Global Automotive Over-The-Air (OTA) Market – Industry Trends and Forecast to 2030

Global Automotive Over-The-Air (OTA) Market, By Technology (Firmware, Software), Vehicle Type (Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle), Propulsion (Internal Combustion Engine, Electric), Application (Electronic Control Unit (ECU), Infotainment, Safety & Security, Telematics Control Unit (TCU) and 0thers), Electric Vehicle Type (Battery, Hybrid and Plug-In Hybrid) – Industry Trends and Forecast to 2030.

Automotive Over-The-Air (OTA) Market Analysis and Size

According to a recent study, approximately 125 million connectivity-embedded passenger cars are to be shipped in the 2018-2022. This increasing software dependency of vehicles over the past few years has developed the demand for the developments and constant updates in-vehicle technologies. With the rapid growth in the connectivity-embedded passenger cars, which heavily depend on advanced software, the demand for the over-the-air (OTA) updates continues to grow. As a result, OEMs are investing more in technologies that modernise the wireless automotive software.

Data Bridge Market Research analyses that the automotive over-the-air (OTA) market is expected to reach USD 20.97 billion by 2030, which is USD 4.13 billion in 2022, at a CAGR of 22.50% during the forecast period. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Automotive Over-The-Air (OTA) Market Scope and Segmentation

Market Definition

Over-the-air (OTA) is a transaction process or wirelessly transferring data using a cellular network. Over-the-air (OTA) refers to several procedures of distributing new software, firmware, configuration settings and other update tools over the cloud. In the case of automotive, the software is updated wirelessly by using a telecommunication medium, over a gateway inside the car to the Electronic Control Units, whose presence is growing in a modern vehicle. Vehicle has become more knowledgeable and smart.

Automotive Over-The-Air (OTA) Market Dynamics

Drivers

• Growing demand for automotive software upgradation

The growing automotive digitalization indicates that automobiles need regular software updates, such as cybersecurity updates, to keep up with newest advancements in connectivity technologies. Instead of repeatedly recalling sold automobiles to a garage, installing these updates wirelessly is much more effective and economical. Over the air (OTA) updates help facilitate an IoT-enabled environment by improving functionality, and allowing devices to stay longer in the field. The OTA technology manages software and wirelessly upgrade the operating firmware from mobile devices. Thus, growing demand for automotive software upgradation is likely to propel the market growth.

• Rising incorporation of smart and connected technologies

The growing adoption of the Internet of Things (ioT) technology is encouraging major vehicle manufacturers to shift their focus towards connected vehicles and either introduce integrate advanced connectivity features in the existing models. This is a response to the growing demand for the state-of-the-art telematics, infotainment, and navigation systems by people. These systems depend on the software which are installed on the embedded automotive hardware, for smooth functioning. Therefore, the increasing incorporation of smart and connected technologies is a major factor which is expected to drive the market growth.

Opportunities

• Increasing demand of electric vehicles globally

The demand for the electric vehicles is increasing rapidly during the forecast which also increases the demand for the over-the-air (OTA) during the forecast period. This can be attributed to the growing government support, in the form of grants and incentives, for the adoption of electric vehicles. Furthermore, almost all electric vehicles are equipped with advanced connected systems for high level of safety and security and efficient operations. Over-the-air (OTA) technology is important in electric vehicles to maximize and facilitate electrification's rewards. OTA solutions​can securely, seamlessly and lucratively manage these software through wireless monitoring. Thus, increasing demand of electric vehicles globally will create lucrative opportunities for the growth of the automotive over-the-air market during the forecast period.

• Surging introduction of new passenger safety norms

The stringent rules associated with passenger safety are expected to create lucrative opportunities for the automotive OTA market all over the globe. Vehicle safety has always been a major concern for manufacturers, and with the introduction of vehicle monitoring standards and safety norms, it has become important for manufacturers to make their models compliant. Furthermore, with the improving degree of programmability and the growing sophistication in the automotive technology, automakers are swiftly focusing on upgrading their automobiles.

Restraints/ Challenges

• Multiple issues associated with automotive over-the-air (OTA) market

Some of the major factors which restrain and challenge the growth of the overall market are high updating price of supporting infrastructure in developing nations. Moreover, increasing complication in the architecture of automotive software is anticipated to restrain the growth of the automotive over-the-air (OTA) market in the above mentioned forecast period.     

This automotive over-the-air (OTA) market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the automotive over-the-air (OTA) market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Automotive Over-The-Air (OTA) Market Scope

The automotive over-the-air (OTA) market is segmented on the basis technology, vehicle type, propulsion, application and electric vehicle type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Technology

• Firmware
• Software

Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Propulsion

• Internal Combustion Engine
• Electric

 Application

• Electronic Control Unit (ECU)
• Infotainment
• Safety & Security
• Telematics Control Unit (TCU)
• 0thers

Electric Vehicle Type

• Battery
• Hybrid
• Plug-In Hybrid

 Automotive Over-The-Air (OTA) Regional Analysis/Insights

The automotive over-the-air (OTA) market is analyzed and market size insights and trends are provided by country, technology, vehicle type, propulsion, application and electric vehicle type as referenced above.

The countries covered in the automotive over-the-air (OTA) market report are U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Switzerland, Netherlands, Russia, Turkey, Belgium, Rest of Europe, Japan, China, South Korea, India, Australia & New Zealand, Singapore, Thailand, Malaysia, Indonesia, Philippines, Rest of Asia-Pacific, South Africa, Israel, U.A.E., Saudi Arabia, Egypt, Rest of Middle East and Africa, Brazil, Argentina and Rest of South America.

North America dominates the automotive over-the-air (OTA) market in in terms of revenue. This is due to the growing production of electric vehicles and rising number of connected car devices in vehicles in this region.

Asia-Pacific is projected to be the fastest developing region during the forecast period of 2023-2030 due to increasing production of electric vehicles and common telematics and infotainment services updates in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Automotive Over-The-Air (OTA) Market Share Analysis

The automotive over-the-air (OTA) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to automotive over-the-air (OTA) market.

Some of the major players operating in the automotive over-the-air (OTA) market are:

• DENSO CORPORATION. (Japan)
• Aptiv (U.S.)
• Continental AG (Germany)
• Garmin Ltd (U.S.)
• Robert Bosch GmbH (Germany)
• HARMAN International (U.S.)
• Infineon Technologies AG (Germany)
• BlackBerry Limited (Canada)
• Lear (U.S.)
• Qualcomm Technologies, Inc. (U.S.)
• Verizon (U.S.)
• NVIDIA Corporation (U.S.)
• Xevo (U.S.)
• Airbiquity Inc. (U.S.)
• HERE (Netherlands)