sensitive Networking.

However, high network validation costs, limited supplies of automotive-grade multi-gigabit PHY semiconductors, V2X cybersecurity vulnerabilities, and interoperability challenges between legacy CAN/LIN systems and Ethernet remain important considerations for the industry.

Overall, the automotive communication technology market is positioned for continued expansion as automakers transition toward connected, software-defined, and increasingly centralized vehicle architectures.

 

Industry Related Reports

Automotive Telematics System Market: The Automotive Telematics System Market is projected to grow from USD 11.47 billion in 2026 to USD 20.56 billion by 2031, registering a CAGR of 12.38% during the forecast period. The market’s growth is driven by increasing adoption of connected vehicle technologies, rising demand for real-time vehicle monitoring, growing integration of telematics and IoT solutions, and the increasing use of connected systems for fleet management, safety, navigation, and vehicle diagnostics.

Automotive Software Market: The Automotive Software Market is projected to grow from USD 21.08 billion in 2026 to USD 32.93 billion by 2031, registering a CAGR of 9.33% during the forecast period. The market’s growth is driven by increasing vehicle electrification and connectivity, rising adoption of advanced driver assistance and infotainment systems, growing integration of software-defined vehicle technologies, and increasing demand for software-enabled vehicle functions and services.

Get More information: https://www.mordorintelligence.com/industry-reports/global-automotive-software-market?utm_source=abnewswire

 

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