The automotive industry is undergoing a wave of innovation and with the advent of groundbreaking technologies, such as the Internet of Things (IoT), making vehicles safer than ever before—is witnessing a paradigm shift from the traditional models. With enhanced GPS, location and maintenance live recording, reminders, driving assistance, and Wi-Fi services, the demand for connected cars has been soaring and it is estimated that connected cars will account for 75% of the 92 million cars shipped globally in 2020.
Alongside the burgeoning connectivity, the increasing number of electronic control units and lines of code have increased the complexity of the products; thus, the concerns for security are on the rise. Further, the fragmented supply chain for this market has made it difficult to monitor the security policies at every stage. 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 have been instrumental in driving the adoption of cybersecurity for cars.
Japan to Register the Fastest Growth over the Forecast Period
The connected cars market in Japan is expected to register robust growth with the first AD-Level 2 commercialized vehicle in the passenger car market. Since the automotive sales have witnessed a decline, the automotive OEMs are opting for new revenue streams, which include connected cars. This strategy is further buoyed by the Japanese government’s plans to improve the connected cars division before Olympics 2020, in an effort to protect transport infrastructure, which encompasses connected cars, trains, and airplanes. These have led the Japanese OEMs to display the AD technologies, to increase the consumers’ awareness for automated driving systems. While this is expected to aid the growth of the market for connected cars, it also involves taking stringent measures against activists and developing authentic cybersecurity for cars, which is expected to be a driving factor for the market.
Growing Number of Connected Cars and Rising Concerns over Cybersecurity
The growing connected ecosystem has made these cars more vulnerable to cyber-attacks. Fiat Chrysler Automobile, a market leader in connected cars (FCA) recently recalled 1.4 million vehicles after suspecting a remote hack in the Jeep Grand Cherokee, Cherokee SUV, and Dodge Ram Pickup vehicles. Further, security researchers Charlie Miller and Chris Valasek demonstrated that it was possible for hackers to control a Jeep Cherokee from a remote location using the car's entertainment system, which is connected to the mobile data network, and even made it possible to "kill" the engine, remotely activate or disable the brakes, and track the vehicle's location. Such instances have created major concerns over cybersecurity and generated the demand for “hacker-proof” vehicles, contributing to the growth of the automotive cyber security market.
Software-based Solutions to Witness the Greatest Adoption
Since connected vehicles are wholly dependent on the connected software for all aspects of their operation, they are vulnerable to a broad spectrum of cybersecurity attacks. Karamba Security, a company that develops security systems for connected cars, recently introduced a new carwall system for automotive cybersecurity. The software’s automated sealing approach is known to immediately detect and prevent cyber-attacks that exploit software bugs in the code. Further, to safeguard internal vehicle systems from 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.
The key players in this market include Intel Corporation, Towersec (Harman International Industries Inc.), Karamba Security, Lear Corporation, Escrypt GmBH, Continental AG, Infineon Technologies AG and Cisco Systems Inc. Other players include Delphi Automotive PLC, Arilou Technologies, Visteon Corporation, Argus Cybersecurity, Secunet AG, Trillium Incorporated, and NXP Semiconductors N.V, among others.
Key Developments in the Market
- May 2017 - Karamba Security raised USD 12 million in Series B funding, bringing total investment in the company to USD 17 million, one year after closing a seed round. The funding was driven by investors into Karamba’s unique automotive cyber prevention technology. The investment was aimed at expanding the customer support, sales and R&D organizations to meet the rapidly growing demand for automotive security.
- September 2017 - Honeywell and Lear Corporation collaborated to focus on developing automotive software technology and infrastructure solutions to address threats associated with emerging connected and autonomous vehicle development. As the industry increases system communications within the vehicle and external connectivity via cellular and satellite communications, this collaborative effort aims to provide automakers with an architecture to address vehicle prognostics and help ensure passenger vehicle safety and security.
- June 2017 - Intel acquired Mobileye N.V. for USD 15.3 billion. Mobileye develops products related to computer vision and machine learning, data analysis, localization and mapping for advanced driver assistance systems and autonomous driving. This acquisition by Intel was aimed at accelerating the innovation for the automotive industry and positioning the company as a leader in technological solutions for fully autonomous vehicles.
- How the growing number of connected cars act as a driver to the global market scenario?
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- Which solutions and type of security is expected to dominate the market?
