The automotive over-the-air (OTA) updates market has seen rapid expansion, growing from $3.7 billion in 2023 to $4.38 billion in 2024, representing a compound annual growth rate (CAGR) of 18.4%. This growth is attributed to the adoption of connected cars, the increasing complexity of automotive software, consumer demand for advanced features, reduced downtime and service costs, and competitive differentiation pressures. By 2028, the market is projected to reach $8.49 billion, maintaining a CAGR of 18.0%. Expected growth drivers include trends towards autonomous and connected vehicles, the growing complexity of in-vehicle systems, advanced infotainment system integration, cybersecurity concerns, and the adoption of subscription-based business models. Key trends for the forecast period are the implementation of data analytics and predictive maintenance, enhanced security and cybersecurity measures, expansion of connected car technologies, advanced diagnostics and analytics integration, and the use of edge computing for faster updates.
Major Driver In The Automotive Over The Air OTA Updates Market
Rising demand for passenger vehicles is significantly contributing to the growth of the automotive over-the-air (OTA) updates market going forward. Automotive over-the-air updates are used in passenger and commercial vehicles for remote delivery of software update to eliminate the need to visit a dealership or mechanic and instead enhances the driving experience and makes the roads safer by increasing operational safety. For instance, in June 2021, according to the report published by OICA (International Organization of Motor Vehicle Manufacturers), global passenger car sales increased from 53.91 million in 2020 to 56.39 million in 2021. Therefore, the rising demand for passenger vehicles is expected to propel the growth of the automotive over-the-air (OTA) updates market. The automotive over-the-air updates market is estimated to be $7.8 billion in 2023, with a projected growth to $9.5 billion in 2024. By 2028, the market is anticipated to reach $13.2 billion.
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Automotive Over The Air OTA Updates Market Competitive Landscape
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
Key Automotive Over The Air OTA Updates Market Trend
Technological advancements are a prominent trend gaining traction in the automotive over-the-air (OTA) updates market. Leading companies in the automotive industry are focusing on advancing their technology to enhance market positioning. For example, in March 2022, Cyient, an Indian software firm, launched CyientfIQ, a firmware over-the-air (FOTA) update solution designed to provide comprehensive firmware updates across various industries. This FOTA solution aims to create intelligent and connected products for original equipment manufacturers (OEMs) while significantly reducing after-sales service costs through optional feature upgrades for end users. CyientfIQ addresses firmware update scenarios, including device-to-cloud, gateway-to-cloud, and device-to-gateway-to-cloud OTA servers, ensuring a smooth upgrade process with minimized risk factors.
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Automotive Over The Air OTA Updates Market Segmentation
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
By Geography:The regions covered in the automotive over-the-air (ota) updates market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the automotive over-the-air (OTA) updates market in 2023.
The Automotive Over The Air OTA Updates Global Market Report 2024 furnishes information about the global automotive over the air ota updates market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
