What Fueled Automotive Over-The-Air (OTA) Updates Market?
The automotive over-the-air (ota) updates market has seen considerable growth due to a variety of factors.
• The market size of over-the-air (OTA) updates in the automotive sector has been experiencing rapid expansion over the past few years. It is projected to surge from $4.29 billion in 2024 to an estimated $5.03 billion in 2025, with a compound annual growth rate (CAGR) of 17.2%.
This significant growth observed in the historical period is primarily due to the adoption of connected cars, increasing complexity of auto-related software, customer desire for progressive features, reduction in downtime and service expenses, as well as competitive pressures and differentiation.
How Will the Automotive Over-The-Air (OTA) Updates Market Size Evolve over the Forecast Period?
The automotive over-the-air (ota) updates market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the automotive over-the-air (OTA) updates market is projected to experience fast-paced growth, reaching a value of $10.18 billion in 2029 with a compound annual growth rate (CAGR) of 19.3%.
This surge during the forecast period can be traced back to a variety of factors including, the increasing prominence of autonomous and connected vehicles, the evolving complexity of systems within vehicles, the inclusion of sophisticated infotainment systems, the need for addressing cybersecurity risks, and the popularity of subscription-based business models. The period also witnesses several notable developments such as the growing emphasis on data analytics and predictive maintenance, introduction of measures to ensure security and cybersecurity, expansion of connected car technologies, integration of sophisticated diagnostics and analytics, and the adoption of edge computing for quicker updates.
What Are the Critical Driver Fuelling the Automotive Over-The-Air (OTA) Updates Market's Growth?
The accelerated popularity and demand for passenger vehicles significantly fuels the expansion of the automotive over-the-air (OTA) updates market. In this context, a passenger vehicle denotes a motor vehicle that transports a person or group of persons, primarily utilized for human transportation. These OTA updates in the automotive industry are employed in both passenger and commercial vehicles to provide remote software updates, eliminating the need for a dealership or mechanic visit and instead improving the overall driving experience and boosting road safety. For example, the U.S. Bureau of Labor Statistics, a principle fact-finding agency based in the US, predicted in a February 2023 report, that electric vehicle sales in the US are projected to take up 40 percent of all passenger vehicle sales by 2030. More bullish predictions even suggest that these sales might exceed 50 percent in the same year. Furthermore, from 2021 to 2031, the growth of electric vehicle batteries and battery charger production is anticipated to be 17.0 percent. Hence, the escalating demand for passenger vehicles is projected to drive the growth of the automotive OTA update market.
What Key Areas Define The Segmentation Of The Global Automotive Over-The-Air (OTA) Updates Market?
The automotive over-the-air (OTA) updates market covered in this report is segmented –
1) By Technology Type: Firmware Over-The-Air (FOTA), Software Over-The-Air (SOTA)
2) By Vehicle Type: Passenger Vehicles, Commercial Vehicles, Electric Vehicles
3) By Application: Telematics Control Unit, Electronic Control Unit, Infotainment, Safety And Security
Subsegments:
1) By Firmware Over-The-Air (FOTA): Updates For Vehicle Control Units (VCUs), Powertrain Control Module (PCM) Updates, Electronic Control Unit (ECU) Updates, Safety And Security Firmware Updates, Updates For Advanced Driver-Assistance Systems (ADAS)
2) By Software Over-The-Air (SOTA): Infotainment System Updates, Navigation Software Updates, Application Software Updates, User Interface (UI) Enhancements, Connectivity And Telematics Software Updates, Feature Enhancements And Bug Fixes
Pre-Book The Automotive Over-The-Air (OTA) Updates Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
How Are Emerging Trends Reshaping The Dynamics Of The Automotive Over-The-Air (OTA) Updates Market?
Technological innovations have been identified as a crucial trend in the automotive Over-The-Air (OTA) updates market that is rapidly gaining traction. The desire to produce more technologically sophisticated products drives the majority of businesses in the automotive industry, with the ultimate goal of securing a strong market position. For example, in March 2022, Cyient, a software firm based in India, rolled out CyientfIQ, a firmware-over-the-air (FOTA) update solution specifically developed to provide comprehensive firmware update services across various industries. This FOTA solution strives to create smart, interconnected products for Original Equipment Manufacturers (OEMs), while also dramatically decreasing after-sales service support expenses by offering optional upgrades to end-users. It covers a range of firmware update scenarios, including device-to-cloud OTA server, gateway-to-cloud OTA server, and device to gateway to cloud OTA server, with the CyientfIQ FOTA solution delivering a risk-free, smooth upgrade process.
Who Are the Key Players in the Automotive Over-The-Air (OTA) Updates Market?
Major companies operating in the automotive over-the-air (OTA) updates market include:
• Verizon Communications Inc.
• Robert Bosch GmbH
• Intel Corporation
• DENSO Corporation
• Qualcomm Technologies Inc.
• Continental AG
• NVIDIA Corporation
• Lear Corporation
• Thales Group
• Aptiv
• Infineon Technologies AG
• NXP Semiconductors N.V.
• Harman International Industries Incorporated
• Garmin Ltd.
• Luxoft Inc.
• Red Hat Inc.
• Elektrobit Automotive GmbH
• HERE Technologies
• Intellias Ltd.
• Telenor Connexion AS
• Sierra Wireless Inc.
• Blackberry QNX Ltd.
• Green Hills Software LLC
• Arynga Inc.
• Cubic Telecom Limited
• Airbiquity Inc.
• Cybellum Technologies Ltd.
• Wind River Systems Inc.
• Karamba Security Ltd.
• Symphony Teleca Corporation
What Is The Most Dominant Region In The Automotive Over-The-Air (OTA) Updates Market?
North America was the largest region in the automotive over-the-air (OTA) updates market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global automotive over-the-air updates market report during the forecast period. The regions covered in the automotive over-the-air (ota) updates market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
