Global Automotive Over-The-Air Updates Market Assessment, By Vehicle Type [Passenger Vehicles, Commercial Vehicles], By Update Type [Firmware OTA, Software OTA], By Application Type [Electronic Control Unit, Infotainment, Safety & Security, User Interface, Others], By Sales Channel [Original Equipment Manufacturer, Aftermarket], By Region, Opportunities and Forecast, 2018-2032F

Global automotive over-the-air (OTA) updates market is projected to witness a CAGR of 11.72% during the forecast period 2025-2032, growing from USD 4.81 billion in 2024 to USD 11.67 billion in 2032F, owing to the increasing integration of connected vehicle technologies and demand for remote diagnostics. OTA updates, described as software update methods that enable automakers to make the update from a distance, improve performance, security, and installation costs. With the rise of electric vehicles and autonomous driving functions, OTA services have come to be considered a necessity. The OTA market also goes hand in hand with the push towards digital transformation, presenting a cheap and scalable solution for the management and upgrading of vehicle software systems. OTA updates have reached two-wheelers as well, as an attempt was made by the industry to capture and further expand its presence.

Attributes	Details
Base Year	2024
Forecast Period	2025-2032F
Historical Period	2018-2023
Projected Growth Rate	CAGR of 11.72% between 2025 and 2032
Revenue Forecast in 2032	USD 11.67 billion

 

For instance, in May 2023, HOP Electric introduced its first over-the-air (OTA) firmware update for the OXO electric motorcycle, marking a significant advancement in the model’s digital capabilities. The VCU Firmware OTA (FOTA) Version 4.90 brings notable improvements, including twice the acceleration in Eco mode—even at low speeds—along with seamless 4G connectivity and a more accurate battery range prediction system.

Rising Connected Vehicles Fuel Automotive Over-The-Air Updates Market Demand

The growing number of connected vehicles around the world is fueling the demand for over-the-air (OTA) updates. Nowadays, cars depend more on software to manage everything from entertainment systems to advanced driver-assistance features. Due to this reliance, manufacturers are demanding efficient ways to roll out timely software upgrades. OTA updates mean drivers do not have to make trips to service centers, which not only makes life easier for users but also allows automakers to quickly tackle software glitches or cyber threats. As vehicle connectivity becomes the norm, having OTA capabilities will be a key part of the overall ownership experience.

For instance, in August 2024, Salesforce officially launched its new Connected Vehicle application, a powerful addition to its Automotive Cloud designed to help automakers build and deliver advanced connected car features and services faster than ever before. The app provides a unified, intelligent digital foundation, integrating vehicle, IoT, driver, and retail data from diverse sources including AWS IoT FleetWise and Qualcomm’s Snapdragon Car-to-Cloud platform to enable personalized, real-time driver experiences and safety upgrades.

Cybersecurity worries are driving original equipment manufacturers (OEMs) to embrace over-the-air (OTA) systems, ensuring that vehicles remain secure even after purchase. As cars become more reliant on software, the threat of cyberattacks has increased, leading regulatory agencies to implement stringent compliance requirements. OTA updates provide a smart way to fix vulnerabilities and enhance security measures without any downtime. This approach not only aids in meeting compliance standards but also fosters trust among consumers, who are becoming more conscious of privacy and security concerns tied to digital systems in their vehicles.

Demand For Enhanced Customer Experience to Shape Automotive Over-The-Air Updates Market

Consumers now expect vehicles to offer seamless digital experiences, similar to those found on smartphones. OTA updates enable real-time improvements to infotainment, navigation, and performance features, aligning with user expectations for regular enhancements. Automakers are leveraging OTA technology to offer personalized experiences, rolling out new services and features post-purchase. This has become a competitive differentiator, as brands that provide smooth and frequent updates are more likely to retain customers and strengthen loyalty in an increasingly tech-savvy consumer base.

Automakers benefit significantly from OTA updates as they lower costs associated with recalls, warranty repairs, and dealer visits. Traditional updates required physical intervention at service centers, which was both time-consuming and expensive. OTA technology reduces these logistical burdens by allowing updates to be pushed directly to the vehicle’s system. This also improves supply chain efficiency, streamlines after-sales service, and extends product value over time. The operational and financial advantages make OTA deployment a strategic priority for automakers.

Firmware OTA Segment Leads in the Global Automotive Over-The-Air Updates Market

Based on update type, the OTA firmware segment leads the market because it enables critical updates that directly impact a vehicle’s core functions. Firmware updates play a crucial role in keeping vehicles safe, efficient, and compatible across various systems, including powertrains, brakes, and electronic control units. Automakers are putting a lot of emphasis on over-the-air (OTA) firmware capabilities because they provide lasting benefits by boosting performance, fixing bugs, and adding new features without needing a physical visit to the shop. Unlike updates for infotainment or navigation systems, firmware upgrades focus on the core system software, which is vital for today’s vehicles that rely on intricate electronics.

