Automotive Over-the-Air (OTA) Updates Global Market Report 2024

The automotive over-the-air (ota) updates market size has grown rapidly in recent years. It will grow from $3.7 billion in 2023 to $4.38 billion in 2024 at a compound annual growth rate (CAGR) of 18.4%. The growth observed in the historical period can be attributed to connected car adoption, the increasing complexity of automotive software, customer demand for advanced features, the desire for reduced downtime and service costs, and competitive pressure driving differentiation.

The automotive over-the-air (ota) updates market size is expected to see rapid growth in the next few years. It will grow to $8.49 billion in 2028 at a compound annual growth rate (CAGR) of 18.0%. Projected growth is driven by autonomous and connected vehicle trends, increasing complexity of in-vehicle systems, advanced infotainment system integration, cybersecurity concerns, and subscription-based business models. Key trends include data analytics for predictive maintenance, enhanced security measures, expanding connected car technologies, integration of advanced diagnostics and analytics, and the use of edge computing for faster updates.

The surging demand for passenger vehicles is playing a significant role in driving the growth of the automotive over-the-air (OTA) updates market. Passenger vehicles, designed for transporting individuals, are witnessing increasing adoption. In this context, automotive over-the-air updates serve as a crucial technology implemented in both passenger and commercial vehicles. These updates enable the remote delivery of software updates, eliminating the need for physical visits to dealerships or mechanics. This not only enhances the overall driving experience but also contributes to road safety by ensuring operational efficiency. As an illustrative example, data from June 2021, as reported by the International Organization of Motor Vehicle Manufacturers (OICA), revealed a global increase in passenger car sales from 53.91 million in 2020 to 56.39 million in 2021. This upward trend in passenger vehicle demand is anticipated to drive the growth of the automotive over-the-air (OTA) updates market.

The rising security concerns in connected vehicles are poised to drive the growth of the automotive over-the-air (OTA) updates market. Security in connected vehicles encompasses measures and protocols aimed at safeguarding the electronic systems, networks, and data associated with modern automobiles featuring connectivity capabilities. Automotive OTA updates play a crucial role in enhancing the security of connected vehicles by enabling manufacturers to deploy timely patches and updates remotely. This approach addresses vulnerabilities, implements security improvements, and ensures that the vehicle's software remains resilient to emerging cybersecurity threats. The capability to perform these updates remotely eliminates the need for physical interventions. For instance, in January 2022, a report by Upstream, an Israel-based automotive cybersecurity company, highlighted a substantial 253% surge in cyber-related incidents within the automotive sector in 2021 compared to the figures recorded in 2020. Malicious actors accounted for 63% of cyber incidents in 2022. Consequently, the increasing security concerns in connected vehicles are propelling the growth of the automotive over-the-air (OTA) updates market.

Technological advancements stand out as a prominent trend gaining traction in the automotive over-the-air (OTA) updates market. Prominent companies within the automotive sector are directing their efforts towards developing cutting-edge products to fortify their positions in the market. An illustrative example is Cyient, an India-based software company, which unveiled CyientfI in March 2022. CyientfIQ represents a Firmware Over-The-Air (FOTA) update solution designed to deliver end-to-end solutions for firmware updates across diverse industries. The FOTA solution aims to enable the creation of intelligent and connected products for Original Equipment Manufacturers (OEMs) while significantly reducing the cost associated with after-sales service support. It achieves this by providing optional new feature upgrades for end-users. CyientfIQ addresses various firmware update scenarios, including device-to-cloud OTA server, gateway-to-cloud OTA server, and device-to-gateway-to-cloud OTA server. This comprehensive approach ensures a seamless upgrade process, mitigating associated risk factors.

Major companies in the automotive over-the-air (OTA) updates market are strategically collaborating to deliver reliable services to customers. Strategic collaboration involves mutually beneficial partnerships between independent entities, working together to achieve shared goals aligned with individual strategic objectives. An example of this is the collaboration announced in June 2023 between Airbiquity Inc., a US-based software company, and BlackBerry Limited, a Canada-based software company. The collaboration is focused on enhancing the security of over-the-air (OTA) updates for vehicles. It integrates Airbiquity's OTAmatic Software Management Platform with BlackBerry Certicom Code Signing Key Management Server, providing a turnkey solution for automakers to implement the Uptane Security Framework. This framework addresses key OTA security challenges, ensuring safety against various threats as vehicles become more software-defined. The partnership aims to offer a pre-integrated solution, reducing development efforts and costs for automotive OEMs while prioritizing the security and privacy of connected vehicles. The OTAmatic platform provides efficient management of software updates, targeting, privacy controls, customizable communications, and multi-layer cybersecurity protection. Leveraging BlackBerry Certicom's expertise in applied cryptography and key management, the collaboration instills confidence in OEMs to adopt the Uptane Security Framework for secure and timely OTA updates.

In February 2021, Ford Motor Company, a major US-based automotive manufacturing company, entered into a strategic partnership with Google LLC for an undisclosed amount. The collaboration between the two companies is poised to bring substantial changes to the design and production of cars, with a focus on expanding the utilization of over-the-air (OTA) updates in the automotive industry. Google LLC, a prominent US-based technology company, is actively engaged in the automotive over-the-air market.

Major companies operating in the automotive over-the-air (ota) updates market report are Verizon Communications Inc., Robert Bosch GmbH, Intel Corporation, DENSO Corporation, Qualcomm Technologies Inc., Continental AG, NVIDIA Corporation, Lear Corporation, Thales Group, Aptiv, Infineon Technologies AG, NXP Semiconductors N.V., Harman International Industries Incorporated, Garmin Ltd., Luxoft Inc., Red Hat Inc., Elektrobit Automotive GmbH, HERE Technologies, Intellias Ltd., Telenor Connexion AS, Sierra Wireless Inc., Blackberry QNX Ltd., Green Hills Software LLC, Arynga Inc., Cubic Telecom Limited, Airbiquity Inc., Cybellum Technologies Ltd., Wind River Systems Inc., Karamba Security Ltd., Symphony Teleca Corporation.

North America was the largest region in the automotive over-the-air (OTA) updates market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global automotive over-the-air updates market report during the forecast period. The regions covered in the automotive over-the-air (ota) updates market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive over-the-air (ota) updates market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of automotive over-the-air (OTA) updates encompass Firmware over-the-air (FOTA) and Software over-the-air (SOTA). FOTA involves Mobile Software Management (MSM) technology enabling wireless upgrades and updates of cellular device firmware via network connectivity. It allows operators of internet-connected devices to remotely and seamlessly perform firmware upgrades without necessitating physical intervention with the device. These updates are applicable across various vehicle types, including passenger vehicles, commercial vehicles, and electric vehicles, serving diverse functions such as telematics control units, electronic control units, infotainment systems, as well as safety and security features.

The automotive over-the-air (OTA) market research report is one of a series of new reports that provides automotive over-the-air (OTA) market statistics, including automotive over-the-air (OTA) industry global market size, regional shares, competitors with an automotive over-the-air (OTA) market share, detailed automotive over-the-air (OTA) market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive over-the-air (OTA) industry. This automotive over-the-air (OTA) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive over-the-air (OTA) updates market consists of revenues earned by entities by providing services distributed system updates, access services, wireless access protocol (WAP), and multimedia messaging service (MMS). The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive over-the-air (OTA) updates market also includes sales of sim cards, smartphones, tablets, and internet-on-thing devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. The IT market is segmented into IT services; computer hardware; telecom and software products.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.