July 16, 2024

The Automotive Cloud Market Is Estimated To Witness High Growth Owing To Increasing Adoption Of Connected Cars

Market Overview:

The automotive cloud market involves services and applications that enable connectivity in vehicles. Key products include vehicle management, infrastructure management, auto-diagnostics, and telematics. With advancements in connectivity and auto technologies, cloud platforms help support services such as entertainment, navigation, and vehicle-to-everything communication.

Market Dynamics:

The increasing adoption of connected cars is driving the growth of the Global Automotive Cloud Market Demand.Major automakers are focusing on integrating advanced digital technologies and telematics solutions to enhance customer experience. Furthermore, the growing demand for entertainment, fleet management, and over-the-air update solutions is also fueling market growth. Some of the leading players are focusing on developing secure cloud platforms to manage large volumes of in-vehicle and driving data. This is expected to present lucrative opportunities for market players over the forecast period. However, data privacy and security concerns could hinder the automotive cloud market growth.

SWOT Analysis

Strength: The automotive cloud market provides scalability and flexibility for automakers. It helps reduce the costs associated with data storage and hardware infrastructure. The cloud platform enables over-the-air updates for connected vehicles without visiting service stations.

Weakness: Connected vehicles transfer large amounts of data over networks which increases the risks of cyber threats and data breaches. The lack of standardized cloud protocols results in interoperability issues between connected car platforms.

Opportunity: The growing adoption of advanced driver assistance systems and self-driving cars will boost the need for real-time connectivity and data analytics solutions. The demand for personalized in-vehicle experience among customers is expected to drive new cloud-based applications.

Threats: Stringent regulatory norms associated with data privacy and security in the automotive industry may hamper the growth of the automotive cloud market. The development of 5G networks can also disrupt the established connectivity solutions.

Key Takeaways:

The automotive cloud market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing vehicle production and connectivity adoption. Major automakers are integrating cloud platforms and services to provide advanced mobility solutions.

The Asia Pacific region is expected to dominate the automotive cloud market during the forecast period. This is attributed to the increasing vehicle production and sales in major countries such as China and India. Established automakers are investing heavily in connectivity and mobility startups to gain next-generation technologies.

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.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it