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

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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.

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“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.

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• 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

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Research Methodology

Research Methodology for Automotive Over-the-Air (OTA) Updates Market (2020-2027)

Analyzing the historical market, estimating the current market, and forecasting the future of the automotive OTA updates market were the three major steps undertaken to create and analyze the demand and adoption of automotive OTA updates across major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. The detailed methodology is explained below.

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Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the automotive OTA updates through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the automotive OTA updates, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are application, type, vehicle type, and propulsion. Further regional & country-level analyses were conducted to evaluate the overall adoption of automotive OTA updates in the global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing government incentives and demand for eco-friendly transportation, etc. Historical trends and their year-on-year impact on the market size and share were analyzed. Demand and the supply-side scenario were also thoroughly studied.

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Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the market, and market shares of the segments and company. All the required percentage split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the bottom-up approach were applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of automotive OTA updates across the major markets
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in automotive OTA updates in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

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Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the Automotive OTA updates. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type, propulsion, vehicle type, application, and region.

The main objective of the Automotive OTA updates Study

The current & future market trends of automotive OTA updates were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional & country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Automotive OTA updates in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study vehicle type, application, type, and propulsion
• Defined analysis of the regulatory framework for the global automotive OTA updates industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the automotive OTA updates for the major regions & countries
• Major regions studied in the report include North America (US, Canada, Rest of North America), Europe (Germany, United Kingdom, France, Italy, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), and Rest of World
• Company profiles of the automotive OTA updates players and the growth strategies adopted by them to sustain in the fast-growing market

Deep dive regional & country-level analysis of the industry

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