Report : Over-the-Air (OTA) Testing Market Forecast to 2027 - Covid-19 Impact and Global Analysis - by Technology (CDMA, LTE, GSM, UMTS, UTE, and 5G); Type (Hardware & Service); Application (Home automation, Mobile payment system, Utilities management system, and Traffic control system); End-User (Aerospace & defense, Consumer electronics, Automotive, Logistics and transportation, Healthcare)
The global over-the-air (OTA) update market accounted for US$ 2,685.6 Mn in 2018 and is expected to grow at a CAGR of 16.3% over the forecast period 2019-2027, to account for US$ 10,346.5 Mn by 2027.
The global automotive industry is expanding rapidly across the globe with the rise in the procurement of vehicles across classes. The industry in the US, China, and European countries remained strong over the past five years and is likely to continue to grow exponentially. According to McKinsey, vehicle OEMs are expected to witness profits by more than 50% by 2020. A few of the factors that are expected to shape the automotive industry in the coming years include; stringent regulatory norms, complex and modular platforms, digital technologies, alternative powertrain, modern and robust technologies in the infotainment and safety segment of the vehicles.
The automotive industry is revolutionizing the inclusion of various technologies. The industry is progressing steadily with the commercialization of connected cars/vehicles. The demand for these vehicles is accentuating heavily, and it is expected that the demand would rise up to a higher level in the coming years. The connected cars segment is becoming mainstream as the OEMs are heavily emphasizing on the same. Several OEMs have already started utilizing the benefits of the internet to maintain the vehicle’s condition, the demand for internet-based vehicular technology continues to grow in the developed countries as well as few developing countries. In recent years, there has been a significant change in the in-vehicle infotainment system, vehicle's electronic control unit (ECU), and telematics segment. The OEMs are partnering with various automotive technology providers to develop technologically enhanced solutions for the segments mentioned above. In the modern-day vehicles, the ECU, infotainment system, telematics system consists of huge data, which facilitate the driver to maneuver smoothly. However, the demand for updates on the software embedded in these systems is at a constant rise. Pertaining to this, the OEMs are surfacing software updates over the internet, which eases the driver or owner to readily download the update as soon as the updates are relayed. This factor is positively impacting the growth of the over-the-air (OTA) update market.
The over-the-air (OTA) update market has been derived from market trends and revenue generation factors from five different regions across the globe namely; North America, Europe, Asia Pacific, Africa, and SAM. The APAC region holds the highest market share and is also projected to be the fastest-growing region as well in the coming years. The APAC automotive sector has been quick to adopt new technologies which is expected to drive the growth of over-the-air (OTA) updates in the region. The rapidly growing economies have translated into rising per-capita incomes and consumer expenditures. As a result of this, the APAC region witnessed very high growth in the sales of automobiles in recent times. The higher number of automobiles on the road demand for higher production and thus present large potentials for over-the-air (OTA) update providers to expand their business base in APAC. China, Japan, and South Korea are some of the largest manufacturer of automotive vehicles around the globe. In addition, Japan is a well-developed economy and is one of the most automated economies around the world.
The over-the-air (OTA) update market by type is segmented into software over-the-air (SOTA) update and firmware over-the-air (FOTA) update. The software over-the-air (SOTA) update holds the major share in the market, and FOTA is expected to be the fastest-growing segment during the forecast period. The manufacturers in automotive industries are looking forward to embrace SOTA. On the basis of application, the over-the-air (OTA) update market is segmented into telematics, infotainment, electronic control unit, and others. The telematics led the market with a highest market share. Telematics can send both communications and data back and forth between a vehicle and a central management system. By vehicle type, the over-the-air (OTA) update market is segmented in to passenger vehicles and commercial vehicles. The passenger vehicles held the major market share in 2018. Passenger car segment is undergoing substantial technological advancements year on year, owing to the changes in consumer interests, emergence of new technologies, and governmental rules and regulation related to reduction in emission and other factors.
The major players operating in the market for over-the-air (OTA) update market are Airbiquity Inc., Continental AG, Garmin Ltd, Harman International, Hitachi Automotive Systems, Ltd., Infineon Technologies AG, Libelium Comunicaciones Distribuidas S.L, NXP Semiconductors N.V., Robert Bosch Gmbh, and Wind River Systems, Inc.
The report segments the global Over-the-Air (OTA) Update market as follows:
Global Over-The-Air (OTA) update Market - By Type
Global Over-The-Air (OTA) update Market - By Application
Global Over-The-Air (OTA) update Market - By Vehicle Type
Global Over-The-Air (OTA) update Market - By Geography
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