Global Automotive Over-the-air (OTA) Updates Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Automotive Over-the-air (OTA) Updates Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Over-the-air (OTA) refers to multiple methods of distributing new software, configuration settings, firmware, and other update tools over the cloud. In the case of a vehicle, the firmware or software is updated wirelessly using a telecommunication medium, through a gateway inside the car to the ECU (Electronic Control Units).

Market Overview:

The latest research study on the global Automotive Over-the-air (OTA) Updates market finds that the global Automotive Over-the-air (OTA) Updates market reached a value of USD 3084.22 million in 2022. It’s expected that the market will achieve USD 7733.0 million by 2028, exhibiting a CAGR of 16.56% during the forecast period.

Short-term Impact

COVID-19 hit the automotive industry hard, first in production and then in sales. In the wake of COVID-19, global societies and economies faced unprecedented challenges, and automakers faced a host of challenges: production shutdowns, lack of new sales and people generally not driving.
This combination hit OEMs from all angles: the inability to develop new vehicles due to R&D plant closures, people choosing to save money rather than spend it, and people who would normally consider buying a new car choosing to put plans on hold as people stayed home rather than drive to work, school or vacation.
Key trends remain. Connected car technologies fall into this category, and they all depend on over-the-air (OTA) update capabilities. Faced with these disadvantages brought about by Covid-19, OEMs are struggling to find ways to connect with consumers. One focus is the use of OTA updates. OTA can increase a brand's customer stickiness by continually upgrading the vehicle and providing owners with new experiences.

Long-term Impact

In the long run, Covid-19 will not affect the overall development trend of automotive OTA. Autonomous driving, connected car, intelligent cockpit, etc. are the current development trend of new generation cars, and automotive OTA is closely related to all of the above. As cars become more intelligent, the penetration of automotive OTA will also increase. In addition, putting OTA under regulation will undoubtedly make car companies pay more attention to the technical maturity of vehicle-related functions, and reasonable regulation will be more conducive to the development of car intelligence. For consumers, the inclusion of automotive OTA in the recall regulation will not affect the normal use of vehicles and OTA upgrades, and also allow consumers to get more protection.

Cost saving

In the era of Software Defined Car, traditional OBD (On Board Diagnostics) is no longer able to meet the software fault repair and personalization needs of smart connected cars. Since Tesla pioneered Over-the-Air Technology (OTA) in 2012, car companies and car owners have tasted the benefits of OTA. On the one hand, OTA technology allows car companies to fix software faults remotely, thus reducing recall and repair costs and enabling digital management of the entire vehicle lifecycle, adding new ways of profitability; on the other hand, OTA allows car owners to save time in finding a dealership. But right now, not every traditional car company has the technical experience and operation and maintenance capability of OTA, and not every car company can afford the R&D cost of OTA. This creates business opportunities for third-party OTA providers.
Security Implications
As the automotive industry shifts to connected vehicles and smart mobility, another element of vulnerability emerges, namely the threat of cyber attacks. Security is a priority for OTA. Keeping vehicle information secure is a current OTA challenge that must be addressed from several aspects: hardware, software, cloud, and especially the transmission applications between the three. On the data transmission link, its security is ensured by adhering to the appropriate transmission protocols. Functional partitioning is a particularly important technique for wind reduction. Functional partitioning means isolating critical functions and reducing risk. Considerations on vehicle functional safety and redundancy design are mainly based on the ISO 26262 standard, which can be achieved by optimizing the vehicle network architecture, dividing different domains into different ASIL levels, separating ECUs with different safety levels, and additionally using parallel and independent OTA paths. Considerations on information security include network security, host security, database security, data transmission security, etc.

Region Overview:

Geographically, North America held the largest market share – 35.49% in 2022.

Company Overview:

Robert Bosch GmbH is one of the major players operating in the Automotive Over-the-air (OTA) Updates market, holding a share of 9.66% in 2023.

Robert Bosch GmbH

Robert Bosch GmbH is a German multinational engineering and technology company headquartered in Gerlingen. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology.

HARMAN Internati

Headquartered in Stamford, Connecticut, HARMAN designs and engineers connected products and solutions for automakers, consumers, and enterprises worldwide, including connected car systems, audio and visual products, enterprise automation solutions; and services supporting the Internet of Things.

Segmentation Overview:

As for product types, the Software Over-the-air (SOTA) segment held the largest market share in 2022.

Application Overview:

The market's largest segment by application is the segment Telematics Control Unit (TCU), with a market share of 35.67% in 2022.

Key Companies in the global Automotive Over-the-air (OTA) Updates market covered in Chapter 3:

Continental AG
Vector
NVIDIA Corporation
Verizon Communications Inc.
Qualcomm Inc.
Aptiv Plc
Robert Bosch GmbH
HARMAN International
Tesla, Inc.
Garmin Ltd.
Akamai Technologies Inc.
Airbiquity Inc.
BlackBerry Ltd.
Excelfore

In Chapter 4 and Chapter 14.2, on the basis of types, the Automotive Over-the-air (OTA) Updates market from 2018 to 2029 is primarily split into:

Firmware Over-the-air (FOTA)
Software Over-the-air (SOTA)

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Automotive Over-the-air (OTA) Updates market from 2018 to 2029 covers:

Electronic Control Unit (ECU)
Infotainment
Safety & Security
Telematics Control Unit (TCU)
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)