As per our research Report, the Automotive Mobile Edge Computing Market is forecasted to be growing at CAGR of 27.5% from 2024 to 2030.
Mobile edge computing (MEC), also called as multi-access computing, is an ETSI (European Telecommunications Standards Institute)-defined network architecture concept that facilitates the near real-time processing and analysis of considerable amounts of data generated by applications and edge devices closest to where it is captured. In other words, it is a way of edge computing that widens the capabilities of cloud computing by bringing it to the edge of the network. MEC shortens the distance between where information is made, gathered, and analyzed in the cloud like edge computing. MEC makes it happen for processes to take place in base stations, central offices, and other aggregation points on the network, whereas conventional cloud computing takes place on remote servers that are based far from the user and the device. MEC aids in reducing congestion on mobile networks and lower latency, which increases the quality of experience (QoE) for end users by transferring a load of cloud computing to single local servers.
The automotive industry is exploring and implementing mobile edge computing and 5G network technologies to encourage the increasingly complex software that is installed in automobiles. Together, 5G and mobile edge computing can offer low latency and high bandwidth in a secure and reliable fashion. There are several promising use cases for mobile edge computing with 5G network integration. These involve Advanced Driver Assistance Systems (ADAS) for increased vehicle safety, Vehicle-to-Everything (V2X) protocols for enhanced connected car ecosystem, authentication of devices for the utmost level of data security, Intuitive Infotainment systems for enhanced passenger/driver experience, and adaptive & predictive vehicle maintenance. As an impact of these features, the global automotive mobile edge computing market is expected to have a fast CAGR during the forecasted period.
The idea of connectivity has evolved because of smartphones. When traveling, individuals desire to stay networked with the outside world. Since connectivity has become a requirement, car manufacturers incorporate connectivity options in their vehicles to boost sales. Customers expect that their cars will fulfil similar functions to those of smartphones and personal computers. Nowadays, automakers have offered a strong emphasis on incorporating connectivity technology into their vehicles. Internet access is needed for the proper functioning of a number of modern car networking technologies. Connectivity in a vehicle can be made possible by embedded, integrated, or tethered connection systems. One way to link the passengers and the driver of the car is to give them with internet access. Using a smartphone, modem, or networking device, an in-car hotspot can be made to provide internet connectivity to any of the equipment within the car. Therefore, this factor propels the demand for automotive mobile edge computing.
Advanced Driver Assistance Systems (ADAS) are passive and active electronic system technologies that help car drivers in driving and parking functions. ADAS increases car and road safety through the human-machine interface. ADAS offers numerous facilities to drivers, including traffic signal recognition, adaptive cruise control, smart pilot assist, lane keep assist, front collision warning, automatic emergency brake, and many more. ADAS needs real-time data analysis, which can be fulfilled utilising mobile edge computing technology. Therefore, this factor also drives the demand for automotive mobile edge computing.
The global automotive mobile edge computing market is facing challenges, primarily in terms of limited infrastructure and high deployment costs. In developing economies, IT infrastructure development is slower in comparison to developed nations. The availability of high-speed networks, such as 4G-LTE and 5G, are restricted to certain urban and semi-urban regions, which can restrict the functionality of numerous automotive mobile edge computing technology applications, including connected cars, smart cities, smart mobility, etc. Furthermore, the cost of deployment of mobile edge computing technology can be high, especially for new and upcoming competitors. Hence, these challenges detrimental to the growth of the global automotive mobile edge computing market.
Key Market Insights:
In 2023, the hardware segment held the biggest market share. The growth can be dedicated to the vast uses of hardware components, such as sensors, Electronic Control Units (ECU), smart antennas, displays, processors, communication devices, and others, for mobile edge computing technology in the automotive industry. These hardware components have generally been a significant part of the automotive mobile edge computing market, as they are essential in enabling real-time data processing and analysis in automobiles and related applications. Due to the growing adoption of connected services and advanced applications in automobiles and the advancements in software technology, including the combination of artificial intelligence (AI), machine learning (ML), and 5G services, for augmenting the capabilities of mobile edge computing systems in the automotive industry, the software segment is expected to expand at the fastest rate over the forecast period.
In 2023, the segment of the connected car held the biggest market share. The growth can be attributed to the growing popularity of automobiles with embedded, tethered, and integrated connectivity with internet access and cutting-edge features related to safety, security, driving, and entertainment. Connected cars provide a number of features, including smartphone applications for car connectivity, vehicle-to-vehicle communication, top-quality entertainment, and remote parking, among others. Due to the rising demand for mobile edge computing technology for monitoring and controlling traffic flow on roads, the traffic management segment is expected to expand at the fastest rate over the forecast period.
The region of North America topped the global automotive mobile edge computing market in 2023. The early adoption of mobile edge computing technology, the increasing popularity of connected cars, the growing demand for Advanced Driver Assistance Systems (ADAS), and the presence of well-established IT and telecommunications industries in nations, such as the United States and Canada, are some of the elements attributing to the region's growth. In addition, the region is home to major market players, including Digi International, Cisco Systems Inc., IBM Corporation, Intel Corporation, and Dell Technologies Inc. Owing to the rising government initiatives regarding smart cities and electric vehicles in nations, such as China and India, and the escalating demand for connected cars, the region of Asia-Pacific is anticipated to expand at the fastest rate over the estimate period.
Hardware
Software
Connected Cars
Smart Cities
Traffic Management
Transportation & Logistics
Others
North America
Europe
Asia-Pacific
South America
Middle East and Africa
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