NEW YORK, March 10, 2021 /PRNewswire/ -- As per the findings of a new market research report by Persistence Market Research, the worldwide automotive cyber security market reached a valuation of around US$ 5.4 Bn in 2020, and is anticipated to exhibit a CAGR of close to 8% over the next ten years. Usage of telematics services such as information, navigation, safety, security, diagnostics, and entertainment has been increasing in recent years, and is projected to grow at a significant rate over the coming years. Along with this, connected cars and autonomous vehicles will be available globally in the next five to ten years.
Telematics services and connected cars require the Internet for the functioning of some key applications and transferring of data. As such, they are vulnerable to cyber-threats. Automotive cyber security is a system or technology that prevents or protects the systems of a vehicle that are susceptible to any cyber-attack. As more and more vehicles are connected to the Internet, the automotive industry is working closely with Internet service providers, software companies, and others concerned players to provide better cyber security systems to end users.
OEMs and cyber security tech players are continuously collaborating with each other to develop advanced cyber security solutions to deal with highly sophisticated attacks.
Among the application, ADAS & safety systems are expected to witness high growth, owing to wide adoption in autonomous driving vehicles across the globe.
Among the regions, South Asia & Pacific is exhibiting a high growth rate, owing to expected rise in automobile production over the coming years
Infotainment systems will continue being the primary contributor to the growth of the automotive cyber security market on a global scale.
The market in the U.S. is projected to expand at a CAGR close to 7%, while that in the U.K. at nearly 8% through 2031.
Demand for automotive cyber security solutions in India is expected to surge at a CAGR of more than 13% over the next ten years.
"Rise in consumer demand for luxurious features and growing demand for passenger electric vehicles (EVs) would propel growth of automotive cyber security solutions," says a Persistence Market Research analyst.
Continuous Rise in Number of Automotive ECUs to Drive Market Growth
The last decade has seen a phenomenal increase in the use of electronic components in automotive systems, resulting in the replacement of manual driving vehicles with autonomous vehicles. All these changes have been made possible due to the presence of Electronic Control Units (ECUs). Several types of ECUs are placed inside a vehicle to control various functions, ensuring a smooth and safe driving experience. Some automobile models running today have around 80 different ECUs present in them, and even more than 150 in luxury cars. The application of ECUs is done in a variety of systems in a vehicle, such as ADAS, infotainment, body control, and comfort system, among others, which means massive amount of information or data is been created and processed by an ECU during each drive.
There is a huge role of ECUs in enabling safety and security in every vehicles. Hardware security modules (HSMs) anchor security functions directly in the ECU's main processors. These are combined with security software stacks to prevent unauthorized access of in-vehicle communications and vehicle control. Increasing adoption of ECUs in vehicles would also increase demand for HSMs modules, resulting in high growth in the automotive cybersecurity market. The HSM segment is expected to dominate the market, and is estimated to account for 43% of the total market value share in 2021.
The COVID-19 pandemic has had a swift and severe impact on the global integrated automotive industry. Widespread impact of the pandemic has revealed a significant vulnerability in corporate supply chains. Factory closures, supply chain disruptions, and diminishing demand have all taken their toll. The impact caused global disruption in the exports of Chinese parts, large-scale manufacturing interruptions across Europe, and closure of assembly plants in the U.S
The automotive industry makes a significant contribution to the global economy. The industry's annual turnover is equivalent to the world's sixth-largest economy. However, amid the COVID-19 pandemic, the automotive industry faced a sharp drop in demand and investments. It is estimated that, manufacturing factory closures in Europe and North America caused around 2.2 million passenger vehicles to be removed from production schedules, at a cost of around US$ 70 billion in lost revenue for automotive and parts manufacturing companies. Moreover, as per estimates, the top 20 OEMs in the global auto sector will see profits decline by approximately US$ 100 billion in 2020.
During the outbreak, production as well as development of automotive cyber security products and solutions declined by nearly 6%-8% in Q1-Q2 2020, due to plunging production across Chinese factories, as they are one of the world's major hardware security product manufacturers and suppliers. However, according to estimates, production has become quite stable from the last two quarters of 2020, and demand has started to gain traction again.
Find More Valuable Insights
Persistence Market Research puts forward an unbiased analysis of the global market for automotive cyber security market, providing historical demand data (2016-2020) and forecast statistics for the period 2021-2031. To understand the opportunities in the market, it has been segmented on the basis of hardware (hardware security modules (HSMs), secure vehicle network gateways, trusted platform modules (TPMs), and others), software (embedded firewalls, encryption & cryptography , biometrics & authentication, and others), services (professional services [security consulting & risk assessment, integration & deployment, and support & maintenance], and managed security services); application (telematics, infotainment systems, powertrain systems, ADAS & safety systems, body control systems, and others), and vehicle (fuel-based vehicles [passenger cars and commercial vehicles] and electric vehicles [passenger cars and commercial vehicles]), across major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Pacific, and MEA).
Persistence Market Research (PMR) is a third-platform research firm. Our research model is a unique collaboration of data analytics and market research methodology to help businesses achieve optimal performance.
To support companies in overcoming complex business challenges, we follow a multi-disciplinary approach. At PMR, we unite various data streams from multi-dimensional sources. By deploying real-time data collection, big data, and customer experience analytics, we deliver business intelligence for organizations of all sizes.