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In the ever-evolving landscape of automotive technology, Over-the-Air (OTA) updates have become a cornerstone for enhancing vehicle functionalities. However, the convenience they offer comes with inherent cybersecurity challenges. To mitigate the risks of cyberattacks, providers of automobile OTA updates are increasingly focusing on delivering secured, end-to-end encrypted solutions. Furthermore, the development of OTA technology and security standards, such as ISO 26262, is pivotal in fostering the adoption of OTA update solutions while concurrently enhancing the quality and comprehensiveness of security features from software suppliers.
Cybersecurity in the realm of automobile OTA updates is a critical concern. As vehicles become more connected and reliant on software, the potential vulnerabilities for cyber threats increase. Providers of OTA updates are responding to this challenge by incorporating robust security measures to safeguard against cyberattacks. End-to-end encryption is a fundamental aspect of these solutions, ensuring the strong integrity, confidentiality, and authenticity of the OTA updates.
The security of OTA updates extends beyond the transmission of data; it encompasses the protection of Original Equipment Manufacturer (OEM) Intellectual Property (IP) and the data being processed during updates. Securing the entire ecosystem is paramount to prevent unauthorized access and tampering. Providers must employ sophisticated encryption techniques to shield the sensitive information exchanged during the update process.
One crucial element in enhancing security is the integration of OTA updates with metadata security. This integration serves as an additional layer of protection, preventing attackers from installing malicious firmware in the vehicle. By securing both the content and the accompanying metadata, providers ensure a comprehensive approach to thwart potential cyber threats.
Blockchain-based techniques emerge as a promising solution to address security issues in OTA updates. The decentralized and tamper-resistant nature of blockchain provides a robust framework for securing the entire update process. Research suggests that a blockchain-based architecture can potentially offer end-to-end encrypted OTA update solutions. In this architecture, key entities involved in the update process, including OEMs, service centers, automobiles, cloud servers, and software distributors, form a secure cluster. This cluster efficiently manages the software update process, ensuring the integrity and security of the transmitted data.
The implementation of blockchain in OTA updates aligns with the principles of transparency, immutability, and decentralization. Each transaction or update is recorded in a secure and verifiable manner, making it resistant to tampering. This not only enhances the security of the update process but also instills trust among stakeholders in the automotive ecosystem.
Service providers equipped with these advanced, secured solutions can deliver efficient OTA updates for the automotive sector. The emphasis on security measures, encryption techniques, and the integration of blockchain-based architectures demonstrates a commitment to addressing the evolving cybersecurity challenges associated with OTA updates. As vehicles continue to evolve into highly sophisticated, software-dependent entities, the proactive adoption of these security measures is paramount to ensure the reliability, safety, and integrity of the automotive ecosystem. In this paradigm, the intersection of automotive technology and cybersecurity becomes crucial, heralding a new era where innovation and security coalesce to propel the automotive industry forward.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | By Technology, By Application, By Propulsion, By Vehicle Type, and Region |
Automotive Over The Air Updates Market Highlights:
Automotive Over-The-Air (OTA) Updates Market Overview:
Automotive Over-The-Air (OTA) Updates Market Size was valued at USD 4.5 billion in 2022. The Automotive Over-The-Air (OTA) Updates industry is projected to grow from USD 5.3424 Billion in 2023 to USD 14.9582 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 18.72% during the forecast period (2024 - 2030), Increasing connectivity-embedded passenger cars, which heavily depend on advanced software, the demand for the over-the-air (OTA) updates continues to grow are the key market driver enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Over-The-Air (OTA) Updates Market Trends
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Rise In Demand For Connected Vehicles is driving market growth
Connected cars facilitate wheel connectivity, offering comfort, convenience, performance, safety, security, and powerful network technology. This enables drivers to connect to online platforms, thereby facilitating real-time communication. The rise in consumer demand for connectivity solutions, the surge in need for constant connectivity, the increase in dependency on technology, and the surge in the tech-savvy population are the key factors contributing to market CAGR growth in demand for global connected cars. Network connectivity solutions such as vehicle-2-vehicle (V2V) and vehicle-to-infrastructure (V2I) systems can share content with various devices inside and outside a vehicle. In a vehicle connected to various devices, the 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.
Additionally, by strengthening collaboration with solution providers and partners, automotive OEMs optimize R&D spending to prioritize connected car programs. For instance, in 2021, Ford and Google announced their unique strategic partnership to accelerate Ford's transformation and reinvent the connected car experience with embedded Google apps and services. Similarly, in 2019, Airbiquity announced that it had become a member of the Japan Automotive Software Platform and Architecture (JASPAR), which promotes the standardization of automotive software and networks to improve development efficiency and stability. Thus, manufacturers' rise in the adoption of connected car devices is expected to increase the growth of the surveillance automotive over-the-air market revenue during the forecast period.
Automotive Over-The-Air (OTA) Updates Market Segment Insights:
Automotive Over-The-Air (OTA) Updates Technology Insights
Based on technology, the Automotive Over-The-Air (OTA) Updates Market segmentation includes firmware over-the-air [FOTA] and software over-the-air [SOTA]. The Software over-the-air (SOTA) segment has had the largest market share in the past few years. The growth of the automotive SOTA segment is expected to be mainly driven by growing infotainment applications such as live traffic updates, park assistance, e-mail applications, and social media apps.
