The global automotive cybersecurity market is projected to reach $8.61 billion by 2027, according to a recent report by Vancouver, BC-based Emergen Research. That compares to a market size of $1.79 billion in 2019, for a compound annual growth rate of 21.7%.
At the macro level, the cybersecurity market is being driven by the increasing number of connected cars, especially in the EV segment, vehicle data protection mandates by regulatory bodies, and the growth in cloud-based applications for high-level packages. An increased level of cyber-attacks within the automotive business has fueled the requirement for greater automotive cybersecurity.
Vehicles comprised of assorted electrical parts connected through inside networks are aiding hackers, who are aiming to take over management of safety-critical parts like engines and brakes by gaining access to tangential electronic management units. So automakers are increasing their partnering with service and package firms to supply cybersecurity systems to their users.
Key highlights from the report indicate that consistent countermeasures are incredibly tough to come by to the lack of standardization. Cybersecurity solutions rely on specifications given by OEMs, which vary because of the use of various platforms within similar vehicle models, variations within electronic designs, and different vehicle options. As a result, cybersecurity resolution suppliers face integration risks that can affect vehicle threats and vulnerabilities. While expansion in autonomous vehicle technology offers opportunities to cloud suppliers, OEMs, and other stakeholders to collaborate and partner to leverage this growth, it can also increase cybersecurity threats and drive the need for greater cybersecurity.
Stakeholders from non-automotive industries have been researching cybersecurity levels globally. For example, the International Telecommunication Union (ITU) developed the worldwide cybersecurity index (GCI) in 2017. Consistent with the report, commitments from various countries for creating safety and security rules have been increasing, with standards mandating solutions driving the adoption of cybersecurity measures.
The report’s authors predict that the North American region will dominate the worldwide automotive cybersecurity market in the next few years due to the rising concern over the environment, road safety, and mandates by regulatory bodies. The presence of a handful of key players with strong capabilities in R&D and technology will complement the growth of the region’s market.
Among the key global participants cited in the report are Aptiv, Denso, Continental, Escrypt, Karamba Security, Harman International, NXP Semiconductors, Saferide Technologies, Trillium Secure, and Vector Informatik. Other players in the space include Argus Security, Blackberry, Guard Knox, Regulus Cyber, and Upstream Security.
