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Automotive Over-The-Air Updates Market size worth $8 Bn by 2028
- Published Date: March 7, 2022
Automotive Over The Air (OTA) Updates Market size is set to surpass USD 8 billion by 2028, according to a new research report by Global Market Insights Inc.
Increasing investments across the automotive industry is fueling the Over-The-Air updates demand. The surging adoption of connected vehicles is expected to boost the usage for automotive OTA update solutions. The rising number of passenger and commercial vehicles equipped with advanced technological platforms will also support the market growth. Regulatory bodies worldwide have allocated a spectrum for the deployment of smart transportation applications and are forming new standards to facilitate the usage of automotive OTA solutions.
Growing disruption in the automotive industry
Firmware Over-The-Air (FOTA) is poised to grow at over 20% CAGR through 2028 due to the growing acceptance for remotely managing connected vehicle platforms. FOTA is a robust, reliable & cost-effective solution for remotely managing the software updates of connected vehicles. FOTA involves firmware bug fixes, improvement in automotive ECUs, and replacement of old firmware with new firmware. The various disruptions in the automotive sector, such as electrification and autonomous vehicles, are supporting the automotive Over-The-Air updates market demand.
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Growing demand for passenger vehicles
Passenger vehicles held more than 75% of the automotive OTA updates market share in 2021 due to rising demand for autonomous passenger vehicles globally. Passenger vehicles need to update their all in-vehicle software regularly. Automotive OTA updates help vehicles owners to keep all in-vehicle software, such as firmware, application, configurations, and maps up to date. They also aid owners in upgrading their vehicle software remotely while reducing the cost associated with data transfer and storage.
Browse key industry insights spread across 220 pages with 214 market data tables and 29 figures & charts from the report, “Automotive Over-The-Air (OTA) Updates Market Size By Technology (Software Over-The-Air Technology [SOTA], Firmware Over-The-Air Technology [FOTA]), Vehicle Type (Passenger Vehicle, Commercial Vehicle), By Application (Electronic Control Unit (ECU), Infotainment, Safety & Security, Telematics Control Unit (TCU)), Covid-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
Data theft incidents across connected vehicles
The safety and security application is estimated to register growth rate of around 20% till 2028 owing to increasing adoption of safe & secure vehicle infotainment systems. Considering the security risks, automotive OTA updates are delivered over the internet using digitally signed and fully authenticated update packages. The growing number of cyber theft incidents across connected vehicles has increased the demand for safety & security applications.
Rising adoption of autonomous vehicles across Asia Pacific
Asia Pacific automotive Over-The-Air updates market is set to generate nearly USD 1.5 billion revenue by 2028 led by growing demand for connected and autonomous vehicles. Over the last year two to three years, perceptions among consumers across APAC improved significantly, regarding the safety of fully Autonomous Vehicles (AVs) but a majority are also skeptical about Original Equipment Manufacturers’ (OEMs) ability to deliver AV technology to the market. Furthermore, China, Singapore, and Japan have allowed the testing of autonomous vehicles on their public roads.
Leading players are focusing on continuous product development to gain a competitive advantage
Companies are focusing on offering regular OTA updates for vehicle software. For instance, in September 2021, Volkswagen introduced regular Over-the-Air (OTA) updates for all its electric vehicle series ID. The company provides the OTA software update for its ID vehicles every 12 weeks.
Some of the key participants operating in the automotive Over-The-Air updates market are Airbiquity, Aptiv PLC, BlackBerry Limited, Continental AG, Hitachi, Ltd., Infineon Technologies AG, Intellias Ltd., Movimento, Inc., NVIDIA Corporation, NXP Semiconductors N.V., Qualcomm, Robert Bosch GmbH, Samsung (Harman International Industries, Inc.), Thales Group, Verizon Communications Inc., and Xevo Inc.