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Future of Automotive Operating System Market: Size, Share & Forecasts to 2029
Automotive Operating System Market
What Is the Projected Market Size Valuation of the Automotive Operating System Market by 2025?
The size of the automotive operating system market has seen significant growth recently. From 2024 to 2025, it's projected to surge from $8.87 billion to $9.79 billion, indicating a compound annual growth rate (CAGR) of 10.3%. The historical growth in this sector is driven by factors such as the rise of connected automobiles, an increased need for infotainment and telematics services, the evolution of electric and autonomous vehicles, regulatory mandates for safety and cybersecurity, and the implementation of advanced driver assistance systems.
What Is the Estimated Market Growth Value for the Automotive Operating System Industry in 2029?
In the coming years, the automotive operating system market is anticipated to experience significant expansion. It is projected to reach a value of $14.35 billion in 2029, with a 10.0% compound annual growth rate (CAGR). This predicted growth within the timeframe can be related to the implementation of artificial intelligence (AI) and machine learning, development of in-car digital ecosystems, preference for improved customer experience and customization, breakthroughs in vehicle-to-everything (v2x) communication and heightened focus on software-controlled vehicles. Emerging trends within the forecast period encompass the elevation of over-the-air (OTA) updates, widespread usage of automotive-grade Linux, escalating acceptance of hypervisor technology, the rise of subscription-based software models, and a strengthened emphasis on cybersecurity and over-the-air (OTA) security updates.
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What Are the Growth Drivers and Opportunities in the Automotive Operating System Market?
As the inclusion of advanced driver-assistance systems (ADAS) continues to increase, it is predicted to boost the automotive operating system market. ADAS involves a collection of technologies and safety features aimed at assisting drivers and improving vehicle safety through automation and alerts. An increase in safety guidelines, consumer desire for top-tier safety features, and strides in sensor and computing technology, all contribute to the rising adoption of ADAS thus improving vehicle safety and minimizing accidents. The automotive operating system offers the software infrastructure required for the integration and management of sensor data, processing algorithms, and controlling vehicle features, which in turn allows the incorporation of complex safety features and self-driving capabilities. Such operating systems facilitate flawless communication and coordination among various ADAS components, thereby elevating system dependability and overall performance. For instance, the Highway Loss Data Institute, a US-based not-for-profit organization, predicted in April 2022 a significant progression in adding advanced driver assistance and safety features in registered vehicles for 2026, with a predicted growth rate surpassing 20%. Furthermore, the presence of front automatic emergency braking (AEB) systems among registered vehicles is estimated to surge from 18% in 2021 to approximately 43% by 2026. Consequently, the expanding inclusion of advanced driver-assistance systems (ADAS) is fueling the automotive operating system market's growth.
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What Are the Primary Segments Covered in the Global Automotive Operating System Market Report?
The automotive operating system market covered in this report is segmented -
1) By Vehicle Type: Passenger Car, Commercial Vehicle
2) By Operating System Type: QNX, Linux, Windows, Android, Other Operating System Types
3) By Application: Advanced Driver-Assistance Systems (ADAS) And Safety System, Autonomous Driving, Body Control And Comfort Systems, Communication Systems, Connected Services, Infotainment Systems, Engine Management And Powertrain, Vehicle Management And Telematics
Subsegments:
1) By Passenger Car: Electric Passenger Cars, Hybrid Passenger Cars, Internal Combustion Engine (Ice) Passenger Cars, Luxury And Premium Passenger Cars, Autonomous Passenger Cars
2) By Commercial Vehicle: Light Commercial Vehicles (Lcvs), Heavy Commercial Vehicles (Hcvs), Electric Commercial Vehicles, Autonomous Commercial Vehicles, Trucks And Delivery Vehicles
What Are the Top Growth Trends in the Automotive Operating System Market?
Major automotive operating system firms are concentrating on creating innovative automotive technologies such as next-generation automotive enhanced (AE) processors and advanced server-class Neoverse technology to boost their market profitability. Next-generation AE processors are superior processing units engineered for automotive uses providing enhanced performance, efficiency, and connectivity features to facilitate autonomous driving systems and in-vehicle computing. Server-class Neoverse technology is high-performance server processors constructed on Arm architecture, tailored for data center duties, cloud computing, and edge computing uses, delivering scalability, reliability, and energy efficiency. For instance, in March 2024, UK-based Arm Holdings plc, a leading semiconductor and software design firm, unveiled a collection of new automotive technologies made to fast-track the creation of AI-powered vehicles. This set encompasses Armv9-based technologies, next-generation AE processors, server-class Neoverse technology, fresh Armv9-based Cortex-A processors, customisable system IP, and virtual prototyping solutions. These technologies have objectives to augment AI capacities, ensure safety, offer virtualization, and expedite the creation of AI-powered vehicles.
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Which Companies Are Shaping the Future of the Automotive Operating System Market?
Major companies operating in the automotive operating system market are Apple Inc., Volkswagen AG, Alphabet Inc., Toyota Motor Corporation, Microsoft Corporation, Mercedes-Benz AG, General Motors Company, Honda Motor Co. Ltd., Hyundai Motor Company, LG Corporation, BYD Company Limited, Renault Group, NVIDIA Corporation, Faurecia S.A., Valeo S.A., DXC Technology Company, Renesas Electronics Corporation, Groupe PSA, Snap-on Incorporated, BlackBerry Limited, Wind River Systems Inc., Green Hills Software LLC, HTC Corporation, Automotive Grade Linux
Which Region Holds the Largest Market Share in the Automotive Operating System Industry?
Asia-Pacific was the largest region in the automotive operating system market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive operating system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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