Increased acquisitions, mergers, partnerships amidst growing demand for feature-driven technology and satellite-connected navigation technology remains a promising prospect in the automotive operating system market, eventually fuelling the global market for automotive operating systems to reach $ 11.05 billion by 2027.
According to Brandessence Market Research & Consulting, the global automotive operating system market is expected to grow at a CAGR of 12.9% during 2020-2027.
Buses are expected to hold the largest share of the operating system market share among commercial vehicles in 2020. Increased efficacy of mass-charging facility, tremendous cost-savings in fuel, and growing public support for electric infrastructure and sustainable policies remain key growth drivers.
The automotive operating systems market remains a promising landscape for robust innovation and business opportunities. The market is fragmented, with several new players entering the arena to develop add-ons for driving systems, navigation, entertainment, and information. Growing innovation in areas like navigation and increased cross-collaboration between players remain a significant promise for new entrants and prominent players alike.
Electric Vehicles
The electricity consumption from electric vehicles is set to increase six-fold between 2019-2030. At the consumer front, demand for the adoption of digital systems continues to skyrocket. Key consumer demands include automated driving, navigational software, entertainment, safety systems, and Advanced Driver Assist Systems (ADAS).
In addition, the growing demand for electric vehicles has pushed the frontier of innovation through automation to the next level. This is mainly because, with electric cars, conventional engine parts like camshafts, valves, transmission gears, connecting rods, clutches, and other major complexities have gone out the window, leading to tremendous cost-savings and more space for additional engineering.
Some major key players in the global automotive operating system market include AUTOSAR, Automotive Grade Linux, BlackBerry, BMW, Continental, General Motors, Green Hills Software, Mentor Graphics, Mercedes-Benz, Montavista Software, Neusoft, Thunder Software Technology, Volkswagen, Wind River Systems, Baidu, Ford, Genivi Alliance, Microsoft, Tesla and Toyota.
According to Brandessence Market Research & Consulting, about 10 million electric vehicles occupied global roads by 2020. Furthermore, registration for electric vehicles increased by 41% in the same year, while demand for regular vehicles dropped due to the pandemic. As a result, the automotive operating system market size continues to grow, as electric vehicles registered a 4.6% share of the global vehicle sales, thanks to demand in major regions including Europe, Asia Pacific, and North America. In addition, conventionally quiet segments like sales of electric buses and trucks also reached new heights, with tremendous growth momentum.
Lead analysts at Brandessence Market Research predict tremendous growth for the automotive operating system market. According to its lead experts, 'Embedded automotive system remains key focus of auto manufacturers globally, with as much as 90% innovation taking place in the niche. Furthermore, developing electronic control units accounts for 40% of total vehicle development expenses. Growing consumer demands for automation and features, lack of established standard protocol, and open opportunity for innovation for both vehicle manufacturers, as well as independent third-parties, are expected to remain key drivers of growth in the automotive operating system market'.
Regional Analysis
The automotive operating system market is divided into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Among these, the North American region is likely to hold the largest share of revenues globally. The growing demand for electric vehicles in the area, major electric vehicle players like Tesla, and growing innovation from regional tech players like Google, Microsoft remain key drivers of growth in North America. Europe is expected to follow the promising forecast, as it overtook China in electric vehicle sales in 2020. The Asia Pacific region will likely hold the third-largest share of revenues, with increased demand for digitised two-wheelers and three-wheelers.
Key Trends
Brandessence Market Research & Consulting observed that the auto manufacturing industry quickly increased onboard processing power and data flow capacity. In addition, the advent of technologies like 5G has enabled prospects like communication with surrounding infrastructure, other vehicles, and cloud services. In order to bridge the gap, systems like ADAS systems, automated driving platforms, entertainment systems, and information systems and developing subsequent data load capacities is the key. Furthermore, enhanced vehicle security systems also remain crucial to integrating next-gen vehicles in the current ecosystem.
The automotive operating system market growth is increasingly moving towards the adoption of centralised models of software development. The low-cost entry for new players, and limited innovation scope for autos into areas like robust software development, and growing demand for domain-independent vehicle computers remain key drivers of this growth. Integrated cloud solutions from major tech companies enabling robust automation also remain the key driver of this growth.
Consumer demand is increasingly shifting towards the adoption of subscription models for software. This trend is witnessed across industries and is moving consumers away from perpetual software licensing models, the research firm said. Besides, increasing vendors are experimenting with price, and licensing models, thanks to robust competition, and need to acquire the largest customer pool. In addition, most software is provided through cloud installations, as opposed to a traditional installation. Vendors also show increased willingness to adopt mobile platforms, cloud, SaaS, and general virtualisation technologies, the market research and consulting company added.
Courtesy: Brandessence Market Research & Consulting. NB: Photo is representational; courtesy: BMW.