Over the Air Updates Market

Global Over-the-Air Updates Market Size

The global over-the-air updates market was expected to reach USD 4.54 billion in 2024 and is anticipated to reach USD 5.51 billion in 2025 from USD 25.93 billion by 2033, growing at a CAGR of 18.60% during the forecast period from 2025 to 2033.

For a long time, software updates were carried out using local software update procedures, in which the car is sent to a dealer/mechanic who then updates the software. Tesla Motors has started offering OTA capability for its electric vehicles, which has revolutionized the automotive industry. Subsequently, other global automakers, such as BMW, Mercedes-Benz, and General Motors, began investing in offering OTA capabilities for their connected cars. OTA updates are expected to help OEMs save a significant amount of money incurred due to car recalls. Plus, it allows car owners to update all their software without going to the dealership.

Over the air is a method of distributing new software, firmware, and other update facilities in the cloud. Until recently, OTA updates were only available for smartphones. However, with the rapid growth in the number of connected cars around the world and vehicles increasingly reliant on software, the need for OTA updates has increased dramatically. Strict vehicle security policies and protocols, and growing demand for connected car devices and services, will increase the demand for over-the-air updates for the automotive market.

MARKET DRIVERS

The main factors driving the global OTA updates market include increased production of electric vehicles, growing demand for connected car devices, government regulations regarding vehicle safety, cybersecurity, demand, and the rising growth of advanced applications such as telematics and infotainment. Additionally, new vehicle security standards encourage automakers to protect vehicle data from hacking and remote malfunctions, increasing market demand for automotive OTA updates.

MARKET RESTRAINTS

The lack of supporting infrastructure in developing countries is expected to hamper the worldwide OTA updates market.

IMPACT OF COVID-19 ON THE OVER-THE-AIR UPDATES MARKET

The coronavirus pandemic is currently moving around the world, creating havoc in the automobile industry. The strict lockdown conditions around the world have resulted in the temporary closure of manufacturing units and sales channels, as well as disruption in the supply chain, which has led to a decline in revenue in the OTA updates business. However, the market is supposed to resume a normal level once the vaccine is released.

REPORT COVERAGE

SEGMENT ANALYSIS

By Application Insights

The advent of state-of-the-art infotainment systems has attracted a substantial percentage of vehicle customers. The demand for smartphone-like functionality in vehicles is constantly increasing, making it easier for drivers and passengers to maneuver with digital maps. As a result, automakers integrate them into their respective vehicles. With the rise of automotive technology, the demand for constant updates to infotainment systems is also increasing. In this regard, automakers and various technology leaders research, design, and integrate Over-the-Air (OTA) systems into vehicles, offering upgrades over a period of time. The Telematics Control Units segment is expected to grow during the foreseen period due to the increase in the number of telecommunications applications. Several car manufacturers offer the telematics control unit as a standard device in their vehicles. Additionally, the telematics control unit is expected to help automakers examine common problems in a vehicle, which in turn are likely to be corrected in new products. Updates in telematics control unit applications and real-time data analysis are believed to feed the telematics control unit applications segment of the global automotive OTA updates market.

By Technology Insights

The SOTA updates market represents the majority of the global OTA updates market. However, in terms of growth, the FOTA upgrade market is likely to grow at the highest CAGR during the forecast period. The SOTA Updates segment is supposed to remain the largest share during the conjecture period.

By Vehicle Insights

It is estimated that the passenger vehicle segment will grow significantly during the envisioned period due to the increase in income level and the significant difference in the average amount spent on automotive safety and personal use vehicle safety.

By Electric Vehicle Insights

Continued promotion and support from the government in the use of green energy is estimated to boost the electric vehicle segment during the projection period. Segmented hybrid electric vehicles accounted for a larger share of the market compared to the battery electric vehicle and plug-in hybrid electric vehicle segments.

REGIONAL ANALYSIS

Asia-Pacific dominated the OTA Updates market in 2018 with a significant market share and is also expected to be the fastest-growing region during the outlook period from 2020 to 2027. While in North America, OEMs and technology providers continually invest significant sums in developing robust solutions that attract customers from the automotive industry. Tesla, the pioneer of wireless updates (OTA), offers a unique module that makes it easy to troubleshoot and add new features. Several other North American automakers are emphasizing technology as well. The high disposable income and the mature technology awareness of the North American markets are driving the adoption of connected cars in the region. It is followed by Europe, which has some highly developed countries, and the region has a strong automotive sector that is expected to drive the growth of the OTA updates market in the region.

KEY MARKET PLAYERS

Robert Bosch GmbH, NXP Semiconductors N.V, Verizon Communications, Inc., Continental AG, Infineon Technologies AG, Qualcomm Incorporated, Intel Corporation, HARMAN International, Airbiquity Inc, Aptiv, HERE Technologies, BlackBerry QNX Software Systems Limited, Garmin Ltd., Intellias Ltd. These are the market players that are dominating the global over-the-air updates market.

RECENT HAPPENINGS IN THE MARKET

• Germany's Robert Bosch GmbH, the world's biggest automobile parts provider, said that it was combining its product and gadgets ability into a solitary division, to make new vehicle computerized capacities work a lot quicker.
• Airbiquity®, a world leader in connected vehicle services, and NXP Semiconductors announced the integration of Airbiquity’s OTAmatic ™ over-the-air (OTA) software and its data management offering on the Vehicle Network Processing Assessment card (VNP) of NXP (EVB).
• Volkswagen is going to enter another period of electric portability with the launch of the ID.3, with which it has the principal backing of Continental.

MARKET SEGMENTATION

This research report on the global air updates market is segmented and sub-segmented into the following categories.

By Application

• Telematics Control Unit (TCU)
• Electronic Control Unit (ECU)
• Infotainment
• Safety & Security
• Others

By Technology

• Firmware Over-The-Air (FOTA)
• Software Over-The-Air (SOTA)

By Vehicle

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

By Electric Vehicle

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa