Data Bus Market is expected to reach US$ 32.01 Billion by 2031

Continuous Technological Advancements to Fuel Data Bus Market Growth During Forecast Period

According to our latest study, "Data Bus Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Type, Application, and Geography," the market was valued at US$ 22.51 billion in 2024 and is expected to reach US$ 32.01 billion by 2031; it is estimated to register a CAGR of 5.3% during 2025–2031. The report includes growth prospects owing to the current data bus market trends and their foreseeable impact during the forecast period.

The data bus market growth is driven by technological advancements. Traditionally, one of the most significant limitations in AI hardware architectures has been the excessive volume of data that must be continuously transferred between memory and processing units. These transfers strain the existing data bus infrastructure, creating latency and inefficiencies that limit performance and increase power consumption. By embedding AI processing capabilities directly within the memory—essentially decentralizing computation—NEO Semiconductor’s 3D X-AI technology drastically reduces the dependency on external data buses, effectively minimizing traffic congestion, cutting latency, and improving throughput. This technological leap not only enhances the overall performance of AI systems but also reduces energy consumption and manufacturing costs, making next-generation AI chips more accessible and scalable.

Data Bus Market Analysis — by Geography

Source: The Insight Partners Analysis

The ongoing evolution of global telecommunications infrastructure, particularly the progression from 5G to 6G networks, presents a significant opportunity for the data bus market as the demand for high-speed, low-latency data transmission continues to accelerate. The anticipated surge in connected devices, real-time applications, and data-intensive services is driving the need for advanced data communication backbones that can support the bandwidth, reliability, and scalability required by next-generation networks. This, in turn, is anticipated to boost the data bus market growth during the forecast period.

A prime example of this momentum is the European Union’s strategic commitment to 6G development, with commercial deployment targeted for 2030. The EU is not only investing in research and infrastructure but also in policy frameworks that position it to define global standards for future connectivity. Initiatives such as the Smart Networks and Services Joint Undertaking (SNS JU) and the SNS CO-OP project demonstrate a unified approach that brings together innovation, regulatory support, and industry collaboration to drive the next wave of digital transformation. These efforts aim to ensure that 6G connectivity addresses real-world use cases across sectors such as healthcare, energy, and mobility, all of which require reliable, high-speed data exchange between distributed systems and edge computing nodes. As a result, data buses will play a pivotal role in enabling this transformation, serving as the underlying communication infrastructure that connects various components—from sensors and devices to AI processors and cloud-based platforms. The ability to transmit large volumes of data quickly and securely across heterogeneous systems is a critical enabler of these emerging applications.

Astronics Corporation, Collins Aerospace, TE Connectivity Ltd, Amphenol Ltd., Data Device Corporation, Excalibur Systems Inc., Curtiss-Wright Corporation, Keysight Technologies Inc, National Instruments Corp, and Holt Integrated Circuits are among the key players profiled in the data bus market report. Several other major players were also studied and analyzed in the market study to get a holistic view of the market and its ecosystem.

The report includes the data bus market forecast by component, type, and application. Based on component, the market is bifurcated into hardware and software. The hardware segment held a larger data bus market share in 2024. By hardware, the market is segmented into cables and connectors, assemblies/terminators, data bus couplers, interface cards/boards, and others. In terms of type, the market is segmented into ARINC 429/629, MIL-STD-1553, and others. The MIL-STD-1553 segment held the largest data bus market share in 2024. Based on application, the market is segmented into marine, automotive, commercial aviation, and military aviation.

The scope of the data bus market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (China, India, Japan, Australia, Indonesia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).

North America dominated the data bus market in 2024. Europe is the second-largest contributor to the global data bus market, followed by Asia Pacific. North America's position as a global leader in aerospace innovation, coupled with ongoing modernization efforts in both commercial and military aviation, makes it a fertile ground for data bus technology adoption. Investments such as GE's not only reflect the region's industrial resilience and technological ambition but also drive growth in supporting markets, including embedded systems, avionics software, and high-performance data bus networks. This investment is expected to contribute to the North America data bus market growth in the coming years.

Europe represents a significant and technologically advanced region in the data bus market, with strong participation across the aerospace, automotive, and defense sectors. Countries such as Germany, France, and the UK drive regional market growth, backed by a rich industrial base and coordinated defense initiatives such as the European Defence Fund (EDF). Key OEMs such as Airbus, Leonardo, BAE Systems, and Thales Group are integrating data bus solutions into military aircraft, commercial jets, and naval systems. Europe’s emphasis on interoperability and NATO standardization has supported the wide deployment of ARINC 429 and MIL-STD-1553 across joint programs. In the automotive sector, Germany’s leadership in luxury and electric vehicle manufacturing through firms such as Mercedes-Benz, BMW, and Volkswagen has led to increased adoption of high-speed, deterministic bus technologies, including CAN-FD and Automotive Ethernet. Moreover, the European Space Agency (ESA) supports space-grade data bus protocols such as SpaceWire, creating further opportunities in satellite communication and deep space missions. Strict data and cyber regulations (e.g., GDPR, EASA standards) also influence how data bus systems are designed, especially in commercial applications that require secure and traceable data flow.

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