In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
June, 2020: Mercedes-Benz, and NVIDIA, to form a cooperation to create in-vehicle computing system and AI computing for the next-generation Mercedes-Benz vehicles, enabling them with upgradable automated driving functions, starting in 2024.
January, 2020: Qualcomm Incorporated, announced the launch of its new Car-to-Cloud Service for Over-The-Air (OTA) Updates, designed to help automakers keep telematics systems up-to-date.
The global automotive over-the-air (OTA) updates market is estimated to grow at a CAGR of ~18% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the growing demand for connected devices in the vehicle, along with the rapid penetration of internet services. OTA updates are the software updates distributed wirelessly to the already purchased vehicles. Moreover, the growing demand for advanced systems and software in vehicles, such as infotainment and telematics systems, is estimated to boost the market growth. Additionally, OTA provides quick, time-saving, and cost-effective updates for the electronic control units of the cars, remotely over-the-air, eliminating the need to visit a service center. This is another major factor estimated to encourage the market growth.
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Moreover, the major factors driving the market growth include increasing sales of electric cars, along with the rising demand to protect the vehicle software from hacking and malfunctioning. According to the data by the International Energy Agency (IEA), in 2020 the global electric car stock reached 10 million, registering a 43% increase over 2019. The sale of EV was 2% of total sales of cars globally, with more than 2,008,024 BEVs sold in 2020.
The market is segmented by vehicle type into passenger cars, electric vehicles, light commercial vehicles, heavy commercial vehicles, and others, out of which, the electric vehicles segment is anticipated to hold the largest share in the global automotive over-the-air (OTA) updates market over the forecast period. This can be attributed to the easy availability of OTA features in electric vehicles. In fact, Tesla was one of the first automotive manufacturing companies to provide OTA updates over 3G and Wi-Fi. Such factors are anticipated to boost the market growth.
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam.
On the basis of geographical analysis, the global automotive over-the-air (OTA) updates market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the North America region is anticipated to gain the largest market share throughout the forecast period owing to the increasing adoption of electric vehicles in developed countries, such as, the U.S. and Canada. According to the report by IEA, over 231,088 battery-powered electric vehicles were sold in the US in 2020. Moreover, penetration of internet services in the region, along with adoption of advanced technology, are expected to boost the market growth. The market in Asia Pacific region is estimated to witness noteworthy growth over the forecast period on the back of presence of major automotive manufacturers in the countries, such as, Japan, China, and India.
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The global automotive over-the-air (OTA) updates market is further classified on the basis of region as follows:
Our in-depth analysis of the global automotive over-the-air (OTA) updates market includes the following segments:
Ans: The growing sales of electric vehicle, and implementation of advanced systems and devices in the vehicle are estimated to boost the market growth.
Ans: The market is anticipated to attain a CAGR of ~18% over the forecast period, i.e., 2022 – 2030.
Ans: Absence of proper infrastructure to promote OTA updates is estimated to hamper the market growth.
Ans: The North America region is anticipated to provide more business opportunities over the forecast period on the back of growing EV sales in the region.
Ans: The major players in the market are Continental AG, Infineon Technologies AG, Qualcomm Incorporated, Intel Corporation, HARMAN International, Airbiquity Inc., HERE Technologies, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by vehicle type, technology, application, and by region.
Ans: The infotainment segment is anticipated to hold notable market size over the forecast period and display significant growth opportunities.