Automotive Over The Air Updates Market

• Rise In Demand For Connected Vehicles is driving market growth

Connected cars facilitate wheel connectivity, offering comfort, convenience, performance, safety, security, and powerful network technology. This enables drivers to connect to online platforms, thereby facilitating real-time communication. The rise in consumer demand for connectivity solutions, the surge in need for constant connectivity, the increase in dependency on technology, and the surge in the tech-savvy population are the key factors contributing to market CAGR  growth in demand for global connected cars. Network connectivity solutions such as vehicle-2-vehicle (V2V) and vehicle-to-infrastructure (V2I) systems can share content with various devices inside and outside a vehicle.

In a vehicle connected to various devices, the driver receives real-time data around the vehicle to increase safety. The main goals of connected car adoption are to avoid collisions, reduce fatalities, and increase fleet management efficiency.

Additionally, by strengthening collaboration with solution providers and partners, automotive OEMs optimize R&D spending to prioritize connected car programs. For instance, in 2021, Ford and Google announced their unique strategic partnership to accelerate Ford's transformation and reinvent the connected car experience with embedded Google apps and services. Similarly, in 2019, Airbiquity announced that it had become a member of the Japan Automotive Software Platform and Architecture (JASPAR), which promotes the standardization of automotive software and networks to improve development efficiency and stability.

Thus, manufacturers' rise in the adoption of connected car devices is expected to increase the growth of the surveillance automotive over-the-air market revenue during the forecast period.

The Global Automotive Over-The-Air (OTA) Updates Market Industry is projected to experience substantial growth in the coming years. With a market value of 6.22 USD Billion in 2024, it is anticipated to expand significantly, reaching an estimated 35.3 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 17.08% from 2025 to 2035. The increasing adoption of connected vehicle technologies, coupled with the rising demand for software updates and enhancements, is likely to drive this expansion. As manufacturers continue to invest in OTA capabilities, the market is poised for robust development.

Cybersecurity concerns are becoming paramount in the Global Automotive Over-The-Air (OTA) Updates Market Industry. As vehicles become more connected, the risk of cyber threats increases, prompting manufacturers to prioritize the security of their software systems. OTA updates serve as a critical tool for addressing vulnerabilities and deploying security patches in real-time. This proactive approach to cybersecurity not only protects consumers but also enhances the overall integrity of automotive systems. As the industry grapples with evolving cyber threats, the emphasis on secure OTA solutions is likely to drive market growth, ensuring that manufacturers can safeguard their vehicles against potential attacks.

Consumer awareness and acceptance of OTA updates are crucial drivers in the Global Automotive Over-The-Air (OTA) Updates Market Industry. As consumers become more informed about the benefits of OTA technology, including convenience and enhanced vehicle performance, their willingness to embrace such updates increases. Educational initiatives by manufacturers and industry stakeholders play a vital role in shaping consumer perceptions and fostering acceptance. This growing awareness is expected to contribute to the market's expansion, as more consumers recognize the advantages of receiving timely software updates directly to their vehicles, thereby enhancing their overall driving experience.

Cost efficiency is a pivotal driver in the Global Automotive Over-The-Air (OTA) Updates Market Industry. OTA updates allow manufacturers to deploy software fixes and enhancements without requiring physical dealership visits, thereby minimizing operational costs and reducing vehicle downtime. This capability is particularly advantageous in the context of recalls, where traditional methods can be cumbersome and expensive. By leveraging OTA technology, automakers can achieve significant savings and improve customer satisfaction. As the market evolves, it is anticipated that the cost benefits associated with OTA updates will further incentivize manufacturers to adopt this technology, contributing to a projected market growth to 35.3 USD Billion by 2035.

The Global Automotive Over-The-Air (OTA) Updates Market Industry is experiencing a surge in demand for connected vehicles, driven by consumer preferences for advanced technology and seamless connectivity. As vehicles become more integrated with smart technologies, manufacturers are compelled to implement OTA updates to enhance user experience and maintain competitive advantage. In 2024, the market is projected to reach 6.22 USD Billion, reflecting a growing recognition of the benefits of real-time software updates. This trend is likely to continue as consumers increasingly expect their vehicles to offer the same level of connectivity and functionality as their personal devices.

Regulatory compliance is increasingly influencing the Global Automotive Over-The-Air (OTA) Updates Market Industry. Governments worldwide are imposing stricter regulations regarding vehicle safety and emissions, necessitating timely software updates to meet these standards. OTA updates enable manufacturers to quickly address compliance issues and enhance vehicle safety features without requiring physical recalls. This capability not only ensures adherence to regulations but also fosters consumer trust in automotive brands. As regulatory frameworks continue to evolve, the demand for OTA solutions that facilitate compliance is expected to rise, further propelling market growth.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North American automotive over-the-air (OTA) updates market, due to the increasing number of connected car devices in vehicles, the rise in production of electric vehicles, and standard infotainment & telematics services updates will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Automotive Over-The-Air (Ota) Updates Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's automotive over-the-air (OTA) updates market accounts for the second-largest market share due to the increased penetration of internet services in the Region and the adoption of advanced technology. Further, the German automotive over-the-air (OTA) updates market held the largest market share, and the UK automotive over-the-air (OTA) updates market was the fastest-growing market in the European Region.

The Asia-Pacific automotive over-the-air (OTA) updates market is expected to grow at the fastest CAGR from 2024 to 2030. This is due to major automotive manufacturers of countries, like China and India, in significant automotive hubs in the Region, which are anticipated to boost the procurements of automotive over-the-air (OTA) Updates Market. Moreover, China’s automotive over-the-air (OTA) updates market held the largest market share. The Indian automotive over-the-air (OTA) updates market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive over-the-air (OTA) updates to the market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Automotive over-the-air (OTA) updates industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global automotive over-the-air (OTA) updates industry to benefit clients and increase the market sector. The automotive over-the-air (OTA) updates industry has offered the military some of the most significant advantages in recent years.

Major players in the automotive over-the-air (OTA) updates to market, including Robert Bosch GmbH, NXP Semiconductors N.V, Verizon Communications Inc., Continental AG, Infineon Technologies AG, Qualcomm Incorporated, Intel Corporation, HARMAN International, Airbiquity Inc, Aptiv, HERE Technologies, BlackBerry QNX Software Systems Limited, Garmin Ltd., Intellias Ltd., and others, are attempting to increase market demand by investing in research and development operations.

Qualcomm is an American multinational corporation headquartered in San Diego, California, and incorporated in Delaware. It creates semiconductors, software, and services related to wireless technology. It owns patents critical to the 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA mobile communications standards. Qualcomm Technologies Inc, a subsidiary of Qualcomm Inc, had announced the expansion of 5G test networks. The expansion of networks included Over-the-air configuration for sub-6 GHz bands and millimeter waves.

Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware. Verizon had launched Hum, the first 4G LTE-connected solution for cars that came with built-in Google Assistant.