The recent years boom of connected cars technologies raised worries regarding the security of driver’s personal data and life safety, so the consumer demand may suffer from the potential vulnerability of internal car network.
According to Business Insider the connected cars shipments as of 2017 amount up to 25m cars worldwide with an estimated growth to 95m in 2021 (39.6% annually). Such a strong market widening attracts hackers and imposes explicit car network risk. Cybersecurity companies strive for improvement and meeting the security standards demanded by automotive OEMs, that are rising from one major security scandal to another.
Currently the largest OEMs widely use outdated IPS/DPS based security systems deployed on electronic control units (ECU), where hackers from year to year manage to find breaches – Jeep remote hack back in 2016 as the most straightforward case. Obviously such systems are unable to account for the needs of fast growing market and from those times the weather did not change much, while more advanced solutions just recently started to break in.
Providing cybersecurity for connected cars remains the top priority goal for major OEMs and they do not hesitate to spend large budgets on security solutions. Recently Continental AG announced acquiring of Israel’s Argus Cyber Security for around $400m. Surprisingly, Argus uses software solution based on Firewall and IPS system, but continues to work on their technology. Similar solutions are used by other major players Arilou, Towersec and the market giant IBM, which unfortunately did not manage to make a step forward with the technology introduced together with Towersec and Inderto in October 2017 in Frankfurt.
Talking about breaking solutions, the early stage Israel’s cybersecurity provider GuardKnox with its Lockdown methodology definitely deserves the market niche. The solution allows to detect previously unknown threats, while decreasing the percentage of false positive processes within the network from the competitors’ 9% to almost zero. The solution is not unique – another young Israel’s provider Karamba claims to eliminate the possibility of false positive outcomes with its Carwall. These players have a sizable growth potential and definitely worth paying attention.
The Argus deal, in its turn, emphasizes a sharp demand from the connected cars market for cybersecurity solutions, so today is a favourable time for early stage cybersecurity companies to enter the market with the new solutions. The market is eager to accept even well-known software solutions, while more advanced cybersecurity systems could definitely make a tangible influence on the market for the following couple of years.
Nevertheless, only time will show for how long the cybersecurity fever will last, but in the meantime the new security technologies are sold like hotcakes.