OTA updates to fix recalled cars will save OEMs $1.5B

A new report from ABI Research found that, by 2028, automakers in the United States will use Over-the-Air (OTA) updates to remotely implement fixes to recalled vehicles, saving them US$1.5 billion in the process.

According to the firm, OEMs currently spend half a billion dollars annually to perform these software updates in-person. Doing them through OTA capabilities would be cheaper and likely faster.

“Vehicle recalls due to faulty software are becoming more common as software grows in complexity and becomes more deeply integrated into safety-critical functions,” said Dylan Khoo, Smart Mobility & Automotive Analyst at ABI Research, in a statement.

Last year, Khoo said nearly 10 million cars were recalled in the United States due to software-related issues. Nearly half of these recalls required the software to be updated by a car dealer.

“These recalls will continue to become more prevalent as cars transition toward software-defined vehicles (SDVs), so the capability to remotely repair faulty software without the cost or inconvenience to the customer of in-person updates will be essential for OEMs,” said Khoo in a statement.

Tesla is considered a leader in the OTA space, according to ABI Research; it has never required an in-person software update for a recall. And General Motors has virtually recalled 98 per cent of its affected vehicles since 2021 — likely thanks in part to its 2016 recall over a faulty airbag sensing software.

Khoo said OTA updates will be essential for OEMs, and that it will be an important source of revenue “as they are key enablers for providing cutting-edge digital experiences and autonomous driving features.”

Related Articles
Share via
Copy link