Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Meet the 2021 winners
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
March 13, 2018 01:00 AM

Suppliers race to gain foothold in lucrative, untapped cybersecurity sector

Olive Keogh
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    iStock
    Keeping hackers out of connected cars will be a multibillion-euro business by 2024, experts predict.

    Automotive cybersecurity is still in its infancy but developments have accelerated since 2015, when several high-profile hacks showed the industry's vulnerability and cost the companies affected a lot of money to fix. The attacks also emphasized big shortfalls in software capability and pushed compliance up the agenda.

    With so much to play for, automotive cybersecurity has become a burgeoning but crowded sector. Suppliers already well positioned to benefit from the predicted boom include Robert Bosch, Harman, Cisco, Honeywell, NNG, Irdeto and Karamba and Continental-owned Argus, but IHS Markit senior automotive technology analyst Colin Bird describes the sector as “still very much the Wild West.”

    Bird estimates revenues in the sector will have topped more than $30 million at the end of 2017, but will balloon to more than $2 billion by 2024. Said Bird: “About 90 percent of the dots remain to be joined so there is huge opportunity. Out of a potential market of 100 percent, fulfillment is currently 4 percent to 5 percent.”

    Israel is currently at the leading edge of cybersecurity innovation and Krishna Jayaraman, an automotive connectivity specialist at Frost & Sullivan, estimates there are close to 10 established companies in the cybersecurity space across different industries with many more to come. He says automotive companies currently spend about 3 percent to 7 percent of their IT budgets globally on security and expects “investments to acquire software services and security capabilities to continue to gain momentum with security becoming part of r&d budgets.”

    Cybersecurity experts have criticized the auto industry for not moving fast enough, but there has been a big push to strengthen capability over the last two years. This has created early consolidation.

    Harman reportedly spent more than $1 billion to buy TowerSec, Red Bend software and Symphony Teleca in 2015-2016.

    Continental bought Israel-based cybersecurity company Argus for a reported $400 million last November.

    There has also been brisk acquisition activity further down the chain with innovative young companies being swallowed by bigger players.

    Multiple challenges

    There is no single answer to safeguarding cybersecurity in vehicles because there are so many moving parts – software, hardware, data, networks and the cloud. Cost is an issue as is how to integrate solutions, such as layered encryption, into existing architectures. Control of the supply chain, securing the loop from the car to the cloud and ensuring that a vehicle can continue to function even if it is attacked, are all potential weak spots in search of solutions.

    Companies are taking different approaches to the problem but multiple inter-manufacturer cooperations, partnerships with legacy suppliers, and cross-industry collaborations are accelerating the rate of development. In 2015, the industry-backed Auto ISAC, (Automotive Information Sharing and Analysis Center) was formed to identify and track potential cyber threats globally.

    Legislation is adding to the pressure for viable solutions, as is the fact that virtually all vehicles will have some form of connectivity by 2020. Guidelines and legislation on cybersecurity are coming fast. The Self Drive and AV Start Acts have been introduced in the U.S. while the EU’s cybersecurity agency is looking at issuing certificates to connected cars similar to those used in other critical areas such as food safety.

    Last August, the British government laid out its position on cybersecurity, putting the responsibility for dealing with the issue firmly on the shoulders of the manufacturing supply chain. British officials also stated that cybersecurity should be owned, governed and promoted at the board level.

    AUTOMOTIVE NEWS EUROPE MONTHLY MAGAZINE

    This story is from Automotive News Europe's latest monthly magazine, which is also available to read on our iPhone and iPad apps.You can download the new issue as well as past issues by clicking here.

    “We are already seeing initiatives whereby the top management of the companies delivering these [cybersecurity] programs will be personally liable,” says Alex Kocher, president and managing director of embedded software solutions company and Continental subsidiary Elektrobit. “The big challenges we face are to build the right infrastructure, to maintain it over the life of the vehicle and to have very fast reaction times to any problem. We recognize that having 100 percent cybersecurity is not a reality.”

    RECOMMENDED FOR YOU
    Punch CEO Guido Dumarey to speak at Automotive News Europe Congress
    Recommended for You
    Guido Dumarey Punch
    Punch CEO Guido Dumarey to speak at Automotive News Europe Congress
    Polestar CEO Thomas Ingenlath 2022
    Polestar CEO Thomas Ingenlath to speak at Automotive News Europe Congress
    Maria Grazia Davino Stellantis 2020
    Stellantis Europe sales and marketing chief to speak at Automotive News Europe Congress
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
        • Meet the 2021 winners
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us