Automotive Operating Systems Market is expected to witness significant to 2025

Asia Pacific is a lucrative region for the Automotive Operating Systems Market due to smart city initiatives and an increase in the demand for passenger vehicles in developing countries including China and India. According to the International Organization of Motor Vehicle Manufacturers, the passenger vehicle sales reached 23,529,423 in China and 4,064,774 in India in 2018. The rising internet penetration in the region coupled with the higher adoption of connected vehicles is increasing cyber threats, resulting in the growing need for reliable and secured automotive operating system solutions.

The rising disposable income is driving the rapid increase in the sales of luxury and premium cars, contributing to the growth of the automotive operating systems market. For instance, in 2018, Mercedes-Benz ****** sales increased to 0.9% from 2017. The confluence of technological trends, such as rising digitization solutions with virtual assistants, augmented reality, 3D maps, deep learning, machine learning, artificial intelligence, and smartphone mirroring systems to cater to the growing demand for passenger comfort and luxury, is anticipated to boost the automotive operating systems market.

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Automotive Operating Systems Market size is set to show rapid growth in the coming years owing to growing need for security in the increasing number of connected vehicles. For instance, connected cars are expected to increase from 10% of all vehicles on road in 2015 to 22% by 2020. Cars with self-driving features are expected to be 10 million by 2020. The rising internet penetration coupled with the increasing adoption of IoT and infrastructural development to support the growth of connected vehicles is driving in-vehicle infotainment and payment services, resulting in the automotive operating systems market growth.

Europe represents a key market for automotive operating systems solutions due to the increase in the demand for connected & autonomous vehicles. German government authorities are taking major steps for the adoption of connected vehicles. For instance, in August 2017, the government adopted the action plan for automated driving systems. The Ethics Commission at the Federal Ministry of Transport and Digital Infrastructure provided guidelines for the implementation of automated driving systems. This government initiative helped in the rapid & reliable adoption of automated driving across Germany. The adoption of smart cities in the region has enabled government authorities to improve the transportation system by connecting vehicles to roadside infrastructure and with each other. These connected vehicles require secured automotive operating systems to protect them from cyber-attacks and unauthorized access.

The automotive operating systems market is currently in the experimental phase. It is a nascent market and major automotive manufacturing companies are partnering with operating system vendors to provide enhanced security and OTA in connected vehicles. For instance, in September 2018, Google partnered with French Japanese automotive alliance carmakers (Renault, Nissan, and Mitsubishi) to embed its Android OS in vehicles manufactured by them. The partnership is intended to provide intelligent infotainment and customer-focused applications across multiple models and brands. The schedule to deploy the OS is anticipated to start by 2021 and OEM group is expecting a target sale of more than 14 million units a year by the end of 2020.

Some of the prominent players operating in the automotive operating systems market are Automotive Grade Linux (AGL), BMW AG, Ford Motor Company, GENIVI Alliance, General Motors Group, Google Android (Alphabet Inc.), Green Hills Software, Mercedes-Benz, Microsoft Corporation, QNX Software Systems Limited (BlackBerry Limited), Tesla, Inc., Toyota Motor Corporation, Volkswagen AG, and Wind River Systems, Inc.

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