Automotive Cyber Security Market Dynamics
Drivers: Increased use of electronics per vehicle and a growing number of connected cars
A vehicle's overall weight has recently decreased because of electrification. Consequently, the automotive industry's demand for electronics has grown quickly. Automobiles are more susceptible to cyberattacks due to the growing use of electronics. Cyberattacks could target the electronic parts used in telematics, infotainment, engine, body, communication, and ADAS systems, among other uses. As a result, stakeholders have begun to spend money on cybersecurity technologies to provide reliable electronic platforms for cars. Increasing vehicle connectivity has increased a vehicle's vulnerability to cyberattacks. As a result, the market is expanding due to rising connected vehicle sales and increased use of electronics in vehicles.
Restraints: Growing complexity in the electronic vehicle system
Electronic driver assistance systems are becoming increasingly popular due to rising demand for vehicle safety in terms of accident prevention, driver safety, and sophisticated communication & data safety (parking, lane assist, speed regulation, blind spot detection, pre-collision warning, etc.). The complexity of automotive electronic architectures has increased, giving hackers more opportunities to compromise a vehicle. These opportunities include automatic cooling, seat adjustment with memory, automatic tailgate opening, and performance control. To mitigate these issues, the hardware would need to be physically strengthened, and more complex software solutions, increasing implementation costs for OEMs and impeding market expansion.
Opportunities: Introduction of electric vehicle wireless battery management system
Wireless battery management systems (WBMS) have opened up a tremendous global market opportunity for OEMs. For the next generation of E.V.s, wBMS can reduce the volume of battery packs by up to 15% and up to 90% of the wiring. In addition, the battery life span is extended in this new system. As a result, the wireless power pack management system must maintain a strict security procedure. The company's new wBMS, which builds on its established, market-leading BMS battery cell measurement technology, integrates all integrated circuits, hardware, and software for power, battery management, R.F. communication, and a single system-level solution that offers ASIL-D safety and module-level security by combining many system functions. As a result, it is anticipated that the market for cybersecurity solutions will expand along with the popularity of wBMS.
The service category is estimated to be the largest growth in the steam engine market during the forecast period
The service category dominated the market. As endpoint applications like radio, mobile, and smart antenna are increasingly used in automobiles, there is a rising need for in-vehicle services. Due to the advancement of cloud infrastructure and framework, external cloud services are the market sector expanding at the highest rate. Since autonomous vehicles produce a significant amount of data, cloud services provide a highly reliable technology. Additionally, as the number of vehicles and gadgets connected to the cloud increases, cloud technology will lead to greater information sharing.
ADAS & safety systems are estimated to be the largest growing market category during the forecast period
The ADAS &safety systems segment is projected to grow the fastest during the forecast period. The market is now seeing ground-breaking developments in ADAS and autonomous driving technologies, which is anticipated to increase demand for a continuous connection from the car's ECU to several cloud services that improve sensor processing and subsequent vehicle maneuvering.
The North American segment is estimated to be the largest growing market during the forecast period
North America is the largest automotive cyber security market, projected to grow fastest during the forecast period. The rising demand for highly connected automobiles and the rise of several cybersecurity and automotive companies are the main factors driving the growth of the automotive cyber security market in North America. Government collaboration projects and initiatives from top tech companies will increase the market's size even more. For instance, the U.S. Department of Transportation has urged the area's automakers to collaborate with researchers and share their cybersecurity-related work to better prepare for potential vehicle-related attacks. The region's growth will also be fueled by rising investments and crucial actions by the local government to combat cyberattacks in the automotive industry.
Key Market Players
The automotive cyber security market is dominated by a few global players and comprises several regional players. Some key manufacturers operating in the market are Continental (Argus Cyber Security), Guardknox Cyber-Technologies Ltd., Vector Informatik GmbH, Karamba Security, Synopsys, Upstream Security, Sectigo Limited, ESCRYPT, RunSafe Security, Inc., Trend Micro, Harman InternationalX Trillium Secure Inc., STMicroelectronics, Infineon Technologies AG, NXP Semiconductors, Bosch Mobility Solutions, Microchip Technology, Aptiv and Irdeto.
Recent Developments
- In November 2021, to provide improved driving experiences, convenience, and services like over-the-air upgrades across its global fleet of vehicles, including the 2021 Ford F-150 truck, Mustang Mach-E, and Bronco SUVs, NXP Semiconductors cooperated with Ford Motor Company.
- In October 2021, to create more sophisticated Wi-Fi connectivity capabilities and provide end-to-end connectivity solutions for clients and access points, Renesas Electronic Corporation bought Celeno Communications (Israel).
- In September 2021, the Renault Mégane E-TECH 100% electric, scheduled to go on sale in 2022, will have a Harman Kardon sound system thanks to a partnership between Harman International and Renault (France).
- In August 2021, in collaboration with experts from Virginia Tech, the University of Queensland, and the Gwangju Institute of Science and Technology, researchers at the U.S. Army Research Laboratory created a system named "DESOLATOR" to help improve the moving target defense, a well-known cyber security strategy.
Global Automotive Cyber Security Market – By Component
- Hardware
- Hardware Security Modules (HSMs)
- Secure Vehicle Network Gateways
- Trusted Platform Modules (TPM)
- Others
- Software
- Embedded Firewalls
- Encryption & Cryptography
- Biometrics & Authentication
- Others
- Services
- Professional Services
- Security Consulting & Risk Assessment
- Integration & Deployment
- Support & Maintenance
- Managed Security Services
- Telematics
- Infotainment Systems
- Powertrain Systems
- ADAS & Safety Systems
- Body Control Systems
- Others
- Fuel-based Vehicles
- Passenger Cars
- Commercial Vehicles
- Electric Vehicles
- Passenger Cars
- Commercial Vehicles
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa
