May 20, 2024

The Connected Car Is Fastest Growing Segment Fueling The Growth Of Automotive Cloud Market

Market Overview:

The automotive cloud market involves cloud-based platforms and services focused on connectivity in vehicles. Advantages of automotive cloud include remote updates, data storage and sharing, advanced navigation features and improved in-vehicle connectivity experience.

Market key trends:

Connected car services allow automakers and third-party service providers to offer advanced features like vehicle diagnostics, software updates, infotainment and traffic updates directly to drivers via embedded telematics systems. Connected car services rely on cloud platforms hosted by automakers or independent service providers to manage vehicle data and deliver real-time services. This rising adoption of connected car services is driving growth of automotive cloud market.

Segment Analysis

The global automotive cloud market can be segmented on the basis of service type, deployment model, application and vehicle type. By service type, the software-as-a-service (SaaS) segment currently dominates the market. The SaaS segment is dominating as it provides an on-demand service with minimum initial investment to the customers. By deployment model, the private cloud segment holds the largest market share. Private clouds provide improved security and customized services as per the needs of OEMs thus making it the preferred deployment model. By application, the connected services segment accounts for the largest share as connected services are becoming increasingly popular due to their ability to provide remote access and enhanced experience to customers. By vehicle type, the passenger car segment captures maximum share in the automotive cloud market as passenger cars constitute a major chunk of the global vehicle fleet.

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 adoption of connectivity solutions in vehicles.

Regionally, North America dominates the global automotive cloud market and is expected to continue its dominance over the forecast period. This is attributed to the high adoption of connected vehicle solutions in the region. Moreover, presence of major automotive cloud providers along with supportive regulatory environment further aids the growth of the market in this region. Asia Pacific market is expected to witness the highest CAGR growth owing to the rising disposable income, increasing purchasing power and rapidly growing vehicle production in countries like India and China.

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. Major players are engaged in new product launches and partnerships to strengthen their position in the market. For instance, in 2020 Amazon Web Services expanded its collaboration with Renault-Nissan-Mitsubishi to enhance connected vehicle technology for its Alliance 2022 strategic plan.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it