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 Snapshot
Automotive Over-The-Air (OTA) Updates Market is projected to be worth USD 14.47 billion by 2030, registering a CAGR of 18.72% during the forecast period (2022 - 2030). , The market was valued at USD 2.89 billion in 2021.
The Global Automotive OTA Updates Market is expected to grow at a significant rate due to the increasing number of connected cars and electric vehicles. Moreover, OEMs are investing in OTA updates solutions in order to provide ease of updates to the car owners. Currently, there are several global technology players who have entered the automotive OTA updates market. These providers are investing significantly in research and development to offer secured and cost-effective OTA updates solutions to the car manufacturers. The market is dominated by a few major players; however, new players are expected to enter the market due to revenue opportunities in regions such as Asia-Pacific, the Middle East & Africa, and South America. The entry of new players is expected to increase the competition in the market.
The over-the-air update is a method of distributing new software, firmware, and other update facilities over the cloud. Until recently, the OTA updates were available only for smartphones; however, with the rapid growth in the number of connected cars across the globe and vehicles becoming more software dependent, the need for OTA updates has increased significantly. For a long time, software updates were done through local software update procedures, wherein the car is sent to a dealer/mechanic who then updates the software. Tesla Motors started offering OTA capability for its electric vehicles, which disrupted the automotive industry. Thereafter, other global car manufacturers, such as BMW, Mercedes-Benz, and General Motors, started investing in offering OTA capabilities for their connected cars. OTA updates are expected to help OEMs in saving a significant amount that they incur due to car recalls. Moreover, it gives car owners the ease to update all their software without visiting the dealer’s location.
Key Players
Some of the Key Players 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., and Intellias Ltd.
The global automotive OTA updates market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive, with all the players competing to gain maximum market share.
According to the Market Research Future (MRFR) analysis, HARMAN International, Aptiv, QNX Software Systems Limited, Intel Corporation, and Airbiquity Inc. are some of the key players of the global automotive OTA updates market as of 2018. These companies continue to retain their strong global hold through expansion, mergers & acquisitions, and by offering an extensive range of products.
Key Developments
- February 2019: Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, recently announced the expansion of its 5G test networks to include new end-to-end over-the-air (OTA) configurations for both millimeter-wave (mmWave) and sub-6 GHz bands.
- January 2019: Verizon Launches Hum, which is an all-in-one connected car solution that gives users vehicle location, diagnostics, emergency roadside assistance, trip history, and more. It is the first 4G LTE connected car solution that has a built-in Google Assistant.
- September 2017: Continental announced with its Key as a Service portfolio the availability of its cloud-based solutions Continental Smart Access (CoSmA) and Remote Cloud Key (RCK) to provide convenient and secure keyless vehicle access and start authorization. Both solutions support on-demand access to vehicles using a smart device to lock, unlock and authorize the car for a start.
Market Segmentation
The GLOBAL AUTOMOTIVE Over-The-Air (OTA) Updates Market has been segmented based on Technology, Application, Propulsion, Vehicle Type, and Regions.
By Technology, the global market has been segmented into software over-the-air technology (SOTA) and firmware over-the-air technology (FOTA).
By Application, the global market has been divided into an electronic control unit (ECU), infotainment, safety & security, telematics control unit (TCU), and others.
By Propulsion, the global market has been bifurcated into ICE and electric vehicle. The electric vehicle segment is further sub-segmented into battery electric vehicle (BEV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV).
By Vehicle Type, the global market has been divided into light commercial vehicles and heavy commercial vehicles.
The regions included in the study are North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
Regional Analysis
Geographically, the global HMI software market has been categorized into four regions, namely, North America, Europe, Asia-Pacific, and the rest of the world.
North America led the automotive OTA updates market in 2018, whereas Asia-Pacific is expected to be the fastest-growing region in the automotive OTA updates market during the forecast period. Europe accounted for the second spot in terms of value market share in 2018.
According to Statista, Center for Automotive Research, Automotive News, and DHL, the global automotive R&D expenses are estimated to be USD 114 billion in 2020. More than 203 million vehicles are forecasted to have the ability to implement OTA updates by 2022, enabling real-time solutions to cyber threats; as per the study by National Highway Traffic Safety Administration (NHTSA), US; ABI Research; Credit Suisse and Center for Automotive Research.
Key questions addressed by the report
- What was the current market size (2021)?
- What will be the growth rate by 2030?
- Who are the key players in this market?
- What are the strategies adopted by key players?
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 |
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| Key Market Drivers |
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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.