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Surging Passenger Vehicle Demand Fuels Growth In The Automotive Over-The-Air (OTA) Updates Market Driver: A Major Catalyst in the Evolution of the Automotive Over-The-Air (OTA) Updates Market in 2025

03-07-2025 07:43 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Automotive Over The Air OTA Updates

Automotive Over The Air OTA Updates

What combination of drivers is leading to accelerated growth in the automotive over-the-air (ota) updates market?
The escalating need for passenger vehicles is playing a significant role in expanding the automotive over-the-air (OTA) updates market. Passenger vehicles, which are motorized vehicles capable of transporting individuals or groups, are primarily used for human transportation. Automotive OTA updates are integral in both passenger and commercial vehicles, facilitating remote software updates and mitigating the need for a dealership or garage visit. These updates improve the driving experience and enhance road safety by maximizing operational security. For example, a February 2023 report by the U.S. Bureau of Labor Statistics, a leading fact-finding institution based in the US, projected the sales of electric vehicles in the United States to account for 40 percent of total passenger car sales by 2030. More promising predictions suggest that this figure could surpass 50 percent by the same year. Moreover, there is an anticipated growth of 17.0 percent in the production of electric vehicle batteries and battery chargers over the decade of 2021 to 2031. Therefore, the increasing demand for passenger vehicles is poised to accelerate the growth of the automotive OTA updates market.

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What is the projected compound annual growth rate (CAGR) of the automotive over-the-air (ota) updates market from 2025 to 2034, and what factors influence it?
Recent years have seen a significant expansion in the automotive over-the-air (OTA) updates market. Its size is projected to increase from $4.29 billion in 2024 to $5.03 billion in 2025, representing a compound annual growth rate (CAGR) of 17.2%. This surge during the period under review has been sparked by factors such as the adaptation of connected cars, increasing complexity of automotive software, customer demand for upgraded features, decreased downtime and service expenses, as well as competitive pressure and differentiation.

The market for automotive over-the-air (OTA) updates is anticipated to experience significant expansion in the coming years, reaching a size of $10.18 billion by 2029, with a compound annual growth rate (CAGR) of 19.3%. The growth projected for this period can be explained by factors such as the rise in autonomous and connected vehicle technologies, the escalating complexity of systems within vehicles, adoption of advanced infotainment systems, heightened concerns and risks around cybersecurity, and the prevalence of subscription-based business models. Key trends driving this forecasted growth include the application of data analytics and predictive maintenance, the implementation of security and cybersecurity protocols, the continued development of connected car technologies, the incorporation of advanced diagnostics and analytic tools, and the use of edge computing for quicker updates.

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How are the latest trends influencing the growth of the automotive over-the-air (ota) updates market?
Technological progress is a notable trend in the automotive over-the-air (OTA) updates market, gaining traction rapidly. Leading players in the auto industry are striving to build advanced technologies to consolidate their market standing. For example, in March 2022, Cyient, a software firm based in India, launched CyientfIQ, a firmware over-the-air (FOTA) update solution aimed at delivering comprehensive firmware update solutions across various sectors. The FOTA solution's goal is to facilitate the development of smart and interconnected products for Original Equipment Manufacturers (OEMs), and significantly cut down the costs of post-sales service support via optional upgrades for end users. The CyientfIQ FOTA solution deals with different firmware update scenarios, including the device-to-cloud OTA server, gateway-to-cloud OTA server, and device to gateway to cloud OTA server, thereby ensuring a risk-free, smooth upgrade process.

What are the major segments of the automotive over-the-air (ota) updates market and their role in driving growth?
The automotive over-the-air (OTA) updates market covered in this report is segmented -

1) By Technology Type: Firmware Over-The-Air (FOTA), Software Over-The-Air (SOTA)
2) By Vehicle Type: Passenger Vehicles, Commercial Vehicles, Electric Vehicles
3) By Application: Telematics Control Unit, Electronic Control Unit, Infotainment, Safety And Security

Subsegments:
1) By Firmware Over-The-Air (FOTA): Updates For Vehicle Control Units (VCUs), Powertrain Control Module (PCM) Updates, Electronic Control Unit (ECU) Updates, Safety And Security Firmware Updates, Updates For Advanced Driver-Assistance Systems (ADAS)
2) By Software Over-The-Air (SOTA): Infotainment System Updates, Navigation Software Updates, Application Software Updates, User Interface (UI) Enhancements, Connectivity And Telematics Software Updates, Feature Enhancements And Bug Fixes

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Which regions are key players in the growth of the automotive over-the-air (ota) updates market?
North America was the largest region in the automotive over-the-air (OTA) updates market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global automotive over-the-air updates market report during the forecast period. The regions covered in the automotive over-the-air (ota) updates market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the key firms paving the way for growth in the automotive over-the-air (ota) updates market?
Major companies operating in the automotive over-the-air (OTA) updates market include Verizon Communications Inc., Robert Bosch GmbH, Intel Corporation, DENSO Corporation, Qualcomm Technologies Inc., Continental AG, NVIDIA Corporation, Lear Corporation, Thales Group, Aptiv, Infineon Technologies AG, NXP Semiconductors N.V., Harman International Industries Incorporated, Garmin Ltd., Luxoft Inc., Red Hat Inc., Elektrobit Automotive GmbH, HERE Technologies, Intellias Ltd., Telenor Connexion AS, Sierra Wireless Inc., Blackberry QNX Ltd., Green Hills Software LLC, Arynga Inc., Cubic Telecom Limited, Airbiquity Inc., Cybellum Technologies Ltd., Wind River Systems Inc., Karamba Security Ltd., Symphony Teleca Corporation

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What Is Covered In The Automotive Over-The-Air (OTA) Updates Global Market Report?

• Market Size Forecast: Examine the automotive over-the-air (ota) updates market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the automotive over-the-air (ota) updates market for a structured understanding.
• Key Players Overview: Analyze major players in the automotive over-the-air (ota) updates market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the automotive over-the-air (ota) updates market.
• Segment Contributions: Evaluate how different segments drive overall growth in the automotive over-the-air (ota) updates market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the automotive over-the-air (ota) updates market.
• Industry Challenges: Identify potential risks and obstacles affecting the automotive over-the-air (ota) updates market.
• Competitive Landscape: Review strategic developments in the automotive over-the-air (ota) updates market, including expansions, agreements, and new product launches.

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