Automotive Over-The-Air (OTA) Updates Market Size (By Technology: Software Over-The-Air Technology (SOTA) and Firmware Over-The-Air Technology (FOTA); By Vehicle Type: Passenger Vehicle and Commercial Vehicle; By Application: Electronic Control Unit (ECU), Telematics Control Unit (TCU), Safety & Security, Infotainment, and Others) – Global Industry Analysis, Market Size, Opportunities and Forecast 2021 – 2028

The global automotive over-the-air (OTA) updates market accounted for US$ 2,319 Mn in 2020 and is expected to reach US$ 8,511 Mn by 2028 with a considerable CAGR of 18.1% during the forecast timeframe of 2021 to 2028.

In the automotive sector, the vehicle is becoming smarter and more advance. Recently, most vehicles are driven by software rather than traditional mechanical components. However, as software features become more complex, they necessitate more regular updates. If the software had to be updated a year ago, the car would be taken to the motorway service station and connected to the system for an update. Furthermore, having to install software updates at service centers is not only inconvenient for owners but also extremely expensive for OEMs. However, OTA addresses the problem of consistency of any previously existing update, which eliminates the need for software-related alerts and makes software upgrades simple and seamless. Over-the-top (OTA) updates enable continuous, cost-effective updating of software and security as software-defined vehicles advance and the number of digital services increases to meet customer demands.

Drivers

• Increasing consumption for integrated vehicles
• Rising emphasis on innovative car infotainment systems
• Increasing technological developments in the automobile industry
• Increased demand for self-driving cars

Restraints

• Concerns about data privacy and security
• The high cost of automotive OTA updates

Opportunities

• Increasing adoption of the internet of things (IoT) in the automotive industry
• Expanding market for the telematics control unit

Report Coverage: 

Automotive Over-The-Air (OTA) Updates Growth Factors

The growing demand for connected in-vehicle devices and electric vehicles along with the improvement in electric vehicle productivity are major factors driving the growth of the global automotive over-the-air (OTA) market. Additionally, new vehicle security regulations are helping automakers protect vehicle information from cyber threats and misbehaving, which is expected to increase demand in the automotive market for over the air (OTA). Furthermore, the increasing popularity of the Internet of Things (IoT) in the automotive industry as well as strict cyber security standards is anticipated to contribute to the market growth in the coming years. Furthermore, in underdeveloped nations, the high cost of over-the-air upgrades, as well as a lack of infrastructure and services, may limit growth potential.

Market Segmentation

Market By Technology

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

The market is categorized into two types based on technology: SOTA and FOTA. Over the forecasting years, the FOTA segment is capturing a considerable market share. FOTA is a mobile software management technology that allows the operating system of a mobile device to be updated. Moreover, FOTA works by wirelessly assisting an embedded device's operating firmware and can only be upgraded, updated, and repaired by the manufacturer. Additionally, it helps to reduce overall operational costs by eliminating service center visits for automobiles or IoT devices. However, it reduces expenditures and complexity by implementing new updates quickly. Furthermore, using FOTA provides the benefit of speed by reducing the time required to upgrade and install as well as upgrade numerous devices simultaneously.

Market By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

In terms of vehicle type, the passenger car segment is expected to dominate the automotive OTA updates market in 2020. The demand for OTA updates in passenger vehicles is increasing due to the strict vehicle and passenger safety standards across the world. Furthermore, with the introduction of new safety regulations and vehicle safety standards, it is crucial that manufacturers adapt OTA update system offerings to current vehicle standards. Furthermore, as people's disposable income rises, so does the sale of mid-range and premium passenger vehicles with advanced features like vehicle tracking, information retrieval, voice recognition, virtual assistance, and gesture recognition. As a result, demand for the OTA updates market will rise during the forecasted period.

Market By Application

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

Based on applications, telematics control units have the highest CAGR in the market over the forecast period. The telematics control unit (TCU) is an embedded inbuilt system that manages wireless tracking, diagnostics, and interaction to and from the vehicle. These systems are being used in a variety of applications, including automated accident notification, electronic road tolls, and traffic monitoring. During the forecast period, the segment will expand due to an increase in consumer preference for security, safety, and comfort in vehicles. Many European countries and other developing countries have continued to modernize regulatory standards to update and improve vehicle and passenger safety. It is also likely to spur the demand for TCU units in the automotive OTA updates market.

Automotive Over-The-Air (OTA) Updates Market Regional Overview

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Brazil
• Mexico
• Rest of Latin America

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa