Automotive Cyber Security Market Forecast

By 2030, vehicle security will expand to cover cyber threats to the vehicle and its external network, including the infrastructure

Automotive Cyber Security is becoming a top priority in the automotive industry driven by UNECE regulation.

The outcome of these regulatory mandates and exposure of vulnerabilities will be a shift in car manufacturers’ strategy towards Automotive Cyber Security in the form of new investment, M&A and collaborations with suppliers and other cyber security companies. This could drive Connected-Cyber Security penetration up quite quickly and alter the competitive landscape.

The key challenge here is how quickly the level of security and privacy in Connected Cars will rise to sufficient levels to avoid having vulnerable vehicles.

We expect the landscape of the Automotive Cyber Security market will change rapidly by 2030 with more consolidation coming and demand for Cyber Security certification and compliance.

Regulatory mandates on the standard fitment of cyber security solutions in modern vehicles will be the catalyst that will drive change in the competitive structure as competition intensifies and consolidation continues.

“All new cars will feature ratings on how strong is their security against cyber threats, together with their ratings for safety. Auto2x

Why You Should Read This Report

• Unlock the potential of the Automotive Cyber Security market by reading about investment, M&A, and partnerships in the marketplace
• Discover the drivers of growth over the next decade
• Read our Automotive Cyber Security market forecast to understand the penetration of Hardware, Software-based solutions and Services
• Identify the leading suppliers of software and hardware equipment
• Understand the competitive landscape by reading our exclusive interviews to understand the Automotive Cyber Security market forecast
• A-Z: software, hardware solutions and service portfolio from leading companies

Table of Contents

1. Executive Summary
   1. Automotive Cyber Security is becoming a top priority through regulatory mandates
   2. Regulatory amendment in UNECE finally allowed Level 3-Autonomy
   3. The evolution of secure Connected Cars & Automotive Cyber Security by 2030
   4. Learn how the competitive landscape will change
   5. Strategic recommendations to players: OEMs and suppliers
2. The State of the Art of the Automotive Cybersecurity Market
   1. What makes cyber security a top priority for carmakers?
   2. Learn about the Market Status of Automotive Cyber Security
   3. Carmakers’ cyber security expertise is low for the level of Connected Car penetration
   4. Demand for solutions is in its infancy despite increasing supply
   5. Partnerships, investment & funding will alter the landscape
3. Automotive Cybersecurity Regulation in the major car markets
   1. New regulation will push for the adoption and standardisation of Auto Cyber Security
   2. Automotive Cyber Security regulatory action in the USA
   3. UN (International) Regulation on Auto Cybersecurity: EU & Japan
   4. Two new UN Regulations on Software Updates & their Management Systems
   5. ISO/SAE 21434: a joint standard to harmonise Auto Cyber Security
   6. What regulatory/legal action is needed to secure Connected Cars?
   7. Cyber Security for V2X Communications
4. Automotive Cyber Security Market Forecast
   1. Market Definition
   2. Automotive Cyber Security Market Forecast
   3. Hardware vs software-based solutions & cyber security services
   4. Forecast of cost of Automotive Cyber Security solutions per vehicle
   5. Drivers of growth for Automotive Cyber Security market forecast
   6. Restraints & challenges of adoption
   7. Global & regional Connected Car Forecast
   8. Forecast of cars equipped with OTA Software updates
   9. V2V & V2I Communications Penetration Forecast
5. Seven Interviews with Cyber Security Industry Experts
   1. Argus Cyber Security
      1. Argus’s role in the Automotive Cyber Security market
      2. Argus on regulation, hacks & recent developments that will drive the market forward
      3. On proposed legislation & core principles their products cover
      4. Argus on the current level of demand
      5. Market competition & Argus’s future
   2. Arilou Technologies
      1. Arilou’s role in the Automotive Cyber Security Market
      2. On the cost of embedding cyber security solutions for OEMs
      3. On the current market status
      4. On the growth drivers over the next decade
      5. Drawing parallels between Automotive and IT Cyber Security
      6. On the changing market landscape
      7. Arilou’s expectations on the development of cyber security penetration
      8. On Arilou’s future in the marketplace
   3. Cisco Systems
      1. Cisco’s background and the role of Israeli companies
      2. Cisco on how to make Connected Cars secure
      3. On key developments in the market so far
      4. When will Automotive Cyber Security solutions become mainstream?
      5. On the growth drivers over the next decade
      6. Cisco on how will the marketplace evolve over the next decade
      7. On cyber security for V2V-V2I communications
      8. On the importance & challenges of OTA software updates
   4. Karamba Security
      1. Learn about Karamba’s software for Connected Car security
      2. Karamba on why retrofitting security software in all cars, new and older, is important
      3. Karamba’s key benefits for carmakers, Tier 1s
      4. No need for continuous updates every time a new threat comes along
      5. About the level of demand for Karamba’s solution and what the industry is looking for
      6. Who will pay for automotive cyber security?
      7. On adoption of security solutions over the next decade
      8. On the development of market competition: M&A & consolidation
      9. On Karamba’s vision and future
   5. SBD (Secure By Design Ltd)
      1. SBD Secure Car’s role in the Automotive Cyber Security Market
      2. SBD’s offerings in the marketplace
      3. SBD on the current level of demand for cyber security solutions
      4. What is the cost of being hacked?
      5. On the current market status & future development of the market
      6. On the importance of Over-The-Air (OTA) software updates
      7. Will cyber-attacks threaten V2V & V2I communications?
   6. Ex-TowerSec
      1. TowerSec’s offerings for cyber security – ECUshield & TCUshield
      2. On how cars can be protected from cyber-threats
      3. On key developments in the market
      4. What will drive growth for suppliers over the next decade
      5. On the key challenges for suppliers
      6. On cyber security ratings for consumers
   7. Trillium Incorporated
      1. Trillium’s offerings in the Automotive Cyber Security market
      2. Trillium on Automotive Cyber Security Developments in Japan
      3. On adoption of cyber security solutions and market competition over the next decade
      4. On Trillium’s future
6. Profiles of 15 leading Suppliers in Automotive Cyber Security
   1. Argus Cyber Security Ltd. (now part of Continental)
   2. Arilou Technologies Ltd
   3. BT Security
   4. Cisco Systems Inc.
   5. ESCRYPT-Embedded Security GmbH
   6. Harman-Red Bend Software Inc
   7. TowerSec
   8. Intel Corporation
   9. Karamba Security
   10. NXP Semiconductors N.V
   11. SBD (Secure By Design Ltd) & NCC Group.
   12. Secunet Security Networks AG
   13. Security Innovation Inc
   14. Symphony Teleca Corp & Guardtime
   15. Trillium Incorporated

Regulation is driving the adoption of Automotive Cyber Security

Automotive Cyber Security is becoming a top priority through regulatory mandates.

Regulatory mandates on the standard fitment of cyber security solutions in modern vehicles will be the catalyst that will drive change in the structure as competition intensifies and consolidation continues.

There are two UN Regulations on Cybersecurity and Software updates to mitigate threats and ensure consumer privacy.

1. UN Regulation on Cybersecurity and Cyber Security Management Systems
2. UN Regulation on Software Updates and Software Updates Management Systems

The white-hat hacking demonstrations will accelerate the outcome of the regulatory mandate in the U.S. and pave the way for other countries to follow.

Therefore, talks about product integration will begin for their next-generation vehicles. This will fuel demand for software/hardware solutions and services for Automotive Cyber Security over the next decade.

As more carmakers exploit the benefits of the OTA and cloud data storage, remote vehicle control and wireless updates, demand for cloud security is expected to increase.

The Need for Industry Standardisation

Effective Automotive Cyber Security requires cross-industry collaboration, Auto2x

The necessity for industry-wide standardisation and collaboration is key for automotive cyber security market forecast and adoption. However, we expect that the regulation will set minimum standards in the form of a basic framework, on top of which carmakers will develop their solutions to help them in competitive differentiation.

The history of the automotive industry is full of examples of lack of collaboration and unwillingness to standardise procedures for innovative technologies on behalf of the OEMs (e.g. EV charging).

Therefore, even though some common, voluntary standards will emerge, it is somehow unrealistic to expect them to cooperatively increase vehicle security unless the regulation demands so, or a malicious car hack occurs constituting an additional cost.

CXO Talks: Demand for Cyber Security solutions is rising 

Argus Cyber Security, which was acquired by Continental in 2017, offers an Intrusion Prevention System that uses Deep Packet Inspection (DPI) algorithms to detect hacking attempts and prevent them from affecting a vehicle’s critical systems. It also notifies car manufacturers in real-time when these attempts are happening and enables seamless integration into any vehicle’s production line. The company also offers Cyber Security Vulnerability assessments.

Network giant Cisco offers both services and software solutions in the Automotive Cyber Security market. In terms of the latter, Cisco offers the Auto Guard, a holistic security solution for vehicles which includes anomaly-detection, hardening and other Vehicle Area Network security functions. The solution is also set to extend to offer real-time, over the air updates for vehicle ECUs.

Israel-based Arilou Technologies offers cyber security solutions in the fields of car cyber security (CAN bus), hacking and penetration testing. Apart from conducting Cyber Security Vulnerability assessments, the company has developed the Security Agent, an IPS and CAN bus firewall that can be integrated into the existing vehicle’s CAN network and blocks any attempt to send illegal messages on the network.

‘’We saw OEMs establishing in-house cyber security units and leadership dedicated to the field while significant resources have been dedicated to vulnerability-detection and penetration testing’’, Dr Anuja Sonalker, VP of Engineering & Operations at TowerSec

The Outlook for Automotive Cyber Security

In the short-term, our Automotive Cyber Security market forecast reveals that fitment of detection and prevention cyber security products will be concentrated in the Connected Cars of early adopters in the UNECE signatories since most OEMs will not be willing to take on the additional cost of embedding cyber security without a regulatory mandate.

The Automotive Cyber Security market forecast extends to 2030 when penetration in the US and China will grow amid more information on mandatory fitment standards from domestic regulatory bodies.