Automotive Operating System Market Surges USD 46.34 Bn in 2025 at 14 CAGR

Automotive Operating System Market Trends 2025: Android OS to Grow Fastest Amid Rising EV and Infotainment Demand

According to forecasts, the global automotive operating system market will grow from USD 12.5 billion in 2024 to USD 46.34 billion by 2034, with an expected CAGR of 14%. Europe led the automotive OS market with 40% share, while Asia Pacific is set to grow fastest. QNX dominated OS types (30%), but Android OS is rising. Passenger vehicles (70%) and infotainment (35%) led, with strong growth seen in EVs and ADAS systems.

The automotive operating system market is set to grow from USD 14.25 billion in 2025 to USD 46.34 billion by 2034, with an expected CAGR of 14% over the forecast period from 2025 to 2034. The rising popularity software-defined vehicles coupled with technological advancements in the automotive sector is playing a vital role in shaping the industrial landscape.

Moreover, the deployment of advanced OS in modern cars to enhance the driving experience along with rapid investment by automakers to develop multitasking operating systems for the automotive sector has boosted the market expansion. The integration of AI and augmented reality (AR) in automotive operating systems is expected to create ample growth opportunities for the market players in the future.

Automotive Operating System Market Growth and Trends 2025

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Introduction

The automotive operating system market is a crucial branch of the automotive industry. This industry deals in providing development and distribution of OS for the automotive sector. There are different types of OS developed in this sector consisting of embedded Linux OS, android automotive OS, QNX, RTOS, windows embedded automotive OS, proprietary OEM OS and some others. These OS are designed for numerous types of vehicles comprising of passenger vehicles, commercial vehicles, two-wheelers & micro-mobility vehicles. It is used in numerous automotive applications including infotainment & multimedia, advanced driver assistance system, powertrain & battery management, body control & comfort systems, telematics & connectivity, autonomous driving systems and some others. The growing demand for convenience features in luxury vehicles has boosted the market expansion. This market is expected to rise significantly with the growth of the software industry around the world.

Highlights of the automotive operating system market

  • Europe generated highest revenue of the automotive operating system market with a share of 40%.
  • Asia Pacific is expected to rise with the highest CAGR during the forecast period.
  • By OS type, the QNX (BlackBerry) segment held the largest share of the market with 30%.
  • By OS type, the android automotive OS segment is expected to rise with the highest CAGR during the forecast period.
  • By vehicle type, the passenger vehicles segment led the market with a share of 70%.
  • By vehicle type, the electric passenger vehicles segment is expected to grow with the fastest CAGR during the forecast period.
  • By application domain, the infotainment & multimedia segment held the largest share of the market with 35%.
  • By application domain, the ADAS & autonomous driving systems segment is expected to rise with the fastest CAGR during the forecast period.
  • By deployment mode, the onboard (embedded) segment held the dominant share of the industry with 65%.
  • By deployment mode, the cloud-connected (OTA-enabled) segment is expected to grow with a the highest CAGR during the forecast period.
  • By software architecture, the domain-centric architecture segment led the industry with a share of 50%.
  • By software architecture, the centralized/server-based architecture (SDV) segment is expected to grow with the highest CAGR during the forecast period.

Key Metrics and Overview

Metric Details
Market Size in 2025 USD 14.25 Billion
Projected Market Size in 2034 USD 46.34 Billion
CAGR (2025 - 2034) 14%
Leading Region Europe
Market Segmentation By OS Type, By Vehicle Type, By Application Domain, By Deployment Mode, By Vehicle Software Architecture and By Region
Top Key Players Google, BlackBerry QNX, Automotive Grade Linux (AGL), Microsoft, Green Hills Software, Wind River Systems, Mentor Graphics (Siemens), Continental AG.

The major trends in this market consists of partnerships, rising sales of EVs and rapid investment in 5G technology.

Partnerships

  • Numerous automotive brands are partnering with technology providers to develop advanced automotive OS for the modern cars. For instance, in May 2025, Volvo Cars partnered with Google. This partnership is done for developing an advanced OS for the automotive sector.(Source: Volvo Cars)

Rising Sales of EVs

  • The sales of EVs have increased rapidly in various nations of the world, thereby increasing the demand for advanced operating systems. According to the International Energy Agency, around 11000000 battery electric vehicles were sold globally in 2024.(Source: law enforcement agency)

Rapid Investment in 5G Technology

  • Several telecom operators are investing heavily for developing the 5G infrastructure that in turn enhances the functioning of automotive OS. For instance, in May 2025, 26 telcos announced to invest around US$ 3 billion. This investment is done for developing the 5G infrastructure across China.(Source: Light Reading)

OS Type Insights

How did the QNX (BlackBerry) Segment led the Automotive Operating System Market in 2025?

The QNX (BlackBerry) segment dominated the market with a share of 30%. The integration of QNX OS in commercial vehicles to monitor real-time insights in fleet operations has boosted the market expansion. Additionally, the growing use of this OS to facilitate digital instrument clusters and advanced driver-assistance systems (ADAS) in modern vehicles is playing a crucial role in shaping the industrial landscape. Moreover, the deployment of QNX OS by several automotive brands such as Audi, BMW, Mercedes-Benz, Toyota, Ford, General Motors, Honda, Volkswagen, Volvo and some others is expected to boost the growth of the automotive operating system market.

The android automotive OS segment is expected to expand with the highest CAGR during the forecast period. The increasing application of automotive OS in mid-ranged vehicles to enhance the infotainment and multimedia experience has boosted the market expansion. Additionally, the ability of android OS to connect electronic devices such as mobile phones, tablets, laptops and some others is contributing to the industry in a positive direction. Moreover, the increasing popularity of android systems coupled with availability of several automotive android apps in Google Play Store is expected to propel the growth of the automotive operating system market.

Vehicle Type Insights

What Made the Passenger Vehicles to be the Most dominant Segment of the Automotive Operating System Market in 2025?

The passenger vehicles segment held the largest share of the market with a share of 70%. The rising sales and production of passenger cars in several countries such as India, Germany, Japan, China, the U.S. and some others has boosted the market expansion. Additionally, rapid investment by automotive brands for integrating advanced OS in luxury vehicles is playing a vital role in shaping the industrial landscape. Moreover, partnerships among passenger vehicle companies and software providers to develop advanced OS for the passenger cars is expected to boost the growth of the automotive operating system market.

The electric passenger vehicles segment is expected to rise with the fastest CAGR during the forecast period. The rising adoption of electric vehicles in numerous developed nations with an aim at reducing vehicular emission has boosted the market growth. Also, the growing use of android OS in EVs to enhance safety coupled with the increasing application of advanced software in EVs for powertrain & battery management is playing a vital role in shaping the industry in a positive direction. Moreover, collaborations among EV brands and OS providers to deploy high-quality OS in premium EVs is expected to propel the growth of the automotive operating system market.

Application Domain Insights

Why did the Infotainment & Multimedia Segment Held the Largest Share of the Automotive Operating System Market in 2025?

The infotainment & multimedia segment dominated the market with a share of 35%. The rising use of android operating systems in modern cars to enhance several features such as infotainment and multimedia has driven the market expansion. Additionally, increasing emphasis of automotive brands to deploy advanced OS in luxury cars for improving the audio and video experience is contributing to the industrial growth. Moreover, the integration of AI and IoT in automotive infotainment systems is expected to foster the growth of the automotive operating system market.

The ADAS & autonomous driving systems segment is expected to grow with the fastest CAGR during the forecast period. The increasing popularity of autonomous vehicles in developed nations such as the U.S., China, Singapore and some others has driven the industrial expansion. Also, the growing adoption of driverless vehicles by fleet operators to reduce dependency on manual drivers is playing a vital role in shaping the industrial landscape. Moreover, numerous government initiatives aimed at mandating ADAS in passenger cars is expected to drive the growth of the automotive operating system market.

Deployment Mode Insights

What Made the Onboard (Embedded) Segment to Lead the Automotive Operating System Market in 2025?

The onboard (embedded) segment led the market with a share of 65%. The integration of onboard operating systems in low-range vehicles to enhance vehicular functions has boosted the market expansion. Additionally, the growing use of embedded OS in automotive to handle communication with sensors and actuators is playing a vital role in shaping the industrial landscape. Moreover, numerous advantages of onboard operating systems including improved control, enhance security, superior performance and some others is expected to foster the growth of the automotive operating system market.

The cloud-connected (OTA-enabled) segment is expected to rise with a the highest CAGR during the forecast period. The growing use of cloud-based operating systems in luxury vehicles to enhance navigation and improve safety has boosted the market growth. Additionally, the increasing emphasis of automotive brands to deploy cloud-based OS in modern vehicles is playing a crucial role in shaping the industry in a positive direction. Moreover, several advantages of cloud-based OS such as reduced costs, enhanced flexibility, improved accessibility and some others is expected to propel the growth of the automotive operating system market.

Software Architecture Insights

What Made Domain-centric architecture to be the Most dominant Segment of the Automotive Operating System Market in 2025?

The domain-centric architecture segment held the highest share of the industry with 50%. The growing adoption of domain-centric architecture in modern cars to control the electronic functions has boosted the market expansion. Additionally, numerous advantages of this architecture including reduced complexity, adaptability, reduce debugging time, efficient resource utilization and some others has driven the growth of the automotive operating system market.

The centralized/server-based architecture (SDV) segment is expected to grow with the fastest CAGR during the forecast period. The growing popularity of software defined vehicles coupled with the increasing use of centralized OS in the automotive sector for enhancing autonomous driving capabilities in vehicles has boosted the market expansion. Additionally, various advantages of these OS including centralized management, improved security, scalability, optimized resource utilization and some others is expected to boost the growth of the automotive operating system market.

Geographical Insights

Why Europe dominated the Automotive Operating System Market in 2025?

Europe led the automotive operating system market with a share of 40%. The increasing sales of electric vehicles in several nations such as Germany, Italy, France, UK and some others has boosted the market expansion. Additionally, numerous government initiatives aimed at enhancing safety in vehicles coupled with rapid adoption of software-defined vehicles is playing a vital role in shaping the industry in a positive direction. Moreover, the presence of numerous market players such as Stellantis, Continental AG, NXP Semiconductors, Robert Bosch and some others is expected to drive the growth of the automotive operating system market in this region.

  • In June 2024, Stellantis launched a new range of automotive OS in Europe. This new range of operating systems are designed for the BEVs of this nation.(Source: Stellantis)

Germany dominated the market in this region. The growing demand for luxury cars coupled with technological advancements in the automotive sector has boosted the market expansion. Additionally, the presence of several automotive brands such as BMW, Audi, Volkswagen and some others is playing a vital role in shaping the industry in a positive direction.

Asia Pacific is expected to grow with the fastest CAGR during the forecast period. The growing sales and production of passenger vehicles in various countries such as India, China, Japan, South Korea and some others has driven the market growth. Also, rapid development in the software industry along with rise in number of automotive startups is crucial for the industrial expansion. Moreover, the presence of several market players such as Panasonic Automotive, Denso, Toyota and some others is expected to boost the growth of the automotive operating system market in this region.

  • In November 2024, Panasonic Automotive Systems Co., Ltd partnered with Arm. This partnership is done for developing an automotive OS for the consumers of the APAC region.(Source: Panasonic)

China and Japan are the prominent contributors in this region. In China, the market is generally driven by the growing sales and production of passenger vehicles. In Japan, the increasing development in the software industry coupled with rising popularity of software-defined vehicles is playing a prominent role in shaping the industrial landscape.

Industry Leader Announcement

  • In June 2024, Valentin Janiaut, LG Vehicle Component Solutions Company software lead made an announcement stating that, “LG AlphaWare will play a central role in enabling SDVs to become ‘living spaces on wheels’ through its ability to facilitate user-experiences similar to those offered by LG’s consumer electronics for the home."

Competitive Landscape

The automotive operating system market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Continental AG, Elektrobit, Bosch, Google, BlackBerry QNX, Automotive Grade Linux (AGL), Microsoft, Green Hills Software, Wind River Systems, Mentor Graphics (Siemens), NVIDIA, Tesla, Apple, Panasonic Automotive, NXP Semiconductors, Renesas Electronics, Aptiv, Vector Informatik and some others. These companies are constantly engaged in developing operating systems for the automotive industry and adopting numerous strategies such as business expansions, joint ventures, acquisitions, collaborations, launches, partnerships, and some others to maintain their dominance in this industry.

  • In April 2025, Aptiv launched Wind River RTOS real time operating system. This OS is designed for the automotive sector of China.(Source: EU.36KR)
  • In January 2025, QNX launched QNX Cabin. QNX Cabin is an operating system designed for the automotive users of the APAC region.(Source: BlackBerry)

Google Services Segment Revenue in USD Million (2023-24)

  • According to the annual report of Google, the revenue of the services segment in 2023 was around US$ 307394 million that increased to US$ 350018 million in 2024.(Source: abcxyz)

Recent Developments

  • In May 2025, Olympian Motors partnered with Foxconn. This partnership is done for launching an AI-defined vehicle operating system.(Source: GlobeNewswire)
  • In April 2024, Hyundai launched Pleos. Pleos is an automotive operating system designed to enhance the performance of software-defined vehicles.(Source: Automotivedive)
  • In May 2024, Xpeng launched an AI-enabled operating system for the automotive sector. This OS is designed for the EVs manufactured by Xpeng.(Source: GlobeNewswire)

Top Automotive Operating System Market Players

Automotive Operating System Market Top Key Players

  • Google
  • BlackBerry QNX
  • Automotive Grade Linux (AGL)
  • Microsoft
  • Green Hills Software
  • Wind River Systems
  • Mentor Graphics (Siemens)
  • Continental AG
  • Elektrobit
  • Bosch
  • NVIDIA
  • Tesla
  • Apple
  • Panasonic Automotive
  • NXP Semiconductors
  • Renesas Electronics
  • Aptiv
  • Vector Informatik
  • General Motors
  • Stellantis

Automotive Operating System Market Segments

By OS Type

  • Embedded Linux
  • Android Automotive OS (AAOS)
  • QNX (BlackBerry)
  • RTOS (Real-Time Operating Systems)
  • AUTOSAR Classic
  • AUTOSAR Adaptive
  • Windows Embedded Automotive
  • Proprietary OEM Systems

By Vehicle Type

  • Passenger Vehicles
  • Internal Combustion Engine (ICE)
  • Electric Vehicles (EVs)
  • Commercial Vehicles
  • Light Commercial Vehicles (LCVs)
  • Heavy Commercial Vehicles (HCVs)
  • Two-Wheelers & Micro-Mobility Vehicles

By Application Domain

  • Infotainment & Multimedia
  • Advanced Driver Assistance Systems (ADAS)
  • Powertrain & Battery Management
  • Body Control & Comfort Systems
  • Telematics & Connectivity
  • Autonomous Driving Systems

By Deployment Mode

  • Onboard (Embedded)
  • Cloud-Connected (Hybrid/OTA-enabled)

By Vehicle Software Architecture

  • Domain-Centric Architecture
  • Zonal Architecture
  • Centralized/Server-Based Architecture (SDV)

By Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • The Middle East and Africa
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  • Insight Code: 1774
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 22 July 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Ajit Bansod is a skilled and research-driven analyst at Towards Automotive, with over 3 years of experience specializing in the intersection of automotive innovation and intelligent communication technologies.

Learn more about Ajit Bansod

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar
FAQ's

The market is primarily driven by the shift toward software-defined vehicles (SDVs), rising demand for connected and autonomous vehicles, and increasing adoption of electric vehicles (EVs). These trends are prompting OEMs and tech firms to invest heavily in advanced OS platforms that can support AI, AR, cloud connectivity, and real-time data processing.

AI and 5G are transformative forces. AI enhances driver assistance, infotainment, and predictive maintenance, while 5G enables real-time data transmission, crucial for autonomous driving and OTA (Over-the-Air) updates. This synergy is reshaping in-car experiences and accelerating the move toward fully autonomous, connected vehicles.

Asia Pacific is forecast to grow at the fastest CAGR due to booming EV adoption, local innovation, and government support. Europe, while mature, leads in terms of revenue, especially in premium vehicle software. China, Japan, and India are hotspots for investor focus due to their robust automotive ecosystems and growing digital capabilities.

Key trends include cloud-connected OS (OTA), centralized/server-based software architectures (SDV), domain and zonal architectures, integration of AR/VR for enhanced UX, and open-source platforms like Android Automotive OS and Automotive Grade Linux (AGL). These technologies are reshaping how vehicles are managed, serviced, and monetized.

QNX (BlackBerry) currently leads due to its real-time performance and security, especially in ADAS and digital clusters. However, Android Automotive OS is gaining ground rapidly because of its open ecosystem, ease of integration, and alignment with consumer mobile preferences.

The market is consolidating around a mix of automotive giants and tech leaders. Google, BlackBerry QNX, Microsoft, and Continental AG lead alongside Tier 1 suppliers like Bosch and Aptiv. Strategic partnerships (e.g., Volvo-Google, Panasonic-Arm) and acquisitions are key strategies for gaining market share and innovation edge.

Passenger vehicles, especially electric ones, are major growth drivers, accounting for 70% of the market. The shift to EVs demands highly integrated OS for battery management, infotainment, and connectivity. EV makers like Tesla and Xpeng are pioneering proprietary OS for advanced user experiences.

OEM-tech partnerships are increasing to co-develop advanced OS platforms. Examples include Google-Volvo, Olympian Motors-Foxconn, and Panasonic-Arm. These collaborations help OEMs fast-track SDV deployment while leveraging the tech firms\' AI, cloud, and software expertise.

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