This research paper explores the adoption and implementation of Automotive Ethernet as a high-speed, low-latency in-vehicle networking solution that addresses the increasing demands of next-generation automotive electronics. The growing complexity of modern vehicles, driven by advancements in connectivity, autonomous driving technologies, and electric powertrains, has outpaced the capabilities of traditional automotive networks such as CAN, LIN, and MOST. Automotive Ethernet emerges as a scalable and flexible alternative, offering higher bandwidth, reduced wiring complexity, and improved interoperability with existing systems. The study begins by examining the evolution of in-vehicle networks, highlighting the limitations of legacy architectures and the need for more advanced networking solutions. It delves into the technical architecture of Automotive Ethernet, covering the physical layer, network topology, and key standards like 100BASE-T1 and 1000BASE-T1. Moreover, the paper discusses the integration of Time-Sensitive Networking (TSN) to ensure deterministic communication for critical automotive applications, such as Advanced Driver Assistance Systems (ADAS) and vehicle-to-everything (V2X) connectivity. Beyond technical details, the paper evaluates the diverse applications of Automotive Ethernet, ranging from infotainment systems to diagnostic and prognostic capabilities, and the role it plays in supporting domain controllers and zonal architectures in modern vehicle platforms. Performance factors, including signal integrity, electromagnetic compatibility (EMC), and quality of service (QoS), are analyzed to underscore the robustness of Automotive Ethernet in real-world environments. Finally, the paper addresses key integration challenges, such as coexistence with legacy networks, software and middleware development, and cybersecurity concerns. Looking ahead, it explores future trends and opportunities, including multi-gigabit Ethernet, energy-efficient designs for electric vehicles, and integration with 5G and V2X technologies. By synthesizing current research, industry standards, and future prospects, this paper provides a comprehensive outlook on the pivotal role of Automotive Ethernet in enabling the next generation of connected and autonomous vehicles.