Investment Rating - The report maintains a "Positive" investment rating for the industry [12]. Core Insights - The operating system (OS) serves as a critical foundational software that connects hardware and various software applications, and it is poised for growth in the era of edge computing [4][6]. - The domestic operating system market is expected to expand significantly due to the trend of domestic substitution and the promotion of the "Xinchuang" initiative, which is driving high growth in PC and server shipments [8][10]. - The report emphasizes the importance of focusing on leading domestic operating system companies that possess ecological advantages [10]. Summary by Sections Operating System: Key Core Software - The operating system is essential for managing computer resources and ensuring stable operation, with various types tailored to different user environments and functionalities [19][21]. Global Market: Dominance of First-Mover Firms - The global operating system market is projected to reach approximately $57.25 billion in 2025, with a compound annual growth rate of 7% expected to reach $96.3 billion by 2033 [26][29]. - Major players like Microsoft and Apple dominate the PC operating system market, holding about 86.7% of the market share [30]. Era of Opportunity: Hardware Development Driving OS Updates - The transition to edge computing presents new opportunities for domestic operating systems, which can leverage open-source collaboration to accelerate ecosystem development [7][36]. Domestic Substitution: Vast Market for Domestic Operating Systems - The domestic operating system market is expanding as the country aims to build an independent and secure operating system ecosystem, with significant growth potential as the Xinchuang initiative progresses [8][64]. Security Autonomy: Necessity for OS Localization - The report highlights the critical need for an independent operating system ecosystem to enhance national security and reduce reliance on foreign technology [56][59]. Domestic Manufacturers Overview: Flourishing Domestic OS Landscape - Several domestic operating system companies have emerged, with leading firms like Kylin Software and UnionTech Software making significant strides in the market [9][10]. Investment Recommendations: Focus on Domestic OS Industry Chain - The report suggests monitoring the domestic operating system industry chain, particularly companies with strong ecological advantages, as the market is expected to grow significantly by 2025 [10][64].