Forecast for Global V2X Cybersecurity Market – Major Growth

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Connected vehicle technology is an essential enabler for safer roads and future autonomous vehicle deployments, which both form part of the smart city concept. Direct vehicle to vehicle (V2V) and vehicle to infrastructure (V2I) digital wireless communication, collectively referred to as V2X, enable vehicles to communicate with each other and roadside equipment. However, connectivity requires cybersecurity solutions in order to protect the networked systems from cyber threats.

The global V2X cybersecurity market size is projected to grow from USD 659 million in 2020 to reach USD 2,798 million by 2025, at a CAGR of 33.5%, according to a new market research report by Markets and Markets.

The growth of this market can be attributed to the increasing trend of connected and autonomous vehicles equipped with V2X technologies and growing cyber threats in the automotive industry. The focus of automobile manufacturers has shifted from fuel efficiency, performance, driver safety, and stability of the vehicle to additional features such as vehicle connectivity, electrification of functions, and digitalization. 

This change in focus has created a huge opportunity for non-automotive industry players such as Intel, Qualcomm, and Nvidia, to name a few. OEMs, technology companies, and V2X providers worldwide have joined hands and are focusing heavily on research & testing of security applications/standards to protect data privacy.

The V2X cybersecurity is part of a complex ecosystem with multiple stakeholders, as the value chain is fragmented among all types of industries. Due to COVID-19, businesses of majority of stakeholders in the V2X ecosystem have been affected, one way or the other. Most of the ongoing developments in this ecosystem have been suspended or stopped for a while as well. With such a complex ecosystem, the COVID-19 affects one or two stakeholders in the chain will result in the whole ecosystem suffering the impact.

The Asia Pacific is expected to be the largest and fastest-growing market in the forecast. The region is home to renowned V2X cybersecurity companies such as Autotalks, AutoCrypt, and Argus Security. 

China is expected to be the most influential factor in the Asia Pacific market. China has been conducting various tests and trails on cellular connectivity for V2X, and the expected country-wide launch is by 2021. 

One of the key factors driving the growth of the market in the Asia Pacific is the increased production of passenger cars with advanced connected car features. The increasing purchasing power of the population and increasing concerns over the environment have triggered the demand for V2X in the Asia Pacific. Since South Korea and Japan are among the leaders in electronics, it would enable them to design V2X solutions with better performance at a lesser price. 

V2X communication security mostly requires external cloud services due to continuously changing security protocols, connectivity options, and cloud updates. With the increasing cloud-based applications, smart devices, and IoT penetration, the market for external cloud services has increased in the automotive market. The external cloud services segment is expected to be the largest market during the forecast. 

The V2X, cybersecurity, and network providers have started creating their cloud servers to support secured V2X communications. With cloud-based security services, V2X messages can be kept encrypted and cannot be accessed without proper authentication. Cloud services help in maintaining certificate and security keys to keep V2X communications secured. Also, external cloud services for V2X cybersecurity are more feasible, as they are cost and time efficient (due to OTA updates).

The European region is expected to be the second-largest market during the forecast period as the regulations related to safety issues have become stringent. Therefore, the increasing demand for connected cars equipped with V2X technologies is likely to drive the V2X Cybersecurity Market in this region. Germany is expected to be the fastest market in the region for connected cars and cybersecurity solutions, according to the report cited by sbwire.com.