Automotive Over-The-Air Updates Market Trends

Growth Drivers

• Integration of predictive maintenance systems: The global automotive industry is impacted by the widespread adoption of predictive maintenance technologies, which rely heavily on real-time data analytics. Predictive maintenance ensures that any potential issues in a vehicle are anticipated early. A vital feature of this approach is the frequent updates delivered via OTA Mechanisms. Amidst recent trends, in April 2025, FreightWaves reported that leading fleet operators in North America, APAC, Europe, and the Middle East are transitioning from scheduled to condition-based maintenance. Additionally, this shift has been successful in ushering in an increase of over 40% in OTA-delivered diagnostic patches, which in turn bodes well for the future of the sector.
• Expansion of 5G-enabled connected vehicle ecosystems: The widespread deployment of 5G has created a feasible ecosystem for the automotive OTA updates sector. Due to the proliferation of 5G, the capabilities of connected vehicles have improved. For instance, in the U.S. alone, the sales of connected cars with 5G represented 1.6% of the total vehicle sales in 2022, with industry projections estimating a whopping increase to over 50% by the end of 2027. The expansion is also expected to drive a surge in the demand for components associated with OTA updates.

For instance, in February 2025, J.D. Power’s U.S. Vehicle Dependability Study 2025 found that more than 35% of 2022 model owners performed at least one OTA update within the first three years of vehicle ownership, with 27% in 2023. The table below highlights the impact of 5G on the automotive OTA updates and manufacturing efficiency.

Major Technological Advancements in the Automotive OTA Updates Market

The automotive over-the-air updates market is positively reinforced by the technological advancements in the sector. For instance, the 5G Standalone networks have been instrumental in providing low-latency channels for secure OTA payloads, vital for the application of infotainment updates. Additionally, the manufacturing sector has embraced remote feature delivery, evident from China’s rapid OTA installation between January to September 2024. The technological advancements bode well for the future of the automotive OTA market, with the table below highlighting key metrics:

The Impact of Artificial Intelligence (AI) and Machine Learning (ML) on the Automotive OTA Updates Market

The convergence of AI and ML has transformed the global automotive over-the-air updates market by bolstering predictive analytics as well as improving the personalization of updates. The advent of AI & ML in product development is critical as OEMs shift toward software-defined vehicles. The table below highlights the successful use case of AI and ML by the major players of the automotive OTA updates market:

Challenges

• Vulnerabilities associated with cybersecurity: With vehicles becoming more connected, the threat surface of cyberattacks has expanded. In January 2023, security researchers identified vulnerabilities in vehicles from 16 manufacturers, including major players such as BMW, Toyota, and Ford. These findings highlight the requirement for secure measures in OTA systems. In addition, manufacturers may have to navigate complex regulatory mandates. For instance, in August 2024, China released draft regulations to boost supervision of OTA software upgrades, requiring manufacturers to report incidents that involve the remote control of vehicles, and constraints in meeting these requirements may limit automotive over-the-air (OTA) updates market access for certain players.