Software DevSecOps, deployment, observability, and over-the-air (OTA) solutions are evolving to keep pace with the changing methods of building and releasing software for IoT devices and systems. As competition in IoT markets intensifies, developer organizations must accelerate the transition of software from development to deployment, automating as many processes as possible to achieve rapid time-to-market. Rising standards and regulations have shifted the responsibility for device security and health to manufacturers, creating a demand for robust commercial solutions that continuously monitor device fleets and provide ongoing software maintenance and updates.
This report explores and sizes the IoT market for software DevSecOps, deployment, observability, and OTA solutions. It discusses trends, vertical and regional markets, leading vendors, and provides selected insights from VDC Research's survey of embedded device engineers and developers.
What Questions are Addressed?
What is the size of the IoT market for software DevSecOps, deployment, observability, and OTA solutions and how fast will it grow through 2029?
Which vertical and regional markets are growing the fastest?
How are key partnerships, acquisitions, standards, and regulations shaping the market?
Which markets are primed for widespread adoption of OTA solutions?
How are Artificial Intelligence and Machine Learning used to automate software development and deployment?
Which vendors are leading the software DevSecOps, deployment, observability, and OTA solutions for IoT systems market?
Who Should Read this Report?
CEO or other C-level executives
Corporate development and M&A teams
Marketing executives
Business development and sales leaders
Product development and strategy leaders
Channel management and channel strategy leaders
Organizations Listed in this Report:
1NCE
ABUP
Aeris
Aptiv
Aurora Labs
AWS
Azure
Bajaj Auto
Balena
BMW
BYD
Carota
CloudBees
Cloud Native Computing Foundation
Continental
Continuous Delivery Foundation
DENSO
Elektrobit
Ericsson
eSync Alliance
Excelfore
FM Capital
Fujitsu
General Motors
GitHub
GitLab
Golioth
Google Cloud
Green Hills Software
GuardKnox
Harbinger Motors
HARMAN
Harness/Armory
Honda
Huawei
IBM
JetBrains
JFrog
Karma Automotive / Airbiquity
KPIT
Lear
LG Technology Ventures
Lockheed Martin
Mahindra & Mahindra
Memfault
Mercedes-Benz
Mitsubishi
Northern.tech / Mender
NIO
Netflix
NVIDIA
NXP/ TTTech Auto
Octopus Deploy
Parker Hannifin
Percepio
QNX, a Division of BlackBerry
Qualcomm / foundries.io
Red Hat
Rivian
SAIC
Schneider Electric
Sibros
Sonos
Stellantis
Tata Motors
Telit Cinterion
Thales
Toyota
Travis CI
Vector Informatik
Volkswagen Group
Wind River
ZM Trucks
Executive Summary
As DevSecOps methodologies and continuous integration/continuous delivery (CI/CD) practices mature, developers integrate faster feedback loops into the earlier stages of the software and device development lifecycle, improving time to market, product quality, and software deployment in IoT. This blending of development processes is evident in the commercial market for deployment and maintenance solutions, where platforms now combine software testing with deployment features, offering developers a unified solution for automation across the design, build, test, and deploy phases.
DevSecOps observability enables teams to continuously monitor, measure, and analyze the health, performance, and security of applications and infrastructure throughout the software development lifecycle. It includes a combination of metrics, logs, and traces to provide insights into the system's operational and security aspects, allowing teams to detect issues early and respond quickly. The secure wireless distribution of software updates supports the continuous delivery aspect of the CI/CD pipeline.
OTA updates, initially introduced for mobile phones, expanded into the consumer electronics and automotive sectors. Vendors help fuel the wider adoption of updates by integrating OTA solutions across diverse IoT industries, offering both specialized solutions for specific applications and versatile platforms designed to serve multiple IoT market segments. The combination of regulations mandating the updatability of connected devices and the growing adoption of CI/CD and DevSecOps practices within development organizations is increasing the demand for commercial solutions to replace in-house developed alternatives.
Key Findings
Device manufacturers and operators across multiple industries are choosing OTA updates as their primary means to deliver enhanced features and rollout patches, a trend which is bringing increased scrutiny and regulations from governments and standardization bodies.
19.3% of developer organizations are looking toward container technology as an emerging method of deploying software and delivering OTA updates to IoT devices and embedded systems.
Merger and acquisition activity in the software DevSecOps, deployment, observability, and OTA solutions market has led to increased consolidation among key players. This convergence of tool domains and functionalities has significantly enhanced platform capabilities.
Regulations like the European Cyber Resilience Act (CRA) are significantly driving the demand for software DevSecOps, deployment, observability, and OTA solutions for IoT systems.
