In a paradigm shift for the automotive industry, dedicated automotive cloud platforms are taking centre stage, ushering in a phase of differentiated competition. As automakers increasingly migrate to cloud platforms, a foundation for digital transformation is laid, marking a pivotal moment in automotive technology. This analysis, based on the 'Automotive Cloud Service Platform Industry Report, 2023' from ResearchAndMarkets, delves into the evolving landscape, spotlighting key trends, innovations, and competitive strategies.
Cloud Capabilities Reshaping Automotive Ecosystem
The report highlights the escalating demand for cloud services, with China carving out a distinctive path in cloud service development. Original Equipment Manufacturers (OEMs) are driving changes in cloud service demand, with a particular focus on cloud applications and business models. The automotive cloud landscape is witnessing a transformative shift in computing architecture, especially in Electric/Electronic (E/E) architecture for vehicle cloud computing.
Data Lake & Cloud Native
Exploring the synergy between Data Lake and Cloud Native technologies, cloud platform companies are creating novel storage and computing systems. Notably, Data Lake Cloud Native architecture gains prominence, exemplified by real-world applications in autonomous driving data lakes from industry giants like AWS and Alibaba Cloud. This trend underscores the industry's commitment to leveraging cloud-native solutions for enhanced functionality and security.
From Single Cloud Adoption To Multi-Cloud Strategies
The industry is experiencing a transition from single cloud adoption to a multi-cloud approach, emphasising versatility and resilience. Distributed edge cloud applications are expanding, magnifying the role of telematics cloud control platforms and integrating cloud intelligence into automotive systems. In this dynamic landscape, cloud-native security undergoes evolution, ensuring robust protection for the connected vehicles' ecosystem.
Exponential Vehicle Data Fuelling Cloud Migration
The report underlines the inevitability of cloud migration, driven by the exponentially increasing volume of vehicle data. Companies aim to digitise the entire vehicle life cycle, from R&D and production to sale, operation, and after-sales service. Cloud migration becomes imperative as vehicle intelligence and connectivity surge, especially with the evolution of autonomous driving functions.
Market Insights & Competition Dynamics
In 2022, China's automotive cloud service market surpassed RMB 15 billion and is anticipated to sustain a growth rate of 30-40% over the next five years. The industry witnesses a fierce competition with major players like Baidu, Alibaba, Tencent, Huawei, and Douyin entering the market, each launching dedicated automotive cloud platforms. Differentiated competitive edges are crucial, focusing on basic resource layer services and upper-layer R&D tool chains.
Advancements In Basic Resource Layer Services
The report highlights the significance of supercomputing centres as a vital indicator of service capabilities. Alibaba and Baidu lead the deployment of supercomputing centres, enhancing their intelligent computing solutions. The emphasis on constructing intelligent computing centres underscores the industry's commitment to advanced computing infrastructure.
Innovations In R&D Tool Chains
Cloud service providers are committed to creating fully furnished service experiences for users, offering full-process and fully closed-loop services. Examples include Tencent's autonomous driving cloud platform, Huawei's autonomous driving cloud platform 'Octopus,' and Baidu's full-stack layout. These innovations aim to provide comprehensive solutions for AI software and hardware ecosystems.
Shift To Multi-Cloud Strategies
As OEMs transition to the cloud, the report identifies a shift in underlying cloud strategy logic from resource pursuit to efficiency. OEMs are adopting a multi-cloud strategy, placing different business types on different cloud platforms to integrate advantages, deploy business more precisely, and reduce costs. Challenges, however, include storage/computing power allocation, cross-cloud data synchronization, and the impact of costs and network delays, the report added.
Courtesy: ResearchAndMarkets. Photo is representational; courtesy: Continental.