Over-the-air (OTA) Market Offering (Solutions (FOTA, SOTA), Services), Application (OTA Testing, Wireless Communication, Software & Firmware Update, Regulatory Compliance), Industry (Automotive, BFSI, Retail), and Geography - Global Forecast to 2031

Over-the-air (OTA) Market Size & Forecast

The Over-the-air (OTA) Market is projected to reach $20.7 billion by 2031, at a CAGR of 14.7% during the forecast period of 2024–2031. The growth of this market is driven by factors such as the proliferation of IoT devices, the growing need to reduce the costs associated with manual updates and device recalls, and the increasing demand for connected features in vehicles. Additionally, the integration of edge computing & blockchain technology for OTA updates and the emergence of vehicle-to-everything (V2X) connectivity are expected to create market growth opportunities. However, limited network bandwidth may restrain the growth of this market. Furthermore, concerns regarding data security are major challenges for the players operating in this market.

Additionally, the deployment of 5G networks for faster OTA updates is a key trend in the over-the-air (OTA) market.

Increasing Demand for Connected Features in Vehicles Expected to Drive Market Growth

With the rise of the internet and technological advancements, the automotive industry is undergoing a significant transformation, driven by the growing demand for connected features in vehicles. Any vehicle capable of internet connectivity is termed a connected car. Connected features encompass technologies enabling these vehicles to interact with external networks, services, and devices. These features encompass vehicle-to-everything (V2X) communication, telematics services, and infotainment offerings such as entertainment content, navigation services, real-time traffic updates, and communication tools accessible through in-car displays and mobile applications. These services furnish manufacturers with real-time tracking capabilities for vehicle performance, health, and location. OTA technology facilitates the wireless transmission of data to vehicles over the air, eliminating the need for physical media.

Moreover, OTA technology enables manufacturers to streamline the process of software updates, firmware upgrades, and the integration of new features to vehicles from remote locations. It enables manufacturers to swiftly deploy security patches and bug fixes, thereby ensuring the safety, security, and reliability of vehicles. As a result, companies are increasingly prioritizing OTA technology to promptly respond to customer feedback, address evolving customer needs, meet regulatory requirements, and adapt to emerging technologies. Therefore, the rising demand for connected features in vehicles, driven by the need to enhance user experience, ensure vehicle safety and reliability, and reduce operational costs, is expected to drive the market’s growth in the coming years.

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Key Findings in the Over-the-air (OTA) Market Study:

In 2024, the Solutions Segment is Expected to Dominate the Over-the-air (OTA) Market

Based on offering, the global over-the-air (OTA) market is broadly segmented into solutions and services. The solutions segment is further segmented into firmware over-the-air (FOTA) and software over-the-air (SOTA). In 2024, the solutions segment is expected to account for the larger share of the global over-the-air (OTA) market. The large market share of this segment is attributed to the increasing need to manage software upgrades, cybersecurity patches, and mission-critical updates and the growing demand for OTA solutions to deliver software updates to devices, including operating system upgrades, firmware updates, and performance improvements.

However, the services segment is projected to register a higher CAGR during the forecast period due to the increasing need for OTA services for updating applications and software components installed on devices, the rising need to manage network infrastructure, optimize performance, remotely manage devices, and deliver new services effectively, and growing use of 5G OTA services to evaluate the performance, reliability, and functionality of 5G wireless devices and systems in real-world conditions.

In 2024, the Software & Firmware Update Segment is Expected to Dominate the Over-the-air (OTA) Market

Based on application, the global over-the-air (OTA) market is broadly segmented into OTA testing, software & firmware updates, wireless communication, and regulatory compliance. In 2024, the software & firmware updates segment is expected to account for the largest share of the global over-the-air (OTA) market. The large market share of this segment is attributed to the proliferation of connected devices, including smartphones, IoT devices, and automotive systems, the increasing need to deploy security patches, encryption updates, and privacy enhancements to protect against cyber threats and safeguard sensitive data, and the growing need to keep up with evolving software and hardware capabilities to ensure products remain competitive and up-to-date.

However, the OTA testing segment is projected to register the highest CAGR during the forecast period due to the growing need for OTA testing to assess the antenna performance, ensure wireless devices comply with end-use industry standards and regulatory requirements, evaluate the MIMO performance in wireless devices, and measure the throughput and data rates of 5G devices.

In 2024, the IT & Telecommunications Segment is Expected to Dominate the Over-the-air (OTA) Market

Based on end-use industry, the global over-the-air (OTA) market is broadly segmented into IT & telecommunications, automotive, consumer electronics, manufacturing, BFSI, transportation & logistics, energy & power, aerospace & defense, retail, healthcare, and other end-use industries. In 2024, the IT & telecommunications segment is expected to account for the largest share of the global over-the-air (OTA) market. The large market share of this segment is attributed to factors such as the growing need to extend the lifecycle of varying devices, including servers, routers, switches, and network devices, by providing software upgrades and patches, the increasing need for remote device management, configuration, and monitoring, and the growing demand for OTA solutions to ensure the reliability, performance, and security of network infrastructure.

However, the automotive segment is projected to register the highest CAGR during the forecast period due to the increasing need to reduce the need for physical recalls due to software-related issues, the growing adoption of autonomous electric vehicles, the proliferation of connected car services, including telematics and vehicle-to-everything communication (V2X), and the growing demand for OTA updates to maintain and upgrade vehicle systems and ensure compliance with evolving regulations and standards.

Asia-Pacific to be the Fastest Growing Regional Market

Based on geography, the global over-the-air (OTA) market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The market in Asia-Pacific is projected to register the highest CAGR during the forecast period due to the growing number of smartphone users and connected devices, the emergence of 5G technology, the increasing need to reduce manual intervention, physical recalls, and on-site maintenance, the increasing adoption of digital technologies including cloud computing, and online services, and the growing demand for consumer electronics including smart TVs, streaming devices, gaming consoles, and home appliances in the region.

Over-the-air (OTA) Market: Competitive Analysis

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the over-the-air (OTA) market over the past three to four years. The key players profiled in the over-the-air (OTA) market report are Thales (France), T-Systems International GmbH (Germany), HARMAN International (U.S.), NXP Semiconductors N.V. (Netherlands), BlackBerry Limited (Canada), Intertek Group plc (U.K.), TÜV SÜD (Germany), Airbiquity Inc. (U.S.), Nokia (Finland), Cyient Limited (India), IDEMIA (France), Microwave Vision, SA. (MVG) (France), Excelfore Corporation (U.S.), Sibros Technologies Inc. (U.S.), Memfault Inc. (U.S.), UL LLC (U.S.), Keysight Technologies, Inc. (U.S.), EMITE Ing.S.L. (Spain), Microchip Technology Inc. (U.S.), shanghai Facom Technology CO., LTD. (HBTE) (China), Advantal Technologies Private Limited (India), and Carota Corp (Taiwan).

Over-the-air (OTA) Market Report Summary:

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