The cybersecurity market for cars was valued at USD 122.66 million in 2018 and is expected to reach a value of USD 1617.42 million by 2024, registering a CAGR of 52.15% over the forecast period 2019 - 2024. The cybersecurity market for cars is being primarily driven by the increasing connectivity of vehicles, increasing adoption of telematics services in automobiles, and increasing integration of advanced features.
- The automotive industry across the globe is undergoing a wave of innovation and advancements, with the emergence of groundbreaking technologies, such as the Internet of Things (IoT), enhanced GPS, location and maintenance live recording, reminders, driving assistance, and Wi-Fi services, the demand for connected cars has been rapidly increasing, driving the market forward
- Alongside the rapid increasing connectivity, the increasing number of electronic control units and lines of code have increased the complexity of the products, thus, the concerns for security solutions are on the rise.
- Furthermore, the fragmented supply chain for this market has made it very difficult to monitor the security policies at each and every stage. Hence, in order to counter these security risks, cybersecurity has become an indispensable aspect of connected cars.
- In addition, the growing number of government regulations and standards for these connected cars has been one of the major factors in boosting the adoption of cybersecurity solutions for cars.
Scope of the Report
With the emergence of connected cars, vehicle hacking is also expected to rise. Vehicle hacking is when someone attempts to gain unauthorized access to vehicle systems for the purpose of retrieving driver data or manipulating vehicle functionality.
Key Market Trends
Software-Based Solutions to Witness High Growth
- As all the connected vehicles are fully dependent on the connected software for all aspects of their operation, hence, they are vulnerable to a wide range of cybersecurity attacks, which increases the need for a cybersecurity solution, which is driving the market forward.
- Further, to safeguard the vehicle internal systems from these attacks, and ensure data integrity while also providing data privacy and secure vehicle-to-cloud communications in millions of vehicles, there is a high demand for these software-based solutions.
- Moreover, car connectivity provides the provision for new features such as point of interest navigation, music, and video streaming and also remote control of the vehicle, to protect these systems from an attack, cybersecurity solutions are becoming prominent.
- With the growing demand and increase in the number of connected cars across the globe, the cybersecurity market for cars is expected to witness positive growth over the forecast period.
Asia-Pacific to Witness a High Growth
- With automobiles equipped with in-vehicle infotainment systems and improved wireless- network systems, have boosted the sales of the connected cars in this region, thereby, driving the overall Asia-Pacific cybersecurity market for cars.
- With the expansion of the connected cars market along with the development of required infrastructure in connectivity, the network for cybersecurity in the connected cars is expected to develop extensively over the forecast period.
- The cybersecurity market for cars in the Asia Pacific region is primarily driven by the increased use of web services in the vehicle along with the increased demand for connected cyber security solutions in a vehicle.
- The automotive OEMs are opting for new revenue streams, which include connected car devices. This strategy is further buoyed by the Japanese government's plans to improve the connected cars division before Olympics 2020, which is also a major factor driving the market in this region.
The cybersecurity market for cars is highly competitive owing to the presence of many small and large players in the market operating in domestic as well as in the international market. The market appears to be moderately concentrated with the key players adopting strategies like product and service innovation and mergers and acquisitions. Some of the major players n the market are Intel Corporation, Cisco Systems, Inc., NXP Semiconductors NV among others.
- February 2018 - NXP Semiconductors and eight key partners from the industry at the Munich Security Conference signed the first joint charter for greater cybersecurity. Initiated by Siemens, the Charter of Trust calls for binding rules and standards to build trust in cybersecurity and further advance digitalization.
- December 2018 - Karamba Security, a world-leading provider of end-to-end automotive cybersecurity prevention solutions, announced that Ficosa a top-tier global provider for the automotive and mobility sector is partnering with Karamba Security to harden its Telematics Control Unit (TCU) and keep vehicles protected from cyber attacks when communicating with the internet.
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