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2 reasons why M&A and partnerships in the Automotive Cyber Security Market will continue in 2016

As indicated in our latest report ‘Automotive Cyber Security Market Forecast 2015-2025: the secure connected car’’, the marketplace experienced strong interest in 2015, not only from OEMs and Tier 1s but from other stakeholders.

We expect that in 2016 demand for Automotive Cyber Security experts will be much stronger leading to the formation of new partnerships and/or further M&A.

2016 starts with the acquisition of TowerSec by Harman

On Jan 5, 2016 HARMAN announced it is acquiring TowerSec, an automotive cyber security company. According to source, TowerSec’s technology, primarily the ECUSHIELD and TCUSHIELD, will be integrated into HARMAN’s 5+1 security architecture to protect connected and autonomous cars.

2 reasons why M&A and partnerships will continue in 2016

With a government mandate in the horizon, carmakers will face an additional cost from having to integrate cyber security solutions into their future Connected Car offerings. Automotive Cyber Security expertise though is rare among their Tier-1 suppliers therefore demand for car cybersecurity experts will increase. This will probably lead to more partnerships or M&A over the next few years as carmakers tend to prefer having all the expertise in-house.


‘’We should see automotive cyber security solutions becoming part of mainstream vehicles’ standard equipment as early as 2016’’

Dr Anuja Sonalker, VP of Engineering and Operations at TowerSec


What is more, the viability and successful monetisation of Connected Car business models requires the incorporation of robust automotive cyber expertise and the capability to implement cyber security. This will attract further investment for cyber security experts, either in terms of capital or personnel.

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Read more in our new report:

Automotive Cyber Security Market Forecast 2015-2025: the secure Connected Car

Contact us on: (+44) (0)20 3286 4562, info@auto2xtech.com or visit auto2xtech.com


 


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