The global automotive cyber security market is anticipated to embark on a positive growth trajectory throughout the forecast period of 2018 – 2028. This is attributed to the increasing prevalence of automation across several industrial verticals, especially in manufacturing and automobiles. Based on these trends, a new Persistence Market Research (PMR) report forecasts the global automotive cybersecurity market to surpass the US$1 Bn mark by 2028, expanding at an impressive double-digit CAGR during the forecast period.
As automation progresses, the risks associated with it are also compounding. The most significant danger arises from system breach due to hacking. To counter this, key cybersecurity players have expanded their foothold in the market. The COVID-19 pandemic, however, has cast a shadow on existing projections. Nationwide lockdowns and calls for social distancing have resulted in production cuts across industries. Consequently, demand for automobiles has declined, affecting the sales of automated cybersecurity solutions to the leading companies. At the same time, these companies have a tremendous scope for introducing technological improvements within the software to make them more robust. Growth is anticipated to pick up in the post-pandemic scenario.
Key Takeaways from the Global Automotive Cybersecurity Market Study:
- By technology, managed security services has been the dominant segment and will remain so throughout the forecast period. It is poised to capture nearly one-fifth of the global automotive cybersecurity market share. Requirement for round-the-clock security management solutions is the primary growth driver.
- By component, the services sub-segment is poised to expand at a CAGR 12.5%, attributed to increasing awareness about information security and rising adoption of advanced technologies such as vehicle-to-vehicle communication and telematics technology by automotive OEMs.
- By region, North America is anticipated to hold over 2/5th of the overall automotive cybersecurity market share. However, South East Asia and others in the APAC region are expected to generate greater growth opportunities, attributed to increasing prevalence of cyber-attacks in transportation and automotive systems.
“Increasing ICT expenditure to leverage vehicular cybersecurity requirements, combined with the introduction of connected cars, is expected to be a key growth lever for the global automated cybersecurity market. A temporary slowdown in the wake of COVID-19 is anticipated, owing to a decline in demand for automobiles. However, resurgence is on the cards post the pandemic,” infers a PMR analyst.
Investment in Providing Robust Security Systems Key Growth Strategy Adopted by Market Players
The global automotive cybersecurity market is fragmented, consisting of the following market players: Secure Works Corporation, IBM Corporation, Intel Corporation, Verizon Communication, Inc., Symantec Corporation, Checkpoint Software Technologies, Ltd., Microsoft Corporation, Sophos, Ltd., Trend Micro Incorporated and Lockheed Martin Corporation, to name a few. The players concentrate on providing top-of-the-line software solutions to potential clients.
For instance, IBM Corporation offers the X-Force Cloud Security which provides security services such as advisory and managed security in third-party cloud platform environments. Likewise, Symantec Corporation, or Norton, provides an anti-breach and anti-virus software to prevent possible data breaches regarding sensitive information regarding production assemblies and technological secrets.
The Anticipated COVID-19 Impact
As the COVID-19 pandemic intensifies, significant challenges exist for the growth of the automotive cybersecurity market. As consumer demand for vehicles dips, cyber security solution providers are facing reducing sales. At the same time, the pandemic has provided an opportunity for the market players to strengthen their existing software solutions by incorporating robust algorithms and programs. These programs would enable leading automobile companies to better protect their systems from future cyber-attacks.
Moreover, the threat of cyber-attacks has increased amid the global lockdown. To counter this threat, companies are tirelessly working to improve existing software. In the long-run, the automotive cybersecurity market is anticipated to rebound, resuming its impressive growth trajectory.
Want to Know More?
PMR’s report on the automotive cybersecurity market provides the global industrial analysis from 2020 to 2028. It offers an insightful analysis on the automotive cybersecurity market through three major segments - technology, component and region. The automotive cybersecurity market report also provides demand and supply trends, with a detailed overview of the parent market.
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