With nearly 112 million vehicles now connected around the world, the global market for automotive cyber security is expected to grow exponentially – to $759 million USD in 2023, according to a new report, “Automotive Cybersecurity and Connected Car,” from IHS Automotive, part of business information provider IHS Markit.
One unfortunate result of connected car growth: vehicles are now more susceptible to cyber attacks through the many wireless and wired connections. Hackers are getting more savvy in perpetrating cyber attacks – more easily and cost effectively– on connected vehicles.
OEMs and suppliers are taking these threats seriously, with increased interest in developing and implementing cyber security solutions to address vulnerabilities and system design changes needed to accommodate them.
There are many software approaches to cyber security in the car, and according to IHS Markit research, the automotive cyber security market will consist of two distinct segments. Some cyber security software programmes will be installed on to the many special purpose computers and data buses that control and regulate in vehicle functions such as the airbags and fuel intake. These special computers are known in the industry as electronic control units (ECUs).
The other segment will be cyber security cloud services. These cloud services will track and manage whole fleets of vehicles through management service software that will track and assess irregularities, allowing car makers to identify unauthorised attempts to attack or alter their vehicles. Most cars will have multiple cyber security software programmes to protect the key ECUs in the car, which could be as many as 50-60 (ECUs in today’s vehicles) according to IHS Markit estimates.
In 2023, 25 percent of the vehicles sold globally will be equipped with cyber security cloud services. The revenue of cyber security cloud services will reach $389M globally in 2023, according to IHS Markit forecasts. Nearly 65 million vehicles are forecast to be subscribed to cyber security services by 2023.
The royalty revenue for the cyber security software programmes will grow to $370 million in 2023 from less than $1 million in 2016. Due to multiple cyber security software programmes per vehicle that use cyber security protection, nearly 150 million software programmes will sold in 2023, according to IHS Markit forecasts.