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2022

Automotive Over-the-air (ota) Market

Automotive Over-the-Air (OTA) Market Size, Share, Competitive Landscape and Trend Analysis Report by Technology Type (Firmware Over-the-Air (FOTA), Software Over-the-Air (SOTA)), Application (Telematics Control Unit, Electronic Control Unit, Infotainment, Safety and Security and Others) and Vehicle Type (Passenger Vehicles, Commercial Vehicles and Electric Vehicles): Global Opportunity Analysis and Industry Forecast, 2021-2030

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Author's: Prateek Yadav | Lalit Janardhan Katare
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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.

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.

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

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.

Automotive Over-the-Air (OTA) Market
By Technology Type
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Software Over-the-Air segment is projected as the most lucrative segment

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.

Automotive Over-the-Air (OTA) Market
By Application
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Infotainment is projected as the most lucrative segment

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.

Automotive Over-the-Air (OTA) Market
By Vehicle Type
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Electric Vehicles segment is projected as the most lucrative segment

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.

Automotive Over-the-Air (OTA) Market
By Region
2030
Europe 
North America
Asia-Pacific
LAMEA

Europe is projected as the most lucrative region during 2021-2030.

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

Aspects Details
Automotive Over-the-Air (OTA) Market By TECHNOLOGY TYPE
By TECHNOLOGY TYPE
  • Firmware Over-the-Air (FOTA)
  • Software Over-the-Air (SOTA)
Automotive Over-the-Air (OTA) Market By APPLICATION
By APPLICATION
  • Telematics Control Unit
  • Electronic Control Unit
  • Infotainment
  • Safety & Security
  • Others
Automotive Over-the-Air (OTA) Market By VEHICLE TYPE
By VEHICLE TYPE
  • Passenger Vehicles
  • Commercial Vehicles
  • Electric Vehicles
Automotive Over-the-Air (OTA) Market By Region
By Region
  • North America  (US, Canada, Mexico)
  • Europe  (UK, Germany, France, Spain, rest of Europe)
  • Asia-Pacific  (China, India, Japan, South Korea, rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

QUALCOMM, Inc., HARMAN INTERNATIONAL, BLACKBERRY QNX, NXP SEMICONDUCTORS NV, CONTINENTAL AG, INTEL CORPORATION, AIRBIQUITY INC., INFINEON TECHNOLOGIES AG, ROBERT BOSCH GmbH, VERIZON COMMUNICATIONS INC.

Analyst Review

The automotive over-the-air (OTA) market is expected to experience significant growth rate specially in developing regions. This market is in its nascent stage and is contributing toward a considerable fraction of revenue for the overall automotive industry. 

In addition, rise in awareness for OTA updates among consumers is expected to experience rapid growth during the forecast period. The boom in connected car industry and growing use of cloud technology significantly boosts growth of the global automotive over-the-air (OTA) market. However, lack of seamless connectivity and complexity of automotive over-the-air (OTA) deployment limit growth of the market.

Integration of cloud services in automotive over-the-air (OTA) systems facilitate streaming of media, online system software update, and information access. Such factors impede growth rate of the market.

Furthermore, rise in consumer demand for luxurious features and rise in demand for passenger cars, facility of personalized infotainment system, and trend of using connect car devices are some parameters that ensures emerging growth opportunities for the market.

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 (FOTA), software over-the-air (SOTA), 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.
 

Author Name(s) : Prateek Yadav | Lalit Janardhan Katare
Frequently Asked Questions?

Software and firmware updates allow auto manufacturers to recalibrate a connected base frame of vehicles; introduce new features, which further improves functionality of existing features; and ensures that vehicle stays longer on road. Updates are deployed over-the-air or through a wireless method (instead of manually or automatically)

The sample for global automotive over the air (OTA) market report can be obtained on demand from the AMR website. Also, the 24*7 chat support and direct call services are provided to procure the sample report.

Factors such as rise in trend of connectivity solutions and ease of vehicle diagnosis fuel growth of the connected cars market. In addition, increase in need for safety & security boosts the market growth

The automotive over the air (OTA) updates are categorized into two types which are firmware over-the-air (FOTA) and software over-the-air (SOTA)

The company profiles of the top market players of automotive over the air (OTA) market can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the shipbuilding market.

Emergence of the Internet of Things (IoT) in the automotive industry and growing cybersecurity standards are saome of the prominent opportunities

Mercedes-Benz recently partnered with chip maker NVIDIA to develop a new software-based architecture that facilitates wireless updates for next-generation Mercedes vehicles by leveraging NVIDIA's AI-powered DRIVE platform. This OTA update support features will be introduced in the upcoming 2024 model cars and eventually be rolled out to Mercedes Fleet

Demand of advanced infotainment systmes coupled with growing demand for conncted cars are some of the upcoming trends in the market

Demand of advanced infotainment systmes coupled with growing demand for conncted cars are some of the upcoming trends in the market

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 are some of prominent players in the market

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Automotive Over-the-air (ota) Market

Global Opportunity Analysis and Industry Forecast, 2021-2030