Automotive Operating Systems Market Study by Demand Analysis and Growth Outlook to 2027

The automotive operating systems market has been segmented based on vehicle type, ECU function, type, and region. In terms of type, the market has further been divided into QNX, Android, Linux, Windows Embedded Automotive 7, and others.
Operating systems (OS) refer to software that control a computer's operations and navigates the processing of programs. Notably, the advent of autonomous vehicles, coupled with advancements in in-vehicles technologies, has prompted manufacturers to undertake extensive R&D activities to develop a more interactive and innovative user interface for vehicles, which has propelled automotive operating systems market uptake in recent years.
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The automotive operating systems market is set to observe exponential growth by 2027 owing to surging demand for autonomous vehicles globally.
Moreover, prominent automotive operating systems market players are implementing strategic initiatives to capitalize on growth opportunities in the booming market, which has been favorable for business growth. For instance, in February 2020, MontaVista Software, a leading software company specializing in embedded Linux commercialization, inked a partnership agreement with Mercury Systems, a major technology firm operating in the aerospace and defense industry, to offer hardened Linux to the aerospace and defense sector.
The Middle East & Africa automotive operating systems market is expected to see notable expansion at a CAGR of around 13% over the stipulated timeframe propelled by increasing sales of luxury vehicles with sophisticated digital cockpit technologies in MEA.
The Windows Embedded Automotive 7 sub-segment in automotive operating systems market is slated to expand at more than 7% CAGR over the study period owing to prevalent application of Microsoft OS in majority of passenger cars, including Nissan, Ford, and KIA. Meanwhile, the others sub-segment garnered nearly 6% market share in 2020 and is projected to grow at a steady pace over 2021-2027 driven by the decreasing popularity of RTOS.
With respect to ECU function, the automotive operating systems market has been classified into infotainment, safety & ADAS, communication, powertrain, and body control & comfort. The communication sub-segment is foreseen to gain significant traction by 2027, expanding at a CAGR of around 10% through the analysis period. Increasing adoption of CV2X and V2I technologies is predicted to foster segmental growth in the forthcoming years.
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In another instance, in June 2021, automotive behemoth Volvo announced that the next generation of its pure electric models, including its first SUV built on an entirely new electric-only technology base, would run on the firm's proprietary OS dubbed VolvoCars.OS.
In 2020, the safety & ADAS sub-segment held a sizable market share of nearly 34% and is anticipated to witness robust growth through 2027 on account of mounting demand for automotive OS in ADAS and lane assistance.
The Latin America automotive operating systems market is speculated to register considerable growth by 2027, progressing at approximately 14% CAGR over the assessment timeline. Rising consumer interest in connected cars, along with escalating vehicle production in LATAM, is likely to bolster regional market demand in the forthcoming years.
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