The stage is being set for the next big battleground between Google and Microsoft. This time it’s not for your PC or your mobile phone, but rather for control of your car! Microsoft may not be a new entrant into the automotive market (having launched its AutoPC platform back in 1998) but they have a reputation for only getting things right on their third try.  Google on the other hand, has only recently entered the automotive market, with GM having announced at CES earlier this year an Android smartphone app for GM’s much hyped new electric vehicle the Chevy Volt.

Microsoft clearly smells an opportunity to build on the success of their collaboration with Ford on SYNCH, Ford’s hugely successfully factory installed, in-car communications and entertainment system. Microsoft’s new Windows Embedded Automotive 7 was launched last month at the Convergence automotive electronics show in Detroit. Microsoft had by far the most impressive display at the show – a little over a year after the biggest restructuring of the automotive business in a generation left many automotive businesses distressed. With $36 billion in their cash reserves, Microsoft has plenty of cash on hand to build on their momentum in the automotive market. Currently, they are also actively expanding their Automotive Business Unit offices in Southfield, Michigan.

Google meanwhile is rumored to be expanding its collaboration with GM to merge its Android technology with GM’s OnStar network. Such a technology partnership could provide a big boost to OnStar which has struggled to gain significant customer demand for its paid services since its launch over a decade ago. Integration of the Android OS into OnStar could provide GM vehicle customers access to Android’s large array of Apps.

The global automotive market represents a large opportunity for the software industry. 2010 global vehicle sales are projected to reach 70 million¹ for the first time. As a comparison 2010 global smartphone unit sales will be around 80 million². Clearly the automotive market represents a potentially significant new revenue stream for the dominate OS platform providers.

What Does this Mean for Vehicle Owners and the Global Automotive Industry?

The automotive industry has struggled for years to adopt standard OS platforms across OEMs. The collective might of Google and Microsoft may be what it takes to finally push such standardization. The benefits would be many. Just imagine the explosion of apps that occurred in the smartphone market now hitting your automobile! This would truly usher in a new golden age of automotive connectivity and infotainment. Vehicle owners would have access to numerous information, connectivity and entertainment Apps. This would almost certainly boost auto sales, as well as, provide new sources of revenue for 1000’s of new service providers. Now that’s how you stimulate the economy!

^1- IHS Automotive
^2- Gartner.com