Automotive Cloud Market is Anticipated to Witness High Growth Owing to Rapid Adoption of Connected Cars
Cloud computing allows automotive software, platforms and services to be delivered remotely through the internet instead of deploying them individually on device hardware. This brings advantages like reduced costs, easy upgradability and scaling capabilities. The growing popularity of in-vehicle infotainment systems, telematics, OTA updates and autonomous driving functions have increased the usage of connected car technologies. As more vehicles get connected to the internet through embedded modems and smartphones, cloud-based auto services are becoming essential for storing and accessing huge volumes of vehicle data.
The Global automotive cloud market is estimated to be valued at US$ 27.84 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Automotive Cloud Market Size are Stoelting Co., Kopf Instruments, NeuroLabware, Harvard Apparatus, RWD Life Science. These companies are focusing on new product development and partnerships to gain market share.
The key opportunities in the automotive cloud market include developing innovative cloud-based infotainment, navigation, vehicle diagnostics, and autonomous driving applications. Automakers are collaborating with cloud providers to develop specialized automotive-grade cloud platforms.
Globally, the automotive cloud market is expanding with major automotive cloud providers strengthening their presence in key markets such as North America, Europe, China through strategic collaborations and mergers. Cloud service providers are investing in developing robust automotive cloud infrastructure to support connected cars.
Market Drivers
Rapid adoption of connected cars: Connected car technologies such as telematics, remote diagnostics, OTA updates require cloud platform for storing and processing huge volumes of vehicle data which is driving the automotive cloud market.
Market Restrains
Data privacy and security concerns: Though automotive cloud offers several advantages, cybersecurity is a major challenge as vehicle databases containing sensitive user information can be vulnerable to hacking if not properly safeguarded. Strict data protection regulations further complicate compliances.
Segment Analysis
The automotive cloud market can be broadly segmented into two parts - commercial vehicle cloud and passenger vehicle cloud. Passenger vehicle cloud dominates the market currently with over 70% share. This is because passenger vehicles constitute a major part of the overall automobile market and consumers are increasingly demanding cloud-based connectivity and infotainment features in their vehicles. The growing demand for advanced driver-assistance features and need for real-time vehicle diagnostics will also drive the passenger vehicle cloud segment during the forecast period.
Global Analysis
North America currently dominates the global automotive cloud market with over 40% share due to high adoption of advanced automotive technologies. The region is expected to continue its dominance during the forecast period as well supported by the presence of major automobile manufacturers and supportive infrastructure. Asia Pacific is projected to be the fastest growing region for automotive cloud market owing to increasing automobile production and sales from countries such as China and India. rising investment by key players to tap into growing opportunities will further aid the growth of APAC automotive cloud market between 2024-2031. Europe and Latin America are also significant markets with major automobile companies investing in development of connected vehicle technologies.
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