The cloud based solutions market for automotive is estimated to grow at a CAGR of 19.88% during the forecast period, to reach USD 66.95 Billion by 2022. The key factor driving the cloud based solutions market for automotive is the increasing production of connected vehicles, which, in turn, is leading to the rise in demand for cloud based services in automobile. Growth of semi-autonomous vehicles, rising demand for upgraded infotainment system, advanced safety, ecall facilities, and remote vehicle diagnostics are the other factors driving the growth of the cloud based solutions market for automotive.
Increased demand for high-end vehicles and growing stringency of safety & security regulations have changed the market dynamics for automotive OEMs and cloud based services and solutions providers. Along with this, the leading OEMs are also collaborating with IT companies to develop systems and solutions that would contribute to the demand for cloud based services for automotive. For example, in 2016, German OEMs such as Audi, BMW, and Daimler entered into a partnership with some of the world's largest network communication firms such as Ericsson, Huawei, Intel, Nokia, and Qualcomm to develop the next generation of mobile networks for vehicle communications. The key objective of these collaborations is to meet the demand for connected mobility, which in turn will help to fulfill road safety requirements with applications such as connected automated driving, ubiquitous access to services such as live traffic updates and weather news, and integration into smart cities and intelligent transportation.
The cloud based solutions market for automotive dominated by global players as it requires a complex system of network architecture and data centers, which require a high initial investment. The ecosystem of cloud based services for automotive market includes research & development, software development, system integration, marketing, and post sales services such as updates and cyber security. The report also profiles the most promising players in the cloud based services for automotive market. The competitive leadership mapping of this market presents an interesting picture of many automotive OEMs and non-automotive companies such as IT giants. A few of the key players include Apple (US), BlackBerry (Canada), Verizon Wireless (US), Continental AG (Germany), Ericsson (Sweden), and Bosch (Germany).
Bosch is one of the key providers of cloud based solutions market for automotive with a major focus on enhancing vehicle diagnostics and user safety. The company has developed a wide range of product offerings for cloud based services for automotive market. It has been focusing on the Internet of Things, connected vehicles, and autonomous cars. The company has an innovative and advanced product offering as it actively launches new products according to the need of cloud based services for automotive market. For example, in 2017, Bosch launched a new Artificial Intelligence (AI) technology solution for reducing accidents and CO2 emissions. The technology offers new safety features such as wrong way alert, personal assistance, OTA updates, and community parking. This technology can be used in connected cars.
Another major market player is Ericsson, which is a leading provider of cloud based solutions market for automotive across the globe. In January 2017, Orange and PSA Group signed a partnership agreement with Ericsson AB. The partnership was formed to handle a 5G technology pilot project for automotive applications. Furthermore, Ericsson AB launched a Connected Vehicle Cloud, which would enable OEMs to build an ecosystem of digital services around connected vehicle.
Other major players in the cloud based solutions market for automotive are focusing on expanding their regional presence to achieve continuous and sustainable development. This is evident from several collaborations and joint venture projects these companies have undertaken in recent years.
Cloud Based Solutions Market for Automotive by Application (Fleet Management, Infotainment, OTA Updates, Telematics, ADAS), Deployment (Private, Public), Service Model (Professional, Managed) Vehicle, EV, and Region - Global Forecast to 2022
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