Figure1: Automotive Over-The-Air (OTA) Updates Market, By Platform, 2022 & 2030 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Over-The-Air (OTA) Updates Application Insights
Based on application, the Automotive Over-The-Air (OTA) Updates Market segmentation includes Electronic Control Unit (ECU), Infotainment, Safety & Security, and Telematics Control Unit (TCU), among others. The Telematics Control Unit (TCU) segment is expected to grow at the highest CAGR during the forecast period due to the progress in the number of telecommunication applications. Numerous automotive manufacturers offer telematics control units as conventional devices in their vehicles.
July 2022: new cyber security law will be mandatory for all new vehicle types in the European Union, and from July 2024, all new cars manufactured. For instance, South Korea and Japan attempt to establish cyber security rules. Furthermore, the automotive industry is developing ISO/SAE 21434, Road vehicles – Cyber security 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, cyber security regulations in the automotive sector are expected to fuel the growth of the global automotive OTA market during the forecast period.
Automotive Over-The-Air (OTA) Updates Propulsion Insights
Based on propulsion, the Automotive Over-The-Air (OTA) Updates Market data includes ICE, Electric vehicles. The ICE segment dominated the Automotive Over-The-Air (OTA) Updates market. This can be credited to cars and most medium- and heavy commercial vehicles powered by conventional engines. The electric category will witness faster growth, with a rate of 28%. This has much to do with government support, such as grants and initiatives, for the acceptance of EVs and the strict emission regulations. Furthermore, nearly all EVs are equipped with innovative connected systems for effective processes and high security and safety.
Automotive Over-The-Air (OTA) Updates Vehicle Type Insights
Based on vehicle type, the global automotive over-the-air (OTA) updates industry includes passenger cars, light commercial vehicles, and heavy commercial vehicles. Passenger car segments dominated the market. Passenger vehicles had the larger share, of about 68%, and it will be like this in the future. It will be because of the growing sales of mid-range and premium passenger vehicles with added features, including autonomy. Moreover, Light Commercial Vehicle has numerous systems for virtual assistance, eye tracking, driver monitoring, speech recognition, gesture recognition, and natural language interfaces. These systems rely on regular OTA updates for safe operation, further contributing to the market's growth.
Automotive Over-The-Air (OTA) Updates Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North American automotive over-the-air (OTA) updates market, due to the increasing number of connected car devices in vehicles, the rise in production of electric vehicles, and standard infotainment & telematics services updates will boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Automotive Over-The-Air (Ota) Updates Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's automotive over-the-air (OTA) updates market accounts for the second-largest market share due to the increased penetration of internet services in the Region and the adoption of advanced technology. Further, the German automotive over-the-air (OTA) updates market held the largest market share, and the UK automotive over-the-air (OTA) updates market was the fastest-growing market in the European Region.
The Asia-Pacific automotive over-the-air (OTA) updates market is expected to grow at the fastest CAGR from 2024 to 2030. This is due to major automotive manufacturers of countries, like China and India, in significant automotive hubs in the Region, which are anticipated to boost the procurements of automotive over-the-air (OTA) Updates Market. Moreover, China’s automotive over-the-air (OTA) updates market held the largest market share. The Indian automotive over-the-air (OTA) updates market was the fastest-growing market in the Asia-Pacific region.
Automotive Over-The-Air (OTA) Updates Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive over-the-air (OTA) updates to the market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Automotive over-the-air (OTA) updates industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global automotive over-the-air (OTA) updates industry to benefit clients and increase the market sector. The automotive over-the-air (OTA) updates industry has offered the military some of the most significant advantages in recent years. Major players in the automotive over-the-air (OTA) updates to market, including 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., and others, are attempting to increase market demand by investing in research and development operations.
Qualcomm is an American multinational corporation headquartered in San Diego, California, and incorporated in Delaware. It creates semiconductors, software, and services related to wireless technology. It owns patents critical to the 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA mobile communications standards. Qualcomm Technologies Inc, a subsidiary of Qualcomm Inc, had announced the expansion of 5G test networks. The expansion of networks included Over-the-air configuration for sub-6 GHz bands and millimeter waves.
Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware. Verizon had launched Hum, the first 4G LTE-connected solution for cars that came with built-in Google Assistant.
Key Companies in the Automotive Over-The-Air (OTA) Updates 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
- Aptiv
- HERE Technologies
- BlackBerry QNX Software Systems Limited
- Garmin Ltd.
- Intellias Ltd.
Automotive Over-The-Air (OTA) Updates Industry Developments
February 2019: Qualcomm Technologies Inc, a subsidiary of Qualcomm Inc, announced the expansion of 5G test networks. The expansion of networks included Over-the-air configuration for sub-6 GHz bands and millimeter waves.
January 2019: Verizon launched Hum, the first 4G LTE-connected solution for cars that came with built-in Google Assistant.
Automotive Over-The-Air (OTA) Updates Market Segmentation:
Automotive Over-The-Air (OTA) Updates Technology Outlook
- Firmware Over-The-Air [FOTA]
- Software Over-The-Air [SOTA]
Automotive Over-The-Air (OTA) Updates Application Outlook
- Electronic Control Unit (ECU)
- Infotainment
- Safety & Security
- Telematics Control Unit (TCU)
- others
Automotive Over-The-Air (OTA) Updates Propulsion Outlook
- ICE
- Electric Vehicle
Automotive Over-The-Air (OTA) Updates Vehicle Type Outlook
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
Automotive Over-The-Air (OTA) Updates Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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