PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1120737
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1120737
The Global Automotive Over-The-Air (OTA) Updates Market was valued at USD 2,600.7 million in 2021, growing at a CAGR of 17.3% between 2022 and 2028.
Over-the-air (OTA) is a method of wirelessly exchanging data or transactions rather than utilizing a cable or another local connection. Over-the-air (OTA) refers to a variety of ways for sending new software, configuration settings, firmware, and other update tools through the internet. In the case of a vehicle, the firmware or software is wirelessly updated via a telecommunication medium, via a gateway inside the car to the ECU (Electronic Control Units), the appearance of which is rising in a modern vehicle. Vehicles are becoming more educated and intelligent in the automobile sector.
Along with the increasing number of linked automobiles and electric vehicles, the Global Automotive Over-The-Air (OTA) Updates Market has experienced rapid expansion. Improving vehicle recalls owing to software issues and expanding the usage of connected car devices in automobiles are driving market expansion.
The increased demand for connected car gadgets and electric cars, as well as the increasing production of electric vehicles, are primary factors fueling the Global Automotive Over-The-Air (OTA) Market. Automotive OTA technology allows for quick and low-cost upgrades to automobiles' ECUs (Electronic Control Units). Car owners may utilize the OTA to update software without visiting a service shop. All of these advantages are projected to boost market penetration throughout the projection period.
For the time being, the development of the COVID-19 pandemic has considerably halted the growth pace of the automobile sector. With statewide lockdowns enacted in the majority of COVID-19-affected nations, the automobile sector saw a massive drop in car demand, as well as operating difficulties. Furthermore, the pandemic's impacts, including a decrease in the production and sales of sophisticated connected cars, had a detrimental influence on the market for automotive OTA updates.
Automotive Over-The-Air (OTA) Updates Market is segmented on the basis of Technology Type, Application, Vehicle Type, and Region.
The market is divided into two segments based on technology type: Firmware over-the-air (FOTA) and Software over-the-air (SOA) (SOTA). In recent years, the Software over-the-air (SOTA) category has had the biggest market share. The rising infotainment applications such as real-time traffic updates, parking assistance, e-mail applications, and social networking apps are likely to boost the expansion of the automobile SOTA industry.
The market is segmented by application into: Infotainment, Safety & Security, and Telematics Control Unit (TCU), Electronic Control Unit (ECU). Because of the increase in the number of telecommunication applications, the Telematics Control Unit (TCU) category is predicted to develop at the fastest CAGR throughout the projection period. Numerous automobile manufacturers use telematics control systems as standard equipment in their cars.
The market is divided into four segments based on vehicle type: light commercial vehicles, passenger cars, battery electric vehicles (BEV), heavy commercial vehicles, hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV) (PHEV). The Passenger Cars sector is predicted to expand at the fastest CAGR during the forecast period, owing to rising income levels and a significant difference in the amount of money spent on car safety and security for private use automobiles.
The growing popularity of internet of things (IoT) technology is pushing major automakers to turn their emphasis to linked vehicles and either create new variations or incorporate sophisticated connection capabilities into existing models. This is in reaction to people's increased desire for cutting-edge infotainment, telematics, and navigation systems. These systems rely on software loaded on the embedded hardware of the car, which requires frequent upgrades to work properly. As a result, the increasing adoption of smart, connected technology is a prominent trend in the automobile over-the-air updates industry. Participants in the industry are stressing the importance of boosting their investments in the development of automotive OTA services.
For example, Stellantis announced in December 2021, a USD 35 billion investment by 2025 in the development of OTA updates for automobiles. This investment will assist the company's cars in being completely updatable over the air by 2024.
The scope of this report covers the market by its major segments, which include as follows: