Automotive OTA Updates Industry - Regional Scope
North America Market Forecast
The North America automotive OTA updates market is estimated to maintain a leading revenue share of 37.6% throughout the forecast timeline. The presence of major OEMs along with strict regulatory standards has created a favorable environment for the implementation of OTA solutions. A significant factor in the regional market’s growth curve is also the rapid adoption of EVs across the U.S. and Canada, which require regular software updates.
The U.S. automotive over-the-air updates market is projected to maintain its leading share in North America. The surging adoption of EVs and hybrid vehicles is a major factor facilitating the growth curve. The U.S. has invested substantially to improve the charging infrastructure across the region, creating favorable opportunities for the application of OTA updates in the next-generation vehicle solutions. Opportunities are rife in the U.S. market through potential collaborations between tech giants and leading automotive manufacturers.
The Canada OTA updates market is estimated to expand during the forecast period. A vital factor contributing to the expansion of the market is the surge in demand for connected vehicles, along with the government initiatives promoting the use of hybrid and electric vehicles. Additionally, Canada is pushing for decarbonization initiatives, which tie with the broader trends within the automotive industry moving towards electrification. This creates a greater possibility of a surge in connected vehicles on the roads, creating lucrative opportunities for the deployment of OTA updates.
Asia Pacific Market Forecast
The APAC automotive over-the-air updates market is poised to register the fastest expansion, at a CAGR of 19.3% throughout the forecast timeline. The regional market’s growth is attributed to the rise in vehicle connectivity, along with the surging demand for infotainment systems. APAC has one of the largest vehicle densities across the world, and the rising disposable income in emerging APAC economies has ensured a greater percentage of vehicle ownership. The proliferation of ride-share companies in the region is another factor contributing to the rising scope of application of OTA updates in connected vehicles across the region.
The China automotive over-the-air updates market is expected to maintain a leading revenue share in APAC. A major driver of the market is the country’s push for EVs and surging investments in smart transportation. Additionally, China leads in EV deployment globally. For instance, the leading manufacturers such as BYD reported more than 4 million EV sales in 2024. With EVs relying on software for core functions, such as autonomous driving and infotainment, there is a continuous requirement for remote updates. This is for the global automotive over-the-air updates market.
