Cybersecurity Market For Cars - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Cybersecurity Market For Cars - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The cybersecurity market is expected to register a CAGR of 52.15% over the forecast period. The advent of connected cars and increasing demand for a relevant solution in passenger vehicles is driving the need for cybersecurity, as more and more attacks are being carried out on connected cars. According to Upstream Auto, a cybersecurity solutions provider for the automotive industry, the auto industry might face a loss of USD 24 billion over the next five years due to cyberattacks.

Key Highlights

• The dynamic nature of the connected vehicle features is significantly influencing the demand for cybersecurity. With every new connected entity or late service for connected cars, a new attack vector is also created from which the vehicle's security can be compromised.
• The prominent players in this market are focused on strategic acquisitions and collaborations to remain competitive and enhance their capabilities. For instance, In November 2021, NXP Semiconductors worked with Ford Motor Company to improve driving experiences, conveniences, and services such as over-the-air upgrades across the company's global fleet of cars, including the 2021 Ford F-150 pickup, Mustang Mach-E, and Bronco SUVs.
• Moreover, In April 2021, Elektrobit cooperated with SUSE (Germany) to provide their EB corbos Linux OS to Chinese automakers and Tier 1 suppliers.
• The key car manufacturers are partnering with key players in the market to provide their clients with cybersecurity solutions-enabled cars. For instance, In March 2021, Verimatrix, the leader in empowering the new connected world with people-centered security, announced today that DNP, based in Tokyo, has incorporated Verimatrix cybersecurity technology into its Digital Key Platform for automobile manufacturers and their accompanying keyless apps. DNP's secure SDK for customers and partners integrates the Verimatrix Whitebox solution to reduce any potential entry points for cybercriminals to provide a core level of security and trust between a car, its owner, and the mobile app.
• In December 2021, With their collaborative solution, Winbond Electronics Corporation, a producer of semiconductor memory solutions, and Karamba Security, a security provider for connected devices, announced an unparalleled vehicle cybersecurity solution. Karamba's XGuardTM software is already well-known in the automotive and IoT markets, allowing clients to comply with the new UN R155 guideline while detecting and preventing cyber-attacks on the device.
• Adding Winbond's new 128Mb TrustME® W77Q Secure Flash memory to Karamba Security's XGuardTM embedded security software provides users with end-to-end runtime integrity protection for essential applications such as over-the-air updates.
• The prominent players in the market are offering app-based intelligent solutions, which increases the growth opportunities for the cybersecurity market for cars. In January 2022, Visteon, a technology company servicing the mobility industry, announced the AllGo App Store as one of the latest solutions in its growing range of connected car technologies for the mobility sector at CES® 2022. The AllGo App Store was created to fulfill the expanding global demand for secure and convenient access to app-based content in an innovative, connected cockpit.
• With the outbreak of COVID-19, automotive is one of the most negatively affected end-users, which will negatively impact the demand for the cybersecurity market for cars. After initial supply and manufacturing disruptions, the automotive industry is experiencing a demand shock with an uncertain recovery timeline due to shelter-in-place regulations. With limited room to cut fixed costs, some OEMs have low liquidity to power through a long period of missing revenues, which could affect the market. According to Germany's Center for Automotive Research, the Western European automobile market will need about ten years to reach the size of 2019 again.

Key Market TrendsRising Security Threats as More Technologies Get Integrated Into Cars is Expected to Drive the Market

• The rapid growth in cyberattacks on the connected automotive industry is increasing significantly. From 2010 to 2018, the cyberattacks in the automotive sector increased by six times, and black hat attacks exceeded the number of white hats in 2018. According to Upstream's 2022 Global Automotive Cybersecurity Report includes a detailed examination of over 900 automotive cybersecurity events, including the Advanced sophistication of 2021's 240+ attacks; 84.5% of automotive attacks were carried out remotely, and a staggering 40.1% of incidents focused on back-end servers attacks.
• The automotive industry faces a significant challenge due to digitalization, such as Big Data coming from multiple connected sources. It is only getting bigger, making it increasingly difficult to analyze and protect the connected car against cyber threats. The only way to cut through the data clutter and identify potential attacks is by leveraging Artificial Intelligence and Machine Learning technologies for behavioral analysis of the data.
• On August 21, China published a trial regulation on vehicle data management to standardize vehicle data processing to protect the lawful rights and interests of individuals and organizations, protect national security and public interest, and promote rational development and utilization of data collected from automobiles.
• Additionally, According to the survey, China ICVs collect at least 10TB of data per day, with the data including not only information about the driver and passengers' facial expressions, movements, sight, and voices but also the vehicle's geographic position, interior, and exterior environment, and use of the Internet of Vehicles (IoV) to strengthen vehicle data security management to prevent and fix these security issues and potential threats.
• As sensors increase rapidly in connected vehicles, hackers can potentially steal personally identifiable information (PII) from the vehicle's systems, such as personal trip and location data, entertainment preferences, and even financial information. The more manufacturers release mobile apps for communicating with cars, the more they become targets for adverse factors.
• In the case of the Nissan Leaf, a compact five-door hatchback battery electric vehicle (BEV), security testers demonstrated how they could gain unauthorized access to control the heated steering wheel, seats, fans, and aircon remotely. The increasing security vulnerabilities in the Android and iOS mobile operating systems are also becoming a concern. These instances would require a need for robust cybersecurity systems for cars.

