Automotive Research Institute "Intensifying Competition in Developing Integrated Operating Systems for Complete Vehicles"

[Asia Economy Reporter Changhwan Lee] As the electrification of automobiles accelerates, an analysis has emerged that the competition among global automakers to develop integrated operating systems (OS) is intensifying. Automakers that are late in developing integrated OSs are expected to fall behind in future automobile competition.

On the 24th, the Korea Automotive Technology Institute released a report titled "Trends in Automotive Electrification and Integrated OS Development Competition," stating that due to the increase in electronic components and the advancement of ADAS (Advanced Driver Assistance Systems), the design of automotive electrical and electronic (E·E) architecture is shifting toward a centralized model.

E·E architecture refers to the design of function allocation and communication of electronic control units (ECUs) that provide the electronic functions required in automobiles.

The E·E architecture is trending from a distributed architecture, which previously installed 70 to 100 ECUs, to a centralized architecture where a small number of ECUs perform integrated functions. The centralized architecture is advantageous because it reduces wiring compared to the distributed type, enabling weight reduction and space savings.

The institute explained that an integrated OS is essential for centralized E·E architecture, and automakers have begun full-scale development. The integrated OS functions to centrally control software that was previously distributed across individual ECUs by function and domain.

The integrated OS development approaches of major automakers are divided into strategies utilizing Android and strategies for in-house development.

Companies using Google's Android system include Stellantis, Honda, Volvo, General Motors (GM), and Renault-Nissan.

The Android system offers advantages such as access to Google's ecosystem, artificial intelligence (AI) technology, real-world data, and other application programming interfaces (APIs), allowing consumer user experiences familiar with Android to be easily extended to automobiles.

However, there may be limitations in fundamentally differentiating the automaker's user interface, and relying on external core competencies could restrict future revenue generation from the automotive software ecosystem.

Hyundai Motor Group, Tesla, Daimler, Toyota, and Volkswagen are representative companies pursuing in-house development of integrated OSs.

Developing an OS in-house facilitates structuring the OS based on each company's characteristics and securing brand differentiation, and it is advantageous for acquiring capabilities to compete with big tech companies in the mid to long term based on proprietary technology.

However, if the OS is applied only to the company's own vehicles, the user base may be insufficient, limiting the growth of its own software ecosystem, and the internal resource consumption for uncertain success in independent OS development is a disadvantage.

The institute forecasted that the later the integrated OS development is delayed, the more competitiveness will decline.

Jang Daeseok, Senior Researcher at the Korea Automotive Technology Institute, said, "Around 2024, most automakers will apply integrated OSs, and consumers will compare the results. Companies that are late in completion or whose results are inferior to others will be hit in future competition."

This content was produced with the assistance of AI translation services.