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The Asia Pacific automotive cybersecurity market has shown significant growth over the years, generating a revenue of US$ 1,468.4 million in 2022 and expected to grow at a compound annual growth rate of 16.1% from 2018 to 2031. With this growth rate, the market is predicted to reach a revenue of US$ 5,606.8 million by the end of 2031. The market's expansion reflects the recovery of the industry from the COVID-19 pandemic and the subsequent growth trend.
Automotive cybersecurity is crucial in protecting the communication networks, electronic systems, software, and data of the new generation of intelligent cars from harm. Hackers can obtain personal information, such as banking and social security data, and even create potentially deadly crashes. As a result, numerous businesses are developing cutting-edge automotive cybersecurity technologies to make today's and tomorrow's automobiles safer and more secure. For instance, Centri, a Washington-based autotech cybersecurity firm, creates solutions for IoT-enabled devices in the automotive cybersecurity market such as the Centri IoTAS, a chip and mobile app that protects automobile sensors and data that aids automobiles in learning crucial driver navigation preferences.
The modern car is highly advanced, with hundreds of microprocessors, various electronic control units, and several lines of software code. Connected gadgets in automobiles include Bluetooth, built-in cellular communication, and Wi-Fi for remote start, find my car, and a variety of other apps. However, these features also make cars vulnerable in the Asia Pacific automotive cybersecurity market to hackers, thanks to vehicle-to-infrastructure, vehicle-to-vehicle, vehicle-to-cloud, and vehicle-to-everything technology. If a remote opponent controls features like automated braking and remote start, they would take on a very different character.
Increasing Number of Cyberattacks
Cyber-attacks have been steadily increasing over the last decade, and the growing usage of work from home models, along with a lack of security measures, has resulted in a large number of cyber-attacks in the automotive cybersecurity market worldwide. Malware and ransomware attacks are the two most common types of cyber-attacks, with ransomware and malware assaults being more prevalent in Asia Pacific countries, with rates of 1.7 and 1.6 times greater than the rest of the globe, respectively. In 2018, the number of ransomware attacks grew around the world. The rising acceptance of connected automobiles and the usage of digitalization in the automotive industry has increased the risk of cyber-attacks in the industry. Cyber attackers may target the car and harm critical vehicle data, resulting in significant losses for the vehicle owner.
Asia Pacific's Automotive Cybersecurity Landscape: Opportunities and Challenges Ahead in the Asia Pacific Automotive Cybersecurity Market
The Asia Pacific automotive cybersecurity industry offers a wealth of opportunities for growth and expansion, as outlined in this comprehensive research report. Leading OEMs are driving market expansion in the region by offering top-notch telematics solutions, while heightened awareness of the importance of electronics integration in connected and electrified vehicles is also contributing to market growth.
Moreover, various organizations are taking proactive steps to address cybersecurity issues. Microsoft Corporation, for instance, established the first Asia Pacific Public Sector Cyber Security Council in 2022. This council brings together policymakers and influencers from several countries in the region, with the aim of fostering public-private partnerships in cybersecurity. Similarly, the Japan Automobile Manufacturers Association established a Cybersecurity Working Group in 2019, which will collaborate with various parties on cybersecurity issues, including WP.29.
These initiatives, along with other developments in the Asia Pacific automotive cybersecurity market, present significant opportunities for companies operating in the sector. By staying abreast of market trends and investing in cutting-edge cybersecurity technologies, companies can position themselves for success in this rapidly expanding industry.
Connected Cars: A Security Challenge in the Asia Pacific Automotive Cybersecurity Market
Personal connectivity to the vehicle through Bluetooth, Wi-Fi, or GPS is another important feature that the majority of consumers employ. However, theft or hostile access to such data could jeopardize people's privacy, providing access to their real-time location, recording their interactions with automobile entertainment, and potentially analyzing their behavior. Additionally, connected automobiles are part of an integrated transportation system, which may lead to data theft of personal information, false information being entered into a vehicle, and the car's entire system being shut down by overloading or short-circuiting the ECU.
Active Safety Systems: A Complex Challenge
Automobile manufacturers in the automotive cybersecurity market are also developing a variety of complex, active safety systems, such as lane departure warning and active cruise control, as they move closer to semi- and fully driverless vehicles. However, these systems also increase the risk of potential cybersecurity threats. For instance, after a suspected remote breach, Fiat Chrysler Automobiles (FCA) recently recalled 1.4 million automobiles. Jeep Grand Cherokee, Cherokee SUV, Dodge Ram Pickup, and other vehicles equipped with 8.4-inch touchscreen car entertainment systems were among those affected.
The Automotive Cybersecurity Market: A Distributed Challenge
The challenge of automotive cybersecurity is a complex, distributed, multi-stakeholder challenge. The expertise needed to properly analyze the level of security of a specific IT system is not always available in one place. Automotive software vendors, for example, must create software that can be integrated with components/systems manufactured by many stakeholders. They must also defend and streamline their solutions using components/systems manufactured by many stakeholders, which is difficult for cybersecurity solution providers and restricts market growth.
