A new research report says automotive cyber security market is expected to exhibit a CAGR of close to 8% over the next ten years.
The report by Persistence Market Research also states the worldwide automotive cyber security market reached a valuation of around US$ 5.4 billion in 2020.
It said usage of telematics services like information, safety, security, navigation, diagnostics, and entertainment has been growing in recent years, and is anticipated to grow at a significant rate over the coming years.
In addition to this, connected cars and autonomous vehicles will be available internationally in the next five to ten years.
Telematics services and connected cars need the Internet for the functioning of some important applications and transferring of data.
At the same time, they are vulnerable to cyber-threats. Automotive cyber security is a system or technology that safeguards the systems of a vehicle that are susceptible to any cyber-attack.
With more and more vehicles getting connected to the Internet, the automotive industry is working closely with ISPs, software firms, and other players to offer better cyber security systems to end users.
Some of the highlights of the report are as follows: Automakers and cyber security tech players are increasingly joining with each other to develop advanced cyber security solutions to deal with highly sophisticated attacks.
Among these, ADAS & safety systems are likely to witness high growth, because of wide adoption in autonomous driving vehicles across the world.
South Asia and Pacific is showing a high growth rate, because of expected rise in automobile production over the coming years.
Infotainment systems will continue to be the primary contributor to the growth of the automotive cyber security market on a global scale.
The market in the United States is expected to expand at a CAGR close to 7%, while that in the United Kingdom at nearly 8% through 2031.
Demand for automotive cyber security solutions in India is anticipated to increase at a CAGR of more than 13% over the next ten years.
According to the report, the COVID-19 pandemic has had a swift and severe impact on the global integrated automotive industry.
“Widespread impact of the pandemic has revealed a significant vulnerability in corporate supply chains. Factory closures, supply chain disruptions, and diminishing demand have all taken their toll,” it said.
The research claimed that the impact caused global disruption in the exports of Chinese parts, large-scale manufacturing interruptions across Europe, and closure of assembly plants in the U.S
It is to be noted that the automotive industry makes a significant contribution to the global economy and the industry’s annual turnover is equivalent to the world’s sixth-largest economy.
But the automotive industry faced a sharp drop in demand and investments due to the pandemic. It is expected that, manufacturing factory closures in Europe and North America caused around 2.2 million passenger vehicles to be removed from production schedules, at a cost of around US$ 70 billion in lost revenue for automotive and parts manufacturing companies.
Also, according to estimates, the top 20 OEMs in the global auto sector will see profits decline by approximately US$ 100 billion in 2020.
During the pandemic, production and development of automotive cyber security products and solutions declined by nearly 6%-8% in Q1-Q2 2020, because of plunging production across Chinese factories, as they are one of the world’s biggest hardware security product manufacturers and suppliers.
However, as per estimates, production has become quite stable from the last two quarters of 2020, and demand is gaining traction again.
(With inputs from Automotive Lead Research Team)
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