Automotive Over-The-Air (OTA) Updates Market Research Report - Global Forecast till 2030

Automotive Over-The-Air (OTA) Updates Market Research Report: Information by Technology (Firmware Over-The-Air [FOTA] and Software Over-The-Air [SOTA]), Application (Electronic Control Unit (ECU), Infotainment, Safety & Security, Telematics Control Unit (TCU) and others), Propulsion (ICE and Electric Vehicle), Vehicle Type (Passenger Car, Light Commercial Vehicle and Heavy Commercial Vehicle) and Region (North America, Europe, Asia-Pacific and Rest of the World) - Forecast till 2030

ID: MRFR/AM/6137-CR | January 2020 | Region: Global | 196 pages         

Automotive over the Air Updates Market

Automotive over the Air Updates Market Trends indicates that the global OTA market will grow at a CAGR of 18.72% during the period 2022-2028. The global Automotive over the air updates Industry Revenue is expected to rise from USD 2.89 Billion in 2021 to USD 14.47 Billion by 2028.

Segmentation

By Technology Firmware Over-The-Air [FOTA] Software Over-The-Air [SOTA]
By Application Electronic Control Unit (ECU) Infotainment Safety & Security Telematics Control Unit (TCU) others
By Propulsion ICE Electric Vehicle
By Vehicle Type Passenger Car Light Commercial Vehicle Heavy Commercial Vehicle

Key Players

  • Robert Bosch GmbH
  • NXP Semiconductors N.V
  • Verizon Communications Inc.
  • Continental AG
  • Infineon Technologies AG
  • Qualcomm Incorporated
  • Intel Corporation
  • HARMAN International
  • Airbiquity Inc
  • Aptiv
  • HERE Technologies
  • BlackBerry QNX Software Systems Limited
  • Garmin Ltd.
  • Intellias Ltd.

Drivers

  • Government initiative
  • Developing commercial sectors globally
  • Rapid growth in the number of connected cars across the globe
  • Vehicles becoming more software dependent
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Automotive Over-The-Air Updates Market Overview


The detailed study of the Automotive over the Air Updates Market Trends indicates that the global OTA market will grow at a CAGR of 18.72% during the period 2022-2028. The global Automotive over the air updates Industry Revenue is expected to rise from USD 2.89 Billion in 2021 to USD 14.47 Billion by 2028.


Over-the-air updates provide new firmware, software, and other updated services through the cloud. Initially, these updates were available for smartphones only. Owing to the rapid increase in the number of connected automobiles across the world and surge in the use of software in vehicles, the Automotive over the Air Updates Market Growth has been substantial in recent times.


Earlier, the automobile software updates were done by the conventional methods where the car or vehicle was sent to the local mechanic or dealer for software updates. With technical advancements, the Automotive over the air updates market demand is rising and the market is expected to show steady growth during the forecast period.


COVID-19 Analysis


Like many other industries across the globe, the growth of the Automotive over the air updates industry was hindered due to the onset of the COVID-19 pandemic. Strict lockdown measures have hampered production and created logistics problems.


During the pandemic times, the industry leaders had taken initiatives to use critical information like a list of nearby healthcare centers/hospitals, contact information, and reference information for people with primary symptoms of COVID-19, etc.


However, there is a continuous rise in the demand for automobiles especially electric vehicles due to their eco-friendly features. The Automotive over the air updates market is expected to revive and experience significant growth between 2022 and 2028.


Market Dynamics



  • Market Drivers


Market experts predict that the global automotive OTA Market will grow significantly in the coming years. With the increase in the number of connected vehicles and increasing dependency of vehicles on software for efficient working, the Automotive Over the Air Market Growth will be substantial within the forecast period.



  • Restraints


The automobile over-the-air upgrades are costly. Additionally, there is a lack of infrastructure needed for such over-the-air upgrades for automobiles. These two factors are the main restrains for the growth of the global Automotive over the Air Updates industry.



