Over-The-Air (OTA) Update Market Growth Share Forecast 2031
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.
Over-The-Air (OTA) Update Market Analysis
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.
Over-The-Air (OTA) Update Market Overview
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.
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Over-The-Air (OTA) Update Market: Strategic Insights
Market Size Value in US$ 2,685.6 Million in 2018 Market Size Value by US$ 10,346.5 Million by 2027 Growth rate CAGR of 16.3% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Over-The-Air (OTA) Update Market: Strategic Insights
| Market Size Value in | US$ 2,685.6 Million in 2018 |
| Market Size Value by | US$ 10,346.5 Million by 2027 |
| Growth rate | CAGR of 16.3% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Over-The-Air (OTA) Update Market Drivers and Opportunities
Accentuating Demand for Advanced Vehicular Technologies
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.
Over-The-Air (OTA) Update Market Report Segmentation Analysis
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)
- Based on type, the Market has been divided into Software Over-The-Air (SOTA) Update and Firmware Over-The-Air (FOTA) Update. The Software Over-The-Air (SOTA) Update segment held a larger market share in 2023.
- Based on vehicle type, the Over-The-Air (OTA) Update Market is segmented into commercial vehicle, passenger car. The passenger car segment held the largest share of the market in 2023.
- Based on application, the Over-The-Air (OTA) Update Market is segmented into telematics, infotainment, electronic control unit, and others. The telematics segment held the largest share of the market in 2023.
Over-The-Air (OTA) Update Market Analysis by Geography
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.
Over-The-Air (OTA) Update Market Report Scope
Over-The-Air (OTA) Update Market News and Recent Developments
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:
- On March 2023, Trimble (NASDAQ: TRMB) announced that Trimble Fleet Manager, provided as part of its Mobility telematics portfolio, is now the first back-office fleet management solution to offer industry-specific average dwell time metrics. This data empowers fleets to make better planning decisions, improve service level agreement (SLA) adherence and utilize their assets and drivers more efficiently. (Source: Trimble, Press Release/Company Website/Newsletter)
- On September 2023, Valeo, a world leader in mobility technology and in electrification of mobility has been chosen by Mahindra & Mahindra (M&M), India’s leading SUV manufacturer to provide the electric powertrain for a certain range of their "Born Electric" passenger vehicle platform and on board charger combo for their electric utility vehicles. (Source: Valeo, Press Release/Company Website/Newsletter)
Over-The-Air (OTA) Update Market Report Coverage and Deliverables
The “Over-The-Air (OTA) Update Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed Porter’s Five Forces analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles with SWOT analysis
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type Update and Firmware Over-The-Air Update); Application ; Vehicle Type ; and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Morocco, Russian Federation, South Africa, South Korea, United Kingdom, United States
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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