Impact of the COVID-19 Outbreak on the Automotive Over-The-Air (OTA) Updates Market
The spread of the novel coronavirus across the world has significantly impacted the automotive industry. The effects of the pandemic are expected to continue in the post-lockdown period. Governments across the globe have taken primary measures such as nation-wide partial or complete lockdowns, which have directly or indirectly impacted almost all the industries. The automotive industry has been affected owing to the shutting down of factories as well as a halt in the exports from China, as it is widely accepted as the world’s largest manufacturing hub for automotive and electronic devices. Besides, the COVID-19 pandemic has severely hit the global economy, and according to the MRF analysis, the slowdown is expected to be worse than the financial crisis between 20017 and 2009.
The automotive-over-the-air updates market is driven by the increasing demand for connected cars and electric vehicles in developed countries. Companies in most countries are rethinking their strategies to survive in the market. Besides, the OEMs in most of the nations had invested heavily in OTA updates to provide easy updates to the car owners. However, the sharp fall in the sales of electric vehicles has led to a decline in the automotive-over-the-air updates market.
The overall fall in the global economy is expected to change the consumers’ purchase criteria. Most electric vehicle buyers are the initial owners of the technology. The uncertainty and panic created by the COVID-19 pandemic have lowered the consumers’ inclination toward the adoption of emerging technologies.
Estimated Electric Vehicles Sales in China between 2016 and 2020