The global automotive cloud market size had a revenue share of USD 26.12 billion in 2023 and is expected to reach USD 93.34 billion in 2032, expanding at a CAGR of 15.2% during the forecast period (2024-2032).
Since its inception, the automotive sector has always experienced significant growth. The most pronouncedly noticeable changes over the past ten years have been connected and autonomous automobiles. A connected world is being created as cars learn to speak and interact with one another and their surroundings. This allows the vehicle to send and receive data from networks, other vehicles, and the environment. A platform for cloud-based linked vehicles is known as an automotive cloud. "Vehicle-to-cloud communication" refers to the mechanism used to transmit information between the car and the cloud. Cellular networks are typically used for this communication. The information, from the car's location to software updates, might be anything.
Data can flow to and from the car with the help of a connected vehicle. It can communicate with the cloud to provide various linked services like navigation, entertainment, and telematics. It is also able to exchange data in real-time with its surroundings. The adoption of cloud-based linked solutions has multiplied due to the rise in connected and autonomous vehicles. By utilizing these solutions, organizations improve their ability to prevent catastrophic failure and give the driver and passengers the highest level of comfort and enjoyment within a vehicle. The automotive cloud offers dependable infrastructure and services for a wide range of linked devices, including cars, smartphones, infrastructure, and other APIs. Since it will connect hundreds of thousands of devices, it requires meticulous planning and preparation.
Vehicles with advanced software and onboard sensors that communicate with other vehicles, drivers, road infrastructure, and the cloud are connected vehicles. The cars can significantly lessen traffic congestion and increase traffic safety. The ecosystem for linked vehicles has been expanding. Drivers and passengers can benefit from improved infotainment systems, navigation systems, safety features, and telematics services, among other things, thanks to advancements in mobile technologies. Bosch predicts that linked vehicles will have a substantial positive impact on society and people. By 2025, connected cars may save 260,000 accidents and 11,000 lives and cut 400,000 tons of CO2 from vehicle emissions. In addition, it's anticipated that connected vehicles will cut down on traffic congestion and 280 million driving hours annually. Consequently, the automotive cloud market will expand during the forecast period.
IoT (Internet of Things) technology advancements are also changing how the world economy and global value chains operate. IoT's revolutionary power lies in the massive amount of information created by these devices, which can be used to increase value and improve efficiencies. The fast spread of linked cars is primarily fueled by the Internet of Things (IoT). Additionally, the rollout of the 5G network is anticipated to make cars smarter and safer while also enhancing the driving experience. The industry investigates the use of 5G for connected automobiles. For instance, the Smart City Wuxi initiative from Huawei and Audi uses C-V2X-based real-time traffic management data to improve drivers' performance. These developments will accelerate the expansion of the automotive cloud market.
The demand for commercial and passenger cars has increased due to the automotive industry's constantly shifting consumer preferences. The inclusion of advanced driver-assisted system (ADAS) functions in the car, which forces the user to seek out more advanced automated features in their automobiles, is directly related to the rise in demand for these vehicles. The in-vehicle software and system are highly susceptible to hacks since autonomous vehicles feature complex electronic systems. Additionally, a connected ecosystem is expected to develop due to increased demand for such vehicles, creating data pools. The vast amount of information and data produced by the vehicle's sensors, including a customer's driving habits and personal preferences and inclinations, are vulnerable to cyberattacks, which makes consumers less inclined to purchase such vehicles. Thus, impeding automotive cloud market expansion.
For a cloud service provider, data is a critical tool that allows them to reflect on customer behavior and habits and maximize customer happiness. However, because service providers are vulnerable to dangers from data theft and misuse, the extensive database also poses a concern to them. It is expected that any data leak will harm the company's reputation. As a result, cloud providers integrate blockchain technology into their platforms to address these issues, offering highly decentralized ledger capabilities for improved security. For instance, Denso Corporation joined the MOBI consortium in August 2019 to assist in directing the Connected Mobility & Data Marketplace (CMDM) working group to create standards and guidelines for adopting blockchain in the automobile industry. This aids in generating market expansion prospects.
| Study Period | 2020-2032 | CAGR | 15.2% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 26.12 Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 93.34 Billion |
| Largest Market | North America | Fastest Growing Market | Europe |
The region-wise segmentation of the global automotive cloud market includes North America, Europe, Asia Pacific, and the Rest of the World.
North America will command the market with the largest share while expanding at a CAGR of 21%. The National Highway Traffic Safety Administration guidelines will be followed by many automakers, including Volvo, Mercedes-Benz, Ford, and General Motors, emphasizing the need for linked vehicles in the region for improved safety. One of the primary drivers of the expansion of V2X communication in North America is the numerous government regulations and initiatives, which are carried out in cooperation with automobile OEMs and tier-1 manufacturers. As an illustration, the Colorado Department of Transportation launched a pilot project in 2018 that included C-V2X testing on a 90-mile section of the I-70 mountain roadway. These factors will propel the automotive cloud market in North America.
Additionally, the U.S., home to essential automobile OEMs like Ford, GM, and Tesla, is among the most technically sophisticated nations on this planet. Further, the country dominates the regional connected vehicle market. Favorable economic conditions, which have increased consumers' disposable income, are primarily responsible for this. Consequently, the demand for networking technology in luxury vehicles and heavy-duty trucks is expanding. Additionally, the nation shows rising demand for sophisticated security precautions in the automotive industry. The market for the automotive cloud in the region will develop.
Europe will expand at a CAGR of 18.8% and hold USD 16,105 million. The region's automotive industry is being supported by the consumer-focused nature of the sector, which encourages the use of cutting-edge, effective, and efficient technologies. Indirect benefits for the European automotive cloud-based service market also result from the substantial government initiatives, rules, and funding for the expansion of the automotive sector. The market for cloud-based automotive applications is benefiting from increasing research & development spending in the automotive industry and rising consumer spending power. Major tier-1 component suppliers, rapid advancements in autonomous driving technology, and government initiatives encourage innovation and expansion in this field.
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The global automotive cloud market is classified based on application, deployment, vehicle type, and region.
Based on application, the categories are Infotainment, Vehicle-to-Everything (V2X), and Telematics.
The telematics section is projected to advance at a CAGR of 21.1% and hold the largest market share. An accelerometer integrated SIM card, GPS antenna, and receiver are all parts of a telematics device, also known as a "black box." Telematics is transmitting real-time data over great distances through a specific communication route. Any regular cellular network can be used for connectivity, plus broad Wi-Fi and Bluetooth connectivity within the vehicle. The idea of connected cars and autonomous vehicles is powered by telematics. The telematics device is also linked to the vehicle's CAN bus, enabling it to detect battery problems and troubleshoot codes for the car's diagnostics.
The infotainment section will hold the second-largest market share. The term "in-vehicle infotainment" (IVI) refers to a group of automotive technologies that offer entertainment and data to the car's occupants via various interfaces, including audio and video, touch screens, voice controls, and button panels. Companies are putting more effort into creating feature-rich, powerful CPUs and adaptable infotainment systems in response to the rising demand for highly customized IVI systems. The processor must be correctly integrated with a high level of computation and intelligence in cars for an immersive IVI experience.
Based on the deployment, the categories include Private and Public Cloud.
The private cloud section is projected to advance at a CAGR of 19.7% and hold the largest market share. A computing service known as the private cloud can be extended across the internet or a private internal network, and it is exclusively accessible to a small number of users. Corporate clouds and internal clouds are other names for private clouds. It offers personal cloud computing, which has many benefits over an on-premises computing system host, including scalability, self-service, elasticity, customization, and control alternatives from dedicated resources. Additionally, private clouds increase privacy and security by preventing data breaches by outside providers via the host organization's and company's firewalls.
The public cloud refers to cloud computing services made available to anyone who requires them via a public network such as the internet by independent cloud service providers. Public clouds can be offered free or sold on demand, allowing users to pay only for the storage, CPU time, and bandwidth they need. Because the architecture of a public cloud is virtualized, it provides an environment in which cloud clients can make as many uses as necessary of the shared resources. A public cloud service provider may guarantee data recovery with prompt responses by keeping replicated files across different data centers.
Based on vehicle type, the categories include Passenger and Commercial vehicles.
The passenger vehicle section is projected to advance at a CAGR of 19.3% and hold the largest market share. Passenger automobiles are motorized vehicles with at least four wheels used to transport people. In addition, a passenger vehicle is limited to eight seats, including the driver's seat. Due to rising consumer demand and OEM expectations, numerous improvements and advancements have been made to passenger cars in recent years. Many automotive OEMs outfit their vehicles with innovative technology and features to meet market demand as consumer attention has switched from vehicle performance to vehicle comfort.
The commercial vehicle section will hold the second-largest share. Light commercial vehicles (LCV), heavy-duty trucks, and buses are the three types of commercial vehicles. Most contemporary rising economies rely on their transportation network. The trucking industry is also moving toward fully autonomous technologies and comprehensive connections. Although connected fleets provide significant economic advantages, they also present several difficulties for fleet managers. By using intelligent technology, the operators of connected commercial vehicles have increased the productivity of their fleets.
