The operating system market was valued at US$23.492 billion in 2019. An operating system refers to a program that is installed on a device such as a smartphone, desktop PC, or a 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 that are 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 also considered to be a key factor bolstering the demand for PCs and Laptops and, smartphones and thereby supplement 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 is also expected to be one of the key opportunities for the market to grow in the near future. Growth in the investment in smart cities will propel the use of connected and IoT based devices, these a high growth in the data volumes is expected to augment the demand for more computer systems and thus drive the market growth significantly in the near future. For instance, the Make in India project launched by the government of India has identified 99 cities which 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 of operating systems and add up to the market growth. Initiatives by the government regarding infrastructural development have been further inclined towards the construction of 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 main focus in the development of commercial infrastructure which is indicated from the fact, 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 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 devices' products. For instance, as per the World Bank Group, the household’s and NPSHs 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 for the market for high-end gaming PCs and smartphones which is expected to positively impact the market growth. Also, the participation of the key market players in the PC and smartphone industry in the form of investments in the R&D to develop more durable and high configuration devices to cater to the growing requirements of gamers is also projected to positively drive the demand for operating systems. 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 that will be sold under the name of Black Shark 3.
Furthermore, the rising investments in the esports industry is projected to propel the market growth during the coming years on account of the rising number of players, 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 the Ministry of Culture, Sports and Tourism have 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 with an aim to bring eSports even closer to mainstream recognition. Similarly, in May 2018, a 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. On the basis of 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, Middle East and Africa, and Asia Pacific.
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 systemmarket 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.