Within a few months after the register of its first case, the fast-moving novel coronavirus has affected the world in unimaginable ways. While industries are planning to recover in Q3-2020, the automotive industry has experienced the worst-case scenario, as 80% of the world’s auto supply chain is connected with China and has been shut down since the start of 2020. Even the manufacturing sites in Europe and North America are heavily dependent on Asian manufacturing factories for vehicle components and sales and have experienced a decline in demand.
The automotive industry comprises four megatrends, connected vehicles, autonomous vehicles, electric vehicles (EV), and shared driving, which generate a cumulative contribution of $5.5 trillion to the global economy. To ensure safety throughout the automotive ecosystem, the OEMs and suppliers have been working to improve cybersecurity solutions and secure the connected vehicles. The automotive cybersecurity market alone generated global revenue of $1.26 billion in 2018 and is driven by factors such as the rising implementation of Mobility-as-a-Service (MaaS) and the growing number of connected vehicles.
Since the massive widespread of the novel coronavirus, the automotive cybersecurity market has faced tough challenges in terms of low vehicle production and sales. The companies operating in the domain are majorly based in Europe, North America, and China. Due to the lockdowns implemented by governments globally, manufacturing facilities have witnessed a huge drop in the vehicle output and consumer demand for automobiles. However, the companies operating in the automotive cybersecurity market are expected to adjust to the “new normal” as an outcome of the post-COVID scenario.
Since the connected vehicle industry is focused on ensuring the safety of passengers, the cybersecurity solution providers need to work on redefining their existing services to include the “health factor.” The providers should incorporate databases to manage the passenger’s health history and points of contact that can help the person track their health and prepare for any emergencies.
Similarly, the utilization of geospatial data can be beneficial for the passenger to stay abreast of their surroundings and combat situations such as COVID-19. Additionally, embedded and non-embedded health applications would also ensure passenger’s safety and allow access to track the nearest hospitals and emergency stores. The launch of such solutions requires a secure data exchange between the vehicles, devices, and the infrastructure, as a whole, to make the future of vehicles a reality.
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BIS Research Analyst Notes
We’re on a mission to harness the potential of disruptive technologies to make businesses thrive in today’s digital age. As a leading market intelligence provider, we’ve taken the responsibility of providing credible information to companies worldwide and help them navigate out of these times of crisis. Straight from the desk of our analysts, these research notes are designed to highlight the impact of the COVID-19 pandemic on global trade and industries.