Market Size (2018)
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Vertical: ICTBase Year: 20189 Sections
Market Size (2018)
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Projected (2025)
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CAGR (2017–2025)
N/A
Key Players
1+
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.
Automotive OTA Market is a key focus area for market intelligence and strategic research.
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View Subscription PlansAutomotive OTA Market
Historical performance and future projections (2020–2030, USD Billion)
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. Moreover, it gives car owners the ease to update all their software without visiting the dealer’s location.
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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.
The 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.
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Analytical insights on Automotive OTA Market covering market dynamics, competitive landscape, and strategic outlook.
Automotive OTA Market represents a significant market opportunity with multiple growth drivers across regions and segments.
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 for vehicles are gaining popularity due to an increase in the number of software-defined vehicles. However, laws and regulations in some countries pose challenges for the growth of the market, as they limit the adoption of OTA updates solutions by automobile manufacturers. For instance, passenger car manufacturers in the US face several difficulties in implementing OTA updates solutions in their vehicles. This is largely due to state franchise laws regulating the relationship between OEMs and dealers. Several unions and regulatory bodies at the state and national levels are pressurizing the state legislature to protect the dealers’ business in the US. They strongly oppose any impact on the dealer’s profit margin in repairing, servicing, and financing services. This is expected to be a challenge for a number of automobile manufacturers who sell their vehicles through dealers, to provide OTA capabilities to in their vehicles.
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Profiles of 100 companies operating in the Automotive OTA Market market, including revenue, employee count, and market positioning where available.
Showing 100 of 100 companies
Applus+
Company Headquarters: Madrid Founded: 1996 Workforce: ~ 25,000 Company Working: Applus+ is a leader in the testing, inspection, and certification sector. Applus+ is a trusted partner, enhancing the quality and safety of clients’ assets and infrastructures while safeguarding their operations and improving their environmental performance. Its innovative approach, technical capabilities, and highly skilled and motivated workforce assure operational excellence across multiple sectors in more than 70 countries. Applus+ offers a complete portfolio of solutions that address a range of needs, from asset integrity management to statutory compliance-based inspections. It places a strong emphasis on technological development, digitalization, and innovation, as well as having the latest knowledge of regulatory requirements.
TUV SUD
Company Headquarters: Germany Founded: 1866 Workforce: ~26,000 Company Working: TUV SUD is a global testing, inspection & certification provider company. TUV SUD divided its operations into three segments including industry, mobility, and certification. Further, it offers auditing & system certification, testing services, product certification, inspection, technical advisory, global market access, training, risk management services for chemical & process, manufacturing, retail, consumer goods, energy, mobility & automotive, infrastructure & rail industries globally. TUV SUD provided more than 605,000 certificates to approximately 1,000 locations worldwide.
Monday.com
Company Headquarters: Tel Aviv, Israel Founded: 2012 Workforce: ~5000 Company Working: Monday.com is a cloud-based platform that allows users to create their own applications and project management software. Monday.com offers work management, Sales CRM and Monday Dev for development and product teams.Monday.com offers solutions as per the team types and company sizes. Monday.com serves more than 180,000 customers present in more than 180 countries across the globe. It offers Work OS that produces maximum productivity, helps in bringing teams together, helps in reaching goals faster, and creates an ideal workflow with its building blocks.
Slack Technologies LLC.
Company Headquarters: US Founded: 2009 Workforce: ~2900 Company Working: Slack Technologies LLC. is a software development business that creates a communication platform for teams that includes real-time messaging, transferring files, archiving, and searching. Slack is a workplace platform that empowers industries such as retail, IT & telecom, BFSI, education, media, and others through no-code automation and AI, streamlines search and knowledge sharing, and maintains connections between teams and businesses. Slack has more than 200,000 paid consumers and has operating users across 150 countries globally.
Asana Inc.
Company Headquarters: US Founded: 2008 Workforce: ~1,666 Company Working: Asana Inc. is a work management tool that assists teams in orchestrating their work, from regular tasks to larger objectives. Asana gives structure to unstructured work, bringing clarity, transparency, and responsibility to everyone in an organization, including individuals, team leaders, and executives. Asana is used by over 100,000 paying organizations and millions of teams worldwide. The company has its operations in more than locations across North America, Asia, and European region. Major companies such as Amazon, Johnson & Johnson, P&G, others integrates Asana for their operations management.
Cognizant
Company Headquarters: US Founded: 1994 Workforce: ~355,300 Company Working: Cognizant Technology Solutions Corporation (Cognizant) is a professional services company. it operates through four segments: financial services, healthcare, manufacturing/retail/logistics, and other. The financial services segment caters to customers providing banking/transaction processing, capital markets, and insurance services. The healthcare segment caters to healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech, and medical device companies. The manufacturing/retail/logistics segment caters to manufacturers, retailers, travel, and hospitality customers, along with customers providing logistics services. The other segment comprises information, media & entertainment services, communications, and high technology operating segments. Its service portfolio comprises consulting and technology services and outsourcing services. Its outsourcing services include application maintenance, IT infrastructure services and business process services. Cognizant has more than 270 office locations across 40 countries worldwide.
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