How cloud computing is enabling innovation in India's automotive industry

The automotive sector is going through a paradigm shift as new technologies such as Cloud reshape the way vehicles are designed, manufactured, and operated. The ongoing shift in the industry is propelling the development of connected and autonomous vehicles, setting the stage for India to become a hub for global automotive advancements.

To expedite its progress in this direction, the Indian automotive industry must adopt next-generation technologies such as Cloud Computing. Cloud computing is a major driver of innovation in the automotive industry, offering unparalleled opportunities for car manufacturers to streamline operations, enhance customer experiences, and expedite the development of next-generation vehicles. 

The adoption of cloud services by automotive companies has been on the rise with Grand View Research predicting that India's cloud computing market is expected to grow significantly at a CAGR of 26.7% from 2024 to 2030. This is crucial, as cloud computing is becoming vital for automotive companies that are aiming to meet the increasing demands of digitisation, improved customer experiences, and innovation.

The industry is progressing from relying on traditional IT infrastructures to embracing cloud solutions that offer more agility and scalability to address modern challenges.

Why is cloud-based development crucial for the automotive industry?

The rise of cloud computing has enabled enterprises across various sectors to tackle contemporary challenges such as cybersecurity and data management. It is especially beneficial in the automotive industry, where cloud technologies have enhanced operations and created new avenues for innovation.

Witnessing this as an opportunity, Indian manufacturers are progressively utilising cloud platforms, whether through private or public cloud infrastructure, to enhance their operations and meet evolving customer demand. Cloud-connected cars can access navigation, entertainment, and connectivity services, enhancing the overall driving experience. Moreover, cloud technology enables seamless vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications, which are pivotal for autonomous driving and traffic management.

The rise of electric, autonomous, and software-defined vehicles (SDVs) is not only transforming the automotive landscape but also pushing the boundaries of what cloud computing can achieve. These advanced vehicles depend heavily on cloud infrastructure for data processing, machine learning, and real-time analytics, making cloud adoption critical to the future of the automotive industry.

The growing impact of cloud computing on India’s automotive sector 

The impact of cloud computing on India’s automotive industry is expected to grow. in the future. With a focus towards sustainability and reduced carbon emissions, cloud-based platforms will allow automakers to optimize EV battery performance and energy consumption. Additionally, as autonomous driving technologies mature, cloud infrastructure will become crucial for handling the vast amounts of data generated by sensors and AI algorithms in real-time. 

However, the adoption of cloud technology in India’s automotive industry is not without challenges such as:
•    Data security and privacy: As connected vehicles collect large amounts of personal and vehicle data, ensuring the security and privacy of this information remains a critical concern.
•    Legacy systems: Many Indian automotive companies are still reliant on legacy IT systems, making the shift to cloud computing complex and costly.
•    Skills gap: The shortage of cloud expertise and talent is another barrier to widespread cloud adoption in the automotive sector, with companies struggling to find professionals skilled in cloud architecture, AI, and machine learning.

To overcome these challenges and fully harness the potential of cloud computing, automotive companies should:

•    Invest in cloud security: In today's connected automotive environment, safeguarding sensitive customer and vehicle data is paramount. Automotive manufacturers and service providers should implement robust cloud security frameworks that include advanced encryption protocols to protect data in transit and at rest.

Furthermore, implementing multiple layers of defense mechanisms, like firewalls along with intrusion detection systems (IDS) and intrusion prevention systems (IPS) can be instrumental, in detecting and addressing security risks. Additionally, SAST (Static Application Security Testing) and DAST (Dynamic Application Security Testing) tools can be integrated easily over cloud in the DevOps pipelines to release software in secure versions.

•    Adopt a phased approach: Taking steps towards transitioning to the cloud can feel overwhelming, for businesses with legacy systems in place. To mitigate risks and ensure a smooth transformation, it's advisable to adopt a phased approach rather than attempting a full-scale overhaul. Organizations can start by migrating less critical applications and workloads, such as internal tools or non-sensitive data management systems, to the cloud. This strategy enables them to get accustomed, to cloud infrastructure, manage any initial challenges, and gradually build expertise. Post successful phase I migration, more essential applications—such as customer management systems, vehicle data platforms, etc. —can be migrated.

 •    Collaborate with technology partners: As cloud technologies evolve rapidly, companies can benefit significantly by forming strategic partnerships with cloud service providers, IT firms, and educational institutions. These partnerships can help bridge the skills gap within the workforce and drive innovation. Cloud service providers bring technical expertise and infrastructure support, ensuring that companies can leverage the latest advancements while maintaining operational efficiency. 

Therefore, cloud computing will be crucial in enabling automakers and service providers to leverage data for enhanced safety and efficiency. In addition to real-time monitoring and adaptive navigation, the next generation of connected cars will rely on predictive analytics to anticipate and prevent collisions, intelligently manage traffic to ease congestion, and customize in-car experiences based on driver preferences and behaviour. 

Disclaimer: Vinay Chhabra is the co-founder and MD of AceCloud, a brand of Real Time Data Services (RTDS). The views expressed are purely those of the author.