Rapidly Increasing Demand for Connected Vehicles to Fuel Growth of Automotive Over-the-Air (OTA) Market
The automotive industry's growth is projected to be aided by rising demand for linked vehicles around the world. Connected vehicles have complex infotainment, and telematics systems that need to be updated over the air. Over the air offer comfort, convenience, performance, safety, and security, as well as strong network technologies, to enable connectivity on wheels. This allows drivers to connect to web platforms, making real-time communication possible. Over a billion automobiles are expected to be in use around the world, which warrants ascending growth prospects of automotive over-the-air (OTA) market. The worldwide automotive parts are predicted to continue growing into the future, with approximately 60 million new cars sold annually. Because of the increasing number of cars and trucks on the road, more intelligent modes of urban transportation are required, and today's smart cities are providing the smart infrastructure required for the implementation of linked car programs.
Around US$158 Bn is expected to be spent on smart city programs globally in 2022, allowing for the continued deployment of linked vehicles on our roads. Consumers all over the world are beginning to incorporate linked car services into their daily lives. The consumer demand for connectivity solutions is increasing. As the necessity for constant connectivity, dependency on technology is increasing as also the number of tech-savvy people is increasing. These are the primary elements driving demand for worldwide connected automobiles. Vehicle-to-vehicle (V2V), and car-to-infrastructure (V2I) network communication systems can be used to share material with a number of devices both inside, and outside the vehicle. In a car that is connected to a variety of sensors, the driver receives real-time data on the vehicle's surroundings in order to improve safety.
Increasing Demand for Advanced Infotainment to Drive Growth for Automotive Over-the-Air Market
As automakers aim to differentiate their vehicles from the competition, in-vehicle entertainment is becoming an increasingly crucial feature. In-car infotainment becomes a compelling reason for consumers to pick one model over another when all vehicles are pleasant, safe, and efficient. User experience is also a big lure for infotainment, and it's something that's getting better all the time. One of the reasons why in-car multimedia head units were among the first to deploy OTA was because of this. The OTA standard makes it simple to keep track of new network upgrades, and safety procedures, as well as encourages continual advancements in in-car infotainment. Tier 1 and auto businesses can ensure that their in-car entertainment systems keep up to current with the newest updates from car owners by standardising on a common OTA methodology, while also gaining a crucial strategic advantage no matter what the customer tech industry comes up with next.
Increased Adoption of Electric Vehicles to Drive Growth of North America Automotive Over-the-Air (OTA) Market
Due to the increasing adoption of electric vehicles in developed nations such as the United States and Canada, the market in North America is expected to obtain the biggest market share throughout the forecast period. In 2020, approximately 231,088 battery-powered electric vehicles were sold in the United States, according to an IEA report. In 2021, the electric vehicle market in the United States broke records, with sales of little under 607,600 light electric vehicles. This was up 83 percent over the previous year, which saw the start of a surge in demand for Tesla's Model 3. Furthermore, the region's internet penetration, growing connected car devices in vehicles, telematics, and infotainment services updates as well as the adoption of new technology, are likely to drive expansion of automotive over-the-air market.
Automotive OTA market in Asia Pacific is expected to develop at the quickest CAGR during the projected period. In Asia Pacific, market growth is predicted to be driven by an increase in the number of integrated automobile gadgets in vehicles, as well as a developing information and communication technology infrastructure. Regional governments are also regulating the configuration of security systems in autos because the majority of road traffic deaths occur in developing economies. Furthermore, as electric vehicles, as well as connected and driverless vehicles, become in popularity, demand for automatic updates via the OTA channel is increasing. Due to the presence of major vehicle manufacturers in the region, including China, India, and Japan, the Asia-Pacific market is expected to grow significantly over the next few years. Additionally, automotive over-the-air market in Europe is expected to increase at an exponential rate through 2028, owing to rising investments in autonomous vehicles. The European Commission is now working on self-driving vehicle legislation in order to catch up to China, and the United States and become a leader in the field. The governments of the region are working to improve their road, and telecom infrastructure so that autonomous vehicles can connect more effectively with their surroundings. Several EU countries, including Germany, and the United Kingdom, have adopted legislation governing autonomous vehicle testing on public roads.
Global Automotive Over-the-Air (OTA) Market: Competitive Landscape
In June 2020, Mercedes-Benz and NVIDIA announced that they will collaborate to develop an in-vehicle computer system and AI computing for the next-generation Mercedes-Benz automobiles, enabling them to have upgradable automated driving functions, starting in 2024. On the other hand, in January 2020, Qualcomm announced the debut of its new Car-to-Cloud Service for Over-The-Air (OTA) Updates, which is intended to assist manufacturers in keeping their telematics systems up to date.
Few of the players in the Automotive Over-the-Air (OTA) Market include Robert Bosch Gmbh, Continental AG, NXP Semiconductors N.V, Blackberry QNX Software Systems Limited, Infineon Technologies AG, Intel Corporation, Verizon Communications Inc, Airbiquity Inc, HARMAN International, and Qualcomm Incorporated.
Regional Classification of the Global Automotive Over-the-Air (OTA) Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Automotive Over-the-Air (OTA) Market
Post Sale Support, Research Updates & Offerings
We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.View Methodology