The automotive operating system market has seen considerable growth due to a variety of factors.
• The automotive operating system market has grown rapidly in recent years. It will rise from $8.87 billion in 2024 to $9.84 billion in 2025, reflecting a CAGR of 10.9%.
The historic growth is attributed to the emergence of connected vehicles, increasing demand for infotainment and telematics services, the rise of electric and autonomous vehicles, regulatory safety and cybersecurity requirements, and the adoption of advanced driver assistance systems.
The automotive operating system market is expected to maintain its strong growth trajectory in upcoming years.
• The automotive operating system market is set to experience significant growth, reaching $14.7 billion by 2029 with a CAGR of 10.6%.
This growth is driven by the integration of AI and machine learning technologies, the expansion of in-vehicle digital ecosystems, the demand for enhanced user experience and personalization, advances in vehicle-to-everything (v2x) communication, and the rising emphasis on software-defined vehicles. Trends include the rise of over-the-air (OTA) updates, the proliferation of automotive-grade Linux, increased adoption of hypervisor technology, the emergence of subscription-based software models, and a focus on cybersecurity and OTA security updates.
The growing adoption of advanced driver-assistance systems (ADAS) is expected to drive the growth of the automotive operating system market. ADAS technologies enhance vehicle safety by automating functions and providing warnings to drivers. The increasing prevalence of ADAS is fueled by safety regulations, consumer demand for advanced safety features, and improvements in sensor and computing technologies. Automotive operating systems are vital for managing data from ADAS components and ensuring smooth vehicle operations. For example, the Highway Loss Data Institute forecasted a 20% growth in advanced safety features in registered vehicles by 2026. As a result, the rise in ADAS adoption is accelerating the automotive operating system market.
The automotive operating system market covered in this report is segmented –
1) By Vehicle Type: Passenger Car, Commercial Vehicle
2) By Operating System Type: QNX, Linux, Windows, Android, Other Operating System Types
3) By Application: Advanced Driver-Assistance Systems (ADAS) And Safety System, Autonomous Driving, Body Control And Comfort Systems, Communication Systems, Connected Services, Infotainment Systems, Engine Management And Powertrain, Vehicle Management And Telematics
Subsegments:
1) By Passenger Car: Electric Passenger Cars, Hybrid Passenger Cars, Internal Combustion Engine (Ice) Passenger Cars, Luxury And Premium Passenger Cars, Autonomous Passenger Cars
2) By Commercial Vehicle: Light Commercial Vehicles (Lcvs), Heavy Commercial Vehicles (Hcvs), Electric Commercial Vehicles, Autonomous Commercial Vehicles, Trucks And Delivery Vehicles
Companies in the automotive operating system market are advancing technologies like next-generation automotive processors and server-class Neoverse technology to enhance profitability. These innovations aim to improve performance and efficiency for autonomous systems. In March 2024, Arm Holdings launched a suite of automotive technologies, including next-generation AE processors and Neoverse server-class technologies, to accelerate the development of AI-enabled vehicles.
Major companies operating in the automotive operating system market are:
• Apple Inc.
• Volkswagen AG
• Alphabet Inc.
• Toyota Motor Corporation
• Microsoft Corporation
• Mercedes-Benz AG
• General Motors Company
• Honda Motor Co. Ltd.
• Hyundai Motor Company
• LG Corporation
• BYD Company Limited
• Renault Group
• NVIDIA Corporation
• Faurecia S.A.
• Valeo S.A.
• DXC Technology Company
• Renesas Electronics Corporation
• Groupe PSA
• Snap-on Incorporated
• BlackBerry Limited
• Wind River Systems Inc.
• Green Hills Software LLC
• HTC Corporation
• Automotive Grade Linux
Asia-Pacific was the largest region in the automotive operating system market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive operating system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.