Automotive Operating System Market Expected to Reach $20.4 Billion by 2032—Allied Market Research

The global automotive operating system market was valued at $5.4 billion in 2022, and is projected to reach $20.4 billion by 2032, growing at a CAGR of 14.6% from 2023 to 2032.

Europe dominated the global automotive operating system market in 2022 driven by factors such as technological advancements, government regulations, and the presence of prominent automotive manufacturers and technology companies in the region. GENIVI is an open-source software alliance that focuses on developing standardized automotive operating systems. Its Linux-based operating system platforms are widely used by European automakers, including BMW, Daimler, and Renault, to power various functions in their vehicles, such as infotainment systems and connectivity features.

Moreover, the market is influenced in European countries by stringent government regulations and initiatives related to road safety and emissions. For instance, the European Union's General Safety Regulation authorizes the addition of a few advanced safety features, such as autonomous emergency braking and lane-keeping assistance, in all new vehicles. Operating systems in vehicles play a key role in operating these safety systems, confirming their proper functioning and compliance with regulations.

Furthermore, the focus of the automotive industry has shifted from vehicles defined by their physical components to vehicles defined by software. This transformation has led to cars that are primarily controlled and operated by software. The various features and capabilities of these vehicles heavily rely on automotive software. In today's market, high-end vehicles typically contain a vast amount of software code, with approximately 150 million lines of code spread across numerous electronic control units (ECUs) and an increasing array of sensors, such as RADAR and LiDAR.

Software-centric vehicles offer several advantages compared to hardware-defined vehicles. For instance, instead of visiting a dealership for software updates related to telematics, car diagnostics, and infotainment systems, customers can now receive these updates over-the-air (OTA). These updates cover improvements to infotainment features, security patches, as well as monitoring and optimizing crucial aspects like the powertrain and driving dynamics. Consequently, the market for automotive operating systems is expected to grow as there is a growing demand for vehicles that are primarily defined by software.

The global automotive operating systems market is segmented based on OS type, vehicle type, application, and region. By OS type, the market is divided into QNX, Linux, windows, android, and others. Further, based on vehicle type, the market is bifurcated into passenger cars and commercial vehicles. As per application, the market is segmented into infotainment systems, ADAS & safety systems, connected services, engine management & powertrain, body control & comfort systems, and others.  By region, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA) including country-level analysis for each region.

On the basis of OS type, the market is divided into QNX, Linux, windows, android, and others. QNX is a present operating system generally used in the automotive industry as an operating system for various vehicle components and systems. QNX is known for its consistency, safety, and real-time capabilities, making it appropriate for safety-critical applications in automobiles.

QNX has an established existence in the automobile industry, with a history of successful functioning in various vehicle systems. This track record has instilled confidence in automakers and suppliers, leading to increased adoption of QNX in their vehicles. The integration of multiple technologies to create enhanced user interfaces (UI), the emergence of linked device technologies, and the ongoing trend of integrating electronic applications into vehicles are also major contributors to the global automotive operating systems market. Moreover, acquisitions, mergers, and partnerships, along with the rising demand for feature-driven technology, contribute to its growth. The use of multiple technologies to enhance UI, the advent of linked device technologies, the integration of electronic applications in vehicles, and the global demand for passenger cars further propel the expansion of the worldwide automotive operating systems industry.

Key players operating in the global automotive operating systems market are Siemens, Renesas Electronics Corporation, BlackBerry Limited, Alphabet Inc., Luxoft, A DXC Technology Company, Automotive Grade Linux, NVIDIA Corporation, Wind River Systems, Inc., Green Hills Software and Microsoft Corporation.

COVID-19 Impact Analysis

Production disruptions were experienced due to factory closures, supply chain interruptions, and labor shortages. This affected the development and integration of operating systems into vehicles. Additionally, the decrease in consumer demand and sales for automobiles during the lockdown period had a direct impact on the demand for operating systems in the automotive market. Furthermore, the pandemic accelerated the digitization of the automotive industry, leading to a greater emphasis on digital technologies and connectivity.

Operating systems were expected to provide enhanced infotainment, navigation, and connectivity features to cater to the growing need for contactless experiences. This included incorporating touchless interfaces, voice control, and improved ventilation systems to address health and safety concerns. The focus on environmental sustainability also increased during the pandemic, leading to a greater emphasis on electric vehicles. Operating systems for electric vehicles are needed to address the specific requirements of electric drivetrains, battery management, and integration with charging infrastructure.

KEY FINDINGS OF THE STUDY

• By OS type, the Android segment is anticipated to exhibit significant growth in the near future.
• By application, the ADAS and Safety System segment is anticipated to exhibit significant growth in the near future.
• By vehicle type, the Commercial Vehicles segment is anticipated to exhibit significant growth in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.