PUBLISHER: The Business Research Company | PRODUCT CODE: 1877631
PUBLISHER: The Business Research Company | PRODUCT CODE: 1877631
Edge cloud for connected cars is a computing framework that processes data in close proximity to vehicles, reducing latency and enabling real-time decision-making. It supports high-speed communication between vehicles and surrounding infrastructure, enhancing safety, navigation, and traffic coordination. By transferring intensive computational tasks to nearby edge servers, it improves performance, efficiency, and responsiveness in automotive applications.
The main components of edge cloud for connected cars include hardware, software, and services. Hardware refers to the physical elements that allow connected vehicles to process data in real time and perform essential functions. Deployment occurs through various models, including public cloud, private cloud, and hybrid cloud, utilizing connectivity options such as fifth generation (5G), fourth generation (4G) or long-term evolution (LTE), Wi-Fi, and others. These systems are integrated into different vehicle categories, such as passenger and commercial vehicles, and are applied in areas including infotainment, advanced driver assistance systems (ADAS), telematics, fleet management, autonomous driving, and other connected automotive functions.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The edge cloud for connected car market research report is one of a series of new reports from The Business Research Company that provides edge cloud for connected car market statistics, including edge cloud for connected car industry global market size, regional shares, competitors with the edge cloud for connected car market share, edge cloud for connected car market segments, market trends, and opportunities, and any further data you may need to thrive in the edge cloud for connected car industry. This edge cloud for connected car market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The edge cloud for connected car market size has grown exponentially in recent years. It will grow from $2.66 billion in 2024 to $3.21 billion in 2025 at a compound annual growth rate (CAGR) of 20.7%. The growth in the historic period can be attributed to the increasing adoption of connected vehicles, growing demand for real-time navigation services, rising need for vehicle-to-vehicle communication, expanding use of infotainment systems, and increasing integration of telematics in automobiles.
The edge cloud for connected car market size is expected to see exponential growth in the next few years. It will grow to $6.74 billion in 2029 at a compound annual growth rate (CAGR) of 20.4%. The growth in the forecast period can be attributed to the rising demand for autonomous driving support, increasing adoption of 5G-enabled vehicle networks, growing need for advanced driver assistance systems, expanding focus on predictive vehicle maintenance, and increasing preference for over-the-air software updates. Major trends in the forecast period include advancements in edge computing technologies, innovation in AI-driven vehicle data analytics, growing investment in next-generation connectivity solutions, development of blockchain-based data security measures, and innovation in cloud-native automotive platforms.
The growing adoption of 5G networks is expected to drive the growth of the edge cloud for connected car market going forward. 5G networks are advanced wireless communication systems that offer faster data transmission speeds, lower latency, and improved connectivity compared to earlier network generations. The adoption of 5G is increasing due to the rising demand for high-speed, low-latency communication that supports connected vehicles, smart city applications, and real-time data processing. 5G networks enhance edge cloud functionality for connected cars by enabling ultra-low latency and high-bandwidth communication, allowing large volumes of vehicle data to be processed at the network edge. This supports instant interaction between vehicles, infrastructure, and cloud systems, facilitating critical safety functions, autonomous driving operations, and improved in-vehicle experiences that depend on real-time responsiveness. For instance, in July 2024, according to 5G Americas, a US-based telecommunications organization, global 5G connections reached nearly 2 billion in the first quarter of 2024, with an additional 185 million new subscriptions, and are expected to grow to about 7.7 billion by 2028. Therefore, the growing adoption of 5G networks is fueling the expansion of the edge cloud for connected car market.
Major companies in the edge cloud for connected car market are focusing on developing innovative solutions such as over-the-air (OTA) software update systems to improve vehicle performance and enhance user experience. OTA software update systems allow vehicles to receive and install software updates remotely without requiring a service visit, helping to enhance performance, introduce new features, resolve technical issues, and strengthen security. For instance, in January 2023, EPAM Systems Inc., a US-based software company, introduced AosEdge, a comprehensive vehicle-to-cloud (V2C) platform designed to transform how original equipment manufacturers (OEMs) and service providers manage in-vehicle applications and services. AosEdge enables seamless software updates and supports the evolution of software-defined vehicles through two key components: AosCloud, EPAM's cloud-based infrastructure, and AosCore, an in-vehicle runtime system integrated with Renesas' R-Car System on Chip (SoC). Its modular microservices architecture allows OEMs to quickly deploy new features while enabling developers to create in-vehicle applications independently of vehicle architecture, even with minimal automotive expertise.
In February 2024, Karma Automotive LLC, a US-based manufacturing company, acquired the technology assets and intellectual property of Airbiquity Inc. for an undisclosed sum. This acquisition enables Karma Automotive LLC to strengthen its connected vehicle technologies and accelerate the transition toward software-defined vehicles by integrating Airbiquity Inc.'s telematics, cloud-based services, and over-the-air (OTA) software capabilities into its technology platform. Airbiquity Inc. is a US-based automotive software company specializing in providing model validation and connected vehicle solutions.
Major players in the edge cloud for connected car market are Google LLC, Microsoft Corporation, Samsung Electronics Co. Ltd., Ford Motor Company, General Motors Company, Hyundai Motor Company, Amazon.com Inc., Huawei Technologies Co. Ltd., Robert Bosch GmbH, International Business Machines Corporation, NVIDIA Corporation, Cisco Systems Inc., Intel Corporation, Continental AG, Qualcomm Incorporated, Telefonaktiebolaget LM Ericsson, Nokia Corporation, Audi AG, Renesas Electronics Corporation, and Equinix Inc.
North America was the largest region in the edge cloud for connected car market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in edge cloud for the connected car report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the edge cloud for the connected car market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The edge cloud for the connected car market consists of revenues earned by entities by providing services such as over-the-air (OTA) software update services, cybersecurity-as-a-service (CAAS), data analytics-as-a-service (DAAAS), edge-based content delivery services, and remote vehicle diagnostics services. The market value includes the value of related goods sold by the service provider or included within the service offering. The edge cloud for the connected car market also includes sales of central compute units (CCUs), vehicle control units (VCUs), 5G and V2X communication modules, operating systems, hypervisors, middleware solutions, and vehicle-to-cloud platforms. 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).
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.
Edge Cloud For Connected Car Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on edge cloud for connected car market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for edge cloud for connected car ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The edge cloud for connected car market global report from the Business Research Company answers all these questions and many more.
The 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 forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.