Automotive Firmware Over the Air (FOTA) Market Size, Share, and Trends Analysis, By Connectivity (Cellular, Wi-Fi, Bluetooth), By ECU Type (Powertrain & Engine Control), By Vehicle Type (Passenger Vehicles), By Propulsion Type (Electric Vehicles), By Application (ECU Updates) and By Region, Forecast 2025-2032

Automotive Firmware Over the Air (FOTA) Market Overview and Key Insights:

The global Automotive Firmware Over the Air (FOTA) market reached USD 3,213.7 million in 2024 and is expected to register a revenue CAGR of 19.2% during the forecast period. Rising adoption of connected cars, increasing cybersecurity threats and regulatory mandates, rising advancements in 5G and cloud connectivity, and growing consumer demand for feature enhancements are expected to drive revenue growth of the market.

Market Drivers:

Rising adoption of connected cars is the major factor driving revenue growth of the market. The global connected car fleet is expected to grow over three times its current size in the coming years. In 2021, approximately 84 million connected vehicles were operating across the United States. By 2035, this number is expected to exceed 305 million. It solidifies the U.S. as the largest market for connected cars. Automakers and OEMs are leveraging FOTA technology to provide seamless, remote firmware updates for Electronic Control Units (ECUs), infotainment systems, and Advanced Driver-Assistance Systems (ADAS). This eliminates the need for physical recalls, reduces maintenance costs, and enhances vehicle performance and cybersecurity. The rise of autonomous ride-sharing fleets and car-sharing services further fuels the revenue growth of the market as fleet operators require efficient remote firmware updates to optimize performance and ensure vehicle safety.

In addition, the proliferation of 5G connectivity, IoT integration, and growing consumer demand for real-time software enhancements further fuel revenue growth of the market.  In October 2024, for instance, Soracom, Inc., a provider of global IoT connectivity solutions with full MVNO capability outlined its strategic approach to advancing the connected car industry. The company aims to tackle key challenges related to connectivity and cloud management, which are crucial for scaling the deployment of connected vehicles. This initiative is contributing to the revenue growth of the Automotive Firmware Over-the-Air (FOTA) market by enhancing the reliability and efficiency of remote software updates.

Market Opportunity:

Rising expansion in EVs and Battery Management Systems (BMS) is creating significant opportunities for the market. The need for seamless, remote firmware updates has become critical in recent days as EVs heavily rely on software-driven systems for battery optimization, energy efficiency, and real-time diagnostics. FOTA technology allows automakers to increase BMS performance, address potential battery safety issues, and introduce software improvements without requiring physical service visits.

According to the International Energy Agency (IEA), global Electric Vehicle (EV) adoption surged in 2023, with nearly 14 million new EV registrations. It brings the total number of EVs on the road to 40 million. This marks an increase of 3.5 million units compared to 2022, reflecting a 35% year-over-year growth. Additionally, EVs accounted for approximately 18% of total car sales in 2023, up from 14% the previous year. This rapid expansion is creating significant opportunities for the Automotive Firmware Over-the-Air (FOTA) market. The growing EV fleet increasingly relies on software updates to optimize battery performance, enhance energy efficiency, and ensure cybersecurity.

Recent Trends:

One recent trend in the Automotive Firmware Over the Air (FOTA) market is the advancements in Software-Defined Vehicles (SDVs). Modern vehicles are increasingly reliant on software for controlling key systems, including powertrain, infotainment, and Advanced Driver-Assistance Systems (ADAS). This evolution demands frequent firmware updates to enhance performance, security, and user experience. Automakers are leveraging FOTA to introduce new features, optimize vehicle efficiency, and address cybersecurity vulnerabilities without requiring physical service visits.

