Rise of Software-Defined Mobility Fuels Automotive OS Market to US$20.4 Billion by 2032 at 14.6% CAGR

According to the report, the global automotive operating systems industry generated $5.4 billion in 2022 and is anticipated to generate $20.4 billion by 2032, witnessing 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.

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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.

Based on OS type, the Linux segment held the highest market share in 2022, accounting for nearly two-fifths of the global automotive operating system market revenue, and is estimated to maintain its leadership status throughout the forecast period. This is because it provides a robust and flexible platform for managing and controlling various functions and components within a vehicle, including advanced driver assistance systems (ADAS), infotainment systems, and vehicle diagnostics, among others. However, the Android segment is projected to manifest the highest CAGR of 18.1% from 2023 to 2032. This is due to the fact that it offers a range of features and functionalities tailored to meet the unique requirements of vehicles.

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.

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Based on application, the infotainment system segment held the highest market share in 2022, contributing to around one-fourth of the global automotive operating system market revenue, and is estimated to maintain its leadership status throughout the forecast period. The growth is attributed to its software for gathering data, including vehicle location, driver behavior, engine diagnostics, and vehicle activity. However, the ADAS and Safety System segment is projected to manifest the highest CAGR of 17.4% from 2023 to 2032. owing to the rise in demand for safety features in cars owing to the introduction of severe norms that make their installation mandatory 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.

Based on region, Europe held the highest market share in terms of revenue in 2022, holding more than one-fourth of the global automotive operating system market. owing to technological advancements, government regulations, and the presence of prominent automotive manufacturers and technology companies in the region. On the other hand, the Asia-Pacific region is estimated to maintain its leadership status throughout the forecast period. Simultaneously, the same region is expected to witness the fastest CAGR of 16.2% from 2023 to 2032. owing to growing demand for connected vehicles, driven by rising consumer expectations for advanced connectivity features.

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Leading Market Players: -

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
Microsoft Corporation

The report provides a detailed analysis of these key players in the global automotive operating system market. These players have adopted different strategies, such as new product launches, collaborations, expansion, joint ventures, agreements, and others, to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolios, and strategic moves of market players to showcase the competitive scenario.

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