Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Automotive-Over-The-Air Updates (OTA) Market size was valued at USD 4.4 billion in 2024 and is poised to reach USD 33 billion by the end of 2037, expanding at a CAGR of 16.5% throughout the anticipated timeline from 2025 to 2037. In 2025, the industry size of automotive OTA is evaluated at USD 5.2 billion.
A major factor in the automotive OTA update market’s expansion is the trends encapsulating the broader automotive sector, where there has been a sustained shift towards software-defined vehicles (SDVs). SDVs require remote software improvements to maintain performance whilst ensuring compliance with mandates. As of early 2025, the electric vehicle (EV) sales worldwide have increased. In the first four months of 2025, EV sales reportedly increased by 29.3%, with April alone accounting for over 1.5 million sales. The leading markets of EV sales during this period were China and Europe.
The producer price index (PPI) of the automotive OTA is a vital economic indicator to understand the market’s dynamics. In January 2025, the PPI for final demand increased by 0.5%, highlighting a surge in the selling prices received by domestic producers. Additionally, in the transportation equipment sector, a 1.5% increase in prices was observed between January 2024 to January 2025. Now, transportation equipment includes automotive components, and hence, the increase has a direct impact on the automotive OTA updates market. The rising prices also indicate a potential surge in the production costs of OTA systems.
Another vital economic indicator of the automotive OTA sector is the Consumer Price Index (CPI). As per its analysis, the CPI rose by 2.3% from March 2024 to March 2025. The CPI encapsulates a multitude of goods and services, but a significant contribution is from the vehicle-related expenses of the transportation sector. Fluctuations in the CPI influence the consumer demand for vehicles with new and advanced technologies. Overall, the market is slated to maintain its CAGR by the end of 2037, by leveraging a robust supply chain and benefiting from the widespread deployment of 5 G.