In January 2025, Honda Motor Co., Ltd. and Renesas Electronics Corporation agreed to jointly develop a high-performance System-on-Chip (SoC) tailored for Software-Defined Vehicles (SDVs). This advanced SoC is engineered to provide cutting-edge AI capabilities, achieving 2,000 TOPS while maintaining exceptional power efficiency of 20 TOPS/W. It is set to be integrated into future models of the “Honda 0 (Zero) Series,” Honda’s newly introduced electric vehicle (EV) lineup.

Restraints & Challenges:

Data privacy & security concerns pose a significant challenge to the Automotive Firmware Over the Air (FOTA) market. Vehicles become increasingly connected and reliant on remote software updates in recent days. As a result, they are more vulnerable to cyber threats, including hacking, unauthorized data access, and system manipulation. Automakers and software providers must implement robust encryption, authentication, and intrusion detection measures to ensure secure FOTA updates. It increases development costs and regulatory compliance burdens. In addition, stringent data privacy laws across different regions, such as GDPR in Europe and similar frameworks in other markets, add complexity to FOTA deployment.

Connectivity Segment Insights and Analysis:

Based on the connectivity, the Automotive Firmware Over the Air (FOTA) market is segmented into cellular, Wi-Fi, bluetooth, satellite, and others.

Wi-Fi segment contributed the largest share in 2024 due to the widespread adoption of Wi-Fi in connected vehicles for FOTA updates owing to its cost-effectiveness, high data transfer rates. Wi-Fi provides a reliable and efficient medium for delivering large firmware updates, particularly in environments where cellular connectivity may be limited or costly. Automakers are increasingly integrating Wi-Fi-based FOTA solutions in infotainment systems, Advanced Driver-Assistance Systems (ADAS), and vehicle diagnostics to provide seamless software upgrades.

In February 2024, Qualcomm is revolutionizing in-vehicle connectivity with the introduction of the industry’s first automotive-grade Wi-Fi 7 solution, the Qualcomm QCA6797AQ Access Point. This breakthrough technology is designed to meet the growing demand for high-speed, low-latency connectivity in modern vehicles. It provides seamless support for advanced applications such as real-time infotainment streaming, Over-The-Air (OTA) software updates, and Vehicle-To-Everything (V2X) communication.

Vehicle Type Segment Insights and Analysis:

Based on vehicle type, the Automotive Firmware Over the Air (FOTA) market is segmented into passenger vehicles and commercial vehicles. Commercial vehicles segment is further sub-segmented into Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs).

Passenger vehicles segment contributed the largest share in 2024 due to the increasing adoption of connected car technologies, Advanced Driver-Assistance Systems (ADAS), and infotainment upgrades. FOTA solutions are becoming essential for delivering remote software updates, reducing maintenance costs, and minimizing recall expenses for passenger vehicles. The growing consumer demand for Software-Defined Vehicles (SDVs) that offer real-time performance enhancements, cybersecurity updates, and feature expansions further fuels the adoption of FOTA in passenger vehicles and boosts revenue growth of this segment.

Commercial vehicles segment is expected to register a fast revenue growth rate during the forecast period due to the increasing need for fleet efficiency, predictive maintenance, and regulatory compliance. Commercial fleets, including trucks, buses, and delivery vehicles, rely on real-time software updates to optimize performance, enhance fuel efficiency, and improve safety features such as Advanced Driver-Assistance Systems (ADAS) and telematics. FOTA allows fleet operators to remotely update vehicle firmware. It reduces downtime, minimizes service costs, and prevents operational disruptions. In addition, the rising adoption of Electric Commercial Vehicles (e-CVs) and autonomous trucking solutions further accelerates the demand for seamless OTA updates to enhance battery management, navigation, and cybersecurity

Application Segment Insights and Analysis:

Based on application, the Automotive Firmware Over the Air (FOTA) market is segmented into Electronic Control Units (ECUs) updates, cybersecurity & security patch updates, bug fixes & performance optimization, new feature deployments, and others.

