April 23, 2024
Automotive Cloud Market

Automotive Cloud Market Poised To Grow Considerably Due To Advancements In Cloud Technology

The automotive cloud market involves services that provide IT resources and cloud computing applications for connected vehicles and driver assistance systems. Cloud computing allows automakers to store huge volumes of data generated from connected vehicles and helps them provide over-the-air updates and upgrades to vehicle software and firmware. This reduces development time and ensures that vehicles have the latest software for advanced features. The automotive cloud technology facilitates development of self-driving cars by providing data storage and high computing power. It also enables remote vehicle diagnostics, infotainment services, and usage-based insurance programs.

The Global Automotive Cloud Market Size  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 from 2024 to 2031.

Key Takeaways
Key players operating in the automotive cloud market are Stoelting Co., Kopf Instruments, NeuroLabware, Harvard Apparatus, and RWD Life Science. These companies are focused on developing advanced cloud platforms and services for automakers.

The growing demand for connected vehicles and self-driving cars present significant opportunities in the market. Automotive cloud solutions help automakers develop autonomous driving capabilities and offer in-vehicle connectivity features.

Advancements in 5G networks and edge computing are expanding the capabilities of automotive cloud systems. 5G enables faster over-the-air updates. Edge computing brings cloud computing capabilities closer to vehicles for real-time data processing and for developing advanced driver-assistance systems.

Market Drivers
Growing vehicle connectivity: More automakers are offering connected vehicle technologies that require cloud-based back-end support. Features like remote diagnostics, traffic updates, and infotainment access generate large volumes of data.

Stringent vehicle cybersecurity regulations: Regulatory bodies are mandating automakers to regularly patch security vulnerabilities and ensure privacy of vehicle data. This drives demand for cloud-based security-as-a-service solutions.

Autonomous vehicles: Development of self-driving vehicles involves collection and analysis of huge amounts of mapping and sensor data. Automotive cloud solutions help store and process this data.


Current challenges in the Automotive Cloud Market

The automotive cloud market is facing various challenges currently due to the emerging nature of the technology. Data security and privacy continue to be a major concern as vehicles generate a huge amount of sensitive user and diagnostic data. Ensuring secure transmission and storage of this data on the cloud is challenging. Another challenge is the need for high-speed internet connectivity for seamless communication between vehicles and the cloud. The connectivity infrastructure still needs improvements in many regions to support real-time cloud-based applications. Establishing globally consistent regulations for cybersecurity, data usage, and connectivity standards is also work in progress. Overall, building trust among users about the safety and benefits of automotive cloud solutions requires ongoing efforts.

SWOT Analysis
Strength: The cloud platform provides flexible computing power and data storage capacity to support advanced driver-assistance and autonomous driving technologies. Weakness: Upgrading legacy vehicle IT systems to connect to the cloud requires high investment. Opportunity: The growing demand for infotainment, predictive maintenance, and mobility services creates scope for more cloud applications. Threats: Dependence on internet connectivity and data centers raises reliability concerns during network disruptions.

Geographical Regions
North America dominates the global automotive cloud market currently in terms of value, aided by high technology adoption and stable connectivity infrastructure in the US and Canada. The widespread use of advanced driver-assistance systems and upcoming autonomous vehicles are driving significant cloud deployment.

China is projected to become the fastest growing regional market during the forecast period. This can be attributed to government initiatives to strengthen the industrial internet and promote intelligent connected vehicles along with 5G rollouts. Major automakers are leveraging local cloud platform partners to offer customized mobility services and infotainment features to Chinese consumers.

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