July 18, 2024
Automotive Cloud Market

Increasing Deployment Of Connected Cars To Fuel Growth Of Automotive Cloud Market

Market Overview:
The automotive cloud market involves the use of cloud computing technology to support advanced in-vehicle services such as navigation, telematics, diagnostics, vehicle management, and autonomic driving. Automotive cloud allows carmakers to efficiently develop and deploy new features and services by removing the need for hardware upgrades. It enables real-time over-the-air updates that improve vehicle performance, offer safety features, provide entertainment services, and power autonomous driving technologies. With automotive cloud, automakers can provide personalized in-car experiences for customers and reduce time-to-market for new features.

Market key trends:
One of the key trends in the automotive cloud market is the rising demand for connected car technologies. Automakers are increasingly focusing on incorporating connectivity features in vehicles to offer convenience, improve safety, and enhance the driving experience. As automotive cloud offers scalable platform for connected services, its adoption is rising amongst companies to efficiently manage growing volume of data from connected vehicles. Furthermore, growing necessity for over-the-air upgrades is also driving the automotive cloud market. Real-time remote updates help automakers instantly deploy new features, address issues, and enhance vehicle performance. This has increased focus on automotive cloud solutions that facilitate seamless remote updates. Also, increasing transition towards autonomous vehicles will further fuel market growth over the forecast period. Automotive cloud is indispensable for autonomous driving technologies as it offers high-performance infrastructure for processing vast amounts of data from sensors.

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

Porter’s Analysis
Threat of new entrants: The automotive cloud market requires significant infrastructure investment for setting up cloud services. This acts as a barrier for new players to enter the market.
Bargaining power of buyers: The automotive cloud market has many buyers including automotive OEMs and tier 1 suppliers. This increases the buyer’s bargaining power.
Bargaining power of suppliers: Major software and service providers such as Amazon Web Services, Microsoft Azure, etc. have high bargaining power as buyers depend on them.
Threat of new substitutes: There are limited substitutes for automotive cloud services currently. However, alternatives such as in-vehicle connectivity may emerge as substitutes.
Competitive rivalry: The market has the presence of several global players resulting in high competitive rivalry.

Key Takeaways
The global automotive cloud market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing connectivity in vehicles.

Regional analysis: North America dominated the global market in 2023 and is expected to maintain its lead over the forecast period. However, Asia Pacific is anticipated to witness the highest growth with an estimated CAGR of over 20% owing to rising electronic vehicle adoption in countries such as China and India.

Key players: 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. Airbiquity offers automotive cloud platform named ‘Amplify’ which enable cloud connectivity in vehicles.

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