Market Size (2018)
$2.22B
Vertical: AutoBase Year: 20189 Sections
Market Size (2018)
$2.22B
Projected (2025)
$8.78B
CAGR (2017–2025)
21.2%
Key Players
14+
The global automotive OTA updates market is expected to grow a significant rate due to the increasing number of connected cars and electric vehicles. Moreover, OEMs are investing in OTA updates solutions in order to provide ease of updates to the car owners. Currently, there are several global technology players who have entered the automotive OTA updates market. These providers are investing significantly in research and development to offer secured and cost-effective OTA updates solutions to the car manufacturers. The market is dominated by a few major players; however, new players are expected to enter the market due to revenue opportunity in regions such as Asia-Pacific, the Middle East and Africa, and South America. The entry of new players is expected to increase the competition in the market.
The global automotive OTA market is expected to reach USD 8,775.5 million by the end of 2025 at a 22.2% CAGR during the forecast period 2019–2025. In 2018, the market was led by North America with a 43.1% share, followed by Europe and Asia-Pacific with shares of 38.5% and 13.1%respectively.
The Automotive Over The Air OTA Updates Market market is projected to grow at a CAGR of 21.2% from 2017 to 2025.
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View Subscription PlansAutomotive Over The Air OTA Updates Market
Historical performance and future projections (2020–2030, USD Billion)
Market Size (USD Mn)
The over-the-air update is a method of distributing new software, firmware and other update facilities over the cloud. Until recently, the OTA updates were available only for smartphones; however, with the rapid growth in the number of connected cars across the globe and vehicles becoming more software dependent, the need for OTA updates has increased significantly. For a long time, software updates were done through local software update procedure, wherein car is sent to a dealer/mechanic who then updates the software. Tesla Motors started offering OTA capability for its electric vehicles, which disrupted the automotive industry. Thereafter, other global car manufacturers, such as BMW, Mercedes-Benz, and General Motors, started investing in offering OTA capabilities for their connected cars. OTA updates are expected to help OEMs in saving a significant amount that they incur due to car recalls.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2017 – 2017
Forecast Period
2019 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThe global automotive OTA updates market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain maximum market share. Intense competition, rapid advances in technology, and frequent changes in government policies are key factors that confront market growth. The vendors compete based on digital services, pricing, reliability, and services. It is crucial for the vendors to provide advanced technology and value-added services in the automotive industry to survive and succeed in an intensely competitive market environment.
The market share analysis is derived by considering various factors such as financial position, segmental R&D investment, brand value, product portfolio, strategy analysis, and, key innovations in the global automotive OTA updates market, among other factors. The major players holding a prominent position in the global automotive OTA updates market are HARMAN International, Aptiv, QNX Software Systems Limited, Intel Corporation, and Robert Bosch GmbH.
According to the Wantstats (Wantstats) analysis, HARMAN International, Aptiv, QNX Software Systems Limited, Intel Corporation, Airbiquity Inc., are some of the key players of the global automotive OTA updates market as of 2019. These companies continue to retain their strong global hold through expansion, mergers & acquisitions, and by offering an extensive range of products.
HARMAN International dominates the global automotive OTA updates market, holding the first position. The company’s remote vehicle updating service leverages its unique Smart Delta technology, which reduces the file update package up to 99% for efficient full-vehicle software management. The new automotive cybersecurity add-on to OTA offers enhanced capabilities to manage vulnerabilities in the automotive software supply chain. HARMAN International follows organic growth to expand its presence in the market. The company engages in partnerships to increase its product reach and sales. It invests significantly in R&D for the development of autonomous driving and mobility solutions.
Intel Corporation is one of the leading providers of OTA solutions worldwide. The company has acquired the second position in the global automotive OTA updates market owing to its products offering and development in the software and firmware solutions. It acquired Arynga, a provider of software management solutions, for secure wireless OTA updating of software and firmware in the automotive market. Arynga's flagship product CarSync offers end-to-end, robust, secure, and efficient platform that allows vehicle original equipment manufacturers (OEMs) and Tier 1 suppliers the ability to manage the creation and distribution of OTA updates to vehicles. The company’s capital allocation strategy focuses on building value, which is achieved by investing in innovations, acquisitions, and strategies to increase its capabilities.
Aptiv has occupied the third position in the global automotive OTA updates market. The company develops and delivers end-to-end smart mobility solutions with advanced safety, and computing platforms focused on providing the requisite networking architecture to support the integrated systems in complex vehicles. It relies on strategic investments, acquisitions, and partnerships to position itself to provide enhanced solutions for advanced mobility. Recently, Aptiv bought Michigan-based startup Movimento, to integrate its OTA platform to help automakers collect and analyze car data to detect flaws, extend the reach of recalls, patch cybersecurity vulnerabilities, and speed development of autonomous driving.