As electric vehicles and autonomous technologies become more common, the demand for regular firmware updates has increased. Manufacturers are now creating vehicles with specialized architecture for firmware updates to ensure smooth deployment. The ability to scale, meet safety regulations, and enhance performance makes firmware OTA a key element of any effective vehicle update strategy.

For instance, in 2025, Tata Technologies enabled a global automaker to significantly reduce vehicle launch time by approximately 3.5 hours per car through the implementation of advanced over-the-air (OTA) update solutions. As modern vehicles increasingly rely on hundreds of embedded Electronic Control Units (ECUs), the complexity and risk of software defects, delayed launches, and costly dealership updates have grown. 

Asia-Pacific Dominates the Global Automotive Over-The-Air Updates Market Size

Asia-Pacific is leading in the global automotive OTA updates market, attributed to its solid automotive production base, a growing electric vehicle ecosystem, and the swift embrace of connected technologies. Countries including China, Japan, and South Korea are pouring resources into smart mobility infrastructure and 5G networks, which are essential for effective OTA functionality. Automakers in this region are quick to adopt telematics and software-driven features, often making OTA services a standard offering in their latest models.

The regulatory landscape is also evolving, with a focus on software compliance and cybersecurity standards, which is speeding up adoption. Moreover, the rising middle class and tech-savvy consumers in countries such as India and China are driving the demand for vehicles equipped with advanced digital features. The presence of major component manufacturers and software developers in the area fosters faster innovation and deployment. This combination of consumer demand, government backing, and manufacturing flexibility positions Asia Pacific as a powerhouse in the OTA updates market landscape.

For instance, in October 2022, Hyundai announced a major digital leap for its vehicles in India, confirming that all its cars sold in the country, equipped to receive Over-The-Air (OTA) software updates by 2025. This move allows owners to remotely upgrade vehicle performance, safety, and functionality without needing to visit a service center, ensuring their cars remain up to date with the latest features and improvements. The initiative, powered by Hyundai’s Blue Link technology, positions India among the first markets globally to embrace this connected car advancement.

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Impact of the U.S. Tariff on the Global Automotive Over-The-Air Updates Market

U.S. tariffs on imported electronic components and modules shook the cost structure for automotive OTA systems. Automakers that depend on international suppliers are witnessing their production costs rise, which is likely to slow down the rollout of innovative digital technologies such as OTA platforms. On top of that, ongoing trade tensions have caused supply chain hiccups, making it harder to get components when needed. In response, some original equipment manufacturers (OEMs) are shifting to local production or changing their sourcing strategies to reduce risk. While this might lead to higher short-term costs, it also sparks regional innovation and boosts investment in domestic OTA capabilities right here in the U.S. market.

Report Scope

“Global Automotive Over-The-Air Updates Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global automotive over-the-air updates market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Segments Covered	Vehicle Type, Update Type, Application Type, Sales Channel
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profiled	Robert Bosch GmbH, NXP Semiconductors N.V., Verizon Communications Inc., Continental AG, Infineon Technologies AG, Qualcomm Technologies, Inc, Intel Corporation, Harman International Industries, Incorporated, Lucid Group, Inc, Tesla, Inc.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, the global automotive over-the-air Updates market has been segmented into the following categories: 

• By Vehicle Type
  • Passenger Vehicles
  • Commercial Vehicles
• By Update Type
  • Firmware OTA
  • Software OTA
• By Application Type
  • Electronic Control Unit
  • Infotainment
  • Safety and Security
  • User Interface
  • Others
• By Sales Channel
  • Original Equipment Manufacturer
  • Aftermarket
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

Major players in the automotive over-the-air updates market are focusing on partnerships, in-house software platforms, and cloud infrastructure expansion. Companies are building strategic alliances with telecom providers and software vendors to enhance connectivity and ensure secure data transmission. Many are investing in proprietary platforms that support real-time diagnostics, modular software deployment, and multi-vehicle compatibility. To future-proof their offerings, they also focus on cybersecurity frameworks and compliance alignment. Continuous R&D investments are being made to develop agile, scalable solutions tailored to both passenger and commercial vehicles. A growing trend involves bundling OTA services into digital packages offered at purchase, adding value and creating long-term customer relationships. These strategies aim to position players as full-stack mobility solution providers.

For instance, in May 2025, NXP Semiconductors launched its third-generation imaging radar processor, the S32R47, engineered to accelerate the advancement of Level 2+ to Level 4 autonomous driving. The new chip, built on 16nm FinFET technology, delivers up to twice the processing power of its predecessor and enables more advanced radar capabilities, including higher resolution, improved sensitivity, and greater dynamic range, while also reducing system cost and power consumption.

Key Players Operating in the Global Automotive Over-The-Air Updates Market are:

• Robert Bosch GmbH
• NXP Semiconductors N.V.
• Verizon Communications Inc.
• Continental AG
• Infineon Technologies AG
• Qualcomm Technologies, Inc
• Intel Corporation
• Harman International Industries, Incorporated
• Lucid Group, Inc
• Tesla, Inc.

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