Automotive Over-the-Air (OTA) Updates Market: Current Analysis and Forecast (2021-2027)

Automotive Over-the-Air (OTA) Updates Market: Current Analysis and Forecast (2021-2027)

The Global Automotive Over-the-Air (OTA) Updates Market is expected to grow at a CAGR of around 20% during the forecast period 2021–2027 owing due to the increasing integration of advanced telematic solutions in vehicles coupled with the growing number of connected cars. Advanced communication technologies such as vehicle telematics are seeing widespread use in applications such as vehicular communication, safety, mapping systems, and road transportation, as the auto industry looks to tap into next-generation automotive capabilities.

Furthermore, the vehicle telematics market is expected to rise due to enhanced broadband networks and the widespread use of smartphones for communication. Parallel to the continually rising popularity of in-built mobile communications among drivers, there has been a growing desire for effective satellite navigation services, resulting in strong demand for vehicle telematics technology. Furthermore, with the emergence of the Internet of Things (IoT) in the automotive industry and the opportunity to develop advanced solutions for connected cars, major stakeholders are investing heavily in the integration of OTA updates with other connected features in vehicles.

Insights Presented in the Report
"Amongst type, software segment held a significant revenue share in the market in 2020”

Based on type, the market is categorized into software and firmware. The software segment held a significant revenue share in the market in 2020. This is mainly due to the growing adoption of connected systems by OEMs in vehicles. Furthermore, software over-the-air (SOTA) updates are now quite common in the automotive market, with major vehicle manufacturers routinely rolling out SOTA upgrades for infotainment and navigation systems. SOTA can also update software controlling a vehicle’s physical components or electronic signal processing systems. Furthermore, key players in the market are continuously working on introducing new solutions to gain a competitive edge in the market. For instance, in January 2020, Qualcomm Incorporated introduced the car-to-cloud service for OTA updates, with on-demand services & features. It is an integrated, secure connected car service suite for Qualcomm Snapdragon Automotive Cockpit platforms and Qualcomm Snapdragon Automotive 4G and 5G platforms.
"Amongst vehicle type, commercial vehicle segment is expected to witness faster growth during the forecast period”

Based on the vehicle type, the market is segmented into passenger cars and commercial vehicles. The commercial vehicle segment is expected to witness faster growth during the forecast period. This is mainly due to the growing government mandate for deploying vehicle tracking in commercial vehicles. For instance, the U.S. Department of Transportation has also issued guidelines for the tracking of vehicles. Thus, automotive OEMs are focusing on the integration of advanced telematic solutions to comply with government regulations. Similarly, for instance, in June 2021, Ford expanded its connected uptime system to European fleet operators by introducing Ford Telematics Essentials, a complementary new fleet management tool designed to help increase the productivity of connected commercial vehicles.
"Amongst application, TCU segment held a significant share in the market in 2020”

Based on the application, the market is bifurcated into telematics control unit (TCU), infotainment system, electronics control unit (ECU), and others. In 2020, the TCU segment held a significant share in the market. This is mainly due to the rising demand for advanced telematics in passenger car services such as vehicle maintenance and diagnostics alerts, real-time tracking, eCall crash warning, and electronic tolling, among others. For instance, The EU requires the installation of embedded telematic devices on all new vehicles by 2024. Furthermore, the presence of major players offering telematics products and services, coupled with the rising awareness among consumers about road safety and increasing adoption of telematics by fleet owners, is propelling the market for automotive OTA updates.
"Asia Pacific to Witness Fastest CAGR During the Forecast Period.”

Because of rising connectivity trends and government rules and regulations, the Asia Pacific region has accounted for a significant share of the market's expansion. Furthermore, the market's growth will be fueled by OEM contributions to APAC Automotive OTA Updates and high demand for embedded systems or technology-based solutions, which are low-cost and easy to manage. Furthermore, rising government initiatives and stricter restrictions governing the integration of telematics systems for passenger safety and security in nations like India, China, Japan, and Australia are expanding the usage of vehicle telematics.

China is expected to be the most lucrative market over the forecast period 2021-2027. For the past decade, China has become the world's largest automotive production country. China is predicted to be a major market, accounting for the majority of the market revenue and market share in APAC Automotive OTA Updates. The adoption of telematics by China's automotive sector is aided by stringent government policies for the installation of satellite location and telematics systems.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional & country-level analysis of the industry