Blackberry QNX Software Systems Limited has occupied the fourth position in the global automotive OTA updates market. The company provides middleware, development tools, and real-time operating system software for embedded designs. It has a broad portfolio of products to mitigate cyber attacks on vehicles, provide the highest level of functional safety-certification for foundational software like the operating system, hypervisors, and tools and also enable manufacturers with software platforms and services for autonomous and connected vehicles.
Robert Bosch GmbH has occupied the fifth position in the global automotive OTA updates market. It has been concentrating on improving its product line through technological advancements and product developments. The company recently acquired Daimler AG to make motors for electric and hybrid cars. The acquisition is expected to meet the growing demand for electrified vehicles as regulators crack down on emissions from combustion-engine vehicles.
Some of the other active players working in the global automotive OTA updates market are NXP Semiconductors NV, Verizon Communications, Inc., Continental AG, Infineon Technologies AG, Qualcomm Incorporated, and HERE Technologies.
Michael Porter’s five forces model is a framework that models the global automotive OTA updates market, which is influenced by five forces. The strategic business managers, trying to create an edge over the competing firms in the global automotive OTA updates market, can utilize this model to better comprehend the industry in which the company operates. The components of each of the forces and the degree of impact of each component in the context of the global automotive OTA updates market have been broken down and analyzed.
Market estimates by geography (2025)
InsightEurope leads with $3.65B by 2025, while Asia Pacific is projected to grow fastest at a 24.7% CAGR.
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View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| North America | $828.10M | $1.53B | $3.24B | 18.6% | 37% |
| Asia Pacific | $240.80M | $540.50M | $1.41B | 24.7% | 16% |
| Europe | $717.40M | $1.50B | $3.65B | 22.6% | 42% |
| Rest of the World | $96.20M | $197.70M | $471.30M | 22.0% | 5% |
| Total | $1.88B | $3.77B | $8.78B | 21.2% | 100% |
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View Subscription PlansTotal Market Size
$8.78B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Software Over-The-Air Technology (SOTA) | $5.57B | 21.6% | 63% |
| Firmware Over-The-Air Technology (FOTA) | $3.21B | 20.6% | 37% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Automotive Over The Air OTA Updates Market covering market dynamics, competitive landscape, and strategic outlook.
The Automotive Over The Air OTA Updates Market market is projected to reach $8.78B by 2025, growing at 21.2% CAGR. The Software Over-The-Air Technology (SOTA) segment holds the largest share.
Over the past few years, the number of connected devices has increased significantly. The growth in the utilization of IoT technology and an increase in the number of connected devices are due to emerging applications and business models, and strongly reinforced by standardization and reducing costs. According to Ericsson’s report on connected devices, there will be around 29 billion connected devices by 2022, of which around 18 billion will be IoT enabled. These IoT-enabled devices include connected cars, meters, wearables, machines, and other consumer electronics. Among all these IoT-enabled devices, the increasing number of connected cars is one of the significant trends. Moreover, with an increase in the number of connected cars, the need for continuous updates of the software embedded in these connected cars has also grown significantly. Therefore, like smartphone updates, automotive makers are now providing updates for automobile software. All the components, ranging from dashboards to door locks, can be updated to the latest versions. This has given rise to the market for automotive OTA updates. Autocar makers such as Tesla, Inc. and BMW AG are introducing OTA updates capabilities for their cars. The OTA updates are expected to save visiting time of car owners to any mechanic shop for repairing small bugs in software.
Vehicles are increasingly becoming automated and software-dependent; due to this, the instances of vehicle recalls due to various faults, including bugs in software, has increased significantly. Recalls take place when the automakers call off their vehicle models from the market for further inspection and repair.
The recall can be either voluntary or influenced. Voluntary recalls happen when an auto manufacturer calls off the vehicles for inspection of a specific vehicle model. From 2013 to 2016, the number of voluntary recalls increased considerably. In 2016, Chrysler, a key manufacturer of automobiles, recalled 1.4 million vehicles that were potentially affected by hackable software vulnerability. In the same year, General Motors (an American multinational automobile manufacturer) recalled nearly 4.3 million vehicles worldwide for a software defect. Similarly, in the same year, Honda Motor Co., Ltd (a Tokyo based automobile and auto parts manufacturer) recalled 350,000 vehicles over a software that was affecting the electric parking brake. In 2015, AB Volvo recalled 59,000 cars across 40 markets over a fault in their software that could shut down the engine temporarily.
