Europe Market for Cyber Security of Cars - Growth, Trends, and Forecasts (2022 - 2027)

The Europe Market for Cyber Security of Cars is expected to register a CAGR of 9.5% during the forecast period. The adoption of cybersecurity solutions is expected to increase with the increasing penetration of the internet throughout Europe's major countries. Also, the expanding wireless network catering to mobile devices has enhanced data vulnerability.

Key Highlights

• The implementation of EU legislation and actions stemming from the National Framework and the National Cybersecurity Plan is expected to facilitate the market's growth in the region. As part of its Digital Agenda, the Italian government plans to make considerable investments in digital identity protection to increase digital transactions and security levels. Initiatives like this are expected to boost the market growth.
• Germany is pushing itself as a technologically independent country like the United States and China in terms of cybersecurity. In August 2020, the country announced a federal agency dedicated to handling cyberattacks and strengthening the country's digital security. The agency is also slated to receive total funding of USD 412 million by 2023 to continue innovation and solutions to cyber-attacks.
• The increasing consumer propensity toward connected cars, due to the advent of IoT and the proliferation of communication technologies in vehicles, is augmenting the need for cybersecurity in cars. According to Capgemini, by 2023, about a quarter of all the passenger cars in use worldwide will likely be connected, with Europe holding the major share and showing the fastest growing numbers.
• Apart from this, the increasing demand for the ADAS system is expected to influence the demand for cybersecurity in cars; with ADAS systems, a prominent share of core functions along with other features are expected to run on network connections, which can be controlled from remote devices.

Key Market Trends

Cloud Security Expected to Witness Significant Market Share

• Cloud computing has transformed the way enterprises use, share, and store data, applications, and workloads. However, it has also introduced a host of new security threats, machine learning, and challenges. With significant data going into the cloud and public cloud services, it further increases the exposure. Currently, multiple countries in the region are at the forefront of cloud adoption augmented by the end-user drive for digitalization. The growing demand from content, edge services, and last-mile connectivity to transport-led growing data volumes has increased the interconnection data privacy of cars.
• In terms of cloud security, managed security providers are expected to see significant demand from the region, and major players are focusing on investing in such firms to gain a regional foothold and market share along with capabilities. Most organizations use multiple cloud providers, and with it, the demand for a unified way to secure them is increasing among the customers. Also, companies are looking to adopt a centralized way to apply security controls and compliance policies.
• Further, National strategic nodes are designed to support the public administration's physical infrastructure, which will be certified by evaluation groups tasked by AGID. Preliminary evaluations are necessary to ensure a common security standard for infrastructure offering public administration cloud services. This is a part of the 2019-2021 Three-Year Plan for Information Technology in Public Administration undertaken by the Italian Government. Such initiatives are expected to boost market growth.
• However, Nordic companies are accelerating data migration to the cloud, crafting new digital systems catering to cars, and increasing the number of endpoints within their network architecture. Their developing dependence on third-party suppliers and service providers has presented attackers with new avenues into supply chains.

United Kingdom Expected to Witness Significant Market Share

• The National Cyber Security Strategy adopted by the United Kingdom for 2016-2021 is a five-year plan of investing GBP 1.9 billion to defend systems and infrastructure by protecting both companies and its citizens by making the country resilient to cyber threats by 2021. This body functions as a bridge to provide proper guide and support involving cyber threats between various industries exposed to it and the government. This is expected to create innovations and drive more job opportunities for cyber security professionals.
• Also, in June 2020, O2 UK announced the completion of a project to support the development of cybersecurity testing capabilities funded by Innovate UK, the UK Government-funded innovation agency, and the Centre for Connected and Autonomous Vehicles (CCAV). During the 12-week Baselining, Automation, and Response for CAV Testbed (BeARCAT) cybersecurity project, O2 granted access to its technical subject matter experts, working alongside partners such as technology company Cisco, Millbrook Proving Ground, and Warwick Manufacturing Group, the engineering, manufacturing, and technology department at the University of Warwick.
• The increased rate of cybercrimes has driven the focus of developing new solutions and has characterized the country's investment landscape. For instance, Bridewell Consulting, a cyber security services company dealing with Managed Detection Response and Security Operations Centre, acknowledged multi-million dollar investment from Growth Capital Partners, a private equity firm to expand its operations in the UK and in the rest of Europe.
• Further, in October 2021, Trustonic joined the Renesas R-Car Consortium to expand the availability of cybersecurity solutions in the connected vehicle market. Trustonic and other R-Car Consortium members will create new security solutions and generate value for those in the ecosystem by collaborating as part of this industry forum.

Competitive Landscape

The Europe Market for Cyber Security of Cars is moderately competitive in nature. Product launches, high expense on research and development, partnerships and acquisitions, etc., are the prime growth strategies adopted by the companies in the region to sustain the intense competition.

• March 2021 - IBM Security announced services designed to manage cloud security strategy, policies, and controls across hybrid cloud environments. The expanded suite of IBM Security Services for Cloud is designed to assist companies in adopting a consistent security strategy across their hybrid cloud environments. Also, the services leverage AI and automation to help identify and prioritize risks.
• February 2020 - Cisco and Oxbotica partnered to bring OpenRoaming to autonomous cars. With the help of OpenRoaming, Autonomous Vehicles can connect to trusted Wi-Fi networks without the need to physically enter the usernames or passwords. Instead, Autonomous Vehicles authenticate using credentials issued by the manufacturer, like Oxbotica.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support