Security Concerns Driving OTA Purchasing Decision
Tied with cost sensitivity, ease of use ranks as the second-most important factor influencing the selection of OTA deployment solutions [See Exhibit 13]. The deployment of OTA update campaigns is oftentimes a very manual task, requiring engineers to weigh multiple factors including rollout timing, device downtime, and potential versioning issues. This is one area where AI-driven OTA campaigns and the pairing of monitoring solutions can introduce increased ease of use to OTA solutions. By intelligently connecting update campaigns to real-time device status and analytics, device manufacturers/fleet managers can minimize the potentially costly consequences of failed update campaigns. Vendor reputation noticeably ranks amongst the lowest purchasing decision factors, suggesting a yet-to-be-determined competitive positioning of embedded OTA solution vendors. This consumer sentiment offers a considerate opportunity for new entrants seeking to deliver OTA capabilities to embedded markets. For those seeking to enter or increase their positioning within this segment of the IoT, focus should be dedicated towards enabling seamless yet confident deployment capabilities, bolstered by real-time capabilities and insights into campaign rollouts.
As with many areas of the IoT, the impact of integrating OTA solutions into toolchains and software stacks remains the topmost priority for development organizations. Failed software deployments can not only cause monetary and opportunity costs in the form of patches and downtime but also increase the attack surface for exploitation. Furthermore, an insecure OTA solution can enable threat actors to deploy malware alongside software packages to devices. Other opportunities for exploitation within the deployment process include hijacking and interrupting updates mid-deployment, leading to corrupted devices and systems. Partnerships with IoT security vendors (e.g., public key infrastructure (PKI) vendors) offer one avenue for OTA solution providers to bolster the security of their solutions (such as those between Excelfore/IIJ Global, Karma Automotive (Airbiquity)/QNX, and Telit Cinterion/Thales).
Table of Contents
Inside this Report
What Questions are Addressed?
Who Should Read this Report?
Organizations Listed in this Report
Executive Summary
Key Findings
Introduction
Deployment Approaches Vary
Successful Deployment Establishes a Robust Software Development Life Cycle
Observability
Lifecycle Management Considerations
Global Market Overview
Vertical Markets
Aerospace and Defense
Automotive In-Vehicle
Consumer Electronics
Industrial Automation
Medical Devices
Transportation
Regional Markets
The Americas
Europe, the Middle East & Africa (EMEA)
Asia-Pacific (APAC)
Recent Market Developments
AI-driven Update Campaign Management
Maturing Practices Streamline Processes
Device Fleet Longevity Increasing
Application Scalability Driving Interest in Containers Within the IoT Market
Acquisitions, Partnerships and Market Pivots
Karma Automotive Acquires Airbiquity to Bring OTA In-house
Aurora Labs Pivots Away From OTA
Excelfore Partners With Microsoft to Deploy AI-driven Update Campaigns
Qualcomm Acquires Foundries.io
JFrog Acquires Qwak AI
Sibros Partners with Harbinger Motors and ZM Trucks to Deploy OTA to Medium-Duty Vehicles
CloudBees Acquires Launchable
Organizations
Cloud Native Computing Foundation
Continuous Delivery Foundation
eSync Alliance
Architectures & Frameworks
AUTOSAR
SOAFEE
Eclipse Kanto
Pantavisor Linux
Uptane
Relevant Standards
Regulations Driving OTA Adoption
AUTOMOTIVE
MEDICAL DEVICES
OTHER IOT
Competitive Landscape
Selected Vendor Insights
Aeris
Balena
CloudBees
Elektrobit (Continental)
Excelfore
GitLab
HARMAN
JFrog
Memfault
Sibros
Telit Cinterion
Vector Informatik
Wind River
End-User Insights
Sustained Increases in Remote IoT Application Deployments
Security Concerns Driving OTA Purchasing Decision
Unifying the SDLC
About the Authors
List of Exhibits
Exhibit 1: Worldwide Revenue for Software DevSecOps, Deployment, Observability, and OTA Solutions for IoT Systems
Exhibit 2: Worldwide Revenue for Software DevSecOps, Deployment, Observability, and OTA Solutions for IoT Systems 2024 & 2029, Share by Vertical Market
Exhibit 3: Worldwide Revenue for Software DevSecOps, Deployment, Observability, and OTA Solutions for IoT Systems 2024 & 2029, Share by Geographic Region
Exhibit 4: Software Design Methodologies Used and Expected to Be Used
Exhibit 5: Software DevSecOps, Deployment, Observability, and OTA Solutions for IoT Systems Forecast Scope
Exhibit 6: Estimated Number of Years of Useful Life for Product Once Deployed, 2022 & 2024
Exhibit 7: Factors Driving Organization to Adopt Container Technology in Current Project
Exhibit 8: Worldwide Revenue for Software DevSecOps, Deployment, Observability, and OTA Solutions for IoT Systems, Share by Vendor
Exhibit 9: Over-the-air (OTA) Software/Firmware Deployment Solutions Used on Current Project
Exhibit 10: Most Important Factors in Selection of OTA Deployment Solutions, by Solution Source
Exhibit 11: Current & Expected Use of Remote Application Deployment & Management
Exhibit 12: Current Use of Remote Deployment & Management by Vertical Market
Exhibit 13: Most Important Factors in Selection of OTA Deployment Solutions
Exhibit 14: Most Important Factors in Selection of Release Management/Continuous Deployment Tools