Automobile OS: The new frontier for software developers

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  Quantumrun Foresight
• December 15, 2021

Insight summary

Automotive Operating Systems (AOS) are transforming vehicles into software-laden environments, enhancing driver assistance and paving the way for semi-autonomous driving. This technological shift is sparking intense competition among tech companies as control over a vehicle's OS grants influence over a user's digital ecosystem. The implications of this revolution are far-reaching, including potential reductions in traffic accidents, the creation of new industries and jobs and improved infrastructure use.

Automobile OS context

An AOS is a driver assist platform that automobile manufacturers integrate into their vehicles. For example, AOS’ may help drivers download appropriate media apps directly into their cars, eliminate the hazards of texting and driving, and use a specifically designed interface for the automotive display screen. As semi-autonomous driving develops, major technology companies are trying to enter the AOS market.

Apple has been heavily advertising CarPlay to everyday drivers since 2015. Android Auto has been doing the same since 2016 but has developed a mobile app that allows users to access the software even when they’re not driving. Samsung paid USD $8 billion for Harman, an infotainment firm with significant ties throughout the whole automotive spectrum.

BlackBerry revealed in 2016 that their QNX technology would power much of Ford’s infotainment and operating system requirements. Finally, Tesla is on version eight of its electric-vehicle operating system (2021); the company’s AOS operates on the large screen dashboard monitors of their vehicles and is responsible for almost everything from the radio to the navigation, the smartphone interface, and eventually, the automated driving feature.

Disruptive impact  

Future automotive market competition may revolve around the in-car environment, further accelerating the transition of cars from simple mechanical machines into a software-laden environments. The competition between the different tech competitors is similar to the competition between internet browsers, or between the Mac and Windows operating systems on desktops. The reason being whoever owns the operating system of vehicles has power over the consumer’s digital ecosystem during long stretches of a typical commuter’s day. It is also why Apple and Google continue to invest in self-driving cars, including developing their hardware. 

Some tech companies and automakers are experimenting with Huawei Technologies Co Ltd’s Harmony operating system in their automobiles and smartphones, adding an international component to the AOS market competition. Amidst this trend, US President Joe Biden stated in April 2021 that the US must increase electric car manufacturing to catch up with and exceed China. Such geopolitical competition might encourage multiple automotive-related industries to boost their productions to meet the demand of international governments in their battle for automotive supremacy. 

For example, chipmakers whose Graphics Processing Unit (GPU) is the primary processing engine in many self-driving automobiles will likely receive a boost in sales. Similar demand boosts may also be experienced by sensor tech manufacturers, including ultrasound sonar, HD resolution camera for object detection, and Global Positioning System (GPS) systems. Similarly, the bandwidth required by Content Delivery Networks (CDNs) and cellular services that support connected AOS platforms will also continue to grow.

Implications of automobile OS

 Wider implications of AOS may include:

• The rapid development of automated driving systems, creating a larger market for such AOS.
• Greater customization of driving habits and experiences by allowing people to install their preferred entertainment, navigation, and self-driving apps.
• Greater mobility options for vehicle owners that live with disabilities.
• Market competition between different companies to create the best AOS ecosystem, as most consumers prefer to purchase gadgets that they can easily sync together.
• A significant reduction in traffic accidents, resulting in fewer fatalities and injuries, and a subsequent decrease in healthcare costs and insurance premiums.
• New industries, such as software development for vehicles, and high-skilled jobs.
• More efficient use of infrastructure through intelligent traffic management, reducing congestion and improving the quality of urban life.
• Significant job losses in sectors such as trucking and taxi services, potentially causing widespread economic disruption and labor market instability.
• The increased reliance on electronic systems in automobiles leading to a surge in electronic waste, presenting significant environmental challenges if not properly managed and recycled.

Questions to consider

• Which company do you think will prevail in establishing the most used Automotive OS?
• What features would you like to see incorporated within an Automotive OS?
• Do you think AOS has the potential to breach user privacy laws?