Automotive Over-the-Air (OTA) Market

Automotive Over-the-air (Ota) Market Statistics 2030 -

The global automotive over-the-air (OTA) market was valued at $2.59 billion in 2020, and is projected to reach $13.71 billion by 2030, registering a CAGR of 18.1% from 2021 to 2030.

The COVID-19 outbreak harshly impacted the automotive sector on a global level, which in turn resulted in substantial drop in vehicle sales and insufficiency of raw material. Many industry players in the automotive sector have witnessed issues such as halt of production activities, mandated plant closures by the government. However, the pandemic is resulted in an indirect effect on the automotive over the air (OTA) market. Amid pandemic industry leaders are to formulated different ways to integrate critical information such as contact information, a list of nearest hospitals/medical centres, and quick reference information for primary symptoms with official local governmental guidance along with enhanced user experience. Adoption of such methods is foreseen to reinforce the demand for automotive over the air (OTA) in near future.

Factors such as rise in adoption of connected vehicles, increase in demand for electric vehicles, government regulations regarding safety and cyber security of vehicles, and government initiatives for implementing connected car technology are expected to reinforce the need for automotive over-the-air updates. However, High cost associated with over the air updates and lack of infrastructure in emerging countries could hamper the growth potential.

Emergence of the Internet of Things (IoT) in the automotive industry and stringent cybersecurity standards are also expected to contribute toward in the market growth in coming years. 

The automotive over-the-air (OTA) market is segmented on the basis of technology type, application, vehicle type, and region. By technology type, the global market is divided into firmware over-the-air, software over-the-air, by application, it is classified into telematics control unit, electronic control unit, infotainment, safety and security, and others. By vehicle type, it is classified into passenger vehicles, commercial vehicles, and electric vehicles. By region, the market has been analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key 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 facilitate connectivity on wheels offering comfort, convenience, performance, safety, and security along with powerful network technology. This enables drivers to connect to online platforms, thereby facilitating real-time communication. Rise in consumer demand for connectivity solutions, surge in need for constant connectivity, increase in dependency on technology, and surge in tech-savvy population are the key factors that contribute toward growth on demand for global connected cars. Network connectivity solutions such as vehicle-2-vehicle (V2V) and vehicle-to-infrastructure (V2I) systems can be used to share content with a variety of devices inside and outside a vehicle. In a vehicle connected to various devices, driver receives real-time data around the vehicle to increase safety. The main goals of connected car adoption are to avoid collisions, reduce fatalities, and increase fleet management efficiency.

In addition, by strengthening collaboration with solution providers and partners, automotive OEMs are optimizing R&D spending to prioritize connected car programs. For instance, in 2021, Ford and Google have announced their unique strategic partnership to accelerate Ford's transformation and reinvent connected car experience with embedded Google apps and services. Similarly, in 2019, Airbiquity announced that it has become a member of the Japan Automotive Software Platform and Architecture (JASPAR), an organization that promotes standardization of automotive software and networks to improve development efficiency and stability. Thus, rise in adoption of connected car devices by manufacturers is expected to increase growth of the automotive over-the-air (OTA) market during the forecast period.

Cybersecurity Standards Becoming Mandatory

In recent years, the issue of automobile cybersecurity has gained importance, and this trend is projected to continue in the future. The World Forum for Harmonization of Vehicle Standards (WP.29) of the United Nations Economic Commission for Europe (UNECE) has established two new regulations that require cybersecurity when new vehicle types are approved. The rules apply to passenger cars, trucks, buses, and vans, and include specifications for four distinct areas: managing cyber-attacks in automobiles, securing vehicles by design to reduce risks throughout the value chain, detecting and responding to security issues across a fleet of vehicles, as well as providing safe and secure software upgrades and maintaining vehicle safety, as well as establishing a legal framework for over-the-air updates to on-board vehicle software.

From July 2022, new cybersecurity law will be mandatory for all new vehicle types in the European Union, and from July 2024, mandatory for all new cars manufactured. For instance, South Korea and Japan are attempting to establish cybersecurity rules. Furthermore, the automotive industry is developing ISO/SAE 21434, Road vehicles – Cybersecurity engineering standard within the International Organization for Standardization (ISO) and the Society of Automotive Engineers (SAE). The standard implementation is intended to assist manufacturers in keeping up with evolving technology and cyber-attack strategies. Hence, the coming up of cybersecurity regulations in the automotive sector is expected to fuel growth of the global automotive OTA market during the forecast period. 

Covid-19 Impact Analysis

COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge. Lockdown measures have helped to contain the spread of coronavirus, but exacted an immense economic toll. On the business side, the automotive sector is among the hardest hit. While lockdown measures and shelter-at-home orders are helping contain the coronavirus, they have also brought severe financial hardship. Furthermore, amid pandemic industry leaders are to formulated different ways to incorporate critical information such as contact information, a list of nearest hospitals/medical centers, and quick reference information for primary symptoms with official local governmental guidance along with enhanced user experience. Moreover, COVID-19 has impacted the operations of many OEMs, from production to R&D. However, growing vaccination numbers coupled with the growing demand for electric vehicles coupled with advanced infotainment, the automotive over-the-air (OTA) market is expected grow well in near future.

Key Benefits For Stakeholders

• This study presents analytical depiction of the global automotive over-the-air (OTA) market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall automotive over-the-air (OTA) market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities of the global automotive over-the-air (OTA) market with a detailed impact analysis.
• The current automotive over-the-air (OTA) market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

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