Global Automotive Over-the-air (OTA) UpdatesMarket Overview

According to Global Market Monitor, the global automotive over-the-air updates market will be $2654.09 million in 2024 with a CAGR of 26.71% from 2024 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 Unit).

Regional Market

Telematics is currently in its infancy and the industry has huge growth potential, and all links in the industry chain can benefit. Connected vehicles through satellite navigation systems, radio frequency identification, sensors, camera image processing, and other devices automatically complete their own environment and state information collection, through the Internet technology, the vehicle can be their various information transmission convergence to the central processor, the vehicle data to do further analysis and processing. The United States, Japan, the European Union, and China have released various policies and strategies from the late 20th century. OTA updates in the automotive industry go hand in hand with autonomous driving and connected cars. Software will be a unique selling point in the next generation of vehicles. Automotive OEMs will need to provide robust software and hardware systems to sell vehicles shortly. In the meantime, several collaborations, joint ventures, and partnerships are taking place in the global automotive OTA space to meet the different needs of OEMs. The joint government and corporate push for connected cars in major markets will stimulate the growth of automotive OTA.

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.