- Which regions are expected to witness fastest growth during the forecast period?
- Identify the latest developments, market shares and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet in excel.
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1.1 Key Study Deliverables
1.2 Study Assumptions
1.3 Market Definition
1.4 Key Findings of the Study
2. Research Approach and Methodology
3. Market Dynamics
3.1 Market Overview
3.2 Factors Driving the Market
3.2.1 Increasing demand for Connected Cars and Consumers Attention to Cyber Security
3.2.2 Regulations and Standards
3.2.3 Increasing Adaption of ADAS and Approaching Era to Autonomous Vehicles
3.3 Factors Restraining the Market
3.3.1 Time Taking Process - To integrate perfeclty and to retrofit into existing cars
3.3.2 Diverse Nature of the Market
3.4.1 Use of Autonomous Cars to drive around people in Olympics 2020 - Tokyo
3.4.2 Increasing Cloud Services and Mobile Applications
3.5 Industry Value Chain Analysis
3.6 Industry Attractiveness - Porter's Five Forces
3.6.1 Bargaining Power of Suppliers
3.6.2 Bargaining Power of Consumers
3.6.3 Threat of New Entrants
3.6.4 Threat of Substitute Products or Services
3.6.5 Competitive Rivalry among Existing Competitors
3.7 Cyber Security Standards and Initiatives
126.96.36.199 ISO 26262
188.8.131.52 SAE J2980
184.108.40.206 SAE J3061
3.7.2 Initiatives by US
220.127.116.11 SPY Car Act
18.104.22.168 Work done by National Highway Traffic Safety Administration (NHTSA) and Federal Trade Commission (FTC)
22.214.171.124 NIST Cybersecurity Framework
3.7.3 Other Initiatives
126.96.36.199 EVITA Project
188.8.131.52 Trusted Platform Module (TPM)
184.108.40.206 Secure Hardware Extension Specificiation
4. Technology Overview
4.1 Technology Snapshot
4.2 Cyber Security Technologies for Cars
4.2.1 Software Based Technologies
4.2.2 Hardware Based Technologies
4.2.3 Upcoming Technologies
4.3 Automotive Security Evaluations
4.3.1 Theoretical Automotive Security Testing
4.3.2 Practical Automotive Security Testing
220.127.116.11 Functional Testing
18.104.22.168 Vulnerability Scanning
22.214.171.124 Penetration Testing
126.96.36.199.1 Black Box Testing
188.8.131.52.2 White Box Testing
184.108.40.206.3 Grey Box Testing
4.4 Types of Attack Points in Cars
4.4.5 Communication Systems (Sensors, USB, Bluetooth, Passive Keyless Entry, Remote Key, TPMS)
4.4.6 Applications (Smartphone and Remotelink type)
5. Global Cyber Security for Cars - Segmented by Type of Solution
5.1 Software based
5.2 Hardware based
5.3 Professional Services
5.5 Others (physical securing, operational services, managing critical services et al)
6. Global Cyber Security for Cars - Segmented by Type of Security
6.1 Network Security
6.2 Application Security
6.3 Cloud Security
6.4 Others (Data and Wireless)
7. Global Cyber Security for Cars - Segmented by Geography
7.1 United States
7.4 Rest of the World
8. Competitive Intelligence - Company Profiles
8.1 Security Providers
8.1.1 Argus Cyber Security
8.1.2 TowerSec (Harman International Industries Inc.)
8.1.3 Delphi Automotive Plc
8.1.4 Arilou Technologies
8.1.5 Escrypt Embedded Systems
8.1.7 Continental AG
8.1.8 Infineon Technologies AG
8.1.9 Cisco Systems Inc
8.1.10 Intel Corporation
8.1.11 Secunet AG
8.1.12 Trillium Inc
8.1.13 Karamba Security
8.1.14 Lear Corporation
8.1.15 NXP Semiconductors
9. Investment Analysis
9.1 Recent Investments
9.2 Investor Outlook
10. Future of Cyber Security for Cars
- Intel Corporation
- Towersec (Harman International Industries Inc.)
- Delphi Automotive PLC
- Arilou Technologies
- Escrypt Gmbh
- Continental Ag
- Infineon Technologies AG
- Cisco Systems Inc.
- Argus Cybersecurity
- Secunet Ag
- Trillium Incorporated
- Karamba Security
- Lear Corporation
- NXP Semiconductors NV