Global operating system market share was valued at USD 4725.6 million in 2020. The automotive operating system market is expected to grow at CAGR of 12.9% during 2020-2027 to reach 11048.8 million by 2027 end. Among commercial vehicles, buses are expected to hold the largest share of the operating system market share in 2020. Increased efficacy of mass-charging facility, tremendous cost-savings in fuel, and growing public support for both electric infrastructure, and sustainable policies remain key drivers of growth.
The automotive operating systems market remains a promising landscape for robust innovation, and business opportunities. The market is a fragmented landscape, with several new players entering the arena to develop add-ons for driving systems, navigation, entertainment, and information. Growing innovation in areas like navigation, and increased cross-collaboration between players remain significant promise for new entrants and large players alike. Some key players in the automotive operating system market are Automotive Grade Linux, AUTOSAR, BMW AG, BlackBerry Limited, General Motors Company, Continental AG, Green Hills Software LLC.
Increased acquisitions, mergers, partnerships, amidst growing demand for feature-driven technology remains a promising prospect in the automotive operating system market. Growing demand for satellite connected navigation technology has been a boon new player, as well as established players.
Automotive Operating System Market
The electricity consumption from electric vehicles is set to increase six-fold between 2019-2030. At the consumer-front, demand for adoption of digital systems continues to skyrocket. Key consumer demands today include automated driving, navigational software, entertainment, safety systems, and Additional Driving Assistance Systems (ADAS). Furthermore, the growing demand for electric vehicle has pushed the frontier of innovation through automation to the next level. This is largely because, with electric cars, conventional engine parts like camshafts, valves, transmission gears, connecting rods, clutches, and other major complexities have gone out the window, leading to tremendous cost-savings, and more space for additional engineering.
Automotive Operating System Market: Expert Analysis
10 million electric vehicles occupied global roads by 2020 end. Furthermore, registration for electric vehicles increased by 41% in the same year, while demand for regular vehicles dropped due to the pandemic. The automotive operating system market size continues to grow, as electric vehicles registered a 4.6% share of the global vehicle sales, thanks to demand in major regions including Europe, Asia Pacific, and North America. Additionally, conventionally quiet segments like sales of electric buses, and trucks also reached new heights, with tremendous growth momentum.
Lead analysts at Brandessence market research predict a tremendous growth for automotive operating system market. According to Brandessence’s lead experts, “embedded automotive system remains key focus of auto manufacturers globally, with as much as 90% innovation taking place in the niche. Furthermore, developing electronic control units accounts for 40% of total vehicle development expenses. Growing consumer demands for automation and features, lack of established standard protocol, and open opportunity for innovation for both vehicle manufacturers, as well as independent third-parties, are expected to remain key drivers of growth in the automotive operating system market”.
Automotive Operating System Market: Regional Analysis
The automotive operating system market is divided into key regions into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Among these, the North America region is likely to hold largest share of revenues globally. The growing demand for electric vehicles in the region, major electric vehicle players like Tesla, and growing innovation from regional tech players like Google, Microsoft remain key drivers of growth in North America. Europe is expected to follow the promising forecast, as it overtook China in sales of electric vehicle sales in 2020. Asia Pacific is likely to hold third largest share of revenues, with increased demand for digitized two-wheeler, and three-wheeler.
Some major key players for global automotive operating system market report cover prominent players
- Automotive Grade Linux
- BlackBerry Limited
- BMW AG
- Continental AG
- General Motors Company
- Green Hills Software LLC
- Mentor Graphics Corporation
- Mercedes-Benz AG (Daimler AG)
- MONTAVISTA SOFTWARE, LLC
- Neusoft Corporation
- Thunder Software Technology Co., Ltd
- Volkswagen AG
- Wind River Systems, Inc.
- Baidu, Inc.
- Ford Motor Company
- GENIVI Alliance
- Microsoft Corporation
- Tesla Inc.
- Toyota Motor Corporation
Automotive Operating System Market Drivers: Key Trends
The auto manufacturing industry is quickly moving towards increasing on-board processing power, and data flow capacity. The advent of technologies like 5G has enable prospects like communication with surrounding infrastructure, other vehicles, and cloud services. In order to bridge the gap, systems like ADAS systems, automated driving platforms, entertainment systems, and information systems, and developing subsequent data load capacities is the key. Furthermore, enhanced vehicle security systems also remain key to integrating next-gen vehicles in the current ecosystem.
The automotive operating system market growth is increasingly moving towards adoption of centralized models of software development. The low-cost entry for new players, and limited innovation scope for autos into areas like robust software development, and growing demand for domain-independent vehicle computers remain key drivers of this growth. Integrated cloud solutions from major tech companies enabling robust automation also remains key driver of this growth.
Consumer demand is increasingly shifting towards adoption of subscription-models for software. This trend is witnessed across industries and is moving consumers away from perpetual software licensing models. Furthermore, increasing vendors are experimenting with price, and licensing models, thanks to a robust competition, and need to acquire largest customer pool. Furthermore, most software are provided through cloud-installations, as opposed to traditional installation. Vendors also show increased willingness to adopt technologies like mobile platforms, cloud, SaaS, and general virtualization.
Automotive Operating System Market: Notable Developments
Woven Planet, a subsidiary of Toyota motors made its third acquisition in 2020. The company has acquired Renovo Motors, an automotive operating system developer. The company made a name for itself in 2015, when it debuted a video of self-driving cars. Woven Planet acquired a mapping startup carmera, and the autonomous driving unit of Lyft earlier in 2020.
Honda has tied up with Google to launch vehicles embedded with Google’s automotive OS. The technology will include Google’s personal assistant AI, several other Android apps for entertainment, and Google maps for navigation. Honda plans to launch new vehicles loaded with Google OS, starting in 2022.
General Motors is set to launch its own end-to-end software platform, starting in 2023. The platform is likely to provide tremendous access to vehicles including access to sensors, with features like auto-child detection, along with super cruise, hands-free driving system. The company plans to offer a subscription-based model, with over-the-air updates to include new apps, and services.