Automotive OTA Updates Market to Surpass $13,959.5 Million Revenue by 2030

The automotive OTA updates market is projected to generate USD 13,959.5 million revenue in 2030, advancing at a CAGR of 19.7% during 2022–2030. The growth of the market can be attributed to the increasing number of on-road vehicles and rising production of electric vehicles, coupled with the surging interest in devices that offer internet connectivity within automobiles. Moreover, the increasing R&D spending for technological advancements, rising demand for automotive networking, navigation, connectivity, and entertainment features, and growing number of automotive OEMs will fuel the market growth in the coming years.

Firmware To Show Faster Growth

Firmware is expected to be the faster-growing category, at a CAGR of 20.5%, during the forecast period. This would be due to the need for system upgrades with advanced operating guidance, without requiring any hardware updates. Users would be able to discover new features in the system, as well as enjoying a better experience, when communicating with it after upgrading the firmware.

The software category held the larger revenue share in 2022, and it is further expected to maintain its position during the coming years. This can be ascribed to the growing demand for infotainment applications, such as e-mails, live traffic updates, social media applications, and park assist, and the advancements in connected technologies.

Based on application, the market is categorized into telematics control unit (TCU), infotainment system, electronic control unit (ECU), and others. Among these, the TCU category generated the highest revenue in 2022 owing to the rising integration of functionalities such as wireless monitoring, diagnostics, communication to/from the vehicle, eCall crash warning, electronic tolling, and vehicle tracking, which are all managed by this integrated onboard device. As a result, the need to regularly update the software of the TCU is rising.

Commercial vehicles, based on vehicle type, will account for the faster growth in the market during the prediction period. The government mandates for the integration of vehicle tracking systems in commercial vehicles are expected to significantly increase the adoption of OTA software update solutions in this category.

Geographically, North America held the largest revenue share in 2022, and it is further expected to maintain its dominance in the coming years. This can be attributed to the increasing EV production, rising need for safety updates, growing incidents of vehicle collisions, surging adoption of connected devices in vehicles, and elevating per capita income.

APAC is expected to witness the fastest growth during the forecast period. This can be attributed to the stringent government regulations regarding the integration of advanced safety features, such as intelligent speed assistance, emergency stop signals, and event data recorders, coupled with the increasing demand for autonomous vehicles, connected cars, and shared electric mobility in the region. The adoption of connected cars in APAC is being boosted by the rising disposable income and advancing technological knowledge of customers.

Moreover, Europe contributes significant revenue to the global market. This is due to the huge number of automobile and auto parts manufacturers, high adoption of advanced software in order to abide by the EU’s road safety regulations, and increasing demand for luxury and high-end vehicles. In addition, Germany is the highest revenue contributor to the regional market due to the high adoption of advanced technologies in vehicles and the presence of a large number of automobile manufacturers in the country.

Some of the major players in the market are DENSO Corporation, Aptiv PLC, Continental AG, Garmin Ltd., HARMAN International, HERE Global B.V., Infineon Technologies AG, Nvidia Corporation, Qualcomm Incorporated, Robert Bosch GmbH, Xevo Inc., Lear Corporation, and Verizon Communications Inc.