The automotive cloud incorporates cloud computing technology into vehicles to process and store data in off-vehicle locations. It helps analyze driving patterns, predict maintenance needs and enables remote diagnostics of vehicles. Rising adoption of connected cars and autonomus driving are fueling the demand for automotive cloud market.
The automotive cloud market is estimated to be valued at US$ 27.84 billion in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
The global automotive cloud market is driven by the increasing connectivity of vehicles and demand for better in-vehicle experience. Cloud platforms enable Over-the-Air updates, real-time vehicle diagnostics, infotainment services, and predictive maintenance which improves the efficiency of automakers and drivers. Major players like Stoelting Co., Kopf Instruments, NeuroLabware, Harvard Apparatus and RWD Life Science are increasingly relying on cloud for better services. The Automotive Cloud Market is estimated to witness significant growth with rising vehicle connectivity and autonomous driving.
Key Takeaways
Key players operating in the Automotive Cloud Market Size are Stoelting Co., Kopf Instruments, NeuroLabware, Harvard Apparatus and RWD Life Science. These players are focusing on developing advanced cloud platforms and services to leverage data analytics for improved automotive experience. growing connectivity of vehicles and rising demand for infotainment services are fueling the adoption of automotive cloud. Cloud technology enables real-time vehicle diagnostics, remote updates and predictive maintenance helping automakers improve efficiency.
Technological advancements like 5G networks, edge computing and AI are enabling advanced applications of automotive cloud. Use of 5G ensures low latency and reliability for mission critical functions. Edge computing processes data locally for applications requiring real-time response like advanced driver assistance and autonomous driving. AI integrated clouds can help predict maintenance needs, driving patterns through analysis of vast volumes of vehicle data.
Market Trends
Rising preference for privately owned vehicles: With increased adoption of ride-sharing and vehicle leasing services, demand for privately owned vehicles is growing. This is fueling the installation of advanced connectivity and infotainment systems requiring automotive cloud support.
Growing adoption of electric vehicles: Electric vehicles rely more on connectivity solutions for remote diagnostics, battery management, and software updates. Rising sales of EVs is driving the demand for automotive cloud platforms.
Market Opportunities
Integrated mobility solutions: Cloud platforms can integrate different mobility solutions like ridesharing, public transport, and vehicle leasing/rental to offer personalized mobility experience.
Data monetization: Automotive cloud creates opportunities to monetize vehicle data through usage-based insurance, targeted advertising, infotainment subscriptions and predictive maintenance services. Aggregated anonymous data can provide insights for self-driving technologies.
Impact of COVID-19 on Automotive Cloud Market Growth
The COVID-19 pandemic has significantly impacted the automotive cloud market. Major automakers had to halt vehicle production facilities during lockdowns to curb the spread of the virus. This led to a substantial drop in new vehicle sales in 2020. According to several industry estimates, global vehicle sales fell by over 16% year-on-year due to the pandemic. The reduced vehicle demand negatively impacted the growth of the automotive cloud market in the short term.
However, post-lockdown easing, automakers are aiming to boost sales through connected vehicle technologies and digital customer experiences. There is a rise in demand for advanced in-vehicle infotainment systems with built-in eSIMs, telematics control units, and other connectivity solutions. Automotive OEMs are increasingly partnering with cloud service providers to offer data-driven aftermarket services like predictive maintenance, remote firmware updates, and usage-based insurance. The transition towards electric vehicles and autonomous driving will further propel the need for cloud computing applications in automobiles.
As automotive manufacturing gradually resumes worldwide, industry experts foresee strong growth opportunities for automotive cloud solutions in applications like vehicle cybersecurity, over-the-air updates, digitally-enhanced customer support, and smart mobility services. OEMs are setting up private automotive clouds and collaborating with public cloud vendors to develop secure, scalable platforms for next-gen connected vehicles. With rising consumer preference for connected driving experiences, the automotive cloud market is expected to recover strongly in the coming years.
Geographical Region with Fastest Growing Automotive Cloud Market
Asia Pacific region is expected to witness the highest CAGR in the global automotive cloud market during the forecast period of 2024 to 2031. This can be attributed to rising disposable incomes, evolving mobility trends, and increasing technology adoption in developing Asian economies. Rapid urbanization, expansion of shared mobility services and digitally empowered lifestyles are driving OEMs to leverage cloud platforms for next-generation in-vehicle experiences and smart mobility solutions. Countries like China and India exhibit immense growth potential for automotive cloud technologies as automobile production ramps up with stringent focus on connected features and EVs. With favorable regulations promoting smart transportation initiatives, Asia Pacific will emerge as a key battleground for automotive cloud solution providers globally.
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