Electronic Control Units (ECUs) updates segment contributed the largest revenue share in 2024 due to the increasing complexity and software dependence of modern vehicles. ECUs control critical vehicle functions, including powertrain management, ADAS, infotainment, and battery optimization in Electric Vehicles (EVs). The need for remote firmware updates becomes essential in these days to enhance performance, fix software bugs, and implement cybersecurity patches as automakers integrate more ECUs into vehicles. FOTA solutions eliminate the need for physical recalls, reducing maintenance costs for manufacturers and improving vehicle uptime for consumers and fleet operators.

In February 2023, Elektrobit launched EB tresos 9, the latest version of its advanced basic software, designed to help automakers and suppliers develop next-generation electronic control units (ECUs) in compliance with the latest AUTOSAR standard. This new iteration offers full support for AUTOSAR R20-11 and incorporates state-of-the-art onboard intrusion detection through Argus CAN IDPS, a security solution developed by Argus Cyber Security.

Geographical Outlook:

Automotive Firmware Over the Air (FOTA) market is strategically segmented by geography to provide a comprehensive understanding of regional market dynamic. Discover demand analysis, emerging trends, and growth opportunities shaping market performance across different region and countries.

North America Automotive Firmware Over the Air (FOTA) Market:

Market in North America accounted for largest revenue share in 2024 due to the rising adoption of connected vehicles, Advanced Driver-Assistance Systems (ADAS), and Electric Vehicles (EVs) in the region, especially in U.S. and Canada. It is expected that approximately 175 million U.S. drivers will be using connected vehicles in 2027. This trend is fueling revenue growth of the market in this region. Leading U.S. car manufacturer Volkswagen Group dominated the connected car sales in 2022. The company is leveraging these advancements to enhance customer engagement, increase brand loyalty, and drive aftermarket service monetization.

Leading automakers and technology companies in the U.S. and Canada are heavily investing in software-defined vehicles (SDVs) and in-vehicle personalization that require frequent firmware updates to enhance performance, security, and user experience. In February 2025, for instance, Jaguar Land Rover (JLR) announced an investment of USD 180 million in its USA technology hub in Portland, Oregon. The investment aims to accelerate the development of advanced in-vehicle personalization features. JLR’s investment reflects a broader trend among North American automakers to prioritize Software-Defined Vehicles (SDVs). It accelerates the adoption of FOTA technology. The push for advanced vehicle personalization and software-centric design is contributing to the overall revenue growth of the FOTA market in North America.

Asia Pacific Automotive Firmware Over the Air (FOTA) Market:

Asia Pacific is expected to register a fast revenue growth rate during the forecast period due to the rapid expansion of the auto-industry, particularly with the increasing adoption of self-driving technologies and electrification and increasing adoption of Electric Vehicles (EVs). According to the World Resources Institute, China dominates the global Electric Vehicle (EV) market. In 2022, fully electric vehicles accounted for 22% of all passenger vehicle sales in the country, totaling 4.4 million units. This figure surpasses the combined EV sales of the rest of the world. It reached 3 million during the same period. In addition, the region is a hub for automotive innovation, with key markets such as China, Japan, South Korea, and India leading in the adoption of FOTA solutions to enhance software updates, cybersecurity, and vehicle performance.

The shift toward electric and autonomous vehicles is accelerating the need for FOTA updates in the region. It creates new revenue streams for automakers and software providers in the region. Between January and September 2024, approximately 2.254 million OEM intelligent driving domain controllers were installed as standard features in passenger vehicles across China. Since 2023, the adoption rate of autonomous driving domain controllers has seen consistent monthly growth, reaching 17.4% in September 2024. This rapid integration of intelligent driving systems is significantly boosting the demand for Automotive Firmware Over-the-Air (FOTA) updates as it requires frequent remote updates for optimizing autonomous driving algorithms, enhancing cybersecurity, and improving system performance.

Europe Automotive Firmware Over the Air (FOTA) Market:

Market in Europe accounted for a significant revenue share in 2024 due to the strong focus on automotive digitalization, stringent emission regulations, and the rapid adoption of electric and connected vehicles in the region.  European automakers are increasingly integrating FOTA solutions to ensure seamless software updates for Advanced Driver-Assistance Systems (ADAS), battery management in EVs, and cybersecurity enhancements. The European Union’s push for sustainability and smart mobility, along with government incentives for EV adoption is further accelerating the demand for FOTA technology.

Although the total number of vehicles in the European Union (EU) is expected to decline in the coming years, the proportion of connected cars is set to rise significantly. In 2021, only 24% of all vehicles in the EU featured connectivity, but this figure is projected to surge to 93% by 2035. It makes connected vehicles the dominant category. This rapid growth in vehicle connectivity is fuelling the demand for Automotive Firmware Over-the-Air (FOTA) solutions in the region as automakers increasingly rely on remote software updates to enhance vehicle functionality, cybersecurity, and system efficiency.

Competition Analysis:

The Automotive Firmware Over the Air (FOTA) market is characterized by a fragmented structure, with numerous players competing across various segments and regions. List of major players included in the Automotive Firmware Over the Air (FOTA) market report are:

• Robert Bosch GmbH
• Continental AG
• Infineon Technologies
• NVIDIA Corporation
• Desay SV
• HARMAN International
• Excelfore
• Alpine Electronics
• Aptiv PLC
• Garmin Ltd
• Faststream Technologies
• Embitel
• Cyient
• Utimaco

Strategic Developments in Automotive Firmware Over the Air (FOTA) Market:

• On 29 March 2022, Cyient, a global leader in technology solutions introduced a ready-to-use solution for managing Firmware Over-the-Air (FOTA) updates through its CyientfIQ innovation platform. This platform drives technological advancements and facilitates the creation of new intellectual properties and solutions in partnership with industry collaborators. The FOTA solution is specifically designed to streamline the development of smart and connected products. It enables customers across various sectors to enhance their digital capabilities efficiently.
• On 17 January 2022, NIO rolled out its first Firmware Over-The-Air (FOTA) update outside China, introducing Aspen 3.0.5 NO. This update enhances the winter driving experience by adding features such as manual battery warmup and an extended default duration for cabin pre-conditioning. The update was deployed to all NIO ES8 large SUVs in Norway that are equipped with the Aspen 3.0.0 NO smart operating system, built on the first-generation technology platform (NT1.0). The Aspen 3.0.0 NO system supports both English and Norwegian languages.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The Automotive Firmware Over the Air (FOTA) Market Report:

The Automotive Firmware Over the Air (FOTA) market report offers a detailed analysis of market size, including historical revenue (in USD Million) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Connectivity (Revenue, USD Million; 2022-2032)
  • Cellular
  • Wi-Fi
  • Bluetooth
  • Satellite
  • Others

• ECU Type Outlook (Revenue, USD Million; 2022-2032)
  • Powertrain & Engine Control
  • ADAS & Safety Control
  • Infotainment System
  • Telematics Control Unit (TCU)
  • Battery Management System (BMS)
  • Chassis & Body Control Module
  • Others

• Vehicle Type Outlook (Revenue, USD Million; 2022-2032)
  • Passenger Vehicles
  • Commercial Vehicles
    • Light Commercial Vehicles (LCVs)
    • Heavy Commercial Vehicles (HCVs)

• Propulsion Type (Revenue, USD Million; 2022-2032)
  • Internal Combustion Engine (ICE) Vehicles
  • Electric Vehicles (EVs)
    • Battery Electric Vehicles (BEVs)
    • Hybrid Electric Vehicles (HEVs)
    • Plug-in Hybrid Electric Vehicles (PHEVs)

• Application (Revenue, USD Million; 2022-2032)
  • Electronic Control Units (ECUs) Updates
  • Cybersecurity & Security Patch Updates
  • Bug Fixes & Performance Optimization
  • New Feature Deployments
  • Others

• Regional Outlook (Revenue, USD Million; 2022-2032)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

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