Automotive Over-The-Air (Ota) Updates Market

The global automotive over-the-air (OTA) market reached a value of $2.59 billion in 2023 and is projected to reach $13.71 billion by 2030, exhibiting a CAGR of 18.1% from 2023 to 2030.

The outbreak of COVID-19 had a severe impact on the automotive industry worldwide, leading to a significant decline in vehicle sales and disruptions in the supply of raw materials. Many players in the automotive sector experienced challenges such as production halts and mandated plant closures by governments. However, the pandemic indirectly affected the automotive over-the-air (OTA) market. Industry leaders have devised innovative ways to integrate critical information, including contact details, nearest medical centers, and primary symptom references, with official local government guidance, thereby enhancing the user experience. The adoption of such methods is expected to drive the demand for automotive over-the-air (OTA) updates in the near future.

Factors such as the increasing adoption of connected vehicles, growing demand for electric vehicles, government regulations pertaining to vehicle safety and cybersecurity, and initiatives by governments to implement connected car technology are anticipated to bolster the need for automotive over-the-air updates. However, the high cost associated with over-the-air updates and the lack of infrastructure in emerging countries may hinder the growth potential of the market.

The market growth in the automotive over-the-air (OTA) sector is anticipated to be influenced by the emergence of the Internet of Things (IoT) in the automotive industry and the implementation of stringent cybersecurity standards.

The automotive OTA market is segmented based on technology type, application, vehicle type, and region. In terms of technology type, the global market is divided into firmware over-the-air and software over-the-air. When it comes to application, it is categorized into telematics control unit, electronic control unit, infotainment, safety and security, and others. The market is further classified by vehicle type into passenger vehicles, commercial vehicles, and electric vehicles. Geographically, the market has been analyzed across North America, Europe, Asia-Pacific, and LAMEA regions.

The major players analyzed in the automotive over-the-air (OTA) market include Robert Bosch Gmbh, NXP Semiconductors N.V, Verizon Communications Inc, Continental AG, Infineon Technologies AG, Qualcomm Incorporated, Intel Corporation, HARMAN International, Airbiquity Inc, and BlackBerry QNX Software Systems Limited.

Rise in Demand for Connected Vehicles:

Connected cars provide seamless connectivity on the go, offering comfort, convenience, performance, safety, and security through robust network technology. This enables drivers to connect to online platforms, facilitating real-time communication. The increasing consumer demand for connectivity solutions, growing need for constant connectivity, reliance on technology, and the rise in tech-savvy population are key factors contributing to the growing demand for connected cars worldwide. Network connectivity solutions like vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) systems enable the sharing of content with various devices both inside and outside the vehicle. In a connected vehicle, the driver receives real-time data about the vehicle, enhancing safety. The primary objectives of adopting connected cars are to prevent collisions, reduce fatalities, and enhance fleet management efficiency.

Rise In Demand For Connected Vehicles

Connected vehicles provide seamless connectivity on the go, offering enhanced comfort, convenience, performance, safety, and security through advanced network technology. This enables drivers to connect to online platforms, facilitating real-time communication. The growing consumer demand for connectivity solutions, the rising need for constant connectivity, increased reliance on technology, and the surge in the tech-savvy population are the key factors driving the increasing demand for connected vehicles worldwide. Network connectivity solutions, such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) systems, enable the sharing of content with various devices inside and outside the vehicle. In a connected vehicle equipped with multiple devices, the driver receives real-time data about the vehicle, enhancing safety. The primary objectives of adopting connected cars are to prevent collisions, reduce fatalities, and improve fleet management efficiency.

The infotainment segment is projected to be the most profitable in the automotive over-the-air (OTA) market. Additionally, automotive original equipment manufacturers (OEMs) are optimizing their research and development (R&D) spending by establishing strong collaborations with solution providers and partners, prioritizing connected car programs. A notable example is the strategic partnership between Ford and Google announced in 2021. This partnership aims to accelerate Ford's transformation and revolutionize the connected car experience by incorporating embedded Google apps and services. Similarly, Airbiquity joined the Japan Automotive Software Platform and Architecture (JASPAR) in 2019, an organization that promotes standardization of automotive software and networks to enhance development efficiency and stability. Consequently, the increasing adoption of connected car devices by manufacturers is expected to drive the growth of the automotive over-the-air (OTA) market during the forecast period.

