Automotive Over-The-Air (OTA) Updates Market:
The Automotive Over-The-Air (OTA) Updates Market is anticipated to grow and worth USD 14.95 billion again, with a CAGR of 18.72% from 2024 to 2032. The market gained USD 5.34 billion in 2023.
The market will grow further owing to the rising number of connected cars and electric vehicles. Several key players have entered the market, and they will invest significantly in research and development to offer secure and cost-effective OTA updates and solutions to the car.
Market overview
Some regions like North America, Asia Pacific, and others present in those regions are likely to dominate the forecast period. The pandemic has negatively impacted the automotive sector, resulting in a decline in vehicle sales and insufficient raw materials.
Several industry players have faced issues such as a halt in production and disruption of the plant activities ordered by the government impacted the market. The effect of the pandemic was severe, but with the improvement in the situation, the market will gather growth in the forecast period. Increasing demand for electric vehicles and people adopting connected vehicles drive the market.
Rising concern for safety and cyber security will foster the market in the forecast period. Increasing government initiatives regarding car technology improvement will improve the market. The lack of infrastructure and the high price of the OTA updates will hinder the market growth. Extensive vehicles are becoming more software dependent which is a growth factor for the Automotive Over-The-Air (OTA) Updates Market.
Market segmentation
The Automotive Over-The-Air (OTA) Updates Market Size is segregated by technology, application, propulsion and vehicle type. The market is divided into passenger cars, light commercial vehicles, and heavy commercial vehicles based on the vehicle type. Passenger cars are expected to register high CAGR in the market during the forecast period due to the rise in income levels and meaningful difference in the amount of money spent on automobile safety and the security of private vehicle usage.
The propulsion is fragmented up into ICE and Electric vehicles, and both the segments will hold growth in the forecast period. The application of the Automotive Over-The-Air (OTA) Updates Market is bifurcated into Electronic Control Unit (ECU), Infotainment, Safety Security, Telematics Control Unit (TCU) and others. Among them, the telematics control unit is expected to hold the CAGR of the market owing to the progress in the number of telecommunication applications. Several automotive manufacturers are offering telematics control units in their vehicles.
Based on the technology, the market is further fragmented into Firmware Over-The-Air [FOTA] and Software Over-The-Air [SOTA]. The Software Over-The-Air [SOTA] segment will dominate the Market and register growth due to the applications like live traffic updates, email applications, social media apps and park assist. And others.
Regional Analysis
North America: The North American market is currently the largest for automotive OTA updates, driven by the presence of major car manufacturers and a well-developed infrastructure. The region is also home to several leading technology companies that provide OTA solutions.
Europe: The European market is also mature, with a strong focus on vehicle safety and security. The region has a large number of premium car brands that are investing heavily in OTA technology.
Asia-Pacific: The Asia-Pacific market is experiencing rapid growth, driven by the increasing number of connected vehicles and the rising disposable income of consumers. China, in particular, is a major market for OTA updates, with several domestic car manufacturers and technology companies investing in this area.
Rest of the World: Other regions, such as Latin America and the Middle East, are also showing signs of growth in the automotive OTA market. However, these regions face challenges such as infrastructure limitations and economic instability.
Industry news
Verizon Communications Inc.
5G Connectivity: Verizon has been a major player in the development of 5G technology, which is essential for enabling fast and reliable OTA updates. The company has partnered with several car manufacturers to provide 5G connectivity for their vehicles.
Continental AG
OTA Platform: Continental has developed its own OTA platform, which allows car manufacturers to manage and deploy software updates to their vehicles. The platform is designed to be scalable and secure.
Overall Trends in the Automotive OTA Market
Increasing Complexity: As cars become more complex with advanced features and autonomous driving capabilities, the need for OTA updates becomes even more critical.
Cybersecurity Concerns: The growing number of connected vehicles has also increased the risk of cyberattacks. This has made cybersecurity a top priority for car manufacturers and technology providers.
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