  • Opportunities


The demand for connected cars is continuously rising. Connectivity on wheels offers convenience, safety, comfort, and security by using a powerful network system. Thus, it is possible to have real-time solutions on the move. With more people becoming tech-savvy, the surge in the demands for connectivity solutions, and increased dependency on new technology will create new opportunities for the Automotive over the Air Updates Market. Increasing government initiatives and the development of commercial sectors across the globe would contribute to the rapid growth of this sector.



  • Challenges


The cyber-attacks and hacking of software are the major challenges for the growth of the Automotive over the air Updates Market during the forecast period 2022-2028.



  • Cumulative Analysis


As per the Automotive over the air updates industry Forecast based on the studies and analysis done by the market experts, the Automotive over the air updates Market is anticipated to have revenue of USD 14.47 Billion by 2028. The market is expected to grow at a CAGR of 18.47%. Owing to an increase in demand, investments in Research & Development, stringent cyberspace rules, and new explorations, the market is expected to have steady growth in the coming years.



  • Value Chain Analysis


It has been noticed that the value chain analysis of the Automotive over the air updates market is continuously evolving. The rising demand for connectivity in vehicles, increased use of electric and hybrid vehicles, strict implementation of cyber security laws, huge investments in Research & Development would help the OTA industry to have steady growth from 2022 to 2028.


Market Segmentations


The segmentation of the Automotive over the air updates Market is done based on vehicle type, propulsion, technology, application, and regions.



  • Based on the propulsion, the global Automotive over the air updates Market Size is further divided into Electric Vehicle and Internal Combustion Engine (ICE). The Electric Vehicle (EV) is again segmented into Hybrid Electric Vehicles (HEV), Battery Electric Vehicle (BEV), and Plug-in Hybrid Electric Vehicles (PHEV).

  • Based on the vehicle type, the market is further divided into passenger cars, heavy commercial vehicles, and light commercial vehicles.

  • Based on the technology used, the global Automotive over the air updates Market is sub-divided into Firmware Over-the-air Technology (FOTA) and Software Over-the-air Technology (SOTA).

  • Based on the application, the market of automotive over-the-air updates is divided into Telematics Control Unit (TCU), Electronic Control Unit (ECU), Safety & Security, Infotainment, and others.


Regional Analysis


Based on the region, the Automotive over the air updates market is segmented into North America, Europe, South America, Asia-Pacific, and the Middle East & Africa.


The North American region is occupying the largest Automotive over the Air Updates Market Share. The Asia-Pacific region is anticipated to have the fastest growth by 2028.


The European and the Asia-Pacific region are projected as the lucrative regions for the Automotive Over the Air Updates Industry in the coming years. Key market players are investing a huge amount of money to offer real-time automobile solutions against cyber threats.


In the European region, new cyber security law is going to be mandatory for all types of vehicles from July 2022. In the Asia-Pacific region, Japan and South Korea are implementing cyber security rules. Additionally, Cyber security engineering standard, ISO/SAE 21434, Road Vehicles is going to be set in the automotive industry. All these will contribute boost the growth of the Automotive Over the Air Updates Market by 2028.


Competitive Analysis


According to the Automotive Over the Air Updates Market Analysis, the global market has regional, international, and local vendors thus making the market highly competitive. The companies are continuously trying to retain their Automotive over the air market Share by launching new products, acquisitions & mergers, and business expansions. The important companies in the market are-



  • Robert Bosch GmbH

  • NXP Semiconductors N.V

  • Verizon Communications Inc.

  • Continental AG

  • Infineon Technologies AG

  • Qualcomm Incorporated

  • Intel Corporation

  • HARMAN International

  • Airbiquity Inc

  • Aptiv

  • HERE Technologies

  • BlackBerry QNX Software Systems Limited

  • Garmin Ltd

  • Intellias Ltd


Recent Development



  • In February 2019, Qualcomm Technologies Inc, which is a subsidiary of Qualcomm Inc, had announced the expansion of 5G test networks. The expansion of networks included Over-the-air configurations for sub-6 GHz bands and millimeter Wave.

  • In January 2019, Verizon had launched Hum, the first 4G LTE connected solution for cars that came with built-in Google Assistant.


Report Overview


The overview of the Automotive Over-The-Air Updates Market Report is given below.



  • Market Overview

  • COVID-19 analysis

  • Dynamics of the market

  • Value chain analysis

  • Market segmentation

  • Regional analysis

  • Competitive analysis

  • Recent development


Report Scope and Segmentation


The scope of this OTA Industry report is to provide valuable information by performing a detailed study of the market. According to this report, the rise in the numbers of connected vehicles and increasing use of software in automobiles has created huge Automotive over the air updates market opportunities. The report also provides important information like market segmentation, recent trends, challenges, growth forecast, key players, and CAGR value of the Automotive over the air updates market. The information given in this report is collected from many primary and secondary data sources.



  • Study Period-2022-2028

  • Base Year-2022

  • Forecast Period-2022-2028

  • Historical Period-2019-2021


Segmentation


Based on Propulsion



  • Internal Combustion Engine (ICE)

  • Electric Vehicles

  • Hybrid Electric Vehicles (HEV)

  • Battery Electric Vehicles (BEV)

  • Plug-In Hybrid Vehicles(PHEV)


Based on Vehicle Type



  • Passenger car

  • Light Commercial Vehicle

  • Heavy Commercial Vehicle


Based on Technology Used



  • Firmware Over-the-Air-Technology (FOTA)

  • Software Over-the-Air-Technology (SOTA)


Based on Application



  • Telematics Control Unit

  • Electronic Control Unit

  • Safety & Security

  • Infotainment



Report Scope:
Report Attribute/Metric Details
  Market Size   2030: USD 14.47 billion
  CAGR   18.72% CAGR (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Technology, By Application, By Vehicle type, By Propulsion
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Robert Bosch GmbH, NXP Semiconductors N.V, Verizon Communications, Inc., Continental AG, Infineon Technologies AG, Qualcomm Incorporated, Intel Corporation, HARMAN International, Airbiquity Inc, Aptiv, HERE Technologies, BlackBerry QNX Software Systems Limited, Garmin Ltd., and Intellias Ltd.
  Key Market Opportunities

  • Government initiative
  • Developing commercial sectors globally
  •   Key Market Drivers

  • Rapid growth in the number of connected cars across the globe
  • Vehicles becoming more software dependent


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    Frequently Asked Questions (FAQ) :

    The market growth in the coming years can be at a rate of 18.72%.

    Market for Automotive OTA Updates is expected to touch a valuation of USD 14.47 billion by the end of 2030.

    The notable companies in the market are Continental AG, Infineon Technologies AG, NXP Semiconductors N.V, HARMAN International, Garmin Ltd., Qualcomm Incorporated, Intel Corporation, Robert Bosch GmbH, Verizon Communications, Inc., Intellias Ltd, BlackBerry QNX Software Systems Limited, Airbiquity Inc, Aptiv, HERE Technologies, to mention a few.

    Over-the-air update refers to a method of distributing new firmware, software, as well as other update facilities over cloud.

    With the constantly expanding automotive industry, the market in North America managed to take the lead in the year 2018.

    The primary vehicle types discussed in the MRFR report are Passenger Car, Light Commercial Vehicle as well as Heavy Commercial Vehicle.

    The types of technology analyzed in the report are Firmware Over-The-Air [FOTA] along with Software Over-The-Air [SOTA]

    The OTA process is self-explanatory in that it delivers updated software wirelessly or 'over the air'. These updates are distributed over WiFi or mobile broadband using a function built into the smartphone or tablet's operating system or through a special OTA app that's given root access.