The year 2016 was recorded as the year of highest recalls, specifically in the US. In 2016, in the US alone, one OEM recalled approximately 300,000 vehicles to fix problems with their infotainment audio units; another one recalled 100,000 vehicles to repair faulty relays, and yet another one recalled around 80,000 vehicles due to software bugs. Due to the increase in these voluntary recalls, the need for OTA updates has gained significant importance. OTA updates have the capability to tackle security issues as well as automotive glitches in the software.
Recalls incur a significant amount for automakers. The Auto Industry’s Growing Recall Problem—And How to Fix It, a study conducted by AlixPartners in 2018, stated that in 2016, US-based OEMs as well as suppliers paid approximately USD 11.8 billion in claims, and recorded USD 10.3 billion of warranty and recall accruals. Therefore, in order to reduce recalls, automakers are implementing OTA updates in their vehicle, which will, in turn, drive the growth of the market.
Automobile OTA updates are prone to cyberattacks; however, providers of automobile OTA updates can offer secured, end-to-end encrypted OTA updates to minimize the risk of cyberattacks. Also, the development of OTA technology and security standards such as ISO 26262 can help increase the adoption of OTA update solutions as well as enhance the quality and comprehensiveness of security features from software suppliers.
Highly secure OTA updates solution offered by providers can ensure strong integrity, confidentiality, and authenticity. This particularly means that the OTA updates solutions offered by the providers should have the capability to secure the OEM IP and the data being processed. Also, integration of OTA updates and metadata security can help in preventing attackers from installing malicious firmware in the vehicle. For encryption, blockchain-based techniques can be used to address the security issues in OTA updates solutions. Research suggests that blockchain based architecture can potentially help providers to offer end-to-end encrypted OTA updates solutions. All the key entities—OEMs, service centers, automobiles, cloud server, and software distributor (SD)—in the blockchain architecture can form a cluster to efficiently manage the software update process. These secured solutions can be offered by the service providers to provide efficient OTA updates for the automotive sector.
Software updates require a strong network infrastructure, and when it comes to vehicle software updates, even stronger network infrastructure is required. For functions such as updating of engine management software, several gigabytes of data are processed; to update this large amount of data, an efficient network connectivity is required. Developing economies, including countries in Africa and South America, have inadequate network infrastructure which might limit the adoption of OTA updates solutions. Developing countries lack cost-effective and efficient data plans, which can lead to difficulties while updating automobile software, specifically from the customers' end, thereby restricting market growth.
OTA updates solutions are vital for both vehicle manufacturers and users in terms of efficient use of time and money. However, it might give hackers a chance to attack all the software updates within the vehicle. Any kind of corrupt updates in a vehicle, especially an autonomous or semi-autonomous car, can turn out to be dangerous, and in some cases, may lead to fatality. Additionally, there is an impending quantum computing threat on OTA updates. A quantum computing threat can possibly break all the generic public keys. Public key encryption and digital signature are the most secure way to implement OTA updates; however, due to quantum computing threat, these algorithms are highly vulnerable. These cybersecurity threats are expected to restrict the adoption of OTA updates. However, OTA update providers are now aiming at offering solutions that highly secure. For instance, NXP Semiconductors and Robert Bosch GmbH have developed OTA updates with an advanced encryption technology that is expected to protect data transmission against unauthorized access.
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Profiles of 104 companies operating in the Automotive Over The Air OTA Updates Market market, including revenue, employee count, and market positioning where available.
Showing 104 of 104 companies
BlackBerry QNX Software Systems Limited
Company Headquarters: Canada Founded: 1980 Workforce: ~500 Company Working: BlackBerry QNX Software Systems Limited provides middleware, development tools, and real-time operating system software for embedded designs. It develops and delivers QNX Acoustics Management Platform, an automotive software solution that allows automakers to design and manage the total acoustics experience in their cars; QNX Acoustics for Voice, a signal processing software solution for automotive voice communications; QNX Active Sound Design that allows sound designers to control the desired ambient noise within the vehicle and outside the vehicle; and QNX Hypervisor, a Type 1 real-time priority-based microkernel hypervisor built for managing virtual machines. The company also offers operating systems that are designed for embedded systems running on various platforms, including ARM and x86, and a host of boards implemented in virtually every type of embedded environment; advanced driver assistance systems; QNX CAR Platform for infotainment, a software that is designed to help automotive manufacturers build graphically-rich and connected infotainment systems; and QNX Platform for digital cockpits that is designed to help automakers to deliver a cockpit software solution. In addition, it offers QNX Platform for instrument clusters that are designed to help car manufacturers respond to the new set of challenges with the development of full digital instrument clusters; QNX SDK for apps and media that leverages the latest open technologies for application development and allows device manufacturers to build compelling mobile-like interfaces with full multimedia capabilities; and QNX SDK for Bluetooth connectivity that offers developers a path to build Bluetooth-enabled systems. Further, the company provides professional, and training and education services; and hardware support, porting, general consulting, and development workshop services. It offers its products for a client in automotive, industrial, medical, security and defense, and rail safety markets in Canada and internationally. QNX Software Systems Limited operates as a subsidiary of BlackBerry Limited.
