What Has Been the Progress and Growth of the Automotive Cloud Based Solutions Market in Recent Years?
The automotive cloud based solutions market has seen considerable growth due to a variety of factors.
• In recent years, there has been a significant expansion in the size of the automotive cloud-based solutions market. Forecasts predict that this growth will continue, increasing from $63.94 billion in 2024 to $74.97 billion in 2025, indicating a compound annual growth rate (CAGR) of 17.2%.
The historical growth in this sector is attributed to technological developments in automotive systems such as ADAS, the rising demand for telematics in connected vehicles, a heightened focus on in-car data services, the increase in vehicle-to-everything (v2x) communication, as well as the transformative potential of IoT, and the onset of the 5G network.
How Does the Forecast Look for the Automotive Cloud Based Solutions Market?
The automotive cloud based solutions market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the automotive cloud-based solutions market is poised to experience significant expansion in the upcoming years, with projections indicating it will reach $129.89 billion in 2029 with a 14.7% compound annual growth rate (CAGR). This impending growth can be attributed to a surge in requirements for connected car services, a heightened focus on enhancing driver experience and car performance, government-led initiatives and policies, data analysis and predictive maintenance services, and strategic collaborations and alliances. The forecast period is also expected to witness major trends, including artificial intelligence and machine learning, sustainable and eco-friendly solutions, edge computing within the automotive cloud setting, connected and autonomous vehicles, and subscription-based business models.
What Are The Leading Drivers Of Growth In The Automotive Cloud Based Solutions Market?
The rising interest in connected and autonomous vehicles is predicted to fuel the expansion of the automotive cloud-based solutions market in the future. Connected and autonomous vehicles (CAVs) are an evolved class of vehicles encompassing both communication and self-driving abilities. Cloud-based solutions provide the essential computational prowess and storage capabilities to handle and scrutinize the vast data yielded by autonomous vehicles—this is vital for informed decision-making concerning real-time navigation, route planning, and avoiding obstacles. For example, Salesforce, an American cloud computing corporation, projected in January 2024 that by 2030, 95% of all vehicles on the road will be connected cars. Additionally, per the National Highway Traffic Safety Administration, a US government agency, in December 2022, 3.5 million self-driving cars are expected to be on U.S. roads by 2025, increasing to 4.5 million by 2030. Hence, the escalating demand for connected and autonomous vehicles is boosting the development of the automotive cloud-based solutions market.
How Are The Segments Defined Within The Global Automotive Cloud Based Solutions Market?
The automotive cloud based solutions market covered in this report is segmented –
1) By Service Model: Professional Services, Managed Services
2) By Deployment Type: Private Cloud, Public Cloud
3) By Vehicle Type: Passenger Vehicles, Commercial Vehicles
4) By Application: Infotainment Systems, Telematics, Fleet Management, Over The Air (OTA) Systems, Advanced Driver-Assistance Systems (ADAS), Other Applications
Subsegments:
1) By Professional Services: Consulting Services, Integration Services, Implementation Services, Support And Maintenance Services
2) By Managed Services: Infrastructure Management, Application Management, Security Management, Network Management
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What Trends Are Shaping The Automotive Cloud Based Solutions Market?
Prominent companies in the realm of automotive cloud-based solutions are innovating and adopting technologies such as cloud-based vehicle data services to enhance customer service and provide state-of-the-art features. The concept of cloud-based vehicle data service revolves around cloud storage, processing, and management of vehicle-related data, leading to immediate access, analytical capabilities, and distant functionalities, which significantly elevate automotive operations and user experience. For illustration, in September 2022, Amazon Web Services Inc, a renowned US-based cloud computing platform launched AWS IoT FleetWise, a one-of-a-kind vehicle data service. What makes the AWS IoT FleetWise vehicle data service stand out is its bespoke assistance for organizations like automakers, car parts suppliers, and delivery companies, in effectively gathering vehicle sensor data. This newly introduced IoT FleetWise service by AWS simplifies the process of transmitting vehicle data to the cloud, thus bypassing the need for creating distinctive software for data collection and upload. This innovation allows automakers to hasten the analysis of vehicle data while concurrently decreasing the cost of software development. At the pivotal point of IoT FleetWise lies the AWS IoT FleetWise Edge Agent application, which can be flawlessly incorporated into vehicle subsystems such as telematic control units. Once implemented, the Edge Agent proficiently controls the dispatch of vehicle data to an organization's AWS environment.
Who Are the Key Players In The Automotive Cloud Based Solutions Market?
Major companies operating in the automotive cloud based solutions market report are:
• Google LLC
• Microsoft Corporation
• Verizon
• Robert Bosch GmbH
• Amazon Web Services Inc.
• Siemens AG
• Intel Corporation
• IBM Corporation
• Cisco Systems Inc.
• Denso Corporation
• Oracle Corporation
• Continental AG
• SAP SE
• Salesforce Inc.
• Ericsson AB
• ServiceNow Inc.
• Harman International
• Delphi Automotive PLC
• Trimble Inc.
• Infor
• Blackberry Limited
• Sierra Wireless
• Tomtom International Bv
• Sierra Wireless
• Airbiquity Inc.
What Is The Most Dominant Region In The Automotive Cloud Based Solutions Market?
North America was the largest region in the automotive cloud based solutions market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive cloud based solutions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
