AUTOMOTIVE CLOUD MARKET ANALYSIS

Automotive Cloud Market Size and Trends

The global automotive cloud market is estimated to be valued at US$ 27.90 Bn in 2024 and is expected to reach US$ 97.50 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 19.6% from 2024 to 2031.

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The automotive cloud market is expected to witness significant growth over the forecast period. The growth of this market can be attributed to increasing connectivity in vehicles and growing demand for personalized in-vehicle experience. Major automakers such as Amazon Web Services, Inc., Apple (US), Blackberry Limited, etc. are focusing on enhancing customer experience through vehicle connectivity features and advanced infotainment systems driven by Internet of Things (IoT) and cloud platforms. Cloud computing enables the seamless integration of these systems and facilitates remote access to various vehicle functionalities. The growing demand for in-vehicle entertainment and comfort is also driving the need for advanced cloud-based applications and services.

Drivers of the Market:

Connected Car Applications

The demand for connected car features and applications is growing rapidly across the globe. With internet connectivity built into vehicles, drivers can now access real-time information such as weather updates, traffic conditions, location-based services, and others while on the move. Cloud platforms enable automakers to develop and deploy these connected services effectively. Using the cloud, new features can be added over-the-air through seamless software updates without requiring the driver to visit a service center. This gives automakers an opportunity to enhance the driver experience on a continuous basis and also extract valuable usage data. Connectivity opens up possibilities for advanced mobility services involving infotainment, telematics, autonomous driving and more. As drivers experience the conveniences of connectivity, they will expect newer and better-connected services in the future. This helps the cloud gain more importance in developing and managing connected vehicle ecosystems.

For instance,, in November 2023, Salesforce cloud-based software company that provides businesses with tools to manage customer relationships, sales operations, and marketing campaigns, introduced new innovations in its Automotive Cloud, aimed at empowering automotive companies to leverage data and AI to deliver more personalized in-car experiences, streamline fleet management, and simplify auto lending and leasing processes.

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Advanced Driver Assistance Systems

Automakers are increasingly focusing on incorporating advanced driver assistance systems and autonomous driving capabilities in their vehicles. The development of such complex technologies requiring huge computational power is best supported by cloud platforms. Cloud infrastructure offers limitless scalability and processing capabilities for tasks like analyzing data from multiple sensors and cameras in real-time. It also ensures seamless software updates for Advanced Driver Assistance Systems (ADAS) algorithms based on latest road conditions, geography and other parameters. Moreover, cloud networks allow information exchange between vehicles and the outside world, an important factor for autonomous driving. With shared experiences, autonomous cars can deliver safer performance over time. The rise of mobility as a service further accelerates the need for advanced data-driven technologies using cloud computing. As self-driving vehicles become a reality, their effective management through automated cloud platforms will be crucial for success. This is likely to drive significant growth in automotive Cloud services.