Connected Vehicle Cloud Market

Connected Vehicle Cloud Market Outlook (2024 to 2034)

The global connected vehicle cloud market is projected to reach a size of US$ 48.49 billion in 2024 and further expand at a CAGR of 14% to end up at US$ 180.16 billion by the year 2034.

Over the coming years, autonomous and connected cars are anticipated to receive widespread acceptance as customer interest in them grows. It is expected that the market divide between automobiles manufactured now and those made going ahead will see increased deployment of Advanced Driver Assistance Systems (ADAS).

Informing owners of vehicle malfunctions decreases the amount of time needed for maintenance and enhances performance, which is pushing the connected vehicle cloud market size to new heights. These systems are now found in several entry-level cars as well, although they were formerly exclusive to higher models. The safety of regular traffic is significantly improved by these solutions. These devices enable the car to adapt its driving to the road conditions. The car can take over some operations, including steering, braking, and acceleration, which is a key factor driving overall connected vehicle cloud market growth.

There are a variety of connectivity modes available in connected vehicle cloud solutions, and, among all these, end users enjoy the functioning of integrated connectivity and embedded connectivity more compared to tethered connectivity, making it one of the top priorities of manufacturers.

Report Attributes	Details
Connected Vehicle Cloud Market Size (2024E)	US$ 48.49 Billion
Forecasted Market Value (2034F)	US$ 180.16 Billion
Global Market Growth Rate (2024 to 2034)	14% CAGR
East Asia Market Value (2034F)	US$ 60.71 Billion
North America Market Share (2034F)	26.4%
Vehicle Management Segment Value (2034F)	US$ 67.20 Billion
United States Market Value (2034F)	US$ 35.81 Billion
Key Companies Profiled	Siemens AG; Robert Bosch GmbH.; IBM Corporation; Amazon Web Services, Inc.; Cisco System, Inc.; Verizon Communications Inc.; Harman International; Continental AG; AT&T; Robert Bosch GmbH; Daimler AG; Audi; TomTom Inc.; General Motors; Ford Motor Company

What’s Revolutionizing the Market for Connected Vehicles Cloud Solutions?

“Growing Trend of Ride-Sharing and Mobility Services”

The field of connected autonomous vehicle technology is evolving rapidly, and a number of businesses-including Tesla-are concentrating on this aspect. It is expected that autonomous self-driving cars will open up new potential for ridesharing and mobility services.

Some ride-sharing businesses now utilize semi-autonomous cars. Development of linked autonomous cars is expected to propel the rise of ridesharing, as they eliminate the need for drivers and thus lower expenses for service providers. Since drivers won't get a cut of the rides when networked autonomous cars are used for ridesharing, service providers would make more money

What are Potential Threats to Connected Vehicle Cloud Market Growth?

“Lack of Proper Infrastructure Impeding Market Revenue Growth”

Due to limited network infrastructure on roads, most vehicles are not connected to the cloud or each other. In countries such as Mexico, Brazil, and India, growth of IT infrastructure on roads is happening slower than in developed countries. The 3G and 4G-LTE networks that are required are limited to urban and semi-urban regions. Even though many third-party logistics businesses operate in rural and semi-urban regions, low connectivity remains a cause for concern.

As such, increasing IT and communication infrastructure in these locations and implementing rules may be necessary to establish the connected automotive business in many countries. Furthermore, industry participants could be governed by national telecom regulations, including those concerning lawful intercept and in-country entity requirements. The interoperability of the various platforms and cross-border use cases will need to be discussed and regulated. The topic of net neutrality-in which internet service providers give certain data transmission priority-also arises from the world’s high reliance on data networks.

Country-wise Analysis

What’s Behind the United States’ Success in This Market?

“Strict Vehicle Safety Regulations in the Country”

Attribute	United States
Market Value (2024E)	US$ 9.78 Billion
Growth Rate (2024 to 2034)	13.9% CAGR
Projected Value (2034F)	US$ 35.81 Billion

Strict vehicle safety regulations, elevated demand for vehicle-to-vehicle connectivity technology, and incorporation of IoT in the automotive industry are key factors driving market growth in the U.S. Development of novel infrastructure for research into the sector is expected to give rise to innovative connectivity technologies for vehicles. Manufacturers in the United States are receiving high funding to accelerate the introduction of cybersecurity in connected vehicles.

Prominent car companies are opening facilities in the country to accelerate innovation. They are utilizing the space to test new technologies for connected vehicles. Companies are focusing on applications of artificial intelligence in mobility. They are identifying universities for partnerships for research purposes.

Growth of advanced technologies such as advanced driver-assistance systems (ADAS) has enabled automakers to offer a wide range of connected services in their vehicles. The market for connected vehicle cloud in the United States is, therefore, being led by key businesses aiming to bring innovation in the field and make connected vehicle services more effective.

What Key Factors are Increasing the Value for the South Korea Market?

“Smart City Schemes Behind Rising Requirement for Connected Vehicle Cloud Solutions”

Attribute	South Korea
Market Value (2024E)	US$ 2.96 Billion
Growth Rate (2024 to 2034)	15.9% CAGR
Projected Value (2034F)	US$ 12.93 Billion

Schemes such as smart city initiatives and smart transportation have paved the way for evolving automated vehicular trends, including the integration of connected vehicle clouds in cars. Several governmental initiatives are focusing on enhancing traffic management, improving the efficiency of public transport, reducing congestion, and creating a seamless and interconnected mobility ecosystem that benefits the urban as well as the rural areas.

Collaborations between automotive manufacturers and tech companies have resulted in the development of advanced connected car technologies.

• For instance, LG Uplus Corporation, which is the third largest service provider in South Korea, has made it possible to provide wireless communication services to Hyundai Motor Group for their connected vehicles.

Category-wise Insights

Which Service Type is Foreseen to Grow at a Higher Rate for Connected Cloud Solutions?

“Vehicle Management Surpassing Other Service Types in Connected Vehicle Cloud Business”

Attribute	Vehicle Management
Segment Value (2024E)	US$ 17.55 Billion
Growth Rate (2024 to 2034)	13.9% CAGR
Projected Value (2034F)	US$ 67.20 Billion

Vehicle management is surpassing other service types in the connected vehicles cloud market, exhibiting strong potential for growth due to increasing demand for technologies aimed at improving driver and passenger safety, and enhancing the overall driving experience. As the automobile industry continues to embrace advanced technologies, demand for vehicle management services is expected to rise significantly, contributing to the expansion of the connected vehicle cloud market.

What Connectivity Has Become More Common Among End Users?

“Embedded Connectivity Driving Connected Vehicle Cloud Market Outlook”

Attribute	Embedded Connectivity
Segment Value (2024E)	US$ 23.71 Billion
Growth Rate (2024 to 2034)	13.1% CAGR
Projected Value (2034F)	US$ 94.22 Billion

Embedded connectivity is gaining popularity among connected vehicle cloud users, offering seamless integration and enhanced functionality. Compared to tethered connectivity, users are increasingly favoring embedded connectivity for its ability to provide continuous and reliable connectivity without the need for external devices. Manufacturers are prioritizing embedded connectivity to meet the growing demand for integrated and efficient connectivity modes, which is driving the widespread adoption of embedded connectivity, and, as a result, becoming a key connected vehicle cloud market trend in several parts of the world.

Business Landscape

Key players in the connected vehicle cloud market are introducing new products, including SAP cloud platforms and personal cloud management, to bolster their market position and stay ahead of the competition.

• Google and Renault expanded on their partnership, allowing the automaker to offer over-the-air software updates to its vehicles amid a boom in the connected car marketplace, in November 2022
• In February 2021, Bosch and Microsoft announced a partnership to develop a software platform that will enable seamless cloud connectivity for automobiles. Through this partnership, it will be easier and faster to build and deploy vehicle software that complies with industry standards for quality throughout a vehicle's lifespan.
• Qualcomm Technologies, Inc. announced the expansion of its Snapdragon Ride Platform range, in January 2021.
• Vero and Privacy4Cars have partnered to provide identity protection and privacy technologies specifically for owners of connected cars. In March 2024, their joint venture unveiled the Identi-FI solution, which addressed data erasure from linked automobiles and provided recovery support in identity theft scenarios.
• Starting in 2024, a partnership between Cisco, Audi, CARIAD, and HARMAN will provide Webex for hybrid work in specific Audi vehicles.
• Together, Nvidia Corp. and MediaTek Inc. improved car infotainment systems with AI to allow gaming and video streaming. As shown at Computex in Taipei in May 2023, MediaTek has incorporated Nvidia's GPU chipset and software into its system-on-chips for infotainment screens.

Fact.MR provides detailed information about the price points of key service providers of connected vehicle cloud positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Connected Vehicle Cloud Market Research

• By Deployment Model:

  • Private Cloud
  • Public Cloud
  • Hybrid Cloud

• By Connectivity Mode:

  • Embedded Connectivity
  • Integrated Connectivity
  • Tethered Connectivity

• By Service:

  • Vehicle Management
  • Infotainment Services
  • Safety & Security Services
  • Driver Assistance Services

• By Vehicle Type:

  • Passenger
  • Commercial

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa