The Global Over the Air Updates Market was worth US$ 3880 million in 2022 and is anticipated to reach a valuation of US$ 10650 million by 2028 and is predicted to register a CAGR of 18.60% during 2023-2028.
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, and 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 availability of supporting infrastructure in developing countries is expected to hamper the worldwide OTA updates market.
Market Recent Developments:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 – 2028 |
|
Base Year |
2022 |
|
Forecast Period |
2023 - 2028 |
|
CAGR |
18.60% |
|
Segments Covered |
By Application, Technology, Vehicle, Electric Vehicle, and Region. |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
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., and Intellias Ltd, and Others. |
Market Segmentation:
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 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.
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.
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.
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.
Market Regional Analysis:
The Global Over the Air Updates Market Report includes the segmentation of regions:
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 update (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 mass 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.
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, and disruption in the supply chain, which led to a decline in revenue in the OTA updates business. However, the market is supposed to resume a normal level once the vaccine gets released.
Market Key Players:
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region