Automotive Hypervisor Market Analysis Report By Product Type, By Vehicle Type, By Mode of Operation, By End User, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global automotive hypervisor market size was accounted for USD 97.3 million in 2018 and expected to grow with a CAGR of 33.2% over the forecast period, from 2019 to 2025. A hypervisor is computer software that allows multiple applications and guest operating systems to run on a single host platform. This technology is majorly used in vehicles that comprise features like driving assistance and automated driving.

An increase in demand for electric vehicles is expected to open new growth opportunities for industry players. The growing trend of the electric powertrain, digitalization, mobility services, and autonomous vehicles leads to increase demand for advanced features in automotive vehicles. Further, the emergence of new market players and growing demand for hybrid vehicles are expected to drive market growth over the forecast period.

Technological advancements like intelligent mobility technology, Electronic Control Unit (ECU), and development in powertrain systems are expected to drive market growth. The automakers are focusing on automation in vehicles to improve the accuracy of vehicle infotainment systems and for real-time management. This automation requires an Electronic Control Unit (ECU) which is based on virtualization technology. This ECU helps in virtualizing the hardware components of autonomous and semi-autonomous vehicles.

The integration of advanced features like machine learning and software engineering in autonomous vehicles is expected to create new opportunities for industry players. Moreover rising adoption of hypervisors to enhance the performance of infotainment systems is projected to further drive the market growth. The substantial demand for hypervisors in the automotive aftermarket such as enhancement in vehicle interior is projected to drive the market during the forecast period. Strict regulations for the security and safety of automotive vehicles by governments are projected to propel the demand for hypervisors in the next few years.

Technological advancement in the automotive sector leads to the development of in-vehicle connectivity and mobility. Further, the emergence of infotainment, mobility services, vehicle automation, and the Advanced Driver Assistance System (ADAS) is projected to boost the demand for hypervisors in vehicles.

Type Insights

Based on types, the market is segmented into type 1 hypervisor and type 2 hypervisor. The type 1 hypervisors, also known as bare-metal hypervisors and run on host machines directly. This hypervisor helps to avoid interference from the virtual machines. Thereby key automakers prefer this type of hypervisor.

Type 2 hypervisor is a software-based application installed on the existing operating system (OS). This type of hypervisor segment is projected to grow with the highest CAGR during the forecast period. This growth is attributed to advanced features offered by the type 2 hypervisor. In addition, growing demand for efficient and advanced vehicles along with driver assistance systems helps to reduce accident rates which are expected to drive the segment growth in the next few years.

Vehicle Type Insights

Based on the vehicle type, the market is fragmented into Heavy Commercial Vehicles (HCV), passenger cars, and Light Commercial Vehicles (LCV). In 2018, the passenger car segment held the largest market share in terms of revenue wherein HCV and LCV segments are expected to witness considerable growth 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 passenger car segment is expected to dominate the market by the end of the projected year. This is due to the integration of virtualization technology in these vehicles which are higher in number when compared with HCVs and LCVs.

Mode of Operation Insights

By mode of operations, the automotive hypervisor is segmented into semi-autonomous vehicles and autonomous vehicles. In 2018, the semi-autonomous vehicle segment held over half of the total market share and projected to emerge as the fastest-growing segment during the forecast period. In emerging counties, a growing preference for autonomous vehicles is projected to drive market growth in the next few years.

The advent of new technologies including automotive hypervisors in the automotive industry has led to increasing safety and reduces the chances of road accidents. In addition, several initiatives taken by the government in developed countries to increase sales of autonomous vehicles and to reduce road accidents are expected to drive the segment growth during the forecast years.

End-User Insights

Based on end-user, the market is segmented into the mid-priced, economy, and luxury vehicles. The luxury vehicle end-use segment is anticipated to gain major share by 2025 owing to increasing investments by automobile manufacturers for improving vehicle interior systems. In addition, the existence of luxury brands such as BMW, Mercedes Benz, and Audi in countries like the U.S. and Germany are fueling the segment growth. Moreover, the growing demand for automated systems in vehicles coupled with rising spending on luxury vehicles in these countries is another factor boosting the segment growth.

The luxury vehicle segment held the largest market share of the global market, in 2018. Luxury vehicles are integrated with safety, convenience, and comfort. Thus, running several functions on existing hardware can cause connectivity issues. The automotive hypervisor helps to curb these challenges by reducing complexities in such systems. This factor is expected to drive the demand for automotive hypervisors for luxury vehicles.

The economy and mid-priced segments are also expected to witness significant growth over the forecast period. Major automotive OEMs are implementing this system to improve the safety features in economy and mid-priced segments vehicles. In addition, most countries are introducing safety norms that are made mandatory in all vehicles. This factor is expected to drive the market as key players are integrating automotive hypervisors in the economy and mid-priced vehicles.

Regional Insights

Europe and North America market is expected to witness moderate growth during the forecast period. Key market players have formed their operation units in countries such as Germany, U.S., and others. This factor helps manufacturers to manage and monitor operational and technical activities, thereby expected to drive the market growth in these regions.

In 2018, Asia Pacific accounted for the largest market share and is projected to grow with the highest CAGR during the forecast period. Increasing purchasing power of customers in emerging countries like China and India has increased the sales of passenger cars, thereby fueling the regional market growth. In addition, the availability of labor with low cost for mass production of vehicles has influenced the market players to establish their plants in the Asia Pacific. Moreover, the emergence of local players along with innovative models in developing nations is expected to further surge the market growth in this region.

Impact of COVID-19

The outbreak of COVID-19 has witnessed a slight impact on automotive hypervisors market growth. Automotive sales are recovering gradually during pandemics across the globe due to factors like the length of lockdowns in different countries, the underlying economy of a region, consumer spending capacity, and availability of finance offered by dealers. While leading luxury car makers are recovering faster and have been relatively less impacted by the spread of COVID-19. The automotive hypervisor is majorly integrated into luxury cars wherein they are introducing their new series in vehicles which is expected to drive the market growth post-pandemic.

Automotive Hypervisor Market Share Insights

Key players in this market include Sasken Technologies Ltd.; Continental AG; Renesas Electronics Corporation; Wind River System Inc.; Green Hills Software LLC; Mentor Graphics Corporation., and NXP Semiconductor N.V. Key players are adopting strategies like partnerships, product development, and collaborations to sustain in the competitive market. For instance, in 2019, U.S.-based Sasken Technologies Limited established the automotive center to develop solutions for advanced connected vehicles. All the players operating in this market have strong distribution channels across the globe, which is expected to help them for generating maximum revenue.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the 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 this study, Million Insights 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
    • The Asia Pacific
        • China
        • India
        • Japan
    • South America
        • Brazil
        • Argentina
    • Middle East & Africa