The global Automotive Cloud Market is estimated to be valued at US$ 24.16 Bn or Mn 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.
Market Overview:
The automotive cloud market involves integration of cloud computing technology in vehicles. It helps connect vehicles to wireless network systems and provides over-the-air software updates and diagnostics services to enhance user experience. Automotive cloud enables various applications such as entertainment, fleet management, navigation, and remote access services. It helps manage vehicle performance, improve fuel efficiency, enhance user safety, and reduce CO2 emissions. The growing demand for connected vehicles is expected to drive the growth of automotive cloud market during the forecast period.
Market key trends:
One of the major trends in the automotive cloud market is the increasing adoption of advanced technologies such as artificial intelligence, 5G connectivity, and electric vehicles. AI-enabled cloud services are being used for applications like predictive maintenance, self-driving technologies, and personalized in-vehicle experiences. The emergence of 5G technology will boost cloud connectivity in vehicles. Moreover, cloud services are also being adopted for fleet management of electric vehicles. Cloud-based fleet management solutions help track battery usage, view charging station locations, and monitor driver behavior. This is expected to significantly contribute to the automotive cloud market expansion over the forecast period.
Porter’s Analysis
Threat of new entrants: The automotive cloud market requires high R&D investment and established distribution networks. This poses significant barriers for new companies to enter the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several vendors providing automotive cloud solutions. However, switching costs are relatively high.
Bargaining power of suppliers: Major technology players like Microsoft, Amazon Web Services etc act as prominent suppliers with significant bargaining power over pricing and new technologies.
Threat of new substitutes: There are currently no direct substitutes for automotive cloud services. However, advances in 5G and edge computing can emerge as potential threats.
Competitive rivalry: The global automotive cloud market is moderately competitive due to the presence of major players. Players compete based on technological innovations, service portfolios and pricing.
Key Takeaways
The Global Automotive Cloud Market Demand is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing connectivity in vehicles and demand for advanced mobility services.
North America is expected to dominate the global automotive cloud market during the forecast period. This is attributed to the presence of major automotive cloud companies and early adoption of advanced technologies in the region.
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. These players are focusing on new product development and partnerships to gain market share.
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https://www.marketwebjournal.com/automotive-cloud-market-demand-size-and-growth/
