Dublin, September 9, 2021–(Business Wire)–The “2021 Global and China Automotive OTA Industry Report” report has been added to ResearchAndMarkets.com’s products.
Automotive OTA research: OTA capabilities determine the success or failure of OEMs’ transformation
In recent years, automotive OTA configuration has maintained a rapid growth trend. According to the publisher, China’s passenger car OTA OEM configuration will reach 4.449 million in 2020, an increase of 15.9% year-on-year; the installation rate will rise from 19.7% in 2019 to 23.7% in 2020. China’s passenger car OEM OTA installation rate will reach 28.3% from January to May 2021, and is expected to reach 80% by 2025. FOTA will gradually dominate.
At present, the supplier model is still the main way for OEMs to deploy OTA. The main suppliers include PATEO, Zebra Information, Harman, Excelfore, Airbiquity, ABUP, CAROTA, Bosch, Continental, Desay SV, Neusoft, Joyson Electronics, etc., which can provide OEM manufacturers with complete OTA solutions.
Taking Botaiqing OTA as an example, Botai Qingyun has established an OTA platform for complex actual situations. It can not only update OS, T-Box, applications, maps, etc., but also FOTA updates of vehicle components such as clusters and ECUs.
As far as the development trend of OTA is concerned, OTA is no longer a single function on the car. From a deeper perspective, OTA will be linked to the development of the entire automotive industry. The development of PATEO Qing OTA started from the SOTA layout, and gradually shifted to the field of FOTA and OTA software operation, and finally reached the stage where the definition of software services drives the definition of vehicles.
With the maturity and application of automotive software systems and OTA, the business model of the entire automotive industry will also change. From the consumer’s point of view, automakers have successively begun the transformation of their business models, from the past “selling cars” business model to the “selling cars + selling software” business model.
Many automakers have introduced paid software packages and OTA update services. Especially emerging automakers are making faster progress in their business models. For example, Tesla offers FSD software packages that cost up to $10,000. Through embedded hardware and continuous OTA updates, FSD will promote autonomous driving to L3 or even L4. Tesla’s FSD pre-installation rate in the United States is as high as 30-40%. In 2020, Tesla’s software revenue will exceed 1.9 billion U.S. dollars and is expected to reach 20 billion U.S. dollars by 2025.
Chinese start-up company Xiaopeng launched the XPILOT3.0 software package (pre-installed) worth 20,000 yuan, and Weilai launched the NIO Pilot (15,000 yuan selected package and 39,000 yuan all-inclusive). They all saw an impressive pre-installation rate and earned software revenue as a result.
In terms of fuel vehicles, car companies are actively exploring a paid OTA model. In November 2020, Geely PREFACE announced an OTA update plan for fuel vehicles, involving software and hardware such as automatic parking, panoramic images, IVI, air conditioning, and engine NVH. Through FOTA, the OTA update solution is priced at 5777 yuan (free before the end of 2020).
The cooperation between suppliers and original equipment manufacturers tends to be flexible. There are three main OTA cooperation modes: first, turnkey projects, paid software, and end-to-end overall solutions; second, new features, paid project development; third: payment on demand.
Generally speaking, the OTA update after the vehicle SOP, the improvement of existing functions and patches are supported and maintained by the supplier, and the cost is included in the model development fee, and no additional fees are charged. If OEMs need to add new features in the update, they need to pay additional development costs to the supplier. OEM has established its own software development team to support continuous OTA software updates and enhance vehicle competitiveness.
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Post time: Sep-10-2021