Automotive Cybersecurity Market Forecast

Self driving cars have effectively transitioned from an incredible-but-far-off-possibility to a changing market with world wide growth. Still, connected cars are vulnerable to attack.

Charlie Miller and Chris Valasek have been pushing the automotive industry to  make security a top priority for years. In 2015, the researchers hacked in a Jeep, and in 2017, there is now a growing automotive cybersecurity market.

Growing at over 9% of CAGR, the automotive cybersecurity market has extended across the globe to include Europe, North America, Asia, and the Middle East and Africa. As the industry grows, so too will new legislation impact the trajectory of the markets, according to the 2017 Global Automotive Cyber Security Market Report.


Cybersecurity for Autonomous vehicles


The report (which requires registration to download) offers analysis on the different segments of the market from manufacturers to automotive cyber security vendors, with insight for those startups who are jumping into the market.

Recognizing the exponential growth expected in the automated cars market, the United States government issued the “Self Drive Act” in July 2017, which ensures government oversight of the safety standards used in the design of self driving cars. In an attempt to prevents states from being able to slow the development process, the “Self Drive Act” actually helps to expedite development.

The UK also issued strict automotive cybersecurity guidelines, and increased oversight will inevitably result in higher standards and regulatory requirements that will impact the automative cyber security market. As a result, the market will see more partnerships, like that of Renovo and Argus, among the key players.

These partnerships between and among industry leaders of self-driving cars presents a lot of opportunity for automotive cybersecurity startups and vendors, particularly with a focus on cybersecurity of the hardware and software used in  connected cars.


Buckle up on code


Despite the fact that today’s average cars have over 100 million lines of code, the market is moving rapidly, yet everything comes at a cost. As much as rapid growth opens doors to new market opportunities, it also widens the attack surface.

One concern—not necessarily specific to connected cars—is the use of open source code in the software. Because bugs in open source are widely reported,  open source vulnerabilities are more prone to attacks. While the attacks are little different from those traditionally used on computers, the risks are not only to networks but to personal safety.


Are hackers in the driver’s seat?


Hackers have been exploiting many of these attacks for years now, yet the auto industry is just starting to gain a foothold in automotive cyber security. If the Internet of Things (IoT) has taught developers anything, it is that security can not be an after thought.

Rushing products to market and waiting for a third party or user to find a bug won’t work in the automotive cyber security industry. Instead, to ensure the cyber security of cars, manufacturers and developers need to understand the hacker’s objectives, which is to yield a profit off of their investment.

As for the market forecast, expect to see an increase in investments in automotive cyber security startups. Over the last five years, investors have dealt out $220 billion in startups, and the research and development is still in its nascent stages. The industry is about to take its foot off the brakes, which will bring lots of changes by 2022.

For more information,  Download our Automotive Cyber Security market overview


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