The Automotive Hypervisor Market is projected to grow at a CAGR of 27.0% from 2022 to 2027, to reach USD 566 million by 2027 from USD 171 million in 2022. Factors such as growth of connected infrastructure, adoption of ADAS features in vehicles and intervention of innovative technologies for advanced user interface supplements the growth of the Automotive Hypervisor market.

Hypervisor technology mostly finds its application in luxury vehicles since its development cost is always higher. The luxury vehicles are equipped with advanced safety, comfort, and convenience features, making the embedded technology of the luxury vehicles more complex with large hardware content. This makes the vehicular application more composite and less efficient. Presently, the automotive hypervisor technology is equipped majorly in premium segment passenger cars. Various digital components are installed in cars for various functions such as stability control, electronic fuel injection, navigation, and theft prevention. Various applications such as telematics, navigation, ADAS function, and in-vehicle infotainment are equipped in high-end passenger cars. In order to limit the hardware content in the vehicular electronic architecture, the hypervisor technology enables the consolidation of a number of ECUs. Luxury and premium car brands such as BMW, Mercedes-Benz, and Audi have increased the number of models and variants that offer different functions due to increasing competition in the industry which will drive the automotive hypervisor market.

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The Type 1 hypervisor is also called the bare metal hypervisor. It is the simplest type of hypervisor technology for a centralized data center in the connected systems of vehicles. The virtualized layer of the hypervisor is accommodated between the hardware and several operating systems. This architecture helps in the high performance of the system application as the virtual layer interacts directly with the kernel. The placing of hardware, hypervisor, and the operating system makes the operation more efficient in automotive applications. Type 1 hypervisors are highly efficient because they have direct access to physical hardware. This also increases their security, because there is nothing in between them and the CPU that an attacker could compromise. Virtualization mitigates the risk of attacks that target security flaws. It also focuses on solving vulnerabilities in operating systems because each function has its own operating system.

The software, as well as hardware content and onboard computer systems in passenger vehicles are higher compared to commercial vehicles. A luxury-class passenger car has a higher number of electronics compared to economy and middle-class passenger cars. These modern electronic applications are operated by software. As of 2022, passenger cars utilize 100 or a higher number of ECUs. In 2020, Elektrobit announced EB Xelor, a software platform designed to streamline the development of next-generation automotive electronics architectures based on high-performance computing (HPC). A majority of in-vehicle systems and an increasingly wide range of external networks such as Wi-Fi, cellular, and the Internet are driving the market for the automotive hypervisor. Connected passenger cars are expected to utilize the maximum IoT technologies in the coming years. They are expected to collect significant amounts of data from various sources.

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