diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4772718ded..54e62b9e35 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,9 +1,9 @@
 # Changelog
 
 Please update changelog as part of any significant pull request. Place short
-description of your change into "Unreleased" section. As part of release process
-content of "Unreleased" section content will generate release notes for the
-release.
+description of your change into "Unreleased" section. As part of release
+process content of "Unreleased" section content will generate release notes for
+the release.
 
 ## Unreleased
 
@@ -25,10 +25,19 @@ release.
   ([#1346](https://github.com/open-telemetry/opentelemetry-demo/pull/1346))
 * [productcatalogservice] update wiki link
   ([#1346](https://github.com/open-telemetry/opentelemetry-demo/pull/1346))
-* [adservice] added group and anonymous read permission to opentelemetry-javaagent.jar
+* [adservice] added group and anonymous read permission to
+  opentelemetry-javaagent.jar
   ([#1348](https://github.com/open-telemetry/opentelemetry-demo/pull/1348))
-* [frauddetectionservice] added group and anonymous read permission to opentelemetry-javaagent.jar
+* [frauddetectionservice] added group and anonymous read permission to
+  opentelemetry-javaagent.jar
   ([#1348](https://github.com/open-telemetry/opentelemetry-demo/pull/1348))
+* [adservice] Major version update for Java instrumentation, version 2.0.0
+  ([#1352](https://github.com/open-telemetry/opentelemetry-demo/pull/1352))
+* [frauddetectionservice] Major version update for Java instrumentation,
+  version 2.0.0
+  ([#1352](https://github.com/open-telemetry/opentelemetry-demo/pull/1352))
+* [kafka] Major version update for Java instrumentation, version 2.0.0
+  ([#1352](https://github.com/open-telemetry/opentelemetry-demo/pull/1352))
 
 ## 1.7.2
 
diff --git a/docker-compose.minimal.yml b/docker-compose.minimal.yml
index a79f6a1119..850a1876ba 100644
--- a/docker-compose.minimal.yml
+++ b/docker-compose.minimal.yml
@@ -36,7 +36,7 @@ services:
       - "${AD_SERVICE_PORT}"
     environment:
       - AD_SERVICE_PORT
-      - OTEL_EXPORTER_OTLP_ENDPOINT
+      - OTEL_EXPORTER_OTLP_ENDPOINT=http://${OTEL_COLLECTOR_HOST}:${OTEL_COLLECTOR_PORT_HTTP}
       - OTEL_EXPORTER_OTLP_METRICS_TEMPORALITY_PREFERENCE
       - OTEL_RESOURCE_ATTRIBUTES
       - OTEL_LOGS_EXPORTER=otlp
diff --git a/docker-compose.yml b/docker-compose.yml
index 9e6de5731e..06ff382461 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -63,7 +63,7 @@ services:
     environment:
       - AD_SERVICE_PORT
       - FEATURE_FLAG_GRPC_SERVICE_ADDR
-      - OTEL_EXPORTER_OTLP_ENDPOINT
+      - OTEL_EXPORTER_OTLP_ENDPOINT=http://${OTEL_COLLECTOR_HOST}:${OTEL_COLLECTOR_PORT_HTTP}
       - OTEL_EXPORTER_OTLP_METRICS_TEMPORALITY_PREFERENCE
       - OTEL_RESOURCE_ATTRIBUTES
       - OTEL_LOGS_EXPORTER=otlp
@@ -252,7 +252,7 @@ services:
     restart: unless-stopped
     environment:
       - KAFKA_SERVICE_ADDR
-      - OTEL_EXPORTER_OTLP_ENDPOINT
+      - OTEL_EXPORTER_OTLP_ENDPOINT=http://${OTEL_COLLECTOR_HOST}:${OTEL_COLLECTOR_PORT_HTTP}
       - OTEL_EXPORTER_OTLP_METRICS_TEMPORALITY_PREFERENCE
       - OTEL_RESOURCE_ATTRIBUTES
       - OTEL_SERVICE_NAME=frauddetectionservice
@@ -584,7 +584,7 @@ services:
     restart: unless-stopped
     environment:
       - KAFKA_ADVERTISED_LISTENERS=PLAINTEXT://kafka:9092
-      - OTEL_EXPORTER_OTLP_ENDPOINT
+      - OTEL_EXPORTER_OTLP_ENDPOINT=http://${OTEL_COLLECTOR_HOST}:${OTEL_COLLECTOR_PORT_HTTP}
       - OTEL_EXPORTER_OTLP_METRICS_TEMPORALITY_PREFERENCE
       - OTEL_RESOURCE_ATTRIBUTES
       - OTEL_SERVICE_NAME=kafka
diff --git a/src/adservice/Dockerfile b/src/adservice/Dockerfile
index 4986ebb172..2baceaa33d 100644
--- a/src/adservice/Dockerfile
+++ b/src/adservice/Dockerfile
@@ -20,7 +20,7 @@ RUN ./gradlew installDist -PprotoSourceDir=./proto
 
 FROM eclipse-temurin:21-jre
 
-ARG version=1.31.0
+ARG version=2.0.0
 WORKDIR /usr/src/app/
 
 COPY --from=builder /usr/src/app/ ./
diff --git a/src/adservice/build.gradle b/src/adservice/build.gradle
index d3fe1aeeaa..4d678e6d08 100644
--- a/src/adservice/build.gradle
+++ b/src/adservice/build.gradle
@@ -16,8 +16,8 @@ description = 'Ad Service'
 group = "adservice"
 version = "0.1.0-SNAPSHOT"
 
-def opentelemetryVersion = "1.31.0"
-def opentelemetryInstrumentationAlphaVersion = "1.31.0-alpha"
+def opentelemetryVersion = "1.34.1"
+def opentelemetryInstrumentationAlphaVersion = "2.0.0-alpha"
 def grpcVersion = "1.59.0"
 def jacksonVersion = "2.15.3"
 def protocVersion = "3.25.0"
diff --git a/src/adservice/gradle/wrapper/gradle-wrapper.properties b/src/adservice/gradle/wrapper/gradle-wrapper.properties
index 3fa8f862f7..1af9e0930b 100644
--- a/src/adservice/gradle/wrapper/gradle-wrapper.properties
+++ b/src/adservice/gradle/wrapper/gradle-wrapper.properties
@@ -1,6 +1,6 @@
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-8.4-bin.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-8.5-bin.zip
 networkTimeout=10000
 validateDistributionUrl=true
 zipStoreBase=GRADLE_USER_HOME
diff --git a/src/frauddetectionservice/Dockerfile b/src/frauddetectionservice/Dockerfile
index c95b435338..caf7f0d003 100644
--- a/src/frauddetectionservice/Dockerfile
+++ b/src/frauddetectionservice/Dockerfile
@@ -14,7 +14,7 @@ RUN gradle shadowJar
 
 FROM gcr.io/distroless/java17-debian11
 
-ARG version=1.31.0
+ARG version=2.0.0
 WORKDIR /usr/src/app/
 
 COPY --from=builder /usr/src/app/build/libs/frauddetectionservice-1.0-all.jar ./
diff --git a/src/kafka/Dockerfile b/src/kafka/Dockerfile
index e7fbec42fd..b710528094 100644
--- a/src/kafka/Dockerfile
+++ b/src/kafka/Dockerfile
@@ -5,7 +5,7 @@
 FROM confluentinc/cp-kafka:7.5.2
 
 USER root
-ARG version=1.31.0
+ARG version=2.0.0
 ADD https://github.com/open-telemetry/opentelemetry-java-instrumentation/releases/download/v$version/opentelemetry-javaagent.jar /tmp/opentelemetry-javaagent.jar
 RUN chmod go+r /tmp/opentelemetry-javaagent.jar