The Automotive Cloud Market will grow at the highest pace owing to increasing demand for over-the-air updates and advanced infotainment systems
The automotive cloud market deals with storing and accessing vehicle data over the internet. Automotive cloud offers real-time vehicle diagnostics, predictive maintenance, traffic-enabled route optimization, and security and safety features. It provides software-as-a-service for autonomous driving solutions, connectivity services, and other advanced mobility applications. Automotive cloud enables automakers and their partners to continuously update vehicle systems and improve functionality post-purchase.
The Global Automotive Cloud Market is estimated to be valued at US$ 27.90 Bn in 2024 and is expected to exhibit a CAGR of 19.6% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the automotive cloud are Daikin Industries Ltd, Sharp Corporation, Mitsubishi Corporation, Hitachi Ltd., Haier Electronics Group Co., Ltd., Carrier, Samsung Electronics, Panasonic, Electrolux AB, and LG Electronics. These players are investing heavily in developing advanced automotive cloud solutions to assist automakers in electrification and autonomous driving efforts.
The Automotive Cloud Market Demand for connected vehicles and advanced driver assistance systems is surging worldwide. Growing preference for in-vehicle infotainment, over-the-air updates, and telematics is driving automotive cloud adoption. Automotive manufacturers are increasingly leveraging cloud services to simplify their software development and upgrade processes.
Rapid advancements in 5G connectivity, edge computing, and artificial intelligence are empowering the automotive cloud. Technologies such as cloud-based computer vision, autonomous navigation, cloud-based maps, and vehicle-to-everything communication are enhancing the driving experience with real-time data analytics and controls. This will further increase cloud dependency in self-driving cars over the forecast period.
Market Trends
The first trend is the rising demand for over-the-air updates. Automotive cloud enables remote and seamless over-the-air software updates for vehicle systems, apps, and firmware to fix bugs and offers new features. The second trend is the preference for embedded telematics and connectivity services. Automotive manufacturers are embedding telematics boxes and internet connectivity to access the cloud platform for premium infotainment, navigation, and comfort features.
Market Opportunities
One major opportunity is the deployment of advanced safety features. Automotive Cloud Market Challenges And Opportunities assists in rolling out advanced driver-assistance systems, collision avoidance technologies with real-time traffic updates, live maps, and remote health monitoring of vehicles through cloud analytics. The second opportunity is autonomous driving solutions. Automotive cloud supports autonomous vehicle technologies through cloud-based HD maps with real-time updates, vehicle-to-vehicle/infrastructure communication, and computer vision algorithms.
Impact of COVID-19 on Automotive Cloud Market Growth
The COVID-19 pandemic has significantly impacted the automotive cloud market growth. During the initial phase of lockdowns, the demand and sales of automobiles declined substantially worldwide leading to reduced investments in connected vehicle technologies and automotive cloud services by automakers. With halted production lines and supply chain disruptions, OEMs focused more on stabilizing their businesses rather than new technology upgrades.
However, as lockdowns eased, the demand for personal vehicles increased owing to people preferring private transport over public transport for safety reasons. This renewed the focus on connected mobility solutions making vehicles safer and more secure. Automakers have realized the advantages of cloud platforms in facilitating over-the-air updates, remote diagnostic services, and software upgrades critical for safety and vehicle performance. More collaborations between tech giants and automakers are being seen to accelerate digital transformations leveraging cloud computing.
As autonomous and electric vehicles become mainstream in the coming years, significant amount of real-time data will need to be processed, stored and analyzed. Automotive cloud solutions will play a pivotal role here by providing scalable infrastructure, analytics and security services. While the initial phase saw slowdown, post-COVID the market is projected to grow at a much faster pace with advanced applications of cloud becoming indispensable for future mobility experiences.
Geographical Regions with Major Market Concentrations
In terms of value, the Asia Pacific region holds the largest share of the global automotive cloud market currently dominated by countries like China, Japan and South Korea. This is attributed to presence of leading automakers and growing sales of connected vehicles in these countries. North America stands second with increasing connectivity adoption by US automakers.
Europe is the fastest growing regional market for automotive cloud driven by strict vehicular emission and safety norms driving innovations. European automakers are heavily investing in cloud-based infotainment platforms, advanced driver-assistance systems, and urban air mobility solutions leveraging cloud edge computing. The Middle East and Africa region is also witnessing rising deployments of cloud platforms to enabling telematics, fleet management and remote service capability crucial for commercial vehicle sector growth.
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