Cybersecurity Standards Becoming Mandatory

In recent years, the importance of automotive cybersecurity has been on the rise and is expected to continue in the future. The World Forum for Harmonization of Vehicle Standards (WP.29), under the United Nations Economic Commission for Europe (UNECE), has introduced two new regulations that mandate cybersecurity measures for the approval of new vehicle types. These regulations encompass passenger cars, trucks, buses, and vans, and include specifications for four key areas: managing cyber-attacks in vehicles, securing vehicles through design to mitigate risks across the value chain, detecting and responding to security issues across a fleet of vehicles, and providing secure software upgrades while maintaining vehicle safety. Additionally, the regulations establish a legal framework for over-the-air updates to on-board vehicle software. This emphasis on cybersecurity standards is driving the automotive industry to enhance its security measures.

The electric vehicles segment is projected to be the most profitable in the automotive over-the-air (OTA) market. Starting from July 2022, a new cybersecurity law will be mandatory for all new vehicle types in the European Union, and from July 2024, it will be mandatory for all new cars manufactured. Similar efforts are being made in South Korea and Japan to establish cybersecurity regulations. Additionally, the automotive industry is developing the ISO/SAE 21434 standard, titled ""Road vehicles - Cybersecurity engineering,"" within the International Organization for Standardization (ISO) and the Society of Automotive Engineers (SAE). The implementation of this standard aims to assist manufacturers in keeping up with evolving technology and cyber-attack strategies. Therefore, the introduction of cybersecurity regulations in the automotive sector is expected to drive the growth of the global automotive OTA market during the forecast period.

COVID-19 Impact Analysis

The COVID-19 pandemic has presented the world with unprecedented challenges in terms of the economy, healthcare, and humanitarian aspects. Lockdown measures implemented to contain the spread of the virus have had a significant economic impact. The automotive sector has been particularly affected, experiencing severe financial hardships due to the measures such as lockdowns and shelter-at-home orders. However, despite the challenges posed by the pandemic, industry leaders have been devising strategies to incorporate critical information such as contact details, nearby medical centers, and symptom references into their offerings, while also enhancing the user experience. Moreover, although COVID-19 has disrupted the operations of many original equipment manufacturers (OEMs) in areas such as production and research and development (R&D), the increasing vaccination rates coupled with the growing demand for electric vehicles and advanced infotainment systems indicate a positive outlook for the automotive over-the-air (OTA) market in the near future.

Automotive Over-the-Air (OTA) Market Report Segmentations

By TECHNOLOGY TYPE 

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

By APPLICATION            

• Telematics Control Unit
• Electronic Control Unit
• Infotainment
• Safety & Security
• Others

By VEHICLE TYPE            

• Passenger Vehicles
• Commercial Vehicles
• Electric Vehicles

By Region          

• North America  (US, Canada, Mexico)
• Europe  (UK, Germany, France, Spain, rest of Europe)
• Asia-Pacific  (China, India, Japan, South Korea, rest of Asia-Pacific)
• LAMEA  (Latin America, Middle East, Africa)

Key Benefits For Stakeholders

• This study provides an analytical representation of the global automotive over-the-air (OTA) market, including current trends and future projections, to identify potential investment opportunities.
• The report helps stakeholders understand the profitable trends in the automotive over-the-air (OTA) market, enabling them to establish a stronger market presence.
• It offers valuable insights into the key drivers, restraints, and opportunities impacting the global automotive over-the-air (OTA) market, supported by a detailed impact analysis.
• The financial competency of the automotive over-the-air (OTA) market is benchmarked through quantitative analysis from 2020 to 2030.
• Porter's five forces analysis evaluates the bargaining power of buyers and suppliers in the industry, providing stakeholders with a comprehensive understanding of the market dynamics.