Automotive Cloud Based Solutions Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The automotive cloud based solutions market size has grown rapidly in recent years. It will grow from $63.94 billion in 2024 to $74.97 billion in 2025 at a compound annual growth rate (CAGR) of 17.2%. The growth in the historic period can be attributed to evolution of technology for automotive systems, such as ADAS, growing demand for telematics in connected vehicles, increasing emphasis on in-car data services, rise in vehicle-to-everything (v2x) communication, and the revolutionary potential of IoT and the introduction of the 5G network.

The automotive cloud based solutions market size is expected to see rapid growth in the next few years. It will grow to $129.89 billion in 2029 at a compound annual growth rate (CAGR) of 14.7%. The growth in the forecast period can be attributed to increasing demand for connected car services, rising emphasis on driver experience and vehicle performance, government initiatives and regulations, data analytics and predictive maintenance services, and partnerships and alliances. Major trends in the forecast period include AI and machine learning, sustainability and green solution, edge computing in automotive cloud, connected and autonomous vehicle, subscription-based models.

The rising demand for connected and autonomous vehicles (CAVs) is expected to drive the growth of the automotive cloud-based solutions market in the coming years. A connected and autonomous vehicle is an advanced vehicle that combines both connectivity and autonomous driving capabilities. Cloud-based solutions provide the computational power and storage necessary to process and analyze the vast amounts of data generated by these vehicles, which is essential for real-time decision-making in areas like navigation, obstacle avoidance, and route planning. For example, according to Salesforce, a US-based cloud computing company, by 2030, connected cars are projected to represent 95% of all vehicles on the road. Additionally, the National Highway Traffic Safety Administration, a US government agency, estimates that by 2025, there will be 3.5 million self-driving vehicles on U.S. roads, with that number rising to 4.5 million by 2030. As a result, the growing demand for connected and autonomous vehicles is driving the expansion of the automotive cloud-based solutions market.

Leading players in the automotive cloud-based solutions market are leveraging advanced technologies, such as cloud-based vehicle data services, to deliver enhanced features and functionalities to customers. Cloud-based vehicle data services involve the storage, processing, and management of vehicle-related information in the cloud, facilitating real-time access, analytics, and remote functionalities to optimize automotive operations and user experiences. For instance, in September 2022, Amazon Web Services Inc., a prominent provider of cloud computing platforms, introduced the AWS IoT FleetWise vehicle data service. Notably, the unique aspect of AWS IoT FleetWise lies in its tailored support for various organizations, including automakers, car part suppliers, and delivery companies, in efficiently collecting data from their vehicles' built-in sensors. This service streamlines the transmission of vehicle data to the cloud, eliminating the need for custom software development for data collection and upload, thereby enabling automakers to expedite data processing while reducing associated software development costs. Central to IoT FleetWise is the AWS IoT FleetWise Edge Agent application, seamlessly integrable into vehicle subsystems such as telematic control units, facilitating efficient management and transmission of vehicle data to organizations' AWS environments.

In January 2023, Semtech Corporation, a prominent US-based semiconductor manufacturing company, completed the acquisition of Sierra Wireless Inc. for $1.2 billion. This strategic move positions Semtech to leverage Sierra Wireless' extensive expertise in IoT solutions, spanning modules, software, and cloud services. By integrating these capabilities with its existing analog and mixed-signal semiconductor offerings, Semtech aims to bolster its position in the rapidly evolving IoT market. Sierra Wireless Inc., headquartered in Canada, is recognized for its automotive cloud-based solutions, which align well with Semtech's vision for driving innovation and connectivity across various industries.

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.

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. The countries covered in the automotive cloud based solutions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive cloud-based solutions market includes revenues earned by entities by providing services such as telematics services, firmware over-the-air (FOTA) updates, and vehicle-to-everything (V2X) communication. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive cloud-based solutions market consists of sales of in-vehicle hardware, edge computing devices, and could infrastructure devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Automotive cloud-based solutions encompass a suite of technological services and applications within the automotive industry that leverage cloud computing infrastructure. These solutions utilize remote servers, data storage, and processing capabilities to provide enhanced functionalities, connectivity, and overall improvement in vehicle performance for both vehicles and users.

The primary service models in the automotive cloud-based solutions market include professional services and managed services. Professional services involve the consulting, customization, and implementation of automotive cloud solutions by experts to optimize performance and address specific industry requirements. These services are deployed in both private and public clouds across various vehicle types, including passenger vehicles and commercial vehicles. The applications span areas such as infotainment systems, telematics, fleet management, over-the-air (OTA) systems, advanced driver-assistance systems (ADAS), and others.

The automotive cloud based solutions research report is one of a series of new reports that provides automotive cloud based solutions market statistics, including the automotive cloud based solutions industry's global market size, regional shares, competitors with an Automotive cloud based solutions market share, detailed automotive cloud based solutions market segments, market trends and opportunities, and any further data you may need to thrive in the automotive cloud based solutions industry. This automotive cloud based solutions market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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