Aptiv
Company Headquarters: Dublin, Ireland Founded: 1994 Workforce: ~ 147,000 Company Working: Aptiv designs and manufactures vehicle components and offers electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets across the globe. It operates through two business segments: signal and power solutions, advanced safety and user experience. It offers critical components, systems, and advanced software development for passenger safety, security, comfort, and vehicle operation which includes body controls, infotainment and connectivity systems, passive and active safety electronics, autonomous driving software and technologies, displays and systems integration under advanced safety and user experience segment. The signal and power solutions segment offer complete design, manufacture, and assembly of the vehicle’s electrical architecture which includes engineered component products, connectors, wiring assemblies and harnesses, cable management, electrical centers and hybrid high voltage and safety distribution systems. In December 2017 Delphi Automotive Plc announced the spin-off of its powertrain systems segment into a new independent company named as Delphi Technologies Plc, after which Delphi Automotive Plc has been renamed as Aptiv. It has more than 100 manufacturing facilities, 14 major technical centers and operates in 45 countries worldwide.
HARMAN International
Company Headquarters: Connecticut, US Founded: 1980 Workforce: ~30,000 Company Working: Harman International (Harman) designs connected products and a solution for automakers, enterprises, and consumers worldwide. The company also offers a connected car system, audio and visual products, and enterprise automation solution and service that supports IoT. Harman offers a wide range of product offering sold under various brand names. The company’s brand includes AMX, AKG, Crown, Infinity, Harman/Kardon, JBL Professional, JBL, Martin, Mark Levinson, Soundcraft, Revel, Studer, and Soundcraft. Harman software solutions power mobile, and the system is designed to be connected, personalized, integral, and adaptive across various platforms, from home and work to car and mobile. Its infotainment segment designs, develops, and markets infotainment system for automobile applications to be installed by original equipment automotive manufacturers. The company's scalable infotainment platforms offer enhanced and connected capabilities to the car, including intelligent high-performance navigation with embedded multimedia solutions, upgradeability, premium entertainment, offboard connectivity and onboard connectivity, and active safety systems. The company's lifestyle segment design, produce and markets car audio systems for automobile application to be installed as original equipment by automakers, along with a broad range of mid to high-end loudspeaker as well as electronics for multimedia, home, and mobile applications.
Intellias Ltd
Company Headquarters: Ukraine Founded: 2002 Workforce: ~5,000 Company Working: Intellias Ltd.is a custom software engineering company with a specific focus on automotive, location-based services, and financial technology industries. The company has its expertise in SaaS development platform development data science & big data IoT & embedded UX/UI design mobile app development DevOps & cloud.
HERE Technologies
Company Headquarters: US Founded: 1985 Workforce: ~10,000 Company Working: HERE Technologies designs and develops software solutions. The company offers location- and map-based applications, tracking and positioning, mobility, and traffic services for automotive, transportation, insurance, and telecom industries.
Airbiquity
1.1.1 Company Overview Company Headquarters: US Founded: 1997 Workforce: ~200 Company Working: Airbiquity Inc. is a global leader in connected vehicle services and a pioneer in the development and engineering of automotive telematics technology. The company operates the industry’s most advanced cloud-based connected car service delivery platform—Choreo. Airbiquity supports over eight million vehicles every day and multiple vehicle transactions a month in more than 60 countries around the world.
10 interactive charts drawn from the Automotive Over The Air OTA Updates Market dataset — market size, regional splits and each segment breakdown. Open one to read its full data table and download it.
Global Automotive Over The Air OTA Updates Market Middle East And Africa and South America Of Rest Of The World By Region
Global Automotive Over The Air OTA Updates Market Germany, France, United Kingdom, Italy and Rest Of Europe By Country
Global Automotive Over The Air OTA Updates Market China, India, Japan, South Korea and Rest Of Asia Pacific By Country
Global Automotive Over The Air OTA Updates Market United States, Canada and Mexico Of North America By Country
Global Automotive Over The Air OTA Updates Market By Region
Automotive Over The Air OTA Updates Market Rest Of The World By Region
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