Cyber security, secure data transfers, & data privacy remain key concerns for consumers and government authorities, finds Frost & Sullivan’s Mobility Program
MOUNTAIN VIEW, Calif. – May 25, 2016 – The vehicles of various original equipment manufacturers (OEMs) were hacked in 2015, a trend that has continued in the first half of 2016, thus escalating concerns about the level of cyber security in automobiles. In response, the U.S. Government has urged sharing of knowledge on security flaws among OEMs, as the proliferation of electronics and software codes in connected vehicles will only increase the number of easy hacking points.
New analysis from Frost & Sullivan, State of Automotive Cybersecurity—Key Trends, Solutions, OEM Activities, and Vendor Profiles (http://www.frost.com/sublib/display-report.do?id=K00F-01-00-00-00&src=PR), confirms that OEMs’ production lines across regions are incorporating a large number of electronic control units (ECU), interconnected through vehicle networks. The inherent security risks in such endeavors could create an extremely dynamic market for OEMs, Tier-1 suppliers and ecosystem partners, as industry consolidation is very likely.
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“The rising presence of Internet-connected systems that enable autonomous driving has made cybersecurity highly relevant to automobile OEMs and Tier-1 suppliers,” saidFrost & Sullivan Mobility Senior Consultant Sriram Venkatraman. “OEMs, along with extended ecosystem participants, will work towards a holistic approach to address security measures; however, these solutions are still at a nascent stage of development.”
Currently, the critical threat vectors are in-vehicle software, cloud services, physical and remote access, design platforms, as well as wireless systems. For example, in 2015 Fiat Chrysler was forced to issue a software update for 1.4 million cars amid concerns that its on-board systems were vulnerable to remote hacking. A year later, the Nissan leaf hack became another compelling incident for extended automotive ecosystem participants to look back and review vehicle security from a holistic perspective, starting from design.
Intense innovation by startups and a competitive landscape will benefit OEMs by making available a plethora of reliable automotive security solutions. Leading cybersecurity companies such as Symantec and FireEye, in addition to Tier 1 suppliers, have already started focusing on vehicle security due to a lack of end-to-end vehicle security services.
The level of expertise needed to develop cybersecurity solutions for connected vehicles has also prompted several partnerships and acquisitions in the market. In 2015, OEMs collaborated with cross-industry security experts from areas such as aviation and IT. Meanwhile, Tier-1 suppliers partnered with and acquired semiconductor companies, security specialists, technology service providers and wireless companies to address the issues regarding vehicle security.
“Security training, a robust deployment plan by OEMs, and transparency within supply chains regarding cybersecurity policies and methods, will be critical to contain future vulnerabilities and attack vectors,” noted Venkatraman. “By 2025, solution maturity will help OEMs bring down their cybersecurity costs considerably and thereby, encourage wider adoption of secured solutions considering complex connected cars and autonomous vehicles use cases.”
State of Automotive Cybersecurity—Key Trends, Solutions, OEM Activities, and Vendor Profiles is part of the Automotive & Transportation (https://ww3.frost.com/research/industry/automotive-transportation) Growth Partnership Service program. Frost & Sullivan’s related studies include: 2016 Outlook of the Latin American Passenger Vehicle Market, HD Transit Bus Market Global Analysis, Global Powertrain Outlook 2016, Strategic Outlook of the Global Electric Vehicle Market for 2016 and Automotive and Transportation Technology–Cybersecurity Technology. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
