Operating System Market - Forecasts from 2022 to 2027

The operating system market was valued at US$25.965 billion in 2020.

An operating system refers to a program that is installed on a device such as a smartphone, desktop PC, or laptop through a boot program whose primary operation is to manage all other functioning of the devices, such as managing the resources, establishing user interface and, execution of services along with providing the services for applications software. The major factors significantly driving the operating system market during the next five years include the rising adoption of smartphones, especially in the developing economies of the world, owing to the growing disposable income and rising middle-class population. Also, the booming trend of online gaming is considered to be a key factor bolstering the demand for PCs, Laptops, and smartphones and thereby supplementing the market growth in the coming years.

In addition, the rising number of BPOs around the globe is also anticipated to drive the demand for computer systems, thereby positively impacting market growth during the next five years. Also, the rising investments in smart cities are expected to be one of the key opportunities for the market to grow in the near future. Investing in smart cities will propel the use of connected and IoT-based devices. High growth in data volumes is expected to augment the demand for more computer systems and thus drive market growth significantly in the near future. For instance, the Make in India project launched by the government of India has identified 99 cities that will be converted into smart cities.

Moreover, a decent growth in the construction of airports, hotels, metros, and other corporate offices in the major developing economies is also considered to drive the demand for new systems and devices that will also drive the demand for operating systems and add up to the market growth. Initiatives by the government regarding infrastructural development have been further inclined towards constructing airports, hotels, and metros, among others. For instance, in the Middle East region, the government of the major countries like Saudi Arabia and UAE have their primary focus on the development of commercial infrastructure, which is indicated by the fact that there are various initiatives taken by the government of major countries like Saudi Vision 2030, UAE Vision 2021 and UAE Vision 2023 that include the construction of new hotels, airports, and metros which would add up to the requirement of operating systems in the near future.

Rising smartphone penetration

One of the key factors driving the demand for operating systems is the rapidly growing adoption of smartphones, primarily in the developing economies of the globe. Also, the production of smartphones and tablets, along with other consumer electronic products, is increasing on account of the growing demand caused by the rising disposable income globally. In addition, the increasing household consumption expenditure also plays an important role in increasing the demand for smartphones and other device products. For instance, as per the World Bank Group, the household's and NPSH's Final consumption expenditure has grown remarkably from US$37.838 trillion in 2010 to US$48.611 trillion in 2018. Moreover, companies are increasing their research and development expenditure to manufacture cost-effective wearable technology for the masses. Therefore, increasing research and development expenditure coupled with rising demand for wearable technology is expected to augment the demand for operating systems during the next five years.

Growing Esports industry

The significant growth of the esports sector is also projected to be a key driver for the operating systems market to grow in the coming years. The growth of the esports sector has given an impetus to the market for high-end gaming PCs and smartphones, which is expected to impact the market growth positively. Also, the participation of the key market players in the PC and smartphone industry in the form of R&D investments to develop more durable and high-configuration devices to cater to the growing requirements of gamers is projected to drive the demand for operating systems positively. For instance, recently, Realme, a Chinese manufacturer of low-cost, high-configuration smartphones, announced the launch of budget gaming phones by 25th May 2020. Similarly, Xiaomi, one of the leading companies operating under various segments, also announced the expected launch of its third gaming phone by 22 May 2020, which will be sold under the name Black Shark 3.

Furthermore, the rising investments in the esports industry are projected to propel the market growth during the coming years on account of the rising number of players and significant growth in the number of devices. All these factors are expected to collectively contribute to the operating system market growth during the forecast period. For instance, In August 2018, South Korea's Ministry of Culture, Sports and Tourism announced the project to build up to three new eSports facilities as well as a dedicated referee-free training facility in the country by 2020 to bring eSports even closer to mainstream recognition. Similarly, in May 2018, the first dedicated eSports arena was opened in Sydney as gaming draws big crowds and bigger investments

The operating system market has been segmented on the basis of type, platform, and geography. Based on type, the market has been segmented into windows, Mac OS X, Android, and others. By platform, the segmentation has been done on the basis of PCs and laptops, smartphones and tablets, and others. Geographically, the market has been classified into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Developments in the Market:

• In October 2021, Microsoft launched Windows 11 and began the free upgrade of the software on all eligible Windows 10 PCs. The new operating software offers the best gaming experience with a new customized feed powered by Artificial intelligence, innovative design, and optimized multitasking.
• In May 2022, Apple launched new iOS 15.5 and iPadOS. This update fixed the bug fixes and modified a few features. For instance, home automation was fixed while apple podcasts and wallets were updated with new enhanced features.

COVID-19 Impact:

COVID-19 had a positive impact on the global operating system market. With the surge in active cases and enforcement of lockdown measures, remote learning and working became the new normal. According to the US Census Bureau's survey of household pulse survey, approximately 93 percent of households with school-going kids reported that their kids were engaged in some form of distance learning. Furthermore, according to a Harvard Business school survey, about 80 percent of large enterprises transitioned to a remote work model amid the pandemic. Amid such a scenario, the sales of PC buying and the consumption of operating systems increased sharply. For instance, according to an announcement made by Microsoft, about 1 billion consumers were actively using devices with Windows 20.

Competitive Insights

Prominent key market players in the operating system market include Microsoft Corporation, Google LLC, Canonical Ltd, and Apple Inc, among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings.

Major players in the operating system market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.

Segmentation

By Type

• Windows
• Android
• Mac OS X

By Platform

• Smartphones and Tablets
• PCs and Laptops

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• United Kingdom
• Spain
• Italy
• Middle East and Africa
• Saudi Arabia
• Israel
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Thailand
• Taiwan