Embedded security is an important component and is considered as one of the commonly adopted by the consumers to protects their software from the attack. Manufacturers use embedded security solutions to ensure that their products and devices are protected from the cyberthreats. Security-based differentiation in the defense in their product are lined up and are adopting a multi-layer security approach. Updating of Internet of Things applications are leading to the increase in the demand for the internet of things security. In addition to this, the adoption of the payment function in the wearable is positively impacting the embedded security market and it is expected to witness significant growth in the market during the forecasted period. Integration of the embedded security in the electric vehicles along with the adoption of the smart city technologies is considered as the key driver for the market growth of the embedded security during the forecasted period. Embedded security has wide applications in programming, home and industrial automation, payment processing, authentication, and others.
The market players of the embedded security are focusing on the integration of Linux, an open source-based hypervisor, and a secure boot solution in the defense sector. Some of the players of the embedded security market include Infineon Technology AG, Advanced Card Systems Ltd., Precise Biometrics, McAfee Solutions, Gemalto NV, Texas Instruments Incorporated, Renesas Electronics Corporation, Microchip Technology, Inc., Symantec Corporation and Microcomputer Applications, Inc. Wind River had announced the acquisition of the Star Lab in January 2020 with the objective to broaden the comprehensive portfolio of Wind River for Linux cybersecurity and anti-tamper, cyber resiliency and virtualization in the defense sector. The global embedded security market is expected to grow at a compound annual growth rate of 6.84% over the forecast period to reach a market size of US$5.633 billion in 2026 from US$3.787 billion in 2020.
Automotive Market Is Gaining Traction
Embedded Security Market on the basis of end-user industry are segmented as Manufacturing, Consumer Electronics, Automotive, Information Communication and Technology, Healthcare and Others. Automotive segment is gaining traction globally on account of the increasing number of connected cars in the market. Though the improved connectivity is beneficial but it is increasing the exposure to the digital invaders and malicious hackers to access the system. For instance, according to the Upstream Security, there was 99% increase in the automotive cybersecurity incidents from 2018 to 2019. In addition to this, the strict regulation mandates the data protection of the vehicle which is creating a new opportunity for the manufacturers and service providers in the forecasted period. For instance, according to the Security and Privacy in Your (SPY) Car Act, legislation proposed in 2015 in USA is mandating the critical software system in the automotive vehicle to protect the automotive from the hacking with the aid of cybersecurity measures. The vehicle car is becoming the large element of the internet of things which is connected to the outside world with the number of wireless technologies. Due to these factors, the market sales of the connected cars are expected to overpass the sales of the traditional cars. Furthermore, the advanced driver-assistance system (ADAS) is challenging the automotive electronics industry to reach new levels of safety, performance, and complexity. According to Goldman Sachs, the embedded security market for ADAS is estimated to increase from USD 3 billion in 2015 to USD 96 million in 2025.
Embedded security market by region is segmented into North America, South America, Europe, Asia Pacific and Middle East & Africa. North America is expected to hold a major share in the embedded security market due to the favorable government policies and investments. For instance, United States budget in 2019 included USD 15 billion dedicated to the cybersecurity-related activities, for airport and airway trust fund the budget allotted USD 32.4 million focusing on the research and development of the advancement of the cybersecurity systems. Similarly, in Canada, the government in the new five-year budget allotted $145 million over five years towards the country’s critical cyber systems of various industries including energy, telecommunications, transport sectors, and finance. These key factors are further expected to increase the demand of the embedded security solutions in the North America region. Whereas the embedded security market is witnessing rapid growth in Asia Pacific due to the rise in the mobile and connected device users. This is motivating the market providers of the embedded security to expand their operations in the region and capture the market share.
The embedded security market exhibited a healthy growth rate during 2019 but the market witnessed a decline in 2020. The outbreak of the Covid-19 pandemic has impacted the embedded security products such as embedded security tokens, hardware security modules, and others. Due to the shutdown of the industrial demands. The pandemic has mainly affected the supply chain of the embedded product industry owing to the significant decline in the demand for the integration of the services and sales of the new embedded security interface products. It is expected that the effect will be there for a while due to the lockdown or partial lockdown globally. China is the largest manufacturing country of the embedded security products but on account of covid-19 is witnessing a slump in the production. Although the lockdown was lifted in later months of 2020, the manufacturers and suppliers are trying to gain the market share and return to the pre-COVID-19 phase but are still facing challenges. Mozilla announced the launch of the ‘Covid-19 Solutions Fund’ as part of the Mozilla Open-Source Support Program (MOSS) in March 2020. Using this fund, Mozilla will provide award up to $ 50,000 to each of the open-source technology projects that will response to the Covid-19 pandemic in some way. Mozilla were accepting the applications that are software (e.g., Platform that will connect the hospital to the people who have 3D printers and can print parts for the open-source ventilators), hardware, and software that solves the secondary effects of Covid-19.