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In Canada, Software Over-The-Air (SOTA) updates held more than 75% of the market share in 2021 due to the rising demand for advanced features, such as advanced safety, convenience, and improved user experience, in vehicles. SOTA enables manufacturers to make vehicles safer as it improves their algorithms and centralized architecture ensures that this can be done more efficiently. SOTA also helps OEMs in saving the labor cost required to perform software updates.
The automotive OTA updates market from commercial vehicle segment in the UK is poised to witness around 20% gains through 2028 driven by growing production and sales of commercial vehicles in the country. According to OICA, the production of light commercial vehicles in the UK in the third quarter of 2021 was 38,596 compared to 33,862 in the third quarter of 2020. The rising number of commercial vehicles is enhancing the growing adoption for advanced infotainment systems.
Telematic Control Unit (TCU) segment in China captured nearly 30% of the automotive OTA updates market share in 2021 led by the growing usage for vehicle telematics solutions. Telematics Control Units (TCUs) are used for various applications such as electronic tolling, vehicle tracking, and eCall crash notifications, among others. Furthermore, the increasing acceptance of TCUs by prominent automotive manufacturers as standard devices in their cars is anticipated to boost the market penetration.
North America automotive OTA updates market size is set to generate USD 3 billion revenue by 2028 impelled by increasing demand of connected vehicles in this region. The growing uptake of electric & hybrid vehicles owing to the development of charging infrastructures is supporting the regional market growth. The rising demand for safe and secure vehicle infotainment systems is another factor fueling the industry statistics.