In today's fast-evolving automotive landscape, over-the-air (OTA) updates stand as a transformative technology, reshaping how consumers and businesses interact with their vehicles. When done well, enterprise-grade OTA updates present countless benefits, including consumer enhancements, operational efficiencies, and fleet management savings. OTA technology not only elevates the user experience but also streamlines maintenance processes, reduces costs, and minimizes the occurrence of physical recalls. OTA updates drive innovation and efficiency across the automotive industry towards a safer, more connected, and more efficient future for all stakeholders.
The advantages of OTA updates are extensive across all areas of the consumer experience. First, OTA technology provides the convenience of receiving timely software improvements without visiting a dealership. Updates can include bug fixes, performance enhancements, and new features that can be directly downloaded and installed onto the vehicle’s electronic control units (ECUs).
Imagine the frustration of encountering a glitch in your car's infotainment system. Traditionally, in this situation, you would need to schedule an appointment at the dealership, spend time physically on-site, spend money on the diagnostic, and possibly even more for any necessary repairs or maintenance. Whether physical or digital, vehicle issues traditionally required a visit to the dealership for diagnosis and repair, consuming time, money, and effort while causing extra stress.
With OTA updates, vehicles possess a new channel to resolve issues. Software and firmware bugs are fixed remotely and proactively, often before the consumer even realizes something is wrong. New features can be added, such as improved navigation tools, better smartphone integration, or even entirely new entertainment options. Catalyzed by OTA updates, accessing new features and fixes greatly enhances the driving experience.
Safety is paramount in automotive design, and OTA updates are crucial in maintaining and enhancing it. For instance, if a vulnerability is discovered in the vehicle’s software that could compromise safety, an OTA update can quickly address the issue, ensuring that all affected vehicles are promptly and uniformly updated. Similarly, performance upgrades, such as improved operation algorithms or enhancements to the vehicle's driving dynamics, can be delivered through OTA updates. Managing the vehicle across its lifecycle ensures that it remains at its optimal performance, receives timely and instantaneous security fixes,2 and improves safety features, like automatic braking and lane departure warnings. Where vehicles were once static machines after leaving the lot, OTA updates can continue improving the vehicle, identifying gaps in the current performance and remediating issues while simultaneously increasing the vehicles’ safety and modernity on the road.
OTA updates also enable a new level of customization and personalization for the vehicle's owner. Consumers can receive updates tailored to their preferences, whether it's the addition of new driving modes, personalized dashboard configurations, or enhanced voice recognition capabilities. Personalization creates a unique driving experience that caters to individual preferences and needs, giving each driver a more tailored and fulfilling consumer experience.
In its basic form, OTA updates reduce the need for dealership visits, saving consumers time and money while ensuring their investment in transportation remains relevant and functional for much longer. As vehicles become more software-centric, the opportunities and benefits of enterprise-grade OTA updates exponentially multiply.
From an operational perspective, OTA updates offer OEMs significant cost-saving benefits. Reducing the need for physical recalls potentially saves millions for vehicle manufacturers. OTA updates also limit the brand reputation damage associated with physical recalls as issues can be remotely and immediately deployed and addressed.
Vehicle recalls due to software issues have historically incurred substantial costs for manufacturers, amounting upwards of $500 per affected vehicle.1 OTA updates eliminate the need for these physical recalls. For example, if a software issue affecting an ECU is identified, the fix can be pushed directly to all affected vehicles over the air. This not only ensures a quicker resolution but also reduces the logistical challenges and expenses associated with traditional recall campaigns.
OTA updates significantly reduce operational costs by minimizing the need for physical service visits. Manufacturers save on labor and parts, while consumers save time and dodge the inconvenience associated with service visits. The efficiency boost is especially beneficial in addressing minor but widespread issues that do not necessarily require mechanical intervention but can still impact the vehicle’s performance, safety, or user experience.
OTA capabilities also enhance the ability to perform real-time diagnostics and data collection. Manufacturers can monitor the health of vehicles on the road and preemptively address potential issues through software updates. Leveraging a proactive approach helps maintain the vehicle’s reliability and builds consumer trust and satisfaction, ultimately bolstering brand reputation. This data also informs brands to analyze usability and current gaps, leveraging insights to improve the product and further satisfy the end consumer.
OTA updates increase the operational efficiency of OEMs by greatly reducing maintenance costs and effectively removing the threat of full recalls. Through OTA, manufacturers address software issues remotely, saving millions in unnecessary expenses while avoiding brand damage from recall campaigns. Ultimately, Additionally, the added benefit of real-time diagnostics from OTA solutions streamlines vehicle health maintenance, and customer satisfaction enhancements to further optimize brand image and product success.
For fleet managers (such as private transportation business owners), OTA updates are invaluable in efficiently maintaining a large number of vehicles. Managing a fleet involves minimizing downtime between updates, centralizing deployment at scale, and ensuring that all vehicles operate the latest software versions. An enterprise-grade OTA update infrastructure provides a streamlined solution for fleet management. Traditional maintenance for a fleet manager would result in long periods of downtime while deploying updates, troubleshooting, and ensuring each vehicle in the fleet is on the same version. Extensive downtime and errors from physical updating can affect revenue, brand reputation, and overall client satisfaction.
Fleet managers can deploy updates across their entire fleet from a central location, ensuring that all vehicles are updated simultaneously. Centralized control is crucial for maintaining uniformity across the fleet, optimizing performance, and ensuring the safety of all vehicles without the need for extended downtime.
In scenarios where immediate updates are necessary, such as responding to a newly discovered security vulnerability or compliance requirements, OTA updates allow for rapid deployment across the fleet. The ability to quickly implement updates ensures that all vehicles comply with the latest safety standards and regulations, reducing legal and operational risks to keep ahead of the compliance curve.
OTA updates help reduce maintenance costs for fleet operators by remotely addressing software or firmware related issues and minimizing the need for physical servicing. The maintenance advantages not only saves maintenance costs but also ensures that fleet vehicles remain operational for longer periods, thereby maximizing their utility and productivity.
OTA updates provide the necessary infrastructure for streamlining large-scale vehicle management. By enabling the ability for centralization, rapid deployment, and ongoing maintenance, the entire fleet benefits from enhanced efficiency, profitability, and compliance.
Intensifying competition, stricter regulations, evolving consumer demands, and ever-present cost pressures continue to transform the automotive industry and push it toward the software-defined vehicle. Integrating secure and robust OTA capabilities requires an investment in both research and rollout, but is fundamental for a future-focused, efficient, and safe product.
From a technical standpoint, the deployment of OTA updates requires robust infrastructure, both in terms of hardware and software. Vehicles must be equipped with secure, reliable connectivity solutions to receive updates. Sophisticated encryption and validation mechanisms ensure the integrity and authenticity of the updates. The management of software dependencies is crucial. ECUs in modern vehicles are interdependent, and updates to one component may necessitate changes in another. OEMs require effective configuration management systems to handle these dependencies and ensure updates are installed correctly and do not disrupt the vehicle's functionality.
On the business side, OTA updates offer a competitive edge to manufacturers who can provide continuous improvements and new features to their customers without physical intervention. As consumers appreciate the convenience and added value of their vehicles remaining up-to-date and improving over time, OTA updates enhance customer satisfaction and loyalty. Additionally, OTA updates enable manufacturers to respond quickly to market demands, regulatory changes, and compliance requirements, protecting the brand's reputation. Swiftly addressing issues and deploying enhancements through OTA updates reduces warranty costs, improves operational efficiency, and increases both the prominence of technology and user satisfaction. . OTA updates essentially allow for “virtual recalls” of problematic features. In 2023 alone, companies adopting software-based fixes saved upwards of half a billion dollars, alongside further revenues of $100 million from OTA subscriptions, and by 2028, automakers in the US are projected to save over US$1.5 Billion.3
There are countless implications for OEMs to integrate OTA support. Technically speaking, it requires consolidation and investment to integrate proper support of full OTA updates. On a business side, it will require a desire to modernize. Although this is no easy task, behind these roadblocks awaits a future of immense value for all players in the automotive industry. As the world continues to advance, the future of optimized SDVs will provide increased compliance, safety, profits, and consumer satisfaction across all facets of the industry.
Learn more about the importance of OTA updates in enhancing software-defined vehicles - https://mender.io/resources/reports-and-guides/software-defined-vehicles-advanced-ota-updates
Resources
1. Lilly, Albert. "Software-Related Recalls Are Still Plaguing the Auto Industry." Sibros Tech, January 31, 2023. https://www.sibros.tech/post/software-related-recalls-are-still-plaguing-the-auto-industry.
2. Jagyasi, Ujjwal. "Connectivity and OTA Updates." S&P Global, June 24, 2024. https://www.spglobal.com/mobility/en/research-analysis/connectivity-and-ota-updates.html.
3. ABI Research. "By 2028, Automakers Will Save $15 Billion Using Over-the-Air Updates to Fix Recalled Cars." ABI Research, May 3, 2023. https://www.abiresearch.com/press/by-2028- automakers-will-save-us15-billion-using-over-the-air-updates-to-fix-recalled-cars/.