North America is Expected to Hold Significant Market Share

• North America is one of the major automotive markets and holds a significant demand for connected cars; the region has observed a slump in demand similar to the global market since 2019; however, the demand is expected to pick up over the coming years. For instance, according to BEA, in 2021, the US's light-vehicle retail sales stood at 14.9 million units.
• According to carslaesbase.com, Utility vehicles (SUVs, crossovers, pickup trucks, and vans) increased 5.2% to a record 77.6% of total sales, while car types (sedans, hatchbacks, wagons, coupes, and convertibles) decreased 4% to 22.4%. American brands are down 6.6% in 2021 and have lost 4.2 percentage points of market share since 2020, reaching a new low of 41%.
• Furthermore, US car sales of Japanese brands are up 8.6%, increasing their market share to 38.5%, the highest since 2010. European brands are up 10.5%, increasing their market share by 0.7 percentage points to 10.6%, a new yearly high and the first time they have reached double digits. South Korean brands surpass all others, increasing their market share by 1.5 percentage points to 9.9%.
• The key players in the market are offering modernized solutions by collaborating with car manufacturers, which increases the growth opportunities for the cybersecurity market for cars. For Instance, In April 2022, Cisco and General Motors are collaborating to modernize and automate the development process for vehicle development data for performance testing, reducing time-to-market for commercially ready automobiles. Using Cisco's wireless network architecture for real-time, pre-production performance testing at GM Milford Proving Ground enables multiple GM test engineers to actively monitor several hundred data channels concurrently during a test run, observe vehicle operation parameters, and modify the test being run to optimize results.
• The demand for electronics in the automobile industry in this region has expanded rapidly. The increased usage of electronics in vehicles has rendered them more vulnerable to hackers. Cyberattacks are common on electronic components used in telematics, infotainment, powertrain electronics, body electronics, communication electronics, and ADAS systems. As a result, stakeholders across this region have begun investing in cybersecurity solutions to provide robust electronic automobile platforms.
• The key players in this region are focusing on strategic collaborations. For instance, In July 2021, NXP Semiconductors and Moter Technologies, Inc. (the US) collaborated to integrate their new S32G2 high-performance automotive processors with MOTER's insurance data science knowledge and software. This is expected to enable car data monetization through new and better automotive insurance services.

Competitive Landscape

The cybersecurity market for cars is highly competitive due to the presence of many small and large players operating in domestic and international markets. The market appears to be moderately concentrated, with the key players adopting strategies like product and service innovation to overcome the latest threats faced by automobiles continually. Some of the significant players n the market are Cisco Systems, Inc., NXP Semiconductors NV, and Harman International Industries Inc., among others.

• August 2021 - Cyngn, the developer of industrial autonomous vehicle technology, has announced a collaboration with Arilou Automotive Cybersecurity, the top automotive cyber security service. The partnership will assure the ongoing safety and security of Cyngn's autonomous vehicle deployments.
• January 2021 - HARMAN, a wholly-owned subsidiary of Samsung Electronics Co., Ltd. that focuses on connected technologies and solutions for the automotive, consumer, and enterprise markets, today announced HARMAN Turbo Connect (TBOT). This new intelligent software agent anticipates and mitigates vehicle connectivity issues on the road. HARMAN TBOT, the latest solution in HARMAN's telematics portfolio, meets the current demand for high-speed connectivity with low latency, particularly when combined with 5G-enabled technologies such as HARMAN's Smart Conformal Antenna and total 5G and 5G-ready Telecommunications Control Units (TCU).
• January 2021 - Mobility will be carbon-neutral, automated, wholly linked, and cyber-secure in the future. This transition is centered on microelectronics. Infineon Technologies AG will introduce a new iteration of its AURIXTM microcontroller family (MCU) at CES 2022. The TC4x series promotes eMobility, advanced driver assistance systems (ADAS), automotive electric-electronic (E/E) architectures, and low-cost artificial intelligence (AI) applications. Additionally, its scalable family model enables a shared software design, resulting in significant platform software savings.

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