Automotive hypervisor market to approach $700 million by 2025
The global automotive hypervisor market size is expected to reach $698.2 million by 2025, growing at a CAGR of 33.2% from 2019 to 2025, according to Grand View Research.
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.
A new study by Grand View Research reveals that the use of automotive hypervisor technology has increased due to the growing demand in automotive production and vehicle parc. The upsurge in vehicle production is creating intense competition among the players, leading to high investments in research and development activities. Hypervisor technology offers feature enhancements such as telematics and advanced driver-assistance system (ADAS), and benefits such as security, infotainment, communication, and connectivity in vehicles.
According to the research, the type 2 segment will register the highest CAGR over the forecast period, as these hypervisors allow various virtual machines to run simultaneously using different operating systems. The passenger car segment is expected to grow at a significant pace over the forecast period due to growing concerns about the safety and security of passenger cars.
Furthermore, growing initiatives undertaken by governments in developing countries to improve electric vehicle parc are expected to create new growth opportunities for the market players. In addition, the increasing production of autonomous cars with entertainment and infotainment systems is creating growth opportunities for the players in the automotive hypervisor market.
The market is expected to gain momentum due to advancements and innovation in virtualization technology. Hypervisor technology facilitates real-time communication from vehicle-to-vehicle as well as vehicle-to-environment. The presence of an increased number of ECUs and different network interfaces is leading to greater complexity in vehicle functionality. The use of gateways and electronic devices enables reliable and secure communication between a vehicle's electronic systems. A hypervisor maintains network functionality and offers improved communication for the same.
The use of hypervisor technology in vehicles increases the cost of production; for this reason, the technology is primarily featured in luxury vehicles. This is expected to drive the growth of the luxury vehicles segment over the forecast period. Unavailability of a strong data network leads to delay in information transfer and ADAS failure. ADAS failure further creates a delay in sharing information related to route, traffic jam, and obstacles. Hypervisor technology is used to share information in real time and hence helps reduce accidents.
Key players in the market include Continental AG, Renesas Electronics Corp., NXP Semiconductor, Wind River Systems, Green Hills Software, Sasken Technologies, and Mentor Graphics Corp.
Major players in the market are collaborating to improve the automotive hypervisor technology. For example, in February 2019, Green Hills Software announced a strategic partnership with Cadence Design Systems. This initiative was undertaken to leverage their individual strengths for enhancing embedded system security and safety while speeding up growth for both companies.
The Asia Pacific region dominated the automotive hypervisor technology market in terms of revenue in 2018 and is expected to grow at the highest CAGR over the forecast period. OEMs are setting up production plants in the countries of this region because of low labor and maintenance costs. This is expected to drive the growth of the Asia Pacific market.
One of the challenges faced by the market is the lack of standards related to automotive virtualization. Currently, the only regulation to be followed by the market players is ISO 26262, a functional safety standard that regulates electronic and electrical systems throughout the product development lifecycle, from development to decommissioning. The lack of cybersecurity standards across the globe is leading to issues related to hacking. The National Institute of Standards and Technology's Cybersecurity Framework (U.S.), EU's Regulation against Geo-IP-based blocking of EU member countries or economies (EU), and other cybersecurity standards have been introduced. These standards are to be mandatorily followed by automobile providers while manufacturing autonomous vehicles.