As dependence on digitization increases, all industries must take an extra step to ensure the safety and security of all consumers. Similarly, connectivity within the automotive sector has progressively increased, and Bluetooth systems, among others, have taken the industry by storm. To ensure the safety and security of consumers, OEMs have started to cooperate with suppliers, and automotive cybersecurity has become a primary focus. This has propelled growth in the automotive cybersecurity market.
Personal mobility and the increasing need for communication due to hectic schedules require consumers to stay connected constantly. Consequently, establishing and maintaining the safety of this connectivity has become a focus for consumers as well. There is an increasing number of vehicles on the road, and crucial parts like steering, brakes, and engines are dependent on computer systems. This dependence on computer systems has given rise to the need for the automotive cybersecurity market.
Why is automotive cybersecurity vital? The automotive cybersecurity market works towards ensuring that computer systems within vehicles are properly protected. Without this protection, car owners, for instance, risk losing important data or, in certain cases, even control of the car to hackers. Automotive cybersecurity protects personal data, crucial systems within the vehicle, and the consumers themselves from theft or harm.
The automotive cybersecurity market has grown exponentially over recent years, and it continues to grow unencumbered. Therefore, automotive cybersecurity market players must be aware of the opportunities for growth in their market and take pre-emptive initiatives to stay ahead of their competitors. In this article, Infiniti’s market opportunity analysis experts discuss the notable growth drivers and challenges in the automotive cybersecurity market. Additionally, the experts detail how a market opportunity analysis can help companies grow.
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Notable Growth Drivers in the Automotive Cybersecurity Market
The need for the automotive cybersecurity market is no longer a debate. However, demand alone cannot propel growth in the market. Therefore, Infiniti’s market opportunity analysis experts analyzed the automotive cybersecurity market and identified the following three notable drivers that significantly prompt growth in this market:
Development of Autonomous Vehicles
Recently, major automakers and OEMs have been investing in and developing autonomous vehicles. These vehicles are highly dependent on efficient autonomous vehicle systems and high levels of connectivity. Developers are aiming to make vehicles completely automatic and minimize human input substantially. While this is a sign of tremendous growth and technological development, without appropriate security, it can put consumers at significant risk.
This advancement in the automotive industry has led to increasing demand for the automotive cybersecurity market among OEMs and automakers. As R&D continues, the need for automotive cybersecurity systems will continue to grow. Market players must shift their focus to creating all-encompassing systems that can ensure the safety of data and consumers in autonomous vehicles.
Electronic Control Units (ECUs) and Cloud Computing
The incorporation of radios in vehicles is one of the most enjoyed additions to vehicles for many consumers with hectic schedules or professions that require long-distance travel. Over time these systems have shifted from fixed in audio systems to screens that allow consumers and mechanics to access and control in-vehicle systems. These electronic control units enable consumers and mechanics to conduct complete diagnostics on vehicles without dismantling the vehicle. However, if these systems are hacked, it could give hackers access to crucial safety features, such as airbags, and put consumers’ lives at risk.
Additionally, ECUs allow consumers to connect their phones, laptops, and various other cloud-based applications to the car. This may be used for music, infotainment, or other forms of entertainment and communication by car-owners. However, cloud computing includes access to various types of data that may be present on the consumer’s phone and other personal devices. If ECUs are not protected, hackers will have access to the vehicle and the personal data of the consumer. Therefore, automakers and OEMs need to ensure the safety of ECUs, which has led to increasing demand in the automotive cybersecurity market.
Regulatory Mandates and Standards
Governments worldwide have become aware and highly cautious of cyber threats and the theft of personal data. Identity theft, stolen access to financial information, and hacking into citizens’ communication and interaction are some of the recent cyber threats that governments are attempting to curb. The increasing number of personal vehicles on the roads and high dependence on connectivity has encouraged governments to enforce regulations regarding cybersecurity across platforms.
Similarly, the US government proposed legislation to isolate critical software systems and safeguard the entire vehicle against cyber threats. Additionally, major automakers, OEMs, and suppliers are establishing standards and promoting the use of appropriate automotive cybersecurity systems across vehicles. As the adoption of cybersecurity systems increases steadily, the automotive cybersecurity market is expected to grow.
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Restraints in the Automotive Cybersecurity Market
Although the automotive cybersecurity market has been growing exponentially, there are various restraints to this trajectory of growth. The supply chain in the automotive industry is highly fragmented, which leads to a higher number of stakeholders and a combination of contributors to every unit. Additionally, OEMs do not have the technical capabilities to incorporate cybersecurity systems into the vehicles and require cybersecurity system suppliers to do the same. This often leads to a time lag in the delivery of cybersecurity updates and hampers the growth of the automotive cybersecurity market.
Why does The Automotive Cybersecurity Market Need Market Opportunity Analysis?
In a rapidly evolving market like the automotive cybersecurity market, companies need to keep abreast of market opportunities. To stay ahead of competitors, one must identify, evaluate, and strategize for market opportunities before other market players. Infiniti’s market opportunity analysis enables automotive cybersecurity market players in the following ways:
- Companies can identify ideal M&A opportunities to scale
- They can also understand and solve for consumers’ pain points
- Keep abreast with competitors’ performance issues
- Identify growth opportunities and assess the market’s readiness for their offerings
In the automotive cybersecurity market, a market opportunity analysis can also assist companies in understanding regulatory mandates, stay ahead of market dynamics, and devise appropriate strategies to cope with changing ECUs and vehicle software systems. Staying a step ahead of the market can be the biggest differentiator for companies in a fast-growing market.
Infiniti’s market opportunity analysis can help your organization set an industry standard. As competition grows, learn how our research solutions can propel you to the top by requesting more information.