Global Automotive Cybersecurity Market - 2020-2027
The advancement in the automobile sector in the field includes connected devices with Bluetooth, built-in cellular communication, find my car, Wi-Fi for remote start, and many other apps. In addition, vehicle to infrastructure, vehicle to vehicle, vehicle to cloud, and vehicle to everything technology also make cars unsafe to hackers. Features such as remote start and automatic braking would take on a very different character if they were under a small adversary's control. Moreover, automotive cybersecurity means implementing defenses to a vehicle, such as GPS location info or data that’s a smartphone connected to the Bluetooth speaker, stop hackers from controlling or manipulating the vehicle, and resetting the oil change counter. In addition, automotive cybersecurity has a wide range of advantages, such as security engineering methods, hardware trust anchors (SHE, HSM, TPM), cryptographic processes, management of crypto material (keys, certificates), secure boot, intrusion detection and intrusion prevention systems, secure onboard and off-board communication.
The global automotive cybersecurity market is estimated to reach USD XX billion by 2027 from the recorded market size of worth USD XX billion in 2018, growing at a CAGR of XX% during the forecast period.
The increasing demand for vehicle electronics and the growing adoption of advanced vehicle technologies, including connected vehicles, self-driving vehicles, virtualization of software, and digital twinning of vehicles, have made automated vehicles unsafe to cyberattacks. The increasing demand for connected vehicles is expected to boost the market growth during the forecast period. Moreover, the growing number of government regulations and standards for connected vehicles have contributed to increasing cybersecurity for the automotive market. In addition, the telematics market is expected to boost market growth due to multiple factors like an increase in the number of accidents, rising vehicle thefts, security issues while traveling, and the demand for navigation services.
However, affordability and less awareness regarding vehicle cybersecurity are expected to hinder the market growth during the forecast period. In addition, the wireless and advanced RF communication used in these modules will create more opportunities for hackers, cybercriminals to steal personal data or manipulate vehicle functionality is another key factor to hinder the market growth.
By security, the market is segmented into the communication network, electronic systems, software, external interfaces, hardware and others. By vehicle type, the market is segmented into passenger and commercial vehicles. By protection & monitoring, the market is segmented into an external interface, in-vehicle network, in-vehicle state of health, security field, and air software & vehicle update. By application, the market is segmented into ADAS & safety system, telematics system, powerstrain system, infotainment system, body control & comfort system, and others.
ADAS are intelligent systems that reside inside the vehicle and assist the main driver in various ways. These systems may provide important information about traffic, closure & blockage of roads ahead, crowding levels, suggested routes avoid crowding, and others. These systems will also be used to judge the human driver's fatigue and distraction and make precautionary alerts or assess the driving performance and make suggestions regarding the same. These systems can take over the human's control on assessing any threat, perform easy tasks (like cruise control) or complicated maneuvers (like overtaking and parking). The most significant advantage of using the assistance systems is that they enable communication between different vehicles, vehicle infrastructure systems and transportation management centers. The advancement in ADAS technology is expected to boost the market growth during the forecast period.
The automotive cybersecurity market size was sized at USD 1.26 billion worldwide in 2018. Several cybersecurity providers are headquartered in the Asia-Pacific region, the largest market with some USD 300 million. Increased connectivity and autonomous vehicles have driven and will continue to drive the market's growth during the forecast period.
North America is the dominant automotive cybersecurity market due to the high demand for automatic vehicles. Moreover, the local government's growing investments and critical measures to reduce cyber-attacks in the automotive market are expected to drive the regional market.
APAC automotive cybersecurity market is expected to witness the fastest growth in the forecast period. Continuous infrastructure developments and industrial development activities in emerging economies have opened new opportunities for automotive original equipment manufacturers (OEMs) offering connected vehicles. Therefore, due to the increasing adoption of connected vehicles during the forecast period, the region's automotive cybersecurity market is expected to boost the market growth in developing countries such as China, Japan and India.
Europe is expected to have significant growth in the automotive cybersecurity market during the forecast period. Germany will hold the largest market share in this region due to prominent automobile manufacturers like Audi, Porsche, Ford, BMW, Volkswagen, Mercedes-Benz, and others.
The automotive cybersecurity market is fragmented with the presence of regional and global players. The competitive outline lies with the increase in the regional company and growing investment in upstream application. CENTRI, Arxan Technologies Inc., Lear Corporation, Delphi Automotive PLC, Argus Cyber Security, Harman International Industries Inc., SBD Automotive & NCC Group, Intel Corporation, Trillium Inc., Denso Corporation are the major player in the automotive market. The major players adopt various growth strategies such as product launches, acquisitions, and collaborations, contributing to the global automotive cybersecurity market.
DENSO has developed a defense-in-depth system. This complete security system monitors the full in-vehicle technology, defending it with four-layered functions: a secure gateway to keep the vehicle intact, authentication for external connections, electronic control unit (ECU) protection, and authentication to enhance in-vehicle local area network (LAN) security.
It is a technology to secure the integrity of messages transferred within a vehicle. The authentication code recognizes the impersonation on the LAN and tampering of messages. Moreover, the sender and receiver have the same key. The sender produces a message with an authentication code (MAC value) calculated using the standard key. The receiver generates a MAC value based on the message received and the receiver’s standard key. If the MAC value matches the message's value, the message is confirmed to be authentic, ensuring that it was sent from the correct sender.
DENSO’s security system continuously monitors for anomalies on the in-vehicle network to ensure early detection. The gateway and the ECU monitor and detect four types of abnormalities: a communication frequency different from the normal one, data that is out of the specifications, behavior different from the specified protocol, and software operations caused by tampering of data and commands. The ECU also monitors message authentication.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook