Global Automotive Data Management and Cloud Platform Market Research Report: Forecast (2023-2028)

Market Insights & Analysis: Global Automotive Data Management and Cloud Platform Market (2023-28)

The Global Automotive Data Management and Cloud Platform Market is projected to grow at a CAGR of around 32% during the forecast period, i.e., 2023-28. Most of the market growth would be propelled by the ever-evolving demand for connected & autonomous vehicles worldwide and the increasing integration of advanced technologies like the IoT, AI, Machine Learning, Big Data, etc., into automobiles.

Digitalization trends in the automotive industry have led to the burgeoning demand for connected vehicles, which are equipped with numerous sensors & systems that can be connected through the cloud, internet, & other digital services. These vehicles generate a massive amount of real-time data associated with vehicle position, speed, braking, & engine temperature, among others, which OEMs, service providers, & insurers utilize to obtain crucial insights that can aid in the significant reduction of fatalities caused by road accidents.

With rising competition in the domain of autonomous mobility, automakers are increasingly investing in the development of self-driving or fully autonomous vehicles, thereby driving the market for automotive data management & cloud platforms. In addition, UBI, in which the policy premium is linked directly to vehicle usage, is also gaining immense popularity worldwide. Insurance companies use analytics tools to gather insights into real-time vehicle usage and charge the premium accordingly. Hence, the rapidly rising demand for UBI in developed countries is another crucial aspect projected to enhance the Global Automotive Data Management and Cloud Platform Market size through 2028.

Market Dynamics

Key Driver: Ever-Growing Demand for Connected Vehicles Integrated with Advanced Technologies

The growing need for built-in informatics & telematics in the automobile industry is resulting in significant technological advances toward enhancing the in-vehicle experience for both drivers & passengers. With the globally increasing penetration of connected cars equipped with multiple sensors, innovative options are being offered for educating & engaging drivers and alerting them about vehicle servicing, i.e., generating a tremendous amount of unstructured data. Consequently, automakers are finding easy & efficient solutions to store this massive unstructured vehicle data & attain crucial insights from it, i.e., the prime aspect projected to drive the Global Automotive Data Management and Cloud Platform Market during 2023-28.

Growth Restraint: Rising Concerns over Cyberattacks & Security Breaches

Various new cybersecurity risks have surfaced in the past few years with the progression of digital transformation in several industries, including the automotive sector. Cybercriminals are adopting highly complex ransomware strategies to harm the business operations of automakers, to which connected cars are majorly contributing owing to the increasing utilization of automotive data analytics in these vehicles. Hence, more & more people are becoming increasingly concerned about data security & privacy, which, in turn, might hamper the growth of the automotive data management and cloud platform market in the coming years.

Market Segmentation

Based on Component:

• Software
  • Data Security
  • Data Integration
  • Data Migration
  • Data Quality
• Services
  • Professional
  • Managed

Of both, software accounted for a prominent share of the Global Automotive Data Management and Cloud Platform Market, and the same trend is likely to during 2023-28. It owes to the mounting adoption of automotive data management platforms by fleet owners, transportation & logistics companies, & automakers worldwide to keep track of information like fuel consumption, fleet visibility with telematics, as well as maintenance updates from other systems in order to analyze metrics and make informed decisions based on current figures.

Consequently, it helps them improve vehicle performance and provide an enhanced customer experience. In addition, several benefits like improved operational efficiency & vehicle quality, better cybersecurity response time, reduced product recalls, end-to-end security, & complexity management are further driving the adoption of automotive data management software worldwide and, in turn, stimulating the overall market growth.

On the other hand, the service component is projected to grow at a notable pace over the forecast period, owing mainly to the accelerating demand for customized value-added data management services across automotive dealers & manufacturers as well as fleet owners. Automotive data management services help enhance vehicle performance and provide scalability, insights, & accessibility to enterprises with centralized storage, thereby aiding them in improving customer experiences.

Based on Application:

• Predictive Maintenance
• Warranty Analytics
• Safety and Security Management
• Driver and User Behavior Analysis
• Dealer Performance Analysis
• Infotainment
• Usage-based Insurance (UBI)

Here, predictive maintenance application is gaining traction worldwide. It ascribes to the growing adoption of IoT & data analytics solutions in the automotive sector to help companies predict various vehicle issues and inform owners about crucial maintenance requirements before a major failure occurs. Besides, it comprises numerous other benefits like end-to-end service operations, cost savings, improved reliability, roadside assistance, vehicle health tracking, and, in turn, enhanced vehicle performance. Hence, these aspects are driving the market for predictive maintenance application.

Based on End-User:

• Automotive Dealers
• OEMs
• Fleet Owners
• Insurers
• Service Providers

Among all, OEMs are expected to acquire a prominent share of the Global Automotive Data Management and Cloud Platform Market during 2023-28. It owes to the burgeoning adoption of automotive data analytics solutions by OEMs to improve the driving experience of users & offer them innovative product offerings. Additionally, the rapidly rising competition among automakers is leading them to provide advanced services like predictive maintenance, personalized driving experiences, & road safety features, among others, in vehicles, i.e., another lucrative prospect for the market to expand significantly in the coming years.

On the other hand, insurers are the fastest-growing end-users of the global market. The mounting adoption of UBI (Usage-based Insurance) in developed countries, entwined with the growing penetration of connected vehicles in developing nations, are the major aspects driving the market by insurers.

Regional Projection

Geographically, the Global Automotive Data Management and Cloud Platform Market expands across:

• North America
• South America
• Middle East & Africa
• Asia-Pacific
• Europe

Of all regions globally, North America is expected to attain a prominent share of the Automotive Data Management and Cloud Platform Market during 2023-28. It owes to the extensive presence of leading automakers & software development companies, ever-increasing vehicle production & sales, the high adoption of advanced technologies, and significant disposable incomes across the region. Furthermore, the rapidly rising testing & use of self-driving cars in the US owing to favorable traffic regulations that allow autonomous vehicles to ply on roads & highways is another prominent aspect projected to stimulate the regional market growth in the future.

The NHTSA (National Highway Traffic Safety Administration) has laid out guidelines that underscore the need for connected vehicles in the region for increased user safety. As a result, automakers are massively investing in the development of autonomous mobility solutions to adhere to such regulations and expand their user base. Moreover, the rising popularity of UBI (Usage-based Insurance) in the US & Canada, coupled with the increasing number of strategic alliances between IT companies & automakers, are other prominent aspects projected to spur growth in the North America Market over the forecast period.

Recent Developments in the Global Automotive Data Management and Cloud Platform Market

• In October 2022, AWS (Amazon Web Services) & the BMW Group announced a strategic collaboration for the development of customizable cloud software to simplify the distribution & management of data collected from millions of connected vehicles.
• In October 2022, Microsoft & Mercedes-Benz joined forces to make vehicle production more efficient, resilient, & sustainable. The automaker planned on connecting around its 30 passenger car plants worldwide using Microsoft's new MO360 Data Platform, thereby enhancing transparency & predictability across its digital production & supply chain.

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