In the world of automotive, the cloud plays a critical role in connected cars, autonomous driving, shared mobility, deeper customer insights, and digital manufacturing. The latest research by Coherent Market Insights shows that the global automotive cloud market is estimated to account for USD 6,673 mn in terms of value by the end of 2027.
The automotive cloud is an open infrastructure for data from cars and the automotive supply chain. It provides access to information from different sources, including dealers, manufacturers, and other partners. For example, it can improve supply chain visibility and resolve issues faster. As a result, it will help the automotive industry plan its activities more efficiently and profitably.
“The automotive cloud provides robust infrastructure and services for a multitude of connected devices, including vehicles, smartphones, infrastructure, and other APIs. It will require careful planning and preparation, as it will connect hundreds of thousands of devices. Besides, it will help automotive manufacturers focus on their core business. It will also give them the opportunity to achieve more by enabling them to focus on more complex tasks,” the report said.
Its high availability makes it the best solution for automotive data, as per Coherent Market Insights. With cloud storage, the automotive cloud can reduce the risk of system failure and can focus on core business. It can back up important data, ensuring that critical data is never lost. It will also help it grow and scale faster.
“As the automotive industry has become more software-centric, it is critical to get instant connectivity. This is why the automotive cloud is a powerful solution for the automotive industry. It provides better cost-efficiency, speed-to-market, and reliability, and it helps access to new technology,” the research firm added.
At present, major players operating in the global automotive cloud market include Ericsson AB, Denso, Harman, Continental, Intellias, Connexion, LG Electronics, CloudMade, Microsoft Corporation, Bosch, Sierra Wireless, Amazon, Inc., Telenav, Airbiquity, and Verizon.
Market Drivers:
The report highlighted that the launch of new products is expected to propel the growth of the global automotive cloud market over the forecast period For instance, in December 2021, Amazon Web Services launched AWS FleetWise, a new cloud-based data service that allows automakers to collect and retrieve sensor and telemetry data from their vehicle fleets.
Moreover, it pointed out that the launch of cloud-native retail operating platforms is also expected to propel the growth of the global automotive cloud market over the forecast period. For instance, in July 2020, Tekion, a technology company, launched Zero-Contact Digital Sales, and Service, a consumer-facing product for dealers. The applications are part of the company’s Automotive Retail Cloud, a cloud-native retail operating platform.
Market Opportunities:
According to Coherent Market Insights, increasing adoption of vehicle infotainment is expected to offer lucrative growth opportunities for players in the global automotive cloud market. For instance, in February 2021, Ford Motors signed a six-year agreement with Google GOOG to leverage the Google Cloud Platform to power vehicle infotainment.
Furthermore, the launch of telematics platforms is also expected to offer lucrative growth opportunities for players in the global automotive cloud market. For instance, in April 2019, ORBCOMM Inc. launched its enhanced web platform and its latest telematics devices for the heavy equipment industry.
Market Trends:
The research firm noted that major players operating in the global automotive cloud market are focused on adopting partnership strategies to enhance their market share. For instance, in February 2021, Car. Software Organization, a software company of Volkswagen Group, partnered with Microsoft to build a cloud-based Automated Driving Platform on Microsoft Azure. Whereas other global players like HARMAN International are focused on launching new products to expand their product portfolio.
