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Leading Growth Driver in the Automotive Cloud Based Solutions Market in 2025: Demand For Connected And Autonomous Vehicles Fuels Growth In Automotive Cloud-Based Solutions Market Driver's Influence
Automotive Cloud Based Solutions Market Segments
The automotive cloud-based solutions market has experienced rapid growth in recent years. It is forecasted to increase from $63.94 billion in 2024 to $74.97 billion in 2025 at a CAGR of 17.2%. The expansion in previous years was fueled by advancements in automotive technologies such as ADAS, the rising demand for telematics in connected vehicles, an increased focus on in-car data services, the evolution of vehicle-to-everything (V2X) communication, and the game-changing potential of IoT alongside the introduction of 5G networks.
The automotive cloud-based solutions market is set to grow to $129.89 billion by 2029, at a CAGR of 14.7%. This is due to increasing demand for connected car services, an emphasis on driver experience, government regulations, predictive maintenance, and partnerships. Key trends include AI and machine learning, edge computing, sustainability, connected and autonomous vehicles, and subscription-based models.
What Is Contributing to the Growth of the Automotive Cloud Based Solutions Market?
The increasing demand for connected and autonomous vehicles (CAVs) is expected to drive the growth of the automotive cloud-based solutions market. CAVs integrate connectivity and autonomous driving capabilities, and cloud-based solutions provide the computational power to process data from these vehicles for real-time decision-making. Salesforce projections suggest that by 2030, 95% of all vehicles on the road will be connected. Additionally, the National Highway Traffic Safety Administration expects 3.5 million self-driving vehicles on U.S. roads by 2025. Therefore, the growing demand for connected and autonomous vehicles is propelling the automotive cloud-based solutions market.
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Which Key Market Leaders Are Driving Automotive Cloud Based Solutions Industry Growth?
Major companies operating in the automotive cloud based solutions market report are Google LLC, Microsoft Corporation, Verizon, Robert Bosch GmbH, Amazon Web Services Inc., Siemens AG, Intel Corporation, IBM Corporation, Cisco Systems Inc., Denso Corporation, Oracle Corporation, Continental AG, SAP SE, Salesforce Inc., Ericsson AB, ServiceNow Inc., Harman International, Delphi Automotive PLC, Trimble Inc., Infor, Blackberry Limited, Sierra Wireless, Tomtom International Bv, Sierra Wireless, Airbiquity Inc.
What Are the Emerging Trends in the Automotive Cloud Based Solutions Industry?
In the automotive cloud-based solutions market, companies are introducing cloud-based vehicle data services to improve automotive operations and user experience. For example, in September 2022, Amazon Web Services Inc., a US-based cloud service provider, launched the AWS IoT FleetWise vehicle data service, enabling automakers and suppliers to gather and manage data from vehicle sensors more efficiently, improving vehicle data processing while reducing software development costs.
What Are the Main Segments in the Automotive Cloud Based Solutions Market?
The automotive cloud based solutions market covered in this report is segmented -
1) By Service Model: Professional Services, Managed Services
2) By Deployment Type: Private Cloud, Public Cloud
3) By Vehicle Type: Passenger Vehicles, Commercial Vehicles
4) By Application: Infotainment Systems, Telematics, Fleet Management, Over The Air (OTA) Systems, Advanced Driver-Assistance Systems (ADAS), Other Applications
Subsegments:
1) By Professional Services: Consulting Services, Integration Services, Implementation Services, Support And Maintenance Services
2) By Managed Services: Infrastructure Management, Application Management, Security Management, Network Management
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Which Geographic Area Leads the Automotive Cloud Based Solutions Market?
North America was the largest region in the automotive cloud based solutions market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive cloud based solutions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Automotive Cloud Based Solutions Global Market Report?
- Market Size Analysis: Analyze the Automotive Cloud Based Solutions Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Automotive Cloud Based Solutions Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Automotive Cloud Based Solutions Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Automotive Cloud Based Solutions Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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