Automotive Operating Systems Market Size By OS type (Android, Linux, QNX, Windows Embedded Automotive 7), By Vehicle Type (Passenger Vehicle [Compact Cars, Sub-Compact Cars, Mid-size Cars, Full Size Cars], Commercial Vehicle [Trailers, Buses, Truck, Heavy Equipment]), By ECU Function (Powertrain, Body Comfort & Control, Infotainment, Communication, Safety & ADAS), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Automotive Operating Systems (OS) Market size exceeded USD 4 billion in 2020 and is poised to register gains at nearly 15% between 2021 and 2027. Increasing availability of smart vehicle infotainment systems and rising use of connected cars is likely to drive the industry growth. Connected cars are expected to increase from 10% of all vehicles on road in 2015 to 22% by 2020, accentuating the product demand. The popularity of autonomous vehicles has also spiked substantially, bringing automotive operating systems into the mainstream.
 

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Automotive operating system services have faced limited market traction amid the ongoing COVID-19 pandemic, attributed to the halt of vehicle production facilities and reduced vehicle sales. As per the data reported by the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of vehicles dipped to 77.97 million units in 2020 compared to 90.42 million units in 2019, registering a decrease of about 15%. This has deterred the adoption of automotive operating systems. However technological proliferation in the in-car OS industry, such as advanced graphic user interface, voice recognition, and intuitive touchscreens, is expected to fuel the market revenue going beyond 2021.
 

Robust Over the Air (OTA) updates to spur market growth of Android OS in France

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In France, the Android OS segment is predicted to generate around USD 50 million worth of revenues in 2023, led by the gradual shift of vehicle OEMs from legacy OS to user-friendly Android-based OS. As vehicle manufacturers seek flexible OS with scalable hardware integration and regular updates, the product is proving to be a profitable avenue for automotive operating systems market expansion. The French automotive industry’s shift toward leveraging digital vehicle cockpits has also opened up new market opportunities.
 

The rapid growth in the French automotive sector has bolstered the demand for Android-based operating systems. For instance, the Renault-Nissan-Mitsubishi Alliance and Google announced a tech partnership to embed the Android operating system in vehicles sold by the three automakers starting from 2021. The Alliance is focusing on next-generation connected technology, and the partnership forms a part of Alliance market strategy to equip more vehicles with connectivity. The regional market will also be propelled by increasing popularity of ADAS and offers on sales of luxury vehicles.
 

Growing electro-mechanical components in modern cars to augment the U.S. powertrain segment

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In the U.S., the drivetrain ECU segment accounted for more than 25% of the automotive operating systems market share in 2020. Modern powertrain system in monitored and managed through an on-board computer network. With the technology evolutions, the automotive OEMs are integrating advanced electronics devices & circuits with high-data requirements. These circuits transfer the large volume of data to in-vehicle on-board computers for smooth functioning of mechanical components. Considering the amount of data to be transmitted, the demand for sophisticated OS to support the data transfer will increase significantly.
 

An upward trend for smart logistics to enhance the commercial vehicle market demand in Brazil

In Brazil, the commercial vehicle segment is set to attain above 20% CAGR through 2027 owing to the rising use of connected vehicle technologies by fleet owners. All major truck manufacturers in the region are integrating advanced OS into their vehicles. Mercedes-Benz, Volvo, and Scania have been early movers in integrating fleet telematics, creating new avenues for industry expansion. Automotive operating systems are enabling Brazilian transportation enterprises to improve driver safety and riding experience whilst providing improved connectivity.
 

Presence of multiple OEMs and technology leaders to foster North America market revenue

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North America automotive operating systems market held a prominent portion with over 30% revenue share in 2020. The regional market is characterized by the presence of a large number of automakers and technology players. The increase in the number of connected cars and expansion of leading OEMs are major factors contributing to the industry statistics. The region also has a favorable market regulatory framework for self-driving vehicles. This has allowed companies to conduct tests on autonomous vehicles and develop sophisticated OS & middleware, ushering new market opportunities.
 

Many automakers, including Tesla, Google, and Audi, are in a race to mass produce fully driverless vehicles for the Canadian market. The University of Waterloo, the Erwin Hymer Group, and Blackberry QNX have already launched a pilot project that tests driverless vehicles on Ontario roads, which is anticipated to strengthen the foothold of QNX automotive OS in the country.

Capitulating on partnerships the premier go-to-market strategy for industry vendors

Some of the key players operating in the automotive operating systems market are AUTOSAR, ArcherMind Technology (Nanjing) Co., Ltd., Automotive Grade Linux, Baidu, Inc., BlackBerry Limited, BMW AG (Bayerische Motoren Werke AG), Continental AG, Ford Motor Company, General Motors Company, GENIVI Alliance, Android (Alphabet Inc.), Green Hills Software LLC, Mentor Graphics Corporation, Mercedes-Benz AG (Daimler AG), Microsoft Corporation, MONTAVISTA SOFTWARE, LLC, Neusoft Corporation, Tesla Inc., Thunder Software Technology Co., Ltd, Toyota Motor Corporation, Volkswagen AG, and Wind River Systems, Inc.
 

The automotive OS industry is currently in the experimental phase. It is a nascent market, and major automotive manufacturing companies are partnering with OS vendors to provide enhanced security and OTA in connected vehicles. For instance, in February 2020, ThunderSoft and Didi Chuxing partnered to co-develop intelligent in-vehicle OS solutions for automotive manufacturers. The partnership is aimed to accelerate the development of Intelligent Connected Vehicle (ICV) with the support of ThunderSoft's OS technology and DiDi's AI technology.
 

This automotive operating systems (OS) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By OS Type

• Android
• Linux
• QNX
• Windows Embedded Automotive 7
• Others

Market, By Vehicle Type

• Passenger Vehicles
  • Sub-compact Cars
  • Compact Cars
  • Mid-size Cars
  • Full size Cars
• Commercial Vehicles
  • Trailers
  • Buses
  • Truck
  • Heavy Equipment

Market, By ECU Function

• Powertrain
• Body Comfort & Control
• Infotainment
• Communication
• Safety & ADAS

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
  • Sweden
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • ANZ
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa