LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global automotive over-the-air (OTA) updates market to grow at a CAGR of more than 58% during the period 2018-2022, according to their latest report.
This market research report segments the global automotive over-the-air (OTA) updates market based on technology such as SOTA and FOTA. The report also provides an analysis of the market based on geographic regions which include the Americas, APAC, and EMEA.
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In this report, Technavio analysts highlight reduced vehicle recalls as a key factor contributing to the growth of the global automotive over-the-air (OTA) updates market:
Reduced vehicle recalls
Over the last two decades, computer-based ECU has replaced many of the pneumatic and mechanical systems in a vehicle. It is estimated that an average mass market car comprises around 25 million lines of codes, whereas the premium segment cars can have up to 100 million lines of code that control critical vehicle functions. Hence, it becomes essential for the OEMs to manage the software efficiently throughout the entire lifecycle of the vehicle, in terms of both providing performance improvements and correcting the faulty software, which might lead to expensive product recalls.
According to a senior analyst at Technavio for automotive electronics research, “OEMs use OTA updates for both performance improvement and fault correction. This helps to lower the cost and increase customer satisfaction without leading to the recall of a vehicle. OTA updates also ensure that the update message has been read by the authorized person as it displays the update information on the vehicle screen. An eventual standard for the OTA updates apart from correcting the faulty software would be to improve vehicle performance.”
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Global OTA updates market segmentation
The global automotive OTA updates market is dominated by SOTA type of updates, contributing to around 98% of the total market in 2017. This high domination by the SOTA is primarily because of the increasing adoption of IVI systems, which runs various infotainment, telematics, and navigation applications and software. FOTA is still in its nascent stage in the automotive industry, however, it is expected to gain traction during the forecast period.
In 2017, the Americas led the market with a market share of over 40%, followed by EMEA and APAC. Wide-spread penetration of high-end vehicles and consumer demand for connectivity features such as in-vehicle apps, software, accounted for the high market share of the Americas and EMEA. Although the market for OTA updates in APAC was considerably low in 2017, it is expected to gain traction and lead the market by 2022. This can be attributed to the high-volume of automotive production in APAC.
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