"According to the new research report published by The Insight Partners, titled ""Over-The-Air (OTA) Update Market - Global Analysis and Forecast to 2027"", the global Over-The-Air (OTA) Update market is expected to reach US$ 10,346.5 Mn in 2027, by registering a CAGR of 16.3% during the forecast period 2019-2027.
In 2018, Asia-Pacific was estimated to hold the largest market share and APAC is expected to be fastest region with a CAGR of 18.5% during 2019 to 2027.
The global over-the-air (OTA) update market is experiencing a steady growth in the current years and is also expected to witness steep growth during the forecast period. The over-of-the (OTA) update market comprises of several tier 1 and tier 2 companies across the globe which capitalizes substantial amounts with an objective to develop advanced solutions for the modern-world vehicles. The continuous innovations in this field for a wide variety of applications in passenger cars, lightweight commercial vehicle (LCV), heavyweight commercial vehicle (HCV) is attracting several automakers globally, which is paving the path for over-the-air (OTA) update market in the current scenario. Additionally, the automotive industry is experiencing a rising number of partnerships between the automakers and technology developers which is leading to the growth of the over-the-air (OTA) update market.
Asia-Pacific holds the dominant share in the over-the-air (OTA) update market, also is expected to be the fastest growing region across the globe. Australia, China, India, Japan, South Korea, and Rest of Asia Pacific are the major contributors to the over-the-air (OTA) update market in APAC. The region has a more progressive economic outlook than other regions in the world. It has enormous growth potential, with fast-growing countries such as China and South Korea and developed nations such as Japan. Asia Pacific is the fastest growing region in the over-the-air (OTA) update market. The region consists of many developing countries that are witnessing a high growth in their automotive sector. The rise in the adoption of connected cars is directly proportional to the need for software updates. This is catalyzing the growth of the over-the-air (OTA) update market in the European region. BMW, a leading premium car manufacturer in Europe has announced in 2019 to deliver over-the-air (OTA) software updates on selected models. The BMW models outfitted with OS 7.0 will benefit from Remote Software Upgrade features. Apart from OEMs, numerous technology providers operate in the European over-the-air (OTA) update market. Continental AG, a leading automotive component and technology supplier partnered with Volkswagen AG to support OTA updates on all Volkswagen ID electric vehicles. Thus, these factors are expected to create a lucrative business space for the over-the-air (OTA) update market in Europe
Key findings of the study:
Asia Pacific is the fastest growing region in the over-the-air (OTA) update market. China holding the leading position followed by Japan and South Korea. China dominates the entire Asia-Pacific region in terms of the number of connected cars. Also, being a tech-savvy country, the demand for advanced technologies is an all-time high in the country. This has led to a rise in the procurement of connected cars. Also, the internet connectivity is much significant in the country, which has eased the automotive OEMs and technology providers to provide over-the-air (OTA) updates smoothly. Japan, South Korea, and India, on the other hand, are witnessing a rise in demand for over-the-air (OTA) software updates, which is capitalizing on the over-the-air (OTA) update market in the region.
The over-the-air (OTA) update market is analyzed on the basis of various parameters such as type, application, vehicle type, and geography. The type segment comprises of software over-the-air (SOTA) and firmware over-the-air (FOTA). The application segment in the over-the-air (OTA) update market includes infotainment, telematics, electronic control unit (ECU), and others. The other segment includes safety & security systems, user interface, and user experience apps. The vehicle type segment is bifurcated into passenger cars and commercial vehicles. The over-the-air (OTA) update market is analyzed on basis of five strategic regions namely; North America, Europe, Asia-Pacific (APAC), Africa, and South America (SAM).
The global over-the-air (OTA) update market is anticipated to witness impressive growth during the forecast period owing to accentuating demand for advanced vehicular technologies and internet connectivity and awareness among the vehicular customers. On the contrary, factors such as susceptible to cyber-attacks might hinder the growth of over-the-air (OTA) update market. During the forecast period of 2019 to 2027, software over-the-air (SOTA) update held the largest market share and will continue its dominance in the market. On the basis of application, telematics held the largest market share in 2018 and is expected to maintain its dominance through the review period. Passenger vehicle segment by vehicle type in 2018 led the over-the-air (OTA) update market and is expected to be the fastest-growing vehicle type during the forecast period 2019-2027 growing at a high CAGR value.