Automotive Hypervisor Market Size, Share & Trends Analysis Report By Product Type (Type 1 and Type 2), By Vehicle Type, By Mode of Operation, By End User, By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global automotive hypervisor market size was valued at USD 97.3 million in 2018 and is expected to register a CAGR of 33.2% over the forecast period. A hypervisor is a program that allows multiple operating systems and applications to share a single hardware processor. The system on which the hypervisor runs multiple virtual machines through an operating system is called a host. This technology is widely used in vehicles that include features such as automated driving and diving assistance.

The expected increase in electric vehicle parc in the coming years is projected to create positive growth opportunities for the market players. The growing popularity of mobility services, digitalization, autonomous vehicles, and electric powertrain is leading to increased demand for automotive vehicles. The automotive industry is witnessing an upsurge in the demand for hybrid electric vehicles. Furthermore, the presence of low-cost suppliers and the entry of new market players in the automotive sector is expected to drive the growth of the market.

Technological advancements such as Electronic Control Unit (ECU), intelligent mobility technology, and enhancements in powertrain systems are further driving the market growth. The automotive industry is focusing on the automation of vehicle systems for real-time management and enhanced accuracy of vehicle infotainment systems. This automation of systems requires a virtualization-technology-enabled Electronic Control Unit (ECU). An automotive hypervisor used in ECU helps in virtualizing the hardware components of semi-autonomous and autonomous vehicles and helps control vehicle systems.

The penetration of autonomous vehicles that feature software engineering and machine learning technology is expected to create growth opportunities for market players. The growing adoption of hypervisors for enhancing the productivity of infotainment systems is also expected to contribute to market growth. The significant demand for automotive hypervisors in aftermarket applications such as improvements in vehicle interior is expected to drive the growth of the market over the forecast period. Stringent government regulations pertaining to the safety and security of automotive vehicles are anticipated to increase the demand for these hypervisors over the forecast period.

Technological advancements are leading to improvements in-vehicle mobility and connectivity in the automotive sector. Virtualization technology can provide a solution for many design challenges related to various car systems. Furthermore, the introduction of the Advanced Driver Assistance System (ADAS), infotainment, vehicle automation, and mobility services is expected to increase the demand for automotive hypervisors in vehicles. All these factors are expected to propel the growth of the market over the forecast period.

Product Type Insights

Based on product type, the market for automotive hypervisors is segmented into type 1 hypervisors and type 2 hypervisors. Type 1 automotive hypervisor runs directly on host machines and is also known as a bare-metal hypervisor. This hypervisor prevents interference from the virtual machines and hence, major automakers are preferring this type of automotive hypervisor. Type 2 hypervisor is a software application installed on an existing operating system. The type 2 hypervisor segment is expected to register the highest CAGR over the forecast period.

Type 2 hypervisor allows various virtual machines to run at the same time using different operating systems and are called guest operating systems. In this type of hypervisor, the guest operating system is free from the host operating system. The growth of the type 2 hypervisor segment can be attributed to the improved features provided by the type 2 hypervisor. Additionally, the demand for advanced and efficient vehicles with driver assistance systems, which feature advanced user interfaces that help minimize accident rates, is further driving the growth of the automotive hypervisor product type segment over the forecast period.

Vehicle Type Insights

Based on vehicle type, the market for automotive hypervisors is segmented into passenger cars, Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV). In 2018, the passenger car vehicle segment dominated the market. The LCV and HCV segments are anticipated to register significant CAGRs over the forecast period. These two segments accounted for lower shares in the automotive hypervisor market in 2018 owing to the relatively reduced production of LCVs and HCVs.

The use of an automotive hypervisor in-vehicle virtualization enables the provision of standalone systems for each software-defined function, thus increasing productivity. In terms of revenue, the passenger car segment is expected to dominate the market by 2025. The growth of the segment can be attributed to the rising adoption of virtualization technology in passenger cars, which are higher in number as compared to that high and low commercial vehicles. Furthermore, the increase in the number of external networks such as Wi-Fi-enabled smart road infrastructure systems and in-vehicle systems is driving the passenger car segment growth.

Mode of Operation Insights

Based on the mode of operation, the market for automotive hypervisors is segmented into autonomous vehicles and semi-autonomous vehicles. In 2018, the semi-autonomous vehicle segment accounted for more than half of the market share in terms of revenue. The autonomous vehicle segment is expected to register a higher CAGR over the forecast period. In developing countries, the sales of autonomous vehicles have increased owing to the growing preference of consumers for these vehicles.

Technological advancements in the automotive sector, including the adoption of hypervisor or virtual machine monitoring systems in autonomous vehicles, assist in enhancing the safety of roads and reducing the number of accidents. Furthermore, the governments of developing countries are focusing on improving the living standards in urban areas. For instance, France has made the development of autonomous vehicles a national priority. In 2019, the U.K. government announced the development of a process and necessary infrastructure for autonomous vehicles to increase their adoption and reduce accidents during journeys. These factors are expected to drive the growth of the autonomous vehicle segment over the forecast period.

End-User Insights

Based on end-user, the market for automotive hypervisors is segmented into the economy, mid-priced, and luxury vehicles. The luxury vehicle segment is anticipated to account for a major share in the market by 2025 owing to high investments made by auto manufacturers to enhance the productivity of vehicle interior systems. The presence of brands such as Mercedes-Benz, BMW, and Audi in Germany and the U.S. are driving the vehicle luxury segment growth in these countries. Furthermore, increasing sales of luxury vehicles in these countries due to growing consumer spending and the growing demand for automated systems incorporated in these vehicles are further driving the segment growth.

In 2018, the luxury vehicle segment dominated the market for automotive hypervisors. Luxury vehicles are equipped with better comfort, safety, and convenience. Hence, running a large number of systems on the existing hardware could lead to connectivity issues. An automotive hypervisor helps curb system design challenges and enables a reduction in complexities & in development times. This is driving the use of automotive hypervisors in luxury vehicles. The mid-priced and economy segments are also expected to witness growth owing to the presence of major market players such as Toyota, Fiat Chrysler Automobiles, and Maruti Suzuki India Limited. These players are focusing on improving safety features in mid-priced and economy vehicles.

Regional Insights

On the basis of region, the market for automotive hypervisors is segmented into North America, South America, Europe, Asia Pacific, and MEA. North America and Europe are expected to witness moderate growth over the forecast period. The major companies have operation units based in developed countries such as the U.S., Germany, and so on. This will help manufacturers to monitor and manage their technical and operational activities. This in turn is expected to drive the demand for the market. The growing economy and automobile sales in Asia Pacific and South America regions are also expected to boost the demand for automotive hypervisors.

The Asia Pacific region dominated the market for automotive hypervisors in 2018 and is expected to register the highest CAGR over the forecast period. The increasing per capita income in emerging economies such as China and India has led to an increase in the purchasing power of customers. This is expected to lead to increased sales of passenger cars, subsequently propelling the growth of the market. The low costs of labor for mass production of vehicles have encouraged manufacturers to set up production plants in this region. Moreover, the entry of local players with innovative models in the developing markets is expected to further drive the growth of the Asia Pacific regional market.

Automotive Hypervisor Market Share Insights

The major players in the market include Continental AG; Renesas Electronics Corporation; NXP Semiconductor N.V.; Wind River System Inc.; Green Hills Software LLC; Sasken Technologies Ltd.; and Mentor Graphics Corporation. All these companies are adopting various strategies such as partnerships, collaborations, and new product development to sustain their market position. For instance, in January 2019, Sasken Technologies Limited in Detroit, U.S., launched the automotive center of excellence to develop solutions for the next generation of connected vehicles. The solutions developed by the company were used in areas such as in-car infotainment, advanced driver assistance system, and telematics. All the players in the market have strong distribution channels at a global level, which helps them gain higher market shares.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive hypervisor market report based on product type, vehicle type, mode of operation, end-user, and region:

• Product Type Scope Outlook (Revenue, USD Million, 2014 - 2025)

  • Type 1

  • Type 2

• Vehicle Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Passenger Cars

  • Light Commercial Vehicles

  • Heavy Commercial Vehicles

• Mode of Operation Outlook (Revenue, USD Million, 2014 - 2025)

  • Autonomous Vehicle

  • Semi-autonomous Vehicle

• End-User Outlook (Revenue, USD Million, 2014 - 2025)

  • Economy

  • Mid-priced

  • Luxury

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

    • Argentina

  • Middle East & Africa