V2X Cybersecurity Market

V2X Cybersecurity: Safeguarding the Future of Connected Vehicles

With the rapid advancement of technology, the concept of connected vehicles has emerged as a potential game-changer in the automotive industry. Vehicle-to-Everything (V2X) communication enables vehicles to interact with each other and their surrounding environment, leading to enhanced safety, improved traffic management, and increased efficiency. However, as the number of connected vehicles grows, so does the importance of V2X cybersecurity. This essay explores the significance of V2X cybersecurity, its top impacting factors, and relevant government policies in ensuring a secure and resilient connected vehicle ecosystem.

The Importance of V2X Cybersecurity:

V2X cybersecurity plays a crucial role in ensuring the integrity, confidentiality, and availability of communication and data exchange within the connected vehicle ecosystem. A breach in the V2X network could have severe consequences, including compromised vehicle safety, privacy invasion, and potential traffic disruptions. It is imperative to address the following top impacting factors to strengthen V2X cybersecurity:

• Authentication and Identity Management: Establishing a robust authentication and identity management system is crucial to ensure that only authorized entities can access and interact with the V2X network. Implementing secure protocols and encryption techniques can protect against unauthorized access and identity spoofing.
• Data Integrity and Privacy: Safeguarding the integrity and privacy of V2X data is paramount. Encryption mechanisms should be employed to protect sensitive information exchanged between vehicles, infrastructure, and other stakeholders. Additionally, data anonymization techniques can minimize the risk of personal information being exposed.
• Secure V2X Communication Protocols: Developing secure communication protocols that are resistant to eavesdropping, tampering, and message forgery is essential. Employing technologies such as secure key exchange, digital signatures, and secure routing protocols can enhance the resilience of the V2X network against cyber threats.
• Intrusion Detection and Incident Response: Implementing robust intrusion detection systems can help identify potential cyber threats and attacks in real-time. Prompt incident response mechanisms, including effective monitoring and threat intelligence sharing, enable swift mitigation actions and minimize the impact of security breaches.

Government Policies and Initiatives

Recognizing the criticality of V2X cybersecurity, governments around the world have introduced policies and initiatives to address the challenges associated with securing connected vehicles. Some notable examples include:

• Regulatory Frameworks: Governments have established regulatory frameworks and standards that define cybersecurity requirements for connected vehicles. These frameworks outline the minimum security measures and protocols that automakers and technology providers must adhere to, ensuring a baseline level of security across the industry.
• Collaborative Partnerships: Governments, automotive manufacturers, technology companies, and research institutions are collaborating to develop and share best practices, conduct cybersecurity research, and promote information exchange. These partnerships foster innovation and facilitate the development of effective cybersecurity solutions for V2X systems.
• Cybersecurity Certification: Governments are introducing cybersecurity certification programs to assess and validate the security capabilities of connected vehicles. Certification schemes provide assurance to consumers that vehicles meet stringent cybersecurity standards, encouraging the adoption of secure V2X technologies.
• Public Awareness and Education: Governments are actively involved in raising public awareness about V2X cybersecurity risks and best practices. Educational campaigns and initiatives aim to educate vehicle owners, drivers, and other stakeholders about potential cyber threats and the importance of adopting secure practices.

Dynamics of V2X Cybersecurity Market

The global automotive V2X (vehicle-to-everything) market is experiencing significant growth, with countries like Japan, China, Germany, and the US expected to lead in the adoption of V2X technology. Major automotive manufacturers such as Toyota, General Motors, and Volkswagen have already begun implementing V2X technology based on IEEE 802.11p standards. The market is being driven by factors such as increasing concerns about vehicle safety, advancements in technology, and the decreasing cost of V2X technology. Asia Pacific is anticipated to be the largest market for automotive V2X in 2022, with China emerging as the leading market due to the high sales of V2X-equipped vehicles like the Mercedes-Benz E-class. The development of 5G technology in China is also facilitating the adoption of cellular connectivity for V2X communication, which in turn drives the growth of the V2X cybersecurity market.

However, one of the challenges facing the V2X cybersecurity market is the lack of infrastructure necessary for the proper functioning of V2X communication. The inadequate infrastructure can directly impact the adoption rate of V2X technology and, consequently, affect the revenue growth of the market.

High-speed connectivity is crucial in the vehicle-to-everything ecosystem, especially on highways, where vehicles exchange critical information and services. However, limited network connectivity in rural areas hinders the connection between cars, as there is a significant gap in coverage compared to urban areas. For example, in 2020, the International Telecommunication Union reported that while 4G coverage reached 85% in urban areas globally, it only reached 29% in rural areas. Without universal coverage on roads and highways, the benefits of 5G for vehicles will be limited to urban areas. This lack of coverage can also impact mobility business models that rely on effective connectivity in rural areas. Additionally, the high frequencies proposed for 5G networks require a dense network of relay antennas connected through fiber optics, which further increases the costs associated with achieving rural coverage. These factors pose challenges and restrain potential opportunities for the V2X cybersecurity market during the forecast period.