The Asia Pacific automotive cybersecurity market is segmented by offering into hardware, software, and services. The services segment is expected to generate over 49% of the market revenue, indicating a significant shift towards outsourcing cybersecurity services in the region. With the rising complexity of cybersecurity threats, the demand for specialized services, including consulting, implementation, and support services, is expected to increase. Service providers offer customized solutions that cater to the specific requirements of different organizations, helping them to mitigate risks and improve their overall cybersecurity posture.
The hardware segment includes various components such as processors, controllers, sensors, and modules, which are used to implement security measures in the automotive ecosystem. The hardware segment is expected to grow at a significant rate, owing to the increasing adoption of advanced safety features and connected car technologies.
ADAS and safety applications are critical for automotive cybersecurity, as they ensure the safety and security of drivers and passengers. ADAS encompasses a range of technologies that rely on complex software algorithms and sensors to operate, such as collision avoidance systems and lane departure warning systems. As the adoption of ADAS and safety systems increases, the risk of cybersecurity threats also rises. A successful cyber-attack on an ADAS system could cause serious accidents or even fatalities, making it crucial to secure these systems.
The Asia Pacific automotive cybersecurity market is projected to capture over 20% of the market share for ADAS and safety applications. The growth in this segment is driven by the increasing adoption of ADAS technologies, designed to enhance vehicle safety and reduce the risk of accidents.
Automotive cybersecurity solutions for ADAS and safety applications include real-time software-based solutions that detect and prevent cyber-attacks. These solutions employ advanced techniques like machine learning and artificial intelligence to identify potential security threats. Additionally, hardware-based solutions, including secure microcontrollers and processors, are being developed to secure ADAS and safety systems.
The Asia Pacific automotive cybersecurity market is categorized based on security into endpoint, application and wireless network. The end point to capture the least 24% revenue share of the market. cars and the integration of technology into various automotive systems. Endpoints in the automotive industry include on-board computers, infotainment systems, and other electronic components that are connected to the vehicle's network.
Despite the increasing importance of endpoint security in the automotive industry, the endpoint category is expected to capture the least 24% revenue share of the Asia Pacific automotive cybersecurity market. This may be due to the fact that other categories, such as application and wireless network security, are considered more critical for protecting against cyber-attacks in the automotive industry.
However, it is important to note that endpoint security remains an essential aspect of automotive cybersecurity, as endpoints can be a potential entry point for cyber-attacks into the vehicle's network. As such, it is crucial for automotive cybersecurity solutions providers to offer robust endpoint security solutions to protect against potential threats.
List of Key Companies Profiled:
Segmentation Outlook of the Asia Pacific Automotive Cybersecurity Market
The objective of market report is to define, describe, and forecast the automotive cybersecurity market by providing detailed information regarding the major factors influencing the market growth and trends along with the detailed analysis of market players.
The protection of automobile electronic systems, communication networks, control algorithms, software, users and underlying data against malicious attacks, damage, illegal access, or manipulation is known as cybersecurity in the context of road vehicles. Automotive cybersecurity safeguards the next generation of intelligent vehicles.
Asia Pacific automotive cybersecurity market is growing at a CAGR of 16.1% over the forecast period.
The infotainment application accounted for the largest share in the automotive cybersecurity market.
The automotive cybersecurity market is predicted to grow with the rising cyber threat owing to increase in data and connectivity of the vehicles along with increasing adoption of connected and smart vehicles.
The market's growth may be restricted owing to factors such as highly complex ecosystem with presence of multiple stakeholders and zero-failure rate for cybersecurity applications.
United Nations Economic Commission for Europe (UNECE) for the vehicles going through type approval with regards to cyber security and International Organization for Standardization (ISO) which is a baseline for vehicle manufacturers and suppliers to ensure that cyber security risks are managed efficiently and effectively are discussed in the report.
India is growing at the highest CAGR of about 19.1% over 2023- 2031.
Asia Pacific automotive cybersecurity market is observed to have competitive in nature and is projected to shift towards consolidated nature in the forecast period.
The report covers the following segments- offering, form, security, application and vehicle type.
Wireless network segment dominated the market share in 2022 due to the rising implementation of new technologies in automotive and cybersecurity industry coupled with increasing need to ensure network security.
Some key players operating in the Asia Pacific automotive cybersecurity market include Robert Bosch GmbH, Continental AG, Denso, Harman International and Lear Corporation among others.
The key strategies adopted by market players include mergers and acquisitions, partnerships, regional expansion and new product development.
The market faced a negative impact due to sudden outbreak of covid-19 as the worldwide lockdown was observed to prevent spread of virus. Also, it negatively impacting the demand of automotive cybersecurity market in Asian region. However, as business are still struggling up, cybersecurity is being considered as a core approach to keep businesses secure as they go virtual and online.