The global automotive end-point authentication market is slated to grow at a notable CAGR through 2028, ascribed to the growing sales of connected vehicles and subsequent rise in cases of cyberattacks in these automobiles. As per a credible source, the average cost of data breaches in the automotive industry was nearly $3.86 million in 2020.
Besides, growing adoption of ADAS technology and introduction to regulations pertaining to automobile safety would as well stimulate the growth dynamics for automotive end-point authentication market in the foreseeable future.
Increasing vehicle sales, both passenger and commercial, across various developing and developed nations, owing to the rising disposable incomes, mounting vehicle ownerships, and high purchase parity is likely to facilitate the demand for automotive end-point authentication. According to OICA statistics, 77 million vehicles, inclusive of passenger and commercial, were sold worldwide in 2020.
Furthermore, the global automotive end-point authentication market growth is expected to be propelled by the added benefits offered by insurance companies for cars customized with endpoint security.
Strategic efforts by various cybersecurity firms to develop solutions that cater to the automotive industry will as well escalate the market progression in the near future thereby enabling various car manufacturers to seek incorporation of better security resources. For instance, in mid-2021, Argus Cyber Security announced collaborating with Microsoft to bring end-to-end automotive cyber cloud solution to all the vehicle producers with Microsoft Azure IoT.
Based on the authentication type, biometric vehicle access segment is touted to gain considerable momentum through 2028, driven by the biometric systems’ ability to identify and authenticate people using their intrinsic physical or behavioral attributes. In addition, biometrics in vehicles are known to offer advantages for passenger vehicles and locking systems, inhibiting criminal attacks. Also, various premium car producers are adopting biometric technology to augment car security, given the increased accuracy delivered. For example, General Motors (GM) has recently filed for a trademark of its biometric vehicle access control system in Mexico. Notably, the company is also involved in the sales of facial recognition systems for the Cadillac XT4 in China.
Geographically, the automotive end-point authentication industry is diversified into different regions including North America, Asia Pacific, Europe, and others. The growth in North America automotive end-point authentication market would come from the growing sales of passenger and commercial vehicles. Demand for automotive end-point authentication solutions can also be ascribed to the rising incidences of cybercrimes in automobiles.
In the United States, the prevalence of cyberattacks in the automotive industry has risen significantly over the past decade. Further, the introduction of stringent government norms regarding security from cyberattacks in cars and other vehicles would bolster the regional market space. In 2020, the UNECE WP.29 Cybersecurity regulations were approved to give the automotive sector a framework to manage cybersecurity risks in vehicle designs, monitor attacks and respond accordingly, review cybersecurity measures in the light of new threats, and more.
Prominent players operating in automotive end-point authentication marketplace are Samsung Electronics (Samsung Group), Pebble Technology, Hitachi Ltd., Fitbit Inc., Delphi Automotive (BorgWarner), Texas Instruments, Robert Bosch (Robert Bosch Stiftung GmbH), Johnson Electric, NXP Semiconductors N.V., Infineon Technologies AG, and others.
These market vendors are taking up organic marketing strategies to enhance their portfolio and position in the overall industry sphere.
The novel coronavirus pandemic outbreak has had a severe impact on different businesses worldwide, including the automotive industry. Temporary halt in production units, movement restriction, disruption in supply chains, and reduced workforce were some of the pivotal factors hampering the growth of the automotive industry during 2020. This had significantly reduced the demand for end-point authentication solutions in the sector, challenging the overall market expansion.
Market, By Authentication Type, 2018-2028 (USD Million)
Market, By Connectivity Type, 2018-2028 (USD Million)
Market, By Vehicle Type, 2018-2028 (USD Million)
The above information has been provided for the following regions and countries: