Automotive cybersecurity market to rocket

With nearly 112 million vehicles now connected around the world, the global market for automotive cybersecurity is expected to grow exponentially – to US$759 million in 2023.

The Automotive Cybersecurity and Connected Car report from IHS Automotive highlights that in 2023, 25% of the vehicles sold globally will be equipped with cybersecurity cloud services, with revenue of cybersecurity cloud services reaching $389 million globally. Nearly 65 million vehicles are forecast to be subscribed to cybersecurity services by 2023.

The royalty revenue for the cybersecurity software programs will grow to $370 million in 2023 from less than $11 million in 2016. Due to multiple cybersecurity software programs per vehicle that use cybersecurity protection, nearly 150 million software programs will sold in 2023, according to forecasts.

‘Cybersecurity will be one of the toughest challenges that the auto industry will face in the next decade or two,’ said Colin Bird, senior analyst, connected car consumer insights and software, apps and services (SAS) for IHS Markit and one of the report’s co-authors. ‘Especially as more vehicles with telematics and embedded modems make connected cars an attractive target to cyber criminals, terrorists and nation states.’

The US and Western Europe are expected to be the leading markets for these technology developments, given the propensity for connected cars in both regions. According to IHS Markit forecasts, 2018 will be the year of the largest growth, and it will taper somewhat in the years following. General Motors, BMW and Mercedes currently lead the implementation of cybersecurity solutions in their vehicles.

IHS Markit estimates that, as a whole, up to 50% of a vehicle’s total development cost today is related to software or electronic components.  Today’s mainstream vehicles are typically running 20-30 million lines of code on 50-60 electronic control units (ECUs) and more than 80 microprocessors within a vehicle, controlling everything from the infotainment system to critical software and powertrain functions. In addition, luxury vehicles may contain up to 50 million lines of code and up to 100 ECUs/MCUs.