Automotive Cybersecurity Market

Global Industry Analysis (2017 – 2020), Growth Trends and Market Forecast (2021 – 2027)

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Connected Vehicle Technology Bolsters Demand for Automotive Cybersecurity

After witnessing a steady growth trail over the past decade, automotive industry saw the average growth rate plummeting over the past couple of years. While this is attributable to cyclical demand fluctuations, coupled with proliferation of shared mobility business models, the expected transition to comply with new emission norms, and the rise of long-awaited vehicle electrification, the growth trajectory was upbeat between 3-4% during 2013 –2017.

The upsurge of connected, autonomous, shared, and electric vehicles is revolutionizing the automotive industry for its route to the future of mobility. Connected vehicles particularly are expected to take over all the innovations in mobility in long term, which points to the critical significance of vehicle vulnerability and security to be emphasized. Growing threat of malicious cyber-attacks on advanced technology automobiles and automotive accessories drives demand for automotive cybersecurity. The global automotive cybersecurity market will progress impressively in long-term future.

Automakers Increasingly Consider Investments in Cybersecurity, Pushing Market Prospects

Automakers are investing efforts in securing vulnerable technologies by integration of cyber-secure software and hardware. However, the advent and commercialisation of autonomous vehicles are likely to be prone to volumes of cyber-attacks, thereby pushing the need for cybersecurity. Increasing demand for connected vehicles, sufficing the needs of safety, comfort, and security brings with it an equally growing threat of cyber-attacks. This would remain the key push factor fuelling automotive cybersecurity market.

Leading automakers such as Daimler AG corroborated with Uber for self-driving vehicle technology. Similarly, investments by top technology innovators such as Tesla Motors are also expected to be on the rise, which would deliver seamless driving experience. Self-driven vehicles will further mark a major milestone of industry. Such technological headways are predicted to lay down the cyber-security policies for all industry operators, thereby paving the way for the growth of automotive cybersecurity market.

Role of Governments and Industry Authorities Crucial in Market Build-up

The SPY Car Act of 2015 first established the cybersecurity standards with an intend to ensure vehicle owners’ protection from both security and privacy threats. Such initiatives from government or allied authorities will play an important role in propelling demand for automotive cybersecurity measures. Moreover, rising interest of governments in development of smart cities and intelligent transport systems (ITS) would further supplement the demand for connected vehicles, thus vouching for the need for automotive cybersecurity.

To collaborate with several stakeholders on cybersecurity, Japanese Automobile Manufacturers Association (JAMA) had launched a cybersecurity group that was designated under Electronic Information Exchange Committee, which involved WP.29. Japanese automakers having a market share in the US joined the US Automotive Information Sharing and Analysis Center (Auto-ISAC) to share the insights related to different types of cyber-attacks with their US counterparts. Similarly, South Korea followed UNECE WP.29 regulations.

New Doors of Opportunity Likely to Open with Abatement of Pandemic

The global COVID-19 pandemic imposed a complex demand-supply constraint facing industry participants in addition to creating the basic sustainability issues for businesses in automotive domain. With the situation subsiding gradually and industry getting its hold back, new opportunities are likely spring up in line with the new normal. The market for automotive cybersecurity is expected to witness new innovation strategies coming up along with some new and renewed partnerships. This would provide a much-needed thrust to the system all over again. Growing mobility preference for private vehicles is predicted to be among the key factors directing changes in vehicle sales patterns as well as advanced technology niches such as automotive cybersecurity.

ADAS to Spearhead with Demand Upsurge in Automotive Cybersecurity for Passenger Vehicles  

Autonomous driving, connected vehicles, electrification, and shared mobility – popularly the ACES are recently presenting new dimensions to automotive industry. Increasing digitisation of automobiles also makes them more of a tempting target for potential cyber-attacks, hacking, information theft, and more. Advanced driver assist systems (ADAS) has been making its presence felt among luxury and premium vehicle categories. Electric vehicles are also equipped with basic ADAS functionalities. For better operation and efficiency, ADAS and safety systems consistently interact with the chipsets and electronic control units, either locally or on cloud. Hence, these systems become very critical in vehicle operations and passenger safety. To secure these systems from cyber-attacks, more demand for automotive cybersecurity measures will be observed in the near future.

North America Leads; Asia Pacific Exhibits Lucrative Potential for Market Growth

North America is currently in the vanguard of demand for automotive cybersecurity owing to supportive government regulations framed to tackle cyber-attacks rising at an alarming rate. Advent of the connected vehicle eco-system is on account of the convergence of the ICT and automotive industry in North America. Growing vehicle production, increasing vehicle safety norms, penetration of connected vehicle systems, supplemented by burgeoning sales of luxury and premium vehicles are some of the factors attributing towards the market growth.

Asia Pacific however is expected to showcase excellent growth potential for the development of new markets. This can be attributable to optimistic growth prospects of connected vehicles in the region. Wireless network-oriented vehicles in the Asian countries are predicted to be explicitly centric towards advanced technologies, thereby fuelling the market growth in future.

Competition Intensifies with Entry of New Potential Players

Increased connectivity features in new-age vehicles are posing a greater threat which in turn is attracting new entrants to market, with multiple lucrative opportunities to serve automakers. Intensifying competition between key players and new entrants is transforming into a stiffer competition scenario. It is highly likely that most of the automakers would procure cybersecurity solutions from suppliers, which are then integrated on vehicle hardware. However, the lack of robust in-house capabilities of a majority of automakers either at the plant or technical centres will possibly lead to severe vulnerabilities during the lag time.

The global automotive cybersecurity market landscape is a diverse ecosystem that comprises multiple stakeholders such as eminent automakers, hardware manufacturers, and security software suppliers. The market has witnessed significant investments from venture capitalists towards cybersecurity providers. Product innovation emphasizing accuracy remains the focal area of automotive cybersecurity suppliers. Some of the leading companies are working on how to provide security updates and system related issue resolutions within stipulated time lines, which is likely to offer them a competitive edge.

Some of the key players driving the competition landscape of automotive cybersecurity market include Continental, Karamba Security, Harman, Escrypt, Vector, NXP, Cisco Systems, Inc., Argus Cyber Security Ltd., and BT Security.

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