Automotive Over-The-Air (OTA) Updates Market Size & Share, by Vehicle Type (Passenger Cars, Electric Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles); Technology (Firmware Over-The-Air, Software Over-The-Air) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Automotive Over-The-Air (OTA) Updates Market size was valued at USD 4.55 billion in 2024 and is set to exceed USD 38.27 billion by 2037, registering over 17.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of automotive over-the-air updates is evaluated at USD 5.24 billion.

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.

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.