DUBLIN--(BUSINESS WIRE)--The "Automotive Over-The-Air Updates Market Research Report: By Type, Propulsion, Vehicle Type, Application - Global Industry Revenue Forecast Report, 2030" report has been added to ResearchAndMarkets.com's offering.
More than 1.3 million people die in road crashes every year, says the World Health Organization (WHO). As a result, countries, especially those in Europe, are mandating the integration of advanced safety features in automobiles. This is to be the key factor behind the growth of the global automotive over-the-air updates market from $2,422.6 million in 2020 to $13,859.5 million by 2030, at a 19.5% CAGR between 2021 and 2030, according to the market research report.
This is because the safety features, including advanced emergency braking, intelligent speed assistance, lane keeping assist, tire pressure monitoring system, and emergency stop signal, are activated by mini-computer systems embedded in vehicles. As a result, regular software updates become necessary to keep them running smoothly and protect them against cyberattacks. In this regard, another reason the automotive OTA updates market is growing is that this way, the process becomes easier than taking the vehicle to the garage or the authorized dealer.
The COVID-19 pandemic has led to the halted manufacturing and reduced sales of automobiles, as lockdowns and movement restrictions have been implemented to keep the infection spread under check. As a result, the demand for updated automotive software has declined, thereby hurting the industry. However, post the pandemic, the automotive OTA updates market is expected to resurge on account of the rise in the adoption of digital keys, voice and gesture control, and other advanced technologies in automobiles.
Throughout this decade, the automotive OTA updates market is likely to be dominated by the passenger vehicle bifurcation, based on vehicle type. With an increase in the disposable income of people, the sale of mid-range and luxury passenger cars with advanced features, such as speech recognition, driver monitoring, eye tracking, virtual assistance, natural language interfaces, and gesture recognition, is rising. As these systems depend on software, the need to update it is high.
The telematics control unit (TCU) category, under segmentation by application, is set to witness the highest CAGR in the automotive OTA updates market, of 20.3%, in the years to come. With the increasing number of advancements in connected vehicles, the application of TCU is widening. The TCU handles wireless monitoring, communication to/from the vehicle, diagnostics, crash warning, eCall, vehicle tracking, and electronic tolling functions. This is why it requires regular software updates to ensure that the mandated vehicle and passenger safety standards are met.
North America dominated the automotive OTA updates market in the past on account of the burgeoning sales of connected vehicles. In addition, with vehicles being made compatible with smartphones, the integration rate of navigation, vehicle networking, entertainment, and communication features has surged. Moreover, automakers and automotive software providers are investing heavily in the creation of advanced mobility solutions.
In the near future, the automotive OTA updates market is projected to grow the fastest in Asia-Pacific (APAC). As most of the road crash fatalities occur in developing countries, regional governments are making the installation of safety features in automobiles mandatory. Further, the increasing adoption of shared electric mobility and autonomous and connected vehicles is resulting in the rising demand for software updates via the OTA channel.
Market Dynamics
Trends
- Incorporation of smart, connected technologies
- Adoption of AI technology
Drivers
- Simplification of the vehicle upgradation process
- Introduction of new vehicle safety norms
- Increasing R&D with respect to connected car technologies
- Impact analysis of drivers on market forecast
Restraints
- Vulnerability to hacking and other cyberattacks
- Impact analysis of restraints on market forecast
Opportunities
- Potential growth opportunities in developing economies
Companies Mentioned
- Robert Bosch GmbH
- DENSO CORP.
- NXP Semiconductors N.V.
- Infineon Technologies AG
- Continental AG
- Verizon Communications Inc.
- Qualcomm Incorporated
- AT&T Inc.
- HARMAN International Industries Inc.
- Aptiv PLC
For more information about this report visit https://www.researchandmarkets.com/r/1or7qg
