Automotive Operating System Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Operating System Type (Android, Linux, Windows, QNX and Others), By Application (Infotainment System, ADAS & Safety System, Connected Services, Body Control & Comfort System, Powertrain Control, and Others), and Regional Forecast, 2023-2030

The automotive operating system market size was valued at USD 6.19 billion in 2022. The market is projected to grow from USD 6.59 billion in 2023 to USD 10.65 billion by 2030, exhibiting a CAGR of 7.1% during the forecast period.

Automotive operating systems refer to specialized software platforms that manage and control various electronic and computer components within a vehicle. Modern vehicles are equipped with a variety of electronic systems and sensors that require coordination and communication to ensure proper functionality and performance. A vehicle's operating system serves as the foundation for managing these complex interactions.

The growth of the automotive operating system market is attributed to the increasing number of electronic components and systems in modern vehicles, ranging from engine control and infotainment to Advanced Driver Assistance Systems (ADAS) and autonomous driving features. Demand for connected cars is increasing, with consumers expecting advanced features, such as in-vehicle infotainment, navigation, telematics, and connectivity to external devices. Automotive OS plays a key role in enabling these functions and supporting communication between the vehicle and external networks.

COVID-19 IMPACT

Disruptions in Supply Chain Impacted Demand for Operating Systems for Vehicles

The automotive industry experienced significant supply chain disruptions due to lockdowns, factory closures, and travel restrictions. This disrupted the production of vehicles, including those with advanced operating systems. Manufacturing delays and component shortages impacted the overall demand for automotive operating systems. Many automakers temporarily halted production or reduced their production capacity during the early stages of the pandemic. Lower manufacturing volumes and decreased consumer confidence caused a major decline in vehicle sales and impacted the integration of new automotive OS.

The post-pandemic situation observed the market recover gradually toward the end of 2021 as governments in different regions partially or fully allowed the operation of various industries depending on the containment of the virus. It led to an increase in automotive sales post-pandemic and boosted the demand for automotive operating systems.

Automotive Operating System Market Trends

Increasing Vehicle Connectivity and Advancements in OTA Updates to Fuel Market Growth

Automotive operating systems are evolving to support expanded connectivity features and enable more seamless integration with external networks. Over-the-air (OTA) updates are becoming the norm, allowing manufacturers to remotely update software, fix bugs, and introduce new features without requiring physical intervention. The introduction of 5G technology into vehicle operating systems is an important trend. 5G connectivity offers faster data transfer speed, lower latency, and greater capacity. This enables more robust and reliable communication between vehicles, infrastructure, and the cloud, thereby supporting applications such as autonomous driving and advanced telematics.

Vehicle-to-Everything (V2X) communication involves vehicles communicating with each other (V2V), with infrastructure (V2I), with pedestrians (V2P), and with the network (V2N). Automotive operating systems are incorporating V2X capabilities to enhance safety, traffic management, and overall efficiency on the road.

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Automotive Operating System Market Growth Factors

Rising Proliferation of ADAS and Autonomous Driving Features to Fuel Market Growth

The automotive industry is experiencing a surge in the development and integration of Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies. These systems rely heavily on sensors, cameras, radar, LiDAR, and other electronic components, all of which require coordination and management by the vehicle's operating system. The operating system plays a crucial role in processing data from these sensors and ensuring that safety-critical features function properly. Modern consumers expect advanced infotainment and connectivity features in their vehicles. This includes in-car entertainment, navigation systems, smartphone integration, and connectivity to external devices and networks.

Rising Complexities of In-Vehicle Electronics to Propel Demand for Advanced Automotive Operating Systems

The increasing integration of complex electronic systems and software control functions characterizes the modern automotive landscape. Several factors drive this complexity, and in response to these challenges, the demand for advanced automotive operating systems is increasing. The increasing complexity of vehicle electronics has boosted the demand for sophisticated and powerful operating systems for vehicles. As vehicles become more sophisticated and feature-rich, operating systems become critical to innovation, safety, and user experience.

Manufacturers and suppliers in the automotive operating systems market are responding to the high demand by developing solutions that address the complexity of modern vehicle architectures. These solutions also ensure seamless integration, reliability, and performance across a vast range of electronic systems and functions. This market is driven by the need to address the challenges created by the increasing complexity of automotive electronics and the industry's commitment to delivering safe, connected, and technologically advanced vehicles.

RESTRAINING FACTORS

Increasing Cyber Threats Due to Connected Vehicles to Restrain Automotive Operating System Market Growth

As vehicles become more connected and rely on electronic control systems, cybersecurity risks in vehicle operating systems have become a major concern. The rising integration of advanced technologies, such as infotainment systems, telematics, and autonomous driving features, makes vehicles a potential target for cyber threats. Vehicles with connected systems are vulnerable to unauthorized access by malicious hackers. Hackers may exploit vulnerabilities in the automotive operating system to gain control over critical functions, potentially affecting safety-critical systems, such as braking and steering.

Modern vehicles collect and store a vast amount of vehicle-sensitive data, such as personal information, location data, and vehicle performance data. A cybersecurity and data breach can lead to unauthorized access and theft of this information, posing privacy concerns for vehicle owners. These factors may restrain the market growth over the forecast period.

Automotive Operating System Market Segmentation Analysis

By Vehicle Type Analysis

Growing Demand for Advanced Infotainment Systems in Modern Cars Increased Sales of Passenger Cars

Based on vehicle type, the market is segmented into passenger car and commercial vehicle.

The passenger car segment dominated the automotive operating system market share in 2022. Modern passenger vehicles are equipped with advanced infotainment systems with ADAS features for improving in-vehicle user experience, which require sophisticated software. Automotive OS provides the platform for these systems to function effectively. The growing consumer preference for user-friendly experience in their vehicles is expected to drive the market growth.

The commercial vehicle segment is expected to record the highest growth rate over the forecast period. The growth of the segment is attributed to the rising demand for advanced fleet management and telematics solutions. Automotive OS plays a crucial role in enabling real-time tracking, monitoring fuel efficiency, and optimizing routes. It also helps improve the overall fuel efficiency and manage emissions in commercial vehicles. Efficient software algorithms can help optimize engine performance and reduce the environmental impact of the fleet.

By Operating System Type Analysis

Security and Reliability Features of QNX Increased Their Demand

Based on operating system type, the market is segmented into Android, Linux, Windows, QNX and others.

The QNX segment held the leading market share in 2022. A QNX operating system offers various features, such as performance, scalability, security, and real-time execution. Real-time capabilities are essential for systems that require immediate responses, such as those in ADAS. QNX is quite flexible as it allows the system to adapt to different hardware platforms and integrate seamlessly into various automotive applications. It has also obtained certifications and compliances that are important in the automotive industry, such as ISO 26262 for functional safety.

The android segment is expected to record the highest CAGR over the forecast period. The segment’s growth is attributed to the growing demand for user-friendly in-vehicle infotainment interfaces. Automotive android is a variant of the android operating system designed specifically for in-car infotainment and connectivity features. It also leverages the extensive app ecosystem of the android platform. This allows automakers to offer a wide range of applications and services, from navigation and music streaming to voice assistants and other connected services.

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By Application Analysis

Growing Demand for Feature-loaded Infotainment Systems Drove Adoption of Automotive OS

Based on system, the market is segmented into infotainment system, ADAS & safety system, connected services, body control & comfort system, powertrain control, and others.

The infotainment system segment held a major share in the automotive operating system market. With the advent of smartphones and other smart devices, consumers have come to expect seamless connectivity and access to various applications while driving. Infotainment systems meet these expectations by offering features, such as music streaming, navigation, voice commands, and hands-free calling. Automotive manufacturers are increasingly integrating advanced technologies, such as touchscreens, voice recognition, augmented reality, and artificial intelligence into their infotainment systems. These features improve the overall driving experience and attract tech-savvy consumers.

The ADAS & safety system segment is expected to register a significant growth rate over the forecast period due to growing efforts toward the improvement of vehicle safety and surging adoption of ADAS systems across vehicles. These systems are integrated with advanced features, such as adaptive cruise control, automatic emergency braking, lane departure warning, and collision avoidance, all based on advanced software and operating systems. Many regions and countries have introduced or are considering regulations that require vehicles to be equipped with certain safety features. Compliance with these regulations often requires advanced ADAS and safety systems, thereby increasing the demand for automotive OS that can support these features.

REGIONAL INSIGHTS

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Greater Consumer Preference Toward Modern Vehicles with Advanced Operating Systems Drove Market Growth in Asia Pacific

Asia Pacific held a major automotive OS market share in 2022. The developing countries in the region, particularly China and India, are going through rapid economic growth, resulting in a rising middle class population and increasing consumer purchasing power. Along with this, the demand for cars equipped with advanced functions and technologies based on advanced OS is increasing. Various governments in Asia Pacific have introduced initiatives and regulations aimed at improving vehicle safety, reducing emissions, and enhancing overall transportation efficiency. These factors are supporting the market growth in the region.

Europe is expected to display a significant growth rate over the forecast period. The region has been at the forefront of implementing stringent regulations related to vehicle safety, emissions, and cybersecurity. Compliance with these regulations often requires advanced operating systems that can support sophisticated safety features, connectivity, and emission control systems. European countries are investing in smart infrastructure and intelligent transport systems to improve road safety and traffic management. Automotive operating systems that support connectivity, communication between vehicles, and interaction with smart infrastructure are in demand due to these initiatives.

North America is expected to register a substantial growth rate over the forecast period. The region, particularly the U.S., has been a hub for technological innovation in the automotive industry. Advanced operating systems are in demand to support features, such as infotainment systems, connectivity, and Advanced Driver Assistance Systems (ADAS).

List of Key Companies in Automotive Operating System Market

Major Market Players to Focus On Development of Automotive OS Products to Sustain Growing Market Competition

A few key market players, such as BlackBerry Limited, Microsoft Corporation, Alphabet Inc., and Apple Inc., dominate this market. These companies are continuously focusing on upgrading their software applications to support in-vehicle entertainment and other vehicle safety features. For instance, in May 2023, BlackBerry Limited introduced Software Development Platform (SDP) 8.0. This platform is designed to empower automakers and developers working on IoT systems to create more robust products with reduced costs. It ensures that the high standards of safety, security, and reliability, for which QNX technology is renowned, are maintained.

LIST OF KEY COMPANIES PROFILED:

• BlackBerry Limited (Canada)


• Microsoft Corporation (U.S.)


• Alphabet Inc. (U.S.)


• Apple Inc. (U.S.)


• Wind River Systems, Inc. (U.S.)


• Hitex GmbH (Germany)


• Bayerische Motoren Werke AG (Germany)


• Baidu, Inc. (China)


• NVIDIA Corporation (U.S.)


• Green Hills Software (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: BlackBerry Limited unveiled QNX Sound, a groundbreaking development platform designed to separate audio and acoustics software from vehicle hardware. This separation provides audio designers and engineers with unparalleled creative freedom, enabling them to create innovative in-vehicle sound experiences. The platform comes pre-integrated with BlackBerry QNX® Real-Time Operating System (RTOS) and QNX Hypervisor. It incorporates an audio extension mechanism, empowering third-party signal processing suppliers to compile and deploy their c-code algorithms.


• October 2023: Qt Group partnered with Mercedes-Benz to develop the next-generation operating system. Mercedes-Benz has transitioned to Qt 6 and is utilizing the Qt framework along with design, development, and quality assurance tools to facilitate the creation of its eagerly awaited operating system, MB.OS across all its vehicles and displays. Qt's support will facilitate cross-platform development, reducing time-to-market.


• June 2023:  Polestar, a Swedish electric vehicle company, partnered with Xingji Meizu to build an automotive OS for its cars sold in China. This partnership is expected to help Polestar equip its vehicles with the latest smart technologies.


• March 2023: BMW Group announced the expansion of its BMW Operating System 8 and the integration of Android Automotive OS (AAOS) into certain model series. This development is expected to help vehicle owners experience customized digital experiences in their vehicles.


• October 2022: Elektrobit partnered with Canonical to bring features and benefits from the Ubuntu operating system to automotive applications. Integrating Canonical's first open-source Linux operating system with Elektrobit's proficiency in automotive-grade embedded software will facilitate sustained maintenance, over-the-air updates, and inventive advancements in vehicle safety.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and top product technologies. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors listed above, the report encompasses several factors that have contributed to the market's growth in recent years.

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