Restrictions in V2X Cybersecurity Market

The implementation of V2X (Vehicle-to-Everything) systems faces several challenges, particularly in terms of cybersecurity. These systems are susceptible to various cyberattacks, including unauthorized access, data breaches, and manipulation of communication. The dynamic nature of V2X networks and the potential for malicious activities present significant risks that need to be addressed. One of the key challenges is ensuring consistent security measures and interoperability among different V2X components and systems. While standardization efforts are underway, achieving coordination and collaboration among multiple stakeholders is essential. Additionally, V2X systems involve the exchange of sensitive data such as location information and vehicle identification, which raises concerns about protecting individual privacy while enabling effective communication and safety features. As the number of connected vehicles and infrastructure elements increases, the complexity of securing V2X systems grows, requiring scalable and robust security solutions for large-scale deployments. However, implementing such cybersecurity measures can be expensive, leading to the need to strike a balance between strong security and managing cost and resource constraints, which poses a significant restriction for the widespread adoption of V2X systems across the industry.

Challenges in V2X Cybersecurity Market

One of the advantages of transitioning to Linux-based platforms for V2X systems is the ability to enable third-party applications and services. While this offers numerous benefits for all involved parties, it also introduces new avenues for potential attacks. Historically, harmful code embedded within applications has caused devastating effects, rendering devices unusable or leading to ransomware assaults. Although OEMs have control over which services and applications are offered to vehicles, black hat hackers may focus their efforts on exploiting known vulnerabilities in these platforms. According to Upstream Security, approximately 12% of automotive cyberattacks reported in 2019 were carried out through mobile applications. The increasing frequency of attacks targeting vehicles via vulnerable mobile applications is expected to impede the growth of the global V2X cybersecurity market during the forecast period.

Increasing Demand for Electric Vehicles:

The global market for electric vehicles is experiencing a rise in adoption and sales, leading to a growing demand for vehicle-to-grid communication in the foreseeable future. Major automotive manufacturers such as Volkswagen AG, Tesla, Bayerische Motoren Werke AG, Ford Corporation, Nissan Motor Corporation, and General Motors are making substantial investments in the development of electric vehicles, contributing to the expansion of the overall electric vehicle market. The increasing prominence of vehicle-to-grid, vehicle-to-infrastructure, and vehicle-to-home features further supports the growth of the V2X ecosystem. However, this rise in electric vehicle usage also poses challenges for V2X cybersecurity providers, who must address potential cyberattacks on V2C, V2G, and V2I communications to safeguard the data. These factors collectively create favorable opportunities for the V2X cybersecurity market during the forecast period.

Adapting to Continuous Evolutions in the V2X Ecosystem:

V2X technology is continuously evolving, driven by the introduction of advanced technologies. One significant concern in V2X communication is latency and reliability. While IEEE 802.11p-based DSRC utilizes CSMA/CA (Carrier Sense Multiple Access with Collision Avoidance) mechanisms, providing high reliability, its performance may deteriorate in densely populated vehicle environments. On the other hand, LTE-V2X communication offers decent latency and less interference, but its communication delay of less than 100ms might not be sufficient in dense vehicle environments, potentially endangering the driver's safety. The emergence of 5G-V2X communication is expected to address the limitations of dedicated short-range communication and LTE-V2X communication. The 5G network is anticipated to deliver communication with a delay of less than 1ms and a stability rate of 99.99%, making it highly suitable for automated driving-oriented V2X communication services. To adapt to these evolving technologies in the V2X ecosystem, providers of V2X cybersecurity solutions need to focus on continuous research and development of security measures.

Furthermore, despite advancements in V2X security solutions, hackers will continue to devise new approaches to target V2X communication. As a result, cybersecurity companies must promptly identify vulnerabilities and provide over-the-air updates to counter cyberattacks. Additionally, security standards and protocols will continue to evolve, driven by automotive authorities and government regulations. Therefore, V2X cybersecurity providers should stay aligned with these standards and consistently update their systems.

Ecosystem of V2X Cybersecurity Market

The in-vehicle segment is projected to be the fastest-growing market during the forecast period. This segment focuses on securing vehicles from external vulnerabilities and unauthorized hacking attempts in the realm of V2X cybersecurity. With various applications such as infotainment, communication, ADAS & safety, and telematics, in-vehicle V2X technology is susceptible to manipulation by hackers through the vehicle's internal network. To address this, original equipment manufacturers (OEMs) and cybersecurity solution providers are collaborating to develop security solutions that protect vehicle communications. These solutions encompass hardware platforms, microcontrollers, and programmed chips that ensure secure V2X communications and support the growing demand for V2V, V2P, and V2I communication driven by the development of autonomous vehicles.

