by Market Overview:
The automotive cloud market involves the integration of cloud computing technologies and services in vehicles and their components to enable advanced functions. Advanced driver-assistance systems (ADAS), in-vehicle entertainment, vehicle diagnostics, telematics services, and software-as-a-service-based systems are some of the major uses of automotive cloud technologies. The automotive cloud enables over-the-air updates for vehicle system software and regular data collection from sensors and components in the vehicle.
Market Dynamics:
The growing demand for connected vehicles and increasing adoption of advanced driver-assistance systems are major drivers for the automotive cloud market. Connected vehicle technologies require cloud-based platforms for remote updates, storage of vast amounts of vehicle data, and delivery of information and entertainment services to drivers and passengers. ADAS technologies such as autonomous emergency braking, adaptive cruise control, and surround view also depend on cloud backends for processing sensor data, model training, and map updates. In addition, the growing need for data-driven vehicle servicing and predictive maintenance is also propelling the automotive cloud market. Automakers are collecting large volumes of operational data from vehicles using cloud platforms to optimize service schedules and improve vehicle reliability.
The global Automotive Cloud Market Demand is estimated to be valued at US$ 24.16 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights
Segment Analysis
The automotive cloud market can be segmented by service type into software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). Among them, the IaaS segment dominates the market currently due to the growing adoption of cloud infrastructure in vehicle telematics and connectivity solutions. IaaS provides cost-effective and scalable hosting of connected vehicle platforms and applications.
PEST Analysis
Political: Governments across regions are supporting cloud-based connected mobility solutions through legislative initiatives to improve road safety and transport infrastructure.
Economic: The rising per capita income and motorization rate in developing economies present a lucrative opportunity for connected vehicles and automotive cloud services.
Social: Younger consumers demand advanced in-vehicle features and connectivity with smartphones, which is driving automakers to offer cloud-based infotainment and telematics services.
Technological: Advancements in 5G networks, vehicle-to-everything communication, and cloud platforms are enhancing the deployment of automotive cloud applications for autonomous driving, predictive maintenance, and fleet management.
Key Takeaways
The global automotive cloud market is expected to witness high growth, exhibiting 18 CAGR over the forecast period, due to increasing demand for advanced driver-assistance systems and infotainment applications in connected vehicles. The market size for 2023 is estimated to be US$ 24.16 Bn.
The Asia Pacific region is projected to dominate the automotive cloud market during the forecast period. This is attributed to the massive production and sales of vehicles in China, Japan, and India. Additionally, OEMs in the region are aggressively launching connected vehicles with cloud-based services and applications to gain an edge over competitors.
Key players operating in the automotive cloud market are Airbiquity, Amazon, Bosch, CloudMade, Connexion, Continental, Denso, Ericsson AB, Harman, Intellias, LG Electronics, Microsoft, Sierra Wireless, Telenav, and Verizon. Major players are focusing on strategic collaborations and partnerships with automakers to expand their connected vehicle solutions and automotive cloud platforms globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
