Automotive PCIe Switch Market – By Generation (PCIe 1.0, PCIe 2.0, PCIe 3.0, PCIe 4.0, PCIe 5.0, PCIe 6.0, PCIe 7.0), By Form Factor (M2, Standard PCIe, External PCIe, MPCIe/Mini PCIe, CE, U2, Others), By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles), By Application (ADAS, Mining, Infotainment Systems/IVI, Telematics System, In Car Networking System,Autonomous Technology, Control Units, In Vehicle Cameras and Sensors, Blackbox Recorders, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030

Automotive PCIe Switch Market Overview:

Automotive PCIe Switch Market is estimated to reach $550.94million by 2030, growing at a CAGR of 15.8% during the forecast period 2023-2030. The growing demand for high-speed networking, the requirement for the quickest performance, andthe emergence of sophisticated technology, such as Artificial Intelligence (AI) and Machine Learning Workloadsis driving the demand for Automotive PCIe Switch Market. 
Long-term expansion of PCie technology is driven by investments in creating telecom communication infrastructure with 5G technology, as well as increased use in automotive applications such as ADAS systems, infotainment systems, and so on. These factors positively influence the Automotive PCIe Switch industry outlook during the forecast period.

Market Snapshot: 

Automotive PCIe Switch Market - Report Coverage:

COVID-19 / Ukraine Crisis - Impact Analysis:  
The COVID-19 pandemic caused a decline in the Automotive PCIe switch market due to supply chain interruptions and reduced consumer spending affected demand for automotive electronics, including PCIe switches. However, as the industry adapted to new norms and production resumed, the market showed signs of recovery, driven by increased adoption of advanced driver-assistance systems and infotainment technologies, ultimately shaping a mixed impact on the Automotive PCIe switch market.

The conflict between Russia and Ukraine has the potential to impact the Automotive PCIe switch market due to supply chain disruptions. As Ukraine is a hub for electronics manufacturing, any disruptions could lead to shortages in components like PCIe switches used in automotive electronics. This could result in delayed production, increased costs, and reduced availability of vehicles equipped with advanced connectivity features. Market players may need to diversify sourcing strategies and monitor the situation closely to mitigate potential risks and ensure smooth operations, which could further impact the market.

Key Takeaways:
Fastest Growth of South America Region
Geographically, in the global Automotive PCIe Switch Market share, South Americais analyzed to grow with the highest CAGR of 20.4% during the forecast period 2023-2030. According to Statistics, Brazil is the 8th biggest automotive producer and is the 6th largest producer of new light vehicles, and showing continuous growth with a 2.3% growth in production in the automotive industry. External PCI Express technologies are extensively becoming prevalent in automotive electronic systems for meeting certain standards of safety and reliability and to guarantee transferred application packets at the intended destination in passenger vehicles.

Autonomous TechnologySegment to Register the Fastest Growth
In the Automotive PCIe Switch Market analysis, the Autonomous Technology segment is estimated to grow the fastest during the forecast period. The large amount of data from the multitude of sensorsneedto be processed in real-time in order for the automobile to make split-second decisions. The high bandwidth and low latency of PCI expressswitchesenablethem to perform the task without delays. An increasein R&D inthe testing and improvement of autonomous technology by major industry players such as Tesla, Apple, Hyundai, Ford, and Audi is projected to increase demand for PCIe in the segment.

M2 Form Factor is the Fastest Growing Segment in the Market
M2, Standard PCIe, External PCIe, MPCIe/Mini PCIe, CEM, and U2 are the major form factor segments of the Automotive PCIe market. M2 form factor is an internally mounted expansion card that replaces the previous mSATA (Mini-SATA) standard. These aren’t connected to a motherboard via a cable, and they’re instead plugged directly into the motherboard using a dedicated M2 connector slot.
M2 form factor can transfer data at anywhere from 50% to approximately 650% faster than standard SATA, which depends on the motherboard’s capability. Also, M2 SSD on a motherboard that supports PCI 3.0 generation is faster than a regular SATA drive.

Rising Adoption of Autonomous Vehicles
The growing need for ADAS features, such as collision avoidance, lane departure warning, and adaptive cruise control, has driven the demand for PCIe switches in automobiles. These systems require high-speed data transfer between various components like cameras, sensors, and processors, which can be facilitated by PCIe switches.This number is expected to rise when fully connected and autonomous vehicles become a reality. To meet the car's infotainment and ADAS (advanced driver assistance systems) needs, these ECUs connect the many cameras, sensors, radars, LiDARs, and displays.According to the Statistics, Ford plans to invest $4 billion in driverless vehicles by 2023 and 800,000 driverless cars are expected to be produced worldwide between 2023 and 2030.The dangers associated with in-vehicle electronics and connectivity infrastructure are growing increasingly sophisticated and costly as we move closer to completely autonomous vehicles.This is one of the major factors driving the growth of the Automotive PCIe Switch Market during the forecast period.

Compatibility and interoperability issues
A collaboration of various (and many) technology companies developed the Gen-Z Core Specification revision 1.0, which has the potential to replace PCI-Express. It is capable of transferring hundreds of gigabytes per second per device. In comparison to Gen-Z, PCie advancement is simply too slow. Furthermore, PCI-Express is limited to a point-to-point connection, whereas Gen-Z may be able to circumvent this and interface with RAM.The automotive industry is characterized by a multitude of vendors, each offering their own hardware configurations and software interfaces. This leads to challenges in ensuring seamless interoperability between PCIe switches and different automotive electronic systems.As a result of the increasing rise of alternatives, the Automotive PCie Switch market is expected to experience challenges in the next years.

Automotive PCIe Switch Market Share (%) By Region, 2022

Key Market Players: 

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