Analysis by OS Type (Android, Linux, QNX, and Windows Embedded Automotive 7); by Vehicle Type (Passenger Vehicle, and Commercial Vehicle); and by ECU Function (Powertrain, Body Comfort & Control, Infotainment, Communication, and Safety & ADS) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global automotive operating systems market is estimated to garner a revenue of around USD 15 Billion by the end of 2035 by growing at a CAGR of ~10% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of nearly USD 5 Billion in the year 2022. The growth of the market can be attributed to the increasing demand for smart, autonomous, and luxury vehicles across the world. Furthermore, consumers are opting for automotive operating systems in their new vehicles, that is further expected to rise the growth of the market. The data from the year 2022 shows that China accounts for more than 54% of all smart vehicles sold worldwide to date. Moreover, Lamborghini manufactured around 100 vehicles in India; the automaker sold nearly 92 vehicles in 2022, this is an approximate 33% increase over the previous year.
In addition to these, factors that are believed to fuel the market growth of automotive operating systems include the rise in efforts put by the public and private sectors to augment the automotive industry in the world. The European Union (EU) invested almost USD 60 billion in automotive research and development in 2020. Moreover, by 2025, Japanese automaker, Toyota Motor aims to have its own vehicle software platform in place, capable of handling everything from fundamental operations to cutting-edge features such as autonomous driving. Furthermore, it intends to collaborate with tech firms, rivals such as Tesla and VW, and other automakers to create the software that would power the upcoming generation of vehicles.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~10% |
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Base Year Market Size (2022) |
~ USD 5 Billion |
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Forecast Year Market Size (2035) |
~ USD 15 Billion |
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Regional Scope |
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Growth Drivers
Growing Demand for More Safety Features– the operating system improves the advance braking system of the car and provides better coordination to ADAS features. By the year 2020, only 10% of the 1 billion cars on the road worldwide had advanced driver assistance systems (ADAS) characteristics. In significant markets such as Mainland China, ADAS features are now standard on one-third of new cars.
Rising Use of IoT in Automobiles – The connectivity to gadgets within the car as well as to the infrastructure along the road is directly influenced by the operating system of the car. Hence, it is projected to increase the growth of the market over the forecast period. In 2021, nearly 237 million cars were connected to the Internet of Things (IoT) across the globe, moreover, it is expected that by 2025, around 400 automobiles are likely to be connected.
Rising Investment in Automobile Technology – The better investment influx is expected to drive the automotive technology, and it is expected to surge the growth of the market in the upcoming years. In order to further the development of mobility technologies in fields including autonomous driving, robotics, and A.I., the government of India anticipates an investment of more than USD 8 billion in local and foreign by the end of the year 2023.
Surging Demand for Electric Vehicles – The operating system primarily gives data on the whereabouts and battery life of EVs. Therefore, it is predicted to rise the growth of the global automotive operating systems market. In 2021, global sales of electric vehicle (including completely electric and plug-in hybrid vehicles) doubled to 6.6 million, setting a new record. Now, more electric vehicles are sold each week than were sold in all of 2012.
Higher Collaboration Among Companies to Scale the Operating Systems – AICAS, AVL, and Citos collaborated with Automotive Grade Linux (AGL) to establish an open-source platform for connected automobile technology.
Challenges
The global automotive operating systems market is segmented and analyzed for demand and supply by vehicle type into passenger vehicle, and commercial vehicle. Out of the two types of vehicles, the passenger vehicle segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing sales of passenger cars across the globe. Furthermore, the improving standard of living, followed by the urbanization population is further anticipated to surge the growth of the segment by the end of the year 2035. Almost 46% of all new cars sold worldwide in 2022 were SUVs, with significant growth seen in the US, India, and Europe. Despite supply chain issues and rising prices, global SUV sales rose as well, climbing by about 3% between 2021 and 2022. Furthermore, in 2021, over 3 million passenger cars were sold in the US, moreover, nearly 56 million were sold in China, and close to 2 million were sold in Germany.
The global automotive operating systems market is also segmented and analyzed for demand and supply by ECU function into powertrain, body comfort & control, infotainment, communication, and safety & ADS. Amongst these five segments, the infotainment segment is expected to garner a significant share over the forecast period. The growth of the segment can be attributed to rising demand of display units and GPS feature in the cars. Additionally, the automotive infotainment system is formed by the construction of numerous electric control units, and the few component that makes up the infotainment system, includes DSPs, and GPUs, automotive sensors, heads-up display, operating systems, and others. For instance, 93% of individuals rely on GPS, and over a fifth of them use it daily in the United States.
Our in-depth analysis of the global automotive operating systems market includes the following segments:
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By OS Type |
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By Vehicle Type |
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By ECU Function |
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The Asia Pacific automotive operating systems market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the increased sales of automobiles in the region. India moved up to third place globally in auto sales last year, passing Japan. Japan only sold about 4 million new automobiles in the country, however, in India at least 5 million were sold. Furthermore, growing investment in the auto-tech industry is also expected to boost the market’s growth over the forecast period. Volkswagen announced a collaboration with auto chip start-up Horizon Robotics to invest around USD 2 billion in China’s automotive sector to develop specialized smart driving solutions. Moreover, to further its ambition for autonomous driving and smart technology, Continental has invested in Shanghai Enjoy Move Technology, Motovis, and other businesses.
The North American automotive operating systems market, amongst the market in all the other regions, is projected to hold the second largest market share by the end of 2035. The market growth in the region is expected on account of the increasing demand for electric cars. In 2021, nearly 630,000 electric vehicles were sold in the United States, doubling their share to approximately 5%. Besides this, the rising need for better safety in cars is anticipated to augment the market growth in the region. There is at least one ADAS in 92.7% of new cars in the United States. Furthermore, it is expected that by 2043, around 95% of registered vehicles in the United States, are likely to be employed with more safety features, such as parking sensors, basic software, lane departure warning, and a rear-view camera.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Increasing sale of electric cars, higher number of vehicles connected to IoT, rising collaboration among companies, and increasing investment in automotive industry are the major factors driving the market growth
Ans: The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2023 – 2035.
Ans: Rising complexity of vehicles, lack of skilled professionals, and shortage of standard regulation for developing the software are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are General Motors, Automotive Grade Linux, BMW Group, Montavista Software, LLC, Tesla, Mercedes-Benz Group AG, Red Hat, Inc., Toyota Motor Corporation, Volkswagen AG, and AUTOSAR
Ans: The major players in the market are BASF SE, Praxair, Inc., China Petrochemical Corporation, Linde plc, Gulf Cryo, Akzo Nobel N.V., AmeriGas Propane, L.P., Ferrellgas Partners, L.P., and others.
Ans: The market is segmented by OS type, vehicle type, ECU function, and by region.
Ans: The passenger vehicle segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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