The on-board units (OBU) segment is expected to hold a larger share in the V2X cybersecurity market. OBUs are essential for enabling various types of vehicle-to-everything communication, including vehicle-to-vehicle, vehicle-to-pedestrian, and vehicle-to-infrastructure interactions. They play a crucial role in controlling security features within the vehicle, making their protection vital for overall system functionality. Safeguarding OBUs from interference is necessary to maintain the integrity of security measures. Consequently, the OBU segment is poised for revenue growth during the forecast period.

The vehicle-to-cloud (V2C) segment is also anticipated to hold a significant share in the V2X cybersecurity market. V2C cybersecurity focuses on ensuring the integrity and privacy of communications between vehicles and cloud-based services. As vehicles become more connected, robust cybersecurity measures are paramount to protect against cyber threats. V2C cybersecurity involves implementing encryption protocols, authentication mechanisms, and intrusion detection systems to safeguard sensitive information, prevent unauthorized access, and establish trustworthiness and reliability in vehicle-cloud interactions. These measures foster the growth of connected and autonomous vehicles while prioritizing data security.

Forecasted Growth in the Passenger Cars Segment:

The passenger cars segment is projected to experience rapid growth during the forecast period, making it a significant market in the realm of V2X cybersecurity. The safety and privacy of connected vehicles are of utmost importance in this domain. As vehicles become increasingly interconnected, safeguarding against cyber threats becomes a critical concern. V2X cybersecurity specifically targets the protection of communication channels between vehicles, infrastructure, and other entities. To achieve this, robust encryption techniques, authentication protocols, and intrusion detection systems are deployed to prevent unauthorized access and data breaches. Prioritizing V2X cybersecurity in passenger cars not only enhances trust and reliability but also ensures the privacy and safety of passengers.

Fastest-Growing Market in the Embedded Security Framework Segment:

The embedded security framework segment is expected to witness significant growth during the forecast period, emerging as a crucial component of V2X cybersecurity. This framework serves as the foundation for securing connected vehicle systems, focusing on their integrity and resilience. By incorporating advanced encryption algorithms, secure boot processes, and tamper-resistant hardware, the embedded security framework effectively guards against unauthorized access, data manipulation, and cyberattacks. Through this robust embedded security framework, trust is established, and V2X communications are protected, ultimately enhancing the reliability and safety of connected vehicles. By placing a strong emphasis on embedded security, V2X cybersecurity establishes a solid basis for the seamless integration of connected vehicles into the transportation ecosystem, while prioritizing data protection and privacy.

Regional Insights

During the forecast period, the Asia Pacific region is projected to hold the largest market share in terms of V2X cybersecurity. This region encompasses both emerging countries such as India and China, as well as developed nations like South Korea and Japan. The Asia Pacific region has recently emerged as a prominent automotive hub, with a significant factor contributing to the overall market growth being the increased production of passenger cars equipped with advanced connected vehicle features. Notably, China and India together manufacture approximately 30 million vehicles annually, as reported by the International Organization of Motor Vehicle Manufacturers (OICA). For example, in China, the total vehicle production, including both passenger cars and commercial vehicles, reached 26,082.2 thousand units according to OICA. The rising emphasis on Cellular Vehicle-to-Everything (C-V2X) technology in China is also expected to drive revenue growth in the Asia Pacific region. China has shown support for C-V2X technology over Dedicated Short-Range Communications (DSRC), and the commercialization of 5G-V2X is anticipated to fuel rapid growth in this region throughout the forecast period.

Baidu, a prominent player in autonomous and connected vehicle technology, has introduced 166 driverless vehicles in 26 cities across China. These autonomous vehicles play a crucial role in various frontline anti-epidemic tasks, including cleaning, disinfection, logistics, and transportation.

Furthermore, Baidu Apollo has secured bids to establish V2X pilot zones in several locations, such as Yongchuan district in Chongqing, Yangquan city in Shanxi province, and Hefei city in Anhui province. In the 20-square-kilometer V2X pilot zone situated in Yongchuan district, Chongqing, level-4 autonomous vehicles are currently undergoing testing. These vehicles possess the capability to operate without human control for the majority of the time.

In North America, V2X cybersecurity is a significant area of focus due to the increasing adoption of connected and autonomous vehicles. The government, industry, and research organizations collaborate to address the cybersecurity challenges associated with V2X systems. Their efforts include the development of robust encryption methods, the implementation of secure communication protocols, and the establishment of cybersecurity standards and best practices. Government agencies like the National Highway Traffic Safety Administration (NHTSA) and industry alliances such as the Automotive Information Sharing and Analysis Center (Auto-ISAC) play pivotal roles in promoting V2X cybersecurity initiatives. The ultimate goal is to ensure the trust, privacy, and security of V2X communications, thereby enabling safer and more reliable transportation systems.

Dominating Companies in V2X Cybersecurity Market

• ESCRYPT
• QUALCOMM INCORPORATED (ONBOARD SECURITY, INC.)
• AUTOTALKS
• AUTOCRYPT CO., LTD.
• CONTINENTAL AG
• GREEN HILLS SOFTWARE
• KARAMBA SECURITY
• ID QUANTIQUE
• NXP SEMICONDUCTORS
• INFINEON TECHNOLOGIES AG
• HARMAN INTERNATIONAL
• APTIV
• ATOS SE
• SECUNET SECURITY NETWORKS AG
• CAPGEMINI ENGINEERING
• VECTOR INFORMATIK GMBH
• STMICROELECTRONICS
• LEAR CORPORATION
• CERTICOM CORP
• DENSO CORPORATION
• SAFERIDE TECHNOLOGIES LTD
• Altran
• TRILLIUM SECURE INC.

Recent Developments in V2X Cybersecurity Market

• In February 2021, GuardKnox, an automotive cybersecurity provider, announced a partnership with NXP Semiconductors, a leading semiconductor supplier. The collaboration aimed to enhance the security of connected and autonomous vehicles by integrating GuardKnox's cybersecurity solutions with NXP's vehicle-to-everything (V2X) communication processors.
• In April 2020, Continental, a leading automotive technology company, acquired Argus Cyber Security, an Israeli automotive cybersecurity provider. The acquisition aimed to strengthen Continental's expertise in automotive cybersecurity and enhance its capabilities in protecting connected vehicles against cyber threats.
• In January 2019, Karamba Security, an automotive cybersecurity company, announced a partnership with Veoneer, a leading automotive technology supplier. The collaboration aimed to develop and integrate Karamba Security's software into Veoneer's connected vehicle systems, providing enhanced cybersecurity protection for autonomous and connected vehicles.
• In November 2018, Green Hills Software, a provider of embedded safety and security solutions, announced a partnership with Autotalks, a V2X chipset provider. The collaboration aimed to integrate Green Hills Software's INTEGRITY real-time operating system with Autotalks' V2X chipset solutions, enabling secure and reliable V2X communications for connected vehicles.
• In September 2018, BlackBerry Limited, a renowned cybersecurity company, announced the acquisition of Cylance, an artificial intelligence and cybersecurity company. The acquisition aimed to strengthen BlackBerry's cybersecurity portfolio and enhance its capabilities in providing secure software solutions for connected vehicles, including V2X systems.
• In May 2022, NXP Semiconductors, a leading semiconductor company, announced the acquisition of OmniPHY, a provider of automotive Ethernet subsystem technology. The acquisition aimed to strengthen NXP's position in delivering secure and reliable V2X communication solutions for connected vehicles, focusing on high-speed Ethernet connectivity.
• In July 2021, Vector Informatik, a leading provider of automotive embedded electronics, acquired Cybellum, an Israeli cybersecurity company specializing in automotive security. The acquisition aimed to enhance Vector's capabilities in providing comprehensive cybersecurity solutions for automotive ECUs (Electronic Control Units) and connected vehicles.
• In September 2020, Hyundai Motor Group announced a partnership with Aptiv, a global technology company focused on mobility solutions, to form a joint venture called Motional. The partnership aimed to develop and deploy autonomous driving technology, including V2X systems, with a strong emphasis on safety and cybersecurity.
• In March 2020, Green Hills Software announced a collaboration with Automotive Grade Linux (AGL), a collaborative open-source project for the automotive industry. The partnership aimed to enhance the cybersecurity of AGL's open-source software platform for connected vehicles by integrating Green Hills Software's security and safety solutions.
• In October 2019, Cisco Systems, a multinational technology company, announced a partnership with Continental, a leading automotive technology supplier. The collaboration aimed to develop a secure, high-bandwidth automotive network architecture for connected vehicles, enabling advanced V2X communication and data exchange while ensuring robust cybersecurity.

V2X cybersecurity is a critical aspect of the connected vehicle ecosystem, ensuring the safety, privacy, and reliability of communication between vehicles, infrastructure, and other stakeholders. By addressing factors such as authentication, data integrity, secure protocols, and incident response, the industry can mitigate potential risks. Furthermore, government policies and initiatives play a pivotal role in setting standards, fostering collaboration, and raising awareness to create a secure and resilient V2X environment.