Automotive Mobile Edge Computing Market Size (2023 - 2030)

Global Automotive Mobile Edge Computing Market was estimated to be worth USD 167.72 Million in 2022 and is projected to reach a value of USD 1171.30 Million by 2030, growing at a CAGR of 27.5% during the forecast period 2023-2030.

Mobile edge computing (MEC), also known as multi-access computing, is an ETSI (European Telecommunications Standards Institute)-defined network architecture concept that enables the near real-time processing and analysis of considerable amounts of data produced by applications and edge devices closest to where it is captured. In other words, it is a type of edge computing that extends the capabilities of cloud computing by bringing it to the edge of the network. MEC shortens the distance between where information is produced, gathered, and analyzed in the cloud like edge computing. MEC makes it possible for processes to take place in base stations, central offices, and other aggregation points on the network, whereas traditional cloud computing takes place on remote servers that are located far from the user and the device. MEC helps in reducing congestion on mobile networks and lower latency, which enhances the quality of experience (QoE) for end users by transferring a load of cloud computing to individual local servers. The automotive industry is exploring and implementing mobile edge computing and 5G network technologies to support the increasingly complex software that is installed in automobiles. Together, 5G and mobile edge computing can provide low latency and high bandwidth in a secure and reliable fashion. There are many promising use cases for mobile edge computing with 5G network integration. These include Advanced Driver Assistance Systems (ADAS) for enhanced 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 a result of these features, the global automotive mobile edge computing market is estimated to have a fast CAGR during the forecasted period.

Global Automotive Mobile Edge Computing Market Drivers:

The growing popularity of connected cars is fueling the growth of the global automotive mobile edge computing market.

The idea of connectivity has evolved due to smartphones. When traveling, individuals desire to stay connected with the outside world. Since connectivity has become a necessity, car manufacturers incorporate connectivity options in their vehicles to boost sales. Customers anticipate that their cars will fulfill similar functions to those of smartphones and personal computers. Nowadays, automakers have given a strong emphasis on incorporating connectivity technology into their vehicles. Internet access is required 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 connect the passengers and the driver of the car is to provide them with internet access. Using a smartphone, modem, or networking device, an in-car hotspot can be created to provide internet connectivity to any of the devices within the car. Therefore, this factor drives the demand for automotive mobile edge computing.

The increasing demand for Advanced Driver Assistance Systems (ADAS) is another factor contributing to the growth of the global automotive mobile edge computing market.

Advanced Driver Assistance Systems (ADAS) are passive and active electronic system technologies that assist car drivers in driving and parking functions. ADAS enhances car and road safety through the human-machine interface. ADAS offers numerous features 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 requires real-time data analysis, which can be fulfilled using mobile edge computing technology. Therefore, this factor also drives the demand for automotive mobile edge computing.

Global Automotive Mobile Edge Computing Market Challenges:

The global automotive mobile edge computing market is encountering challenges, primarily in terms of limited infrastructure and high deployment costs. In developing countries, IT infrastructure development is slower in comparison to developed countries. The availability of high-speed networks, such as 4G-LTE and 5G, are limited to certain urban and semi-urban regions, which can limit the functionality of numerous automotive mobile edge computing technology applications, including connected cars, smart cities, smart mobility, etc. Moreover, the cost of deployment of mobile edge computing technology can be high, especially for new and upcoming market players. Thus, these challenges inhibit the growth of the global automotive mobile edge computing market.

Global Automotive Mobile Edge Computing Market Opportunities:

The development of new and advanced automotive applications presents a lucrative opportunity in the global automotive mobile edge computing market. Given the rising demand for mobile edge computing technology in the automotive industry due to the growing popularity of connected cars and the increasing demand for ADAS technology, major companies specializing in mobile edge computing technology in the automotive industry can stand to gain significantly from this opportunity by developing new products and services or introducing innovations related to connected cars, traffic management, transportation, and logistics, etc., in order to broaden their customer base and boost their overall revenue.

COVID-19 Impact on the Global Automotive Mobile Edge Computing Market:

The outbreak of the COVID-19 pandemic substantially impacted the global automotive mobile edge computing market. The implementation of strict lockdowns, traveling restrictions, and social distancing measures across several nations hindered many companies' manufacturing capacities and caused a shortage of skilled workforce. The pandemic caused disruptions in supply chains and distribution of goods and services, which highly affected the deployment of mobile edge computing technology in the automotive industry. Moreover, the demand for automotive mobile edge computing technology applications, such as connected cars, smart mobility, etc., also decreased due to reduced economic activity. These factors negatively impacted the growth of the global automotive mobile edge computing market. Despite these challenges, the global automotive mobile edge computing market is projected to recover and grow in the coming years.

Global Automotive Mobile Edge Computing Market Recent Developments:

In June 2022, Hyundai, a South Korean-based automotive company, unveiled the tapping of Paragon's mobile edge computing platform and Singtel’s 5G network to manage and power its Singapore-based small-scale electric vehicle manufacturing plant.

• In March 2022, Cisco Systems, Inc., an American-based technology giant, and Verizon, an American-based telecommunications giant, collaborated in Las Vegas to successfully demonstrate millisecond C-V2X (cellular vehicle-to-everything) connectivity using cellular and mobile edge computing technology.
• In February 2022, HARMAN International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd, unveiled the industry-first mobile edge computing (MEC) software platform HARMAN Savari MECWAVE.

AUTOMOTIVE MOBILE EDGE COMPUTING MARKET REPORT COVERAGE:

Global Automotive Mobile Edge Computing Market Segmentation: By Component

• Hardware

• Software

In 2022, the hardware segment held the highest market share. The growth can be attributed to the vast applications 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 crucial 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 rising adoption of connected services and advanced applications in automobiles and the advancements in software technology, including the integration 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 anticipated to expand at the fastest rate over the forecast period.

Global Automotive Mobile Edge Computing Market Segmentation: By Application

• Connected Cars

• Smart Cities

• Traffic Management

• Transportation & Logistics

• Others

In 2022, the segment of the connected car held the highest 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 offer 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 increasing demand for mobile edge computing technology for monitoring and controlling traffic flow on roads, the traffic management segment is anticipated to expand at the fastest rate over the forecast period.

Global Automotive Mobile Edge Computing Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• Rest of the World

The region of North America dominated the global automotive mobile edge computing market in 2022. The early adoption of mobile edge computing technology, the growing popularity of connected cars, the increasing 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 factors attributing to the region's growth. Additionally, the region is home to significant market players, including Digi International, Cisco Systems Inc., IBM Corporation, Intel Corporation, and Dell Technologies Inc. Due to the rising government initiatives regarding smart cities and electric vehicles in nations, such as China and India, and the increasing demand for connected cars, the region of Asia-Pacific is anticipated to expand at the fastest rate over the forecast period.

Global Automotive Mobile Edge Computing Market Key Players:

1. IBM Corporation (United States)

2. Intel Corporation (United States)

3. Cisco Systems Inc. (United States)

4. Nokia Corporation (Finland)

5. Dell Technologies Inc. (United States)

6. Ericsson AB (Sweden)

7. DENSO Corporation (Japan)

8. INVERS GmbH (Germany)

9. Digi International (United States)

10. Siemens (Germany)