by The automotive industry is witnessing rapid digitization and automation with the integration of advanced technologies such as artificial intelligence, machine learning, cloud computing, and more. Cloud computing plays a pivotal role in optimizing various functionalities of modern vehicles. It facilitates over-the-air software updates, vehicle diagnostics and predictive maintenance, connected navigation and infotainment, data-driven analytics, and several autonomous driving features. The need for connectivity, data storage, and management has driven automakers to adopt cloud solutions.
The global Automotive Cloud Market is estimated to be valued at US$ 24.16 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of the automotive cloud market is the development of multi-access edge computing (MEC) infrastructure. MEC facilitates data processing at the edge of the network for autonomous and connected vehicles. It enables faster data transmission and computing on-site, reducing latency issues. Leading cloud service providers such as Microsoft Azure and AWS are collaborating with telecom operators to build edge data centers near 5G towers. This will enhance vehicular connectivity and deployment of advanced driver assistance systems and autonomous driving functions.
Porter’s Analysis
Threat of new entrants: Low. Established players have strong brand recognition and control majority market share. New entrants face high capital requirements for R&D.
Bargaining power of buyers: High. Buyers can choose from various technologies and solutions available. Switching costs are relatively low.
Bargaining power of suppliers: Moderate. While solutions providers hold some pricing power, automotive OEMs can source from multiple technology vendors.
Threat of new substitutes: Moderate. Alternatives like edge computing offer certain functionalities but cannot fully substitute a cloud-based platform.
Competitive rivalry: High. Top players compete intensely on technology capabilities, security, data management and pricing. Collaboration is also prominent to scale offerings.
Key Takeaways
The Global Automotive Cloud Market Size is expected to witness high growth over the forecast period.
Regional analysis: Asia Pacific is anticipated to be the fastest growing market owing to rising automobile sales, government initiatives for connected mobility solutions and increasing investments by OEMs in telematics technologies. China, Japan and India especially are emerging as major automotive manufacturing hubs.
Key players: Integrated DNA Technologies, Inc., Thermo Fisher Scientific Inc., Eurofins Genomics, GenScript are some of the prominent players operating in the automotive cloud market. These companies offer innovative cloud platforms, services and auto-grade security solutions to automakers. Collaborations allow players to build competencies across various cloud domains and expand geographic footprint.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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