Automotive Over the Air (OTA) Market Expected to Reach $13.71 billion by 2030-Allied Market Research

According to a recent report published by Allied Market Research, titled, “Automotive Over the Air (OTA) Market by Technology Type, Application, and Vehicle Type: Global Opportunity Analysis and Industry Forecast, 2021–2030,” 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%. North America was the highest revenue contributor in 2020, and is estimated to reach $3.30 Billion by 2030, with a CAGR of 13.5%.

Presently, the global automotive over the air (OTA) industry is dominated by North America followed by Europe, Asia-Pacific, and LAMEA. North America is expected to maintain its dominance in the global market particularly by United States owing to rapid urbanization and growing demand for automotive infotainment.

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.

Factors such as rise in trend of connectivity solutions and ease of vehicle diagnosis is expected to reinforce the connected car demand, which further anticipated to propel the need for automotive over-the-air (OTA) updates in near future. In addition, increase in need for safety & security boosts the market growth. However, high cost associated with over-the-air deployment hinder the market growth. Moreover, unavailability of uninterrupted & seamless connectivity restricts growth of the market. Conversely, emergence of Internet of Things (IoT) in the automotive industry, coupled with rising demand for connected vehicles are anticipated to provide remunerative opportunities for market expansion.

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. Following the pattern witnessed in countries where COVID-19 spread earlier, lockdown measures and other restrictions have limited travel and left many consumers unable or unwilling to purchase vehicles. It has also affected general lifestyle and the behavior pertaining to travel, consumption of goods, and services as well as working style of individuals. Furthermore, coronavirus has introduced unexpected complications within the automotive and electric mobility sectors. OEMs and other stakeholders are adopting innovative business models amid post-COVID-19. Sales of small format vehicles with better & efficient safety features accelerated during the pandemic and are expected to continue in the post pandemic situation.

Key Findings Of The Study

• By technology type, the Software Over-the-Air segment dominated the global automotive over the air (OTA) market in 2020, in terms of revenue.
• By application, the Infotainment segment is expected to register significant growth, registering a CAGR of 17.8% during the forecast period.
• By vehicle type, passenger vehicle segment is projected to lead the global market in terms of market share by the end of the forecast period.
• By region, North America dominated the global automotive over the air (OTA) market in 2020 in terms of market share.

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, which are operating efficiently in the automotive over the air (OTA) market.