Automotive Hypervisor Market Size, Share & Trends Analysis Report By Product Type Scope (Type 1, Type 2), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Mode of Operation (Autonomous Vehicle, Semi-autonomous Vehicle), By End-User (Economy, Mid-priced, Luxury) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global automotive hypervisor market size was valued at USD 133 million in 2020 and is projected to reach USD 1943.57 million by 2030 at a CAGR of 30.76% from 2022 to 2030.

The automotive hypervisor is an embedded technology that was specifically created for use in automobiles and is utilised for in-vehicle entertainment. It is a group of applications that may operate a host system's operating system (OS) to carry out a variety of virtual machine functions. Hypervisors are often low-level virtualisation programmes that enable a single CPU to be shared by numerous applications that use various operating systems. Additionally, a hypervisor can be referred to as computer software that determines the hardware allocation for each programme while allowing several operating systems to use a single CPU, RAM, etc. In general, Type 1 and Type 2 hypervisors, which are utilised in automobiles, are designed. The application of each type depends on the design of the vehicle system.

Market Dynamics

Drivers for the global automotive hypervisor market

• Autonomous vehicle and mobility services drive the market

In the development of autonomous vehicles and mobility services, hypervisor technology is anticipated to be essential. The ADAS system has already shown itself to be reliable, and new, enhanced versions are constantly being released. Demand in the hypervisor industry is anticipated to increase as a result of the increased penetration of V2V and V2I features. Many businesses are making major investments in the creation of autonomous and semi-autonomous technologies. For instance, Tesla also began producing its Model 3, which has the hardware necessary for fully autonomous driving capabilities at a degree of safety much beyond that of a human driver.

• Technological advancements drive the market

The development of the industry is being further fueled by technological breakthroughs like the Electronic Control Unit (ECU), intelligent mobility technologies, and improvements to powertrain systems. In order to operate vehicles in real-time and improve the accuracy of its infotainment systems, the automobile industry is concentrating on automating vehicle systems. An ECU that is capable of virtualisation technology is necessary for this system automation (ECU). In an ECU, an automotive hypervisor is used to virtualise the hardware parts of autonomous and semi-autonomous vehicles and to operate their systems.

Restraints for the global automotive hypervisor market

• Economy vehicles lack implementation of technology

There are fewer advanced technologies in economy class passenger cars, such as the digital cluster, infotainment software, safety features, and others, which are predicted to necessitate fewer multi-domain controllers. ECUs and a small number of hypervisors per MDC are thus installed in the economy vehicle class. The economy vehicle segment is constrained by this. In order to keep the price of the economy vehicle low, fewer infotainment functions are offered. This limitation prevents automakers from adding cutting-edge features to economy passenger cars, hence lowering the overall cost of the vehicles and preserving demand for these models. As a result, mid-priced and luxury automobiles are more likely to be equipped with advanced features like ADAS and safety, body & comfort, cockpit telematics, and others.

Opportunities for the global automotive hypervisor market

• Advanced embedded technology will bring in new opportunities

The focus of automotive stakeholders has shifted decisively to autonomous vehicles. To make autonomous cars a reality, they have poured billions of dollars and their best assets into the project. Currently, a car has a range of electrical parts that allow it to sense its surroundings and communicate with objects outside of it. The entire communication process with outside parties has highlighted the requirement to produce a sizable amount of data, which is helpful in implementing machine learning with algorithms in the vehicle's computer system. The development of autonomous vehicles is anticipated to be made possible in this way by OEMs, Tier I automotive suppliers, and non-automotive entities. Therefore, the implementation of AI and the creation of semi-autonomous and autonomous vehicles depend on a solid automotive integrated hypervisor system. The launch of driverless vehicles is being worked on by major automakers.

Regional Analysis

The automotive hypervisor market is divided into five regions based on geography: North America, South America, Europe, Asia Pacific, and MEA. Over the foreseeable period, moderate growth is anticipated in North America and Europe. The major corporations have operational divisions situated in industrialized nations like the United States, Germany, and so forth. Manufacturers will be able to control and monitor their technical and operational activities thanks to this. In turn, it is anticipated that this will increase market demand. Automobile sales and the expanding economies in South America and the Asia Pacific are also anticipated to increase demand for automotive hypervisors.

The automotive hypervisor market was dominated by the Asia Pacific region in 2021, and it is anticipated that this region will see the greatest CAGR during the forecast period. Customers now have more purchasing power thanks to rising per capita incomes in developing nations like China and India. Increased sales of passenger cars are anticipated as a result, which will fuel the market's expansion. Manufacturers have been enticed to locate production facilities in this area by the low cost of labour required for the mass assembly of cars. Furthermore, the expansion of the Asia Pacific regional market is anticipated to be further fueled by the arrival of local competitors with cutting-edge business models in the growing regions.

Segmental Analysis

This automotive hypervisor market share can be segmented on the basis of products, vehicle type, mode of operation, end-users, regions and competitors. The automotive hypervisor industry is divided into type 1 and type 2 hypervisors based on product type. Type 1 automotive hypervisors, commonly referred to as bare-metal hypervisors, operate directly on host computers. Major automakers use this form of vehicle hypervisor because it prevents interference from virtual computers. A software programme called a type 2 hypervisor is set up on an existing operating system. Over the projected period, the type 2 hypervisor category is anticipated to have the greatest CAGR.

The passenger car, light commercial vehicle (LCV), and heavy commercial vehicle segments make up the automotive hypervisors market (HCV). The passenger car vehicle sector ruled the market in 2020. Over the projected period, the LCV and HCV segments are expected to post strong CAGRs. Due to the significant decrease in LCV and HCV production, these two segments held smaller market shares in the automobile hypervisor in 2020.

The automotive hypervisor industry is divided into autonomous and semi-autonomous vehicles, depending on how they operate. In terms of revenue in 2020, the segment of semi-autonomous vehicles held more than half of the market. Over the projection period, the category for autonomous vehicles is anticipated to post a higher CAGR. Due to consumers' increasing preference for autonomous vehicles, sales of these vehicles have surged in emerging nations.

The automotive hypervisor market is divided into three categories based on the end-user: low-cost, midrange, and luxury cars. Due to significant expenditures made by automakers to increase the productivity of interior vehicle systems, the luxury car sector is predicted to hold a significant market share by 2030. The luxury vehicle segment is growing in Germany and the U.S. due to the presence of companies like Mercedes-Benz, BMW, and Audi. In addition, rising consumer spending in these nations, rising demand for automated technologies built into luxury automobiles, and other factors all contribute to the segment's expansion.

Recent Developments

• BlackBerry introduced the QNX Black Channel Communications Technology in April 2020. This software solution enables OEMs and embedded software developers to guarantee secure data connection exchanges with essential safety.
• Siemens announced in July 2020 that it had acquired Avatar, a well-known producer of place and route software for IC design. Capitalising on the expanding place and route segment, Siemen's has incorporated Avatar's technology to the Xcelerator portfolio as a component of Mentor Graphics' IC suite of applications. The Calibre platform, Tessent software, and Catapult HLS software, all from Mentor Graphics, have been integrated with Avatar.
• The R-Car V3U, an ASIL D System-on-Chip (SoC) for autonomous driving (AD) systems, will be unveiled by Renesas Electronics Corporation in December 2020. Thus, it provides 60 TOPS with little power consumption for deep learning processing. The R-Car V3U is designed to meet the performance, safety, and scalability requirements of ADAS and AD for the next generation of autonomous vehicles.
• NXP Semiconductors announced the release of a multi-gigabit Ethernet switch in January 2020 with the goal of assisting manufacturers in delivering the high-speed networks necessary for developing connected vehicles. The NXP SJA1110 is the first automotive Ethernet switch with safety features integrated, providing integrated hardware-aided security in addition to multiple gigabit connections.
• Continental introduced ID.3, the first mass-produced high-performance server for automobiles, in October 2020. The ID.3 e-electronic model's architecture is connected by this powerful computer, which will also allow for future over-the-air updates. With the release of the ID.3, which has critical support from Continental, Volkswagen is poised to usher in a new era in electric mobility.