As we step into the age of autonomous vehicles, it is crucial to recognize the significance of automotive operating systems. These intricate software systems serve as the foundation for cars providing a wide range of functionalities such as advanced safety features and seamless infotainment experiences. But what exactly are automotive operating systems and why should we be concerned?
In terms automotive operating systems serve as the intelligence behind your cars functioning. They govern everything from the engine and transmission to the entertainment system and climate control. Without them our cars would merely be metal shells, on wheels. Moreover, as we look ahead to a future where cars will increasingly navigate themselves these systems role will grow more pivotal.
The automotive operating systems market is changing quickly due to technological advancements and the rising popularity of connected vehicles. According to a report by Research Nester, the Automotive Operating Systems Market is expected to reach over USD 15 Billion by 2035 with a growth rate of 10%, between 2023 and 2035. In 2022, the size of the operating systems industry was approximately USD 5 Billion.
Market Trends and Drivers:
Rising Demand for Connected Cars:
An important trend in the automotive operating systems market is the growing desire for connected cars. In 2020 it was noticed that 28 million new connected vehicles were purchased, accounting for about 40% of global new car sales. As consumers increasingly look for vehicles that seamlessly integrate with their lifestyles car manufacturers are making significant investments in creating operating systems capable of supporting advanced functionalities like real time traffic updates, remote diagnostics and, over the air software updates.
Autonomous Driving Technologies
The competition to develop vehicles is in full swing as car manufacturers and technology giants are making substantial investments in self driving technology. A significant portion of drivers in the United States 35% believe that self-driving features contribute to improved driving experiences. An automotive operating system plays a role in coordinating the intricate sensor inputs, data processing and decision making processes necessary for autonomous driving. As autonomous features become increasingly prevalent the demand, for operating systems will undoubtedly increase accordingly.
Electric Vehicle Revolution
The global trend towards electric vehicles (EVs) is picking up speed because of growing environmental concerns and government regulations. Experts at the International Energy Agency suggest that EVs are the technology for reducing carbon emissions in the transportation sector, which contributes to more than 15% of global energy related emissions. Automotive operating systems play a role, in efficiently managing power distribution, battery management and charging systems in EVs making them an indispensable part of the EV ecosystem.
Security and Over-the-Air (OTA) Updates
As the connectivity of vehicles continues to advance ensuring cybersecurity measures becomes increasingly crucial. Automotive operating systems provide security functionalities that safeguard against cyber threats. Moreover, they facilitate over the air (OTA) updates, enabling manufacturers to address vulnerabilities and enhance vehicle performance without necessitating a trip, to the dealership.
The automotive industry is gradually incorporating the Internet of Things (IoT) into its operations, which brings benefits such as vehicle to vehicle (V2V) communication and intelligent traffic management. The percentage of car manufacturers adopting IoT technologies has risen from 12% in 2014 to 27% in 2019. It is anticipated that by 2025 all new car models will come equipped with connectivity. Automotive operating systems play a role in efficiently managing the intricate network of IoT connections both, inside and outside vehicles.
- The Asia Pacific region is expected to dominate the operating systems market with a projected share of approximately 35% by 2035. This growth is driven by increased collaborations among companies aiming to enhance their operating systems. For instance, Volkswagen recently joined forces with Horizon Robotics, an auto chip starts up to invest around USD 2 billion in Chinas sector. Their goal is to develop smart driving solutions that cater to specific needs. These collaborations in the region are likely to foster innovation, in operation systems and offer customers the latest features and technologies.
- The market is segmented by ECU Function into Powertrain, Body Comfort & Control, Infotainment, Communication, Safety & ADS. Among these, the infotainment segment is expected to gain the highest market share in the near future due to increased consumer demand for display screens and GPS capabilities, in automobiles. In-car infotainment systems offer a range of features that blend entertainment and information while also providing connectivity to cloud services.
- The automotive operating systems market is dominated by a few key players, each with their own strengths and weaknesses. Some of the leading players include AUTOSAR, General Motors, Automotive Grade Linux, BMW Group, Montavista Software, LLC, Tesla, NVIDIA Corporation, Mercedes Benz Group AG, Red Hat, Inc., Toyota Motor Corporation, Volkswagen AG.
- In January of 2023, NVIDIA Corporation formed a collaboration with Hon Hai Technology Group (Foxconn) a player in the technology manufacturing sector. Through this partnership they aim to leverage their strengths and jointly create an advanced platform, for automated and self-driving vehicles that provide innovative intelligent driving solutions.
Challenges and Opportunities
Although the automotive operating systems market offers many prospects for growth and advancement, it also poses certain difficulties. One of the hurdles in this industry is the constant requirement for updates and enhancements to stay abreast of the ever changing technology landscape. Companies must make an investment, in this regard as failing to do so could leave them trailing behind their competitors.
Another issue to tackle is guaranteeing the security and safety of these systems. As cyber threats and hacking attempts increase automotive operating systems need to prioritize security measures to safeguard both the driver and passengers. This calls for an amount of expertise and resources which might pose a challenge for newcomers, in the market. Nonetheless those who can effectively overcome these challenges stand to gain market share and profitability.
The Automotive Operating Systems market’s expansion is intricately linked to the industry’s progress in connectivity, autonomy, electrification and improved user experiences. These operating systems act as the foundation of contemporary vehicles allowing for the integration of state of the art technologies that are shaping the future of transportation. As car manufacturers and technology companies continue to drive innovation and explore frontiers in the automotive realm there will be an increased demand for advanced operating systems solidifying their pivotal role, within the automotive ecosystem.