Connected Cars and Cybersecurity: Why 2025 Will Be a Pivotal Year

By 2025, there will be over 250 million connected cars on the road globally. This shows how fast interconnected technologies are changing cars. Yet, this connectivity demands strong cybersecurity. With more technology in cars, they face more cyber threats.

Consider Chrysler's recall of 1.4 million vehicles. It was due to a hacking threat on Jeep models' brakes and transmission. In 2017, nearly 8 million vehicles were recalled for software problems. These events underline the urgent need for better cyber protections in the auto industry.

Changes like AI and Mobility-as-a-Service (MaaS) are transforming the auto industry. But they also pose big cybersecurity risks. Ensuring safety and trust among consumers is critical. Looking ahead, 2025 will be key. It's when advanced security measures will greatly impact connected cars' future.

The future of cars is closely linked to cybersecurity. Understanding its importance is key for makers and buyers. This article explores trends, concerns, and innovations shaping connected cars. It reveals why 2025 will be crucial for this evolving sector.

Introduction to Connected Cars and Cybersecurity

Connected car technology is changing how we interact with our vehicles. By 2025, it's expected that over 75% of all sold cars will be connected. This will create a market worth about $166 billion. These cars can help save up to 20% on fuel. They do this by optimizing driving patterns and managing routes better. They also improve how we maintain cars, saving 30% by diagnosing problems remotely and scheduling services before issues become bigger.

The growth of connected cars comes with big cybersecurity challenges. The market for protecting these cars is expected to reach $5.5 billion by 2025, up from $1.5 billion in 2020. This shows how critical security is becoming. The NHTSA has issued guidelines to improve car cybersecurity, highlighting the growing regulatory focus on this area.

Vehicle-to-vehicle communication can prevent 90% of car accidents. But, this very feature increases the risk of cyber attacks. A survey found that 80% of people worry about their car's cybersecurity. This worry affects whether they decide to buy a connected car. Also, 60% are concerned about their personal data's privacy in these vehicles.

The car industry might lose $505 billion by 2024 due to cyber threats. Currently, only 20% of car companies have a concrete cybersecurity plan. The number of security risks in connected cars has gone up by 300% in five years. This shows that focusing on cybersecurity in cars is more important than ever.

Automotive Trends Shaping the Future

The car industry is changing fast, thanks to new tech like artificial intelligence (AI) in transportation, self-driving cars, and smarter ways to get around. These changes are making us rethink how we travel and own cars.

Advances in AI and Automation

AI is changing how cars work and how safe they are. By 2032, the market for AI in cars could reach $200 billion. The growth of self-driving cars is also impressive. They could become a $449 billion market by 2035, growing at 22.2% each year.

Even though some people worry about self-driving cars, they could save many lives. They might prevent 53,000 serious accidents and save 3,200 lives by 2040. AI is also making car making 20-30% more productive with new tech like generative AI.

Mobility-as-a-Service (MaaS) Models

Services like Uber and Lyft show how we're moving from owning cars to using them as needed. The connected car market is expected to grow to $121 billion by 2025, showing a big shift.

There could be over 400 million connected cars by 2025. The XaaS market is set to grow from $699.79 billion in 2023 to $3,221.96 billion by 2030. This shows more people are using services like MaaS.

These trends show that the future of getting around is about being smart, sharing, and using advanced AI.

Leading Cybersecurity Concerns in 2025

As 2025 nears, the auto industry is up against growing cyber threats. The big issues include more frequent and harsh DDoS attacks, along with the constant threat of ransomware. Knowing about these dangers can help in building stronger defenses.

DDoS Attacks and Their Impact

DDoS attacks can knock out key services by flooding networks with too much traffic. For example, in June 2024, CDK Global faced an attack. About 15,000 North American car dealerships were hit, causing a three-week halt and losses over $1 billion. This shows why strong cybersecurity in the automotive sector is vital.

Ransomware Targeting Auto Dealerships

Ransomware's rise in the auto sector is alarming. In June 2024, CDK Global paid a $25 million ransom after a major attack. Then, AutoCanada faced a ransomware attack in August 2024, losing an estimated $33.1 million. These incidents highlight the need for better cybersecurity to protect businesses.

Incident	Impact	Losses	Ransom
CDK Global (June 2024)	Disruption of 15,000 dealerships	$1 billion	$25 million
AutoCanada (August 2024)	Operational setbacks	$33.1 million	N/A
Asbury Automotive Group (January 2024)	Data breach affecting 14,000 individuals	N/A	N/A

With cybercrime costs possibly hitting $10.5 billion globally by 2025, the auto industry needs to actively fight DDoS and ransomware. Making auto cybersecurity better is essential, not optional, for service and data safety.

Connected Cars 2025: Security Measures and Standards

By 2025, connected cars will be a big part of our roads. This means strong cybersecurity measures and strict security standards are must-haves. The new tech in these cars also raises the chance of cyber attacks. So, it's important to have a solid security plan in place.

The U.S. Department of Commerce says new rules will stop the sale of certain car tech from China and Russia starting soon. Software bans start with Model Year 2027. Hardware bans begin in 2030. This is to prevent collecting sensitive data like where you are or recordings.

To keep cars safe, things like encryption and secure communication will be used. This helps protect against cyber threats. Fast threat detection will also be key to stopping and fix security problems quickly.

The Biden-Harris Administration is working with other countries to better protect cars from cyber threats. A big meeting in July 2024 had officials from many countries. They talked about stronger security standards for connected cars.

Measure	Implementation Timeline	Description
Software Restrictions	Model Year 2027	Prohibits the use of connected vehicle software systems from PRC and Russia, safeguarding data privacy.
Hardware Restrictions	Model Year 2030	Ban on hardware imports from PRC and Russia to minimize risks of sensitive data theft and cyber threats.
Encryption Methods	Ongoing	Utilization of advanced encryption to protect data transmitted between vehicle systems and external networks.
Secure Communication Protocols	Ongoing	Implementation of protocols ensuring secured data exchange, reducing susceptibility to hacking attempts.
Real-Time Threat Detection	Ongoing	Deployment of systems to detect and mitigate cybersecurity threats in real-time, enhancing vehicle defense.

Senators Ron Wyden and Ed Markey worry about car companies selling our data. There's a push for rules on how data is handled. With cars turning into "smartphones on wheels," security is more important than ever.

In short, the coming years are crucial for the future of connected cars. Strong security measures and standards will be key. These efforts will help keep both our cars and private information safe.

The Role of AI in Enhancing Vehicle Security

In today's world, AI in vehicle security is key, changing how we keep cars safe. Cars now talk to each other and to road systems, thanks to V2V and V2I communications. AI helps watch and predict dangers, making sure people in the car are protected.

Behavior-Based Anomaly Detection

AI uses smart algorithms to watch for unusual actions in behavior-based anomaly detection. This is crucial for stopping cyber threats early. For example, AI keeps an eye on a car’s normal operations. It sends an alert if something odd like speeding up quickly or going off-route happens. This quick action prevents problems and keeps the car and its passengers safe.

Intelligent Threat Intelligence

Another key role of AI in vehicle security is intelligent threat intelligence. It gathers data from many places to accurately predict threats. AI systems pull together info from different cars. This helps them spot patterns that might mean a bigger problem is coming. This shared knowledge makes a stronger defense, quickly dealing with threats. AI models that learn and adapt are crucial in beating cyber-attacks.

The combination of behavior-based detection and intelligent threat intelligence brings a new level of safety to connected cars. Also, AI can update cars remotely to face new security challenges. This improves both the drive and safety in the coming years of car technology.

The Rising Importance of Vehicle Security Operations Centers (VSOCs)

As more cars connect to the internet, keeping them safe from hackers is crucial. Vehicle Security Operations Centers (VSOCs) lead this safety effort. They fight against complex cyber threats aimed at cars and trucks.

VSOCs watch over connected vehicles all the time. They quickly find and deal with cyber dangers. By using advanced technology, they get better at finding real threats. WirelessCar is an example that uses tech to lower mistake rates and spot real dangers more accurately.

VSOCs also follow strict rules, like UNR 155, to fight digital threats. This sets a common way to protect cars online. WirelessCar, with over 25 years of experience, has been crucial in making vehicles safer by using technology.

These centers operate worldwide, creating a network of safety partners. This global effort helps share important security information. It makes fighting cyber threats to cars a team effort.

Choosing a managed VSOC service helps carmakers learn and develop faster. It frees up resources to work on special car features. Plus, VSOCs include cutting-edge computing in cars. This makes finding and stopping threats more efficient, reducing the need for big data systems.

The Auto-ISAC is a key part of this safety network. It includes companies that make or serve almost all cars in North America. With members around the world, Auto-ISAC helps make cars safer. Their 8th Annual Summit had more participants and experts than ever before.

The Auto-ISAC's work on the Software Bill of Materials Report shows teamwork among carmakers. With 54 automakers working together, they manage risks in software supply chains better. Their training programs and work groups aim to keep improving car safety.

VSOCs are getting more important for protecting connected vehicles from cyber dangers. As threats grow more complex, VSOCs help ensure cars and their occupants stay safe. They protect against cyber-attacks, keeping drivers and passengers secure.

Challenges in Implementing Automotive Cybersecurity

The auto industry is becoming more connected, which makes having strong cybersecurity crucial. However, this shift brings about big challenges. These include not having enough resources or trained people and dealing with a complicated supply chain.

Resource and Workforce Limitations

Cyber threats are growing fast, but there aren't enough skilled people to fight them. This shortage makes it tough for car makers to protect their systems well. Smaller companies especially struggle because they don't have the money or tech to get the best cybersecurity tools.

Experts say the automotive cybersecurity market will grow a lot, reaching $2.4 billion by 2025. But, there's still a big need for more trained workers and better resources. Solutions include training more people, working with cybersecurity companies, and using automation to keep an eye on threats.

Complex Supply Chain Dependencies

Modern cars depend on lots of suppliers for their parts and software, which makes keeping cars safe from cyber attacks complex. Keeping every part of the supply chain secure is key but hard to achieve. It requires all suppliers to have strong security.

If the supply chain has weak spots, hackers can attack. For example, bad firmware from an outside company can give hackers a way in. It's critical to check the risks well, watch what suppliers do, and follow secure software guidelines. Regulations like the UNECE WP29 and ISO SAE 21434 highlight how crucial cybersecurity is across the board.

Challenge	Impact	Mitigation Strategy
Resource and Workforce Limitations	Hinders deployment of advanced security measures	Investment in skill development and automation
Complex Supply Chain Dependencies	Increases attack surface and potential vulnerabilities	Comprehensive risk assessments and vendor oversight

Regulatory Landscape: Navigating Global Standards

The rules for automotive cybersecurity are becoming complex worldwide. Different places are setting up laws for new challenges. The US Department of Commerce’s Bureau of Industry and Security (BIS) published a notice on February 29, 2024. They want feedback on possible new rules for technologies in connected vehicles. This is a big step for matching worldwide automotive laws.

The US has been working on this since May 15, 2019, through an Executive Order. In January 2021, they added new rules, and then more in June 2023, for connected software. This shows how fast the car industry needs to meet cybersecurity rules.

President Biden’s new order stops foreign access to Americans' personal data. It aims to safeguard data from connected cars, which collect lots of data. There's a call for feedback on 35 questions about the risks from certain countries. The deadline for responses is April 30, 2024. It's a key time for those in the auto industry.

It's important to balance innovation with security as more electric and connected cars are made. Global standards like UN Regulation No 155 and ISO/SAE 21434 are crucial. The National Highway Traffic Safety Administration (NHTSA) in the U.S. helps guide these efforts. They say cars might drive themselves in ten years, pushing manufacturers to follow tough cybersecurity rules.

California is ahead in protecting data privacy, with its own laws and more coming. Other states like Virginia and Colorado are doing the same. This means US companies have to quickly decide on data privacy to avoid trouble.

The car-making world must stay alert and flexible to follow global car rules. The final rules will be set by late 2024. Car makers and suppliers must act early to meet cybersecurity standards and lead in compliance worldwide.

The Economic Impact of Cyber Threats on the Automotive Industry

The economic impact of cyber threats on the automotive industry is huge and varied. It includes direct costs like disruptions and ransom payments. It also covers indirect costs such as reputational harm and loss of trust from consumers. As cars get more connected, the cost of cyber incidents is a rising worry.

Cost of Cyber Incidents

The cost of cyber incidