The Over-The-Air (OTA) Update Market size is projected to reach US$ 22.51 billion by 2031 from US$ 5.89 billion in 2023. The market is expected to register a CAGR of 18.24% in 2023–2031. The growing demand for in-vehicle infotainment systems is pushing automakers and OTA suppliers to innovate their products and services. As a result, auto manufacturers are focusing on integrating infotainment systems with advanced technology and features. Thus, the growing popularity of in-vehicle infotainment systems is driving the growth of over-the-air (OTA) update market.
The over-the-air (OTA) update market ecosystem comprises multiple stages that further include dedicated procedures. This ensures over-the-air (OTA) updates are in line with the expectations of end-users. Following is a brief description of each step of designing and delivering and how it adds value to the final offering. Software providers play a critical role in the growth of the over-the-air (OTA) update market. This is due to the fact that the software providers are in constant synchronization with the OTA providers, automakers, and regulatory bodies. With the accentuating demand for regular updates on various software, the software providers are compelled to innovate and design robust software for upgrades on the vehicle systems. This enhances vehicular technologies. Only some of the software providers are direct suppliers of over-the- air (OTA) updates. Some of the software providers operating in the over-the-air (OTA) update market include Intellias, Airbiquity, and HARMAN International, among others.
V2X offers peer-to-peer communications protocols that enable enhanced situational awareness between vehicles, whether piloted by humans or by machines. Thus, the advantage of the vehicle connecting to infrastructure, vehicles, pedestrians, and the cloud is expected to proliferate the markets at a rapid pace and is anticipated to continuously demand software updates. Pertaining to the fact that the communication between the vehicle and the above-mentioned assets requires advanced software in order to function seamlessly and optimally. The commercialization at full throttle of V2X is foreseen to create a significant market space for the over-the-air (OTA) update market players in the coming years.
The wireless technologies enable the driver or the vehicle owner to update their maps easily. This benefit is gaining attraction from various vehicle class owners. Thus, leading the growth of over-the-air (OTA) update market. Further, the market is expected to soar in the coming years, owing to the rising trend of integrating an increased number of computing units. The demand for keeping these computing systems up-to-date has been a challenging job for vehicle owners and drivers. With modern vehicles getting increasingly digitized and drivers being used to a digital lifestyle, it is vital to upgrade the vehicle software over time and to offer a suitable solution to install updates and new functions. Thus, the rise in demand for advanced vehicular technologies and an increasing number of automakers offering smart and connected technologies is catalyzing the growth over-the-air (OTA) update market.
Internet of Things (IoT) in Asia-Pacific Automotive Industry is Expected to Revolutionize OTA Update Market
The automotive industry is pacing up substantially with the rise in the automotive internet of things (IoT) connectivity. In order to fill the gap between connected automotive services that are maintained by lot sensors, OEMs are emphasizing on designing and developing state-of-the-art software and service modules for the vehicle. Automotive IoT based over-the-air (OTA) updates are gaining significant acceptance in the developing countries in Asia-Pacific. The region, especially, China, Japan, and South Korea house a number of globally recognized vehicle manufacturers and technology leaders. The count of connected cars/vehicles in these countries are growing at a stupendous rate, which is again demanding lot base OTA updates for the optimized driving experience. India, on the other hand, is progressing steadily in the over-the-air (OTA) update context and is likely to become a hub of the connected cars in the recent future. This is due to the ongoing trend of procuring connected cars is rising.
Key segments that contributed to the derivation of the Over-The-Air (OTA) Update Market analysis are type, vehicle type, and application. Type (Software Over-The-Air (SOTA) Update and Firmware Over-The-Air (FOTA) Update); Application (Telematics, Infotainment, Electronic Control Unit, and Others); Vehicle Type (Passenger Vehicle and Commercial Vehicle)
The geographic scope of the Over-The-Air (OTA) Update Market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
The demand for over-the-air (OTA) update is growing substantially owing to the increasing popularity of automation and the use of technologically advanced vehicles across various countries. The Asia-Pacific region is expected to witness the highest CAGR during the forecast period owing to the presence of highly automated countries such as Japan and South Korea and increasing the adoption of new technologies in countries such as India and China. The market for over-the-air (OTA) update is expected to grow at a significant rate owing to the strong automotive industry and key players initiatives regarding the digitization of the vehicles. North America is a highly advanced region, and the growing popularity of automation in automotive sector across the region is expected to support the growth of the over-the-air (OTA) update market.
The regional trends and factors influencing the Over-The-Air (OTA) Update Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Over-The-Air (OTA) Update Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 5.89 Billion |
| Market Size by 2031 | US$ 22.51 Billion |
| Global CAGR (2023 - 2031) | 18.24% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Over-The-Air (OTA) Update Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Over-The-Air (OTA) Update Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Over-The-Air (OTA) Update Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Over-The-Air (OTA) Update Market and strategies:
The “Over-The-Air (OTA) Update Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas: