Over The Air Software Updates: What Are They and Do They Really Increase The Value of Your Car?

While the current political climate might suggest otherwise, the world has never been more connected and the same is true of our cars.

As a result, what’s known as Over The Air Software Updates – or OTAs for short – are becoming ever more frequent… and important.

But how do they work and what is their long-term impact on vehicle performance and value alike?

The Emergence of Over The Air Software Updates

Tesla – who else? – is credited with bringing OTA Updates to the market in 2012. Put simply, these refer to software downloads that occur via a cellular network or WIFI connection.

Before Elon Musk was allowed to roam freely throughout the White House, he sought to deliver system upgrades remotely to connected cars. As is his way, he succeeded and chartered a course.

Now all major automakers have followed suit, releasing various patches and fixes that are downloaded directly to their vehicles, providing they have infotainment systems.

This is the motoring equivalent of Apple’s yearly iOS updates for iPhones and, thankfully, just as simple.

Indeed, drivers will typically be shown a message alerting them to the presence of a new update when switching off their vehicle. They’ll have the opportunity to set that in motion right away, or later via a mobile app.

Installations vary from manufacturer to manufacturer. Some unfold whilst in transit, others require drivers to lock and leave their cars. As with the aforementioned iPhone updates, these are best run overnight and with the car plugged in.

That's because most Electric Vehicles are said to require a minimum of 50% charge to complete.

Types of Over The Air Software Updates

OTAs for cars are split into two categories.

The first, and most prominent, is Software Over The Air (SOTA). These tend to be top-level, with new releases designed to maintain and improve vehicles, as well as fix bugs. Rarely if ever are they safety related.

SOTAs are now commonplace for models produced by Audi, BMW, Ford and Mercedes.

More advanced types of SOTAs are referred to as Firmware Over The Air (FOTA). As the name implies, these upgrades carry greater significance and address firmware within the vehicle.

Successful installation relies upon plenty in the way of power and memory, not to mention a robust cybersecurity system. Tesla have become synonymous with these kinds of rollouts, which are geared around advanced tech.

So, what constitutes a standard Over The Air Software Update? As you’d expect, these are developing at pace and might encompass upgrades for brakes or, in the case of electric vehicles, means for extra charging and range capabilities.

Improvements to advanced driver systems are another example of a popular and regular SOTA.

Just before Christmas Tesla made headlines with a seasonal update that allowed for Apple Watch integration. The latter enables owners to use their watch as a car’s phone key. Enhanced safety warnings were also included to boost pedestrian safety when reversing.

Polestar’s fifteenth OTA update – released in 2023 – introduced an integrated YouTube app for all Polestar 2s.

The Benefits of Over The Air Software Updates

OTA updates bring with them a host of benefits.

Time saving is chief among these, with simple downloads removing the need to physically drive your car to a dealership whenever a service or update is required. This is both old school and costly.

So too are recalls, which it’s hoped will become a thing of the past if this technology develops as expected.

Staying on-top of OTA releases meanwhile prevents cars from depreciating. This is a sure-fire way to stop them slowing down and underperforming. General inefficiency should be reduced, or at the very least slowed.

On the security front, adopting new OTA updates is recommended for fending off cyber-attacks. Evidence suggests this works.

Moving forward, it’s anticipated AI will elevate OTAs further still, conspiring to detect and transmit diagnostic and operational data. This will help nip mechanical issues in the bud early. In that respect, updates will double as preventative maintenance systems, something motorists the worldover can get behind.

Can Over The Air Software Updates Impact Insurance Premiums?

One of the most commonly asked questions related to Over The Air Software Updates is whether they impact insurance premiums.

The answer is yes. Given many are classed as modifications, they genuinely impact performance, which impinges on matters like safety ratings. A failure to disclose said modifications can justifiably invalidate insurance coverage.

For that reason, it’s recommended drivers contact insurers and declare any significant changes.

How Much Do Over The Air Software Updates Cost?

Others naturally enquire about cost. Again, this varies. A growing number of automakers are offering free OTAs to incentivise motorists. Subscriptions are also becoming commonplace. BMW, for example, allow customers to subscribe to connected upgrades for £100 a year or £200 a year for what they call ‘unlimited’ access. Tiering of this kind is an obvious money-spinner.

Single patches may cost more than that, however. Tesla, for instance, charged £1,000 for a one-off acceleration boost back in 2019. This is exactly the kind of OTA that would warrant a conversation with your insurance company.

Others work to a set schedule. Mercedes fall into this category and commit to updating infotainment and map systems once a quarter.

Can Over The Air Software Updates Increase Car Value?

Crucially, there is evidence to suggest keeping pace with new OTAs can increase the value of your car. In theory, this makes total sense. Adding new features is to improve the overall package. This has long been the case with custom changes, however, these are often down to individual preference and become a balancing act of sorts.

Going too far could have the opposite effect, dismaying buyers and shedding hundreds off a theoretical asking price. Spoilers that turn respectable vehicles into Boy Racers are a glaring and obvious case study.

By contrast, OTAs released by the manufacturer in question should only ever compliment what’s already in situ.

Back in 2021 an Ericsson Connected Cars Report earmarked this very year (2025) as the point in which 50% of a vehicle’s value will be composed by the software and software experience, underpinned by OTA updates.

So, it’s no longer fanciful to believe your car could be worth more when you come to sell it, than when you originally purchased it.

Over The Air Software Updates are very much the future of automotive tech and the market is expected to grow exponentially in the coming years. As connectivity increases, such upgrades will play a pivotal role not just in performance but the safety, functionality and reliability of our cars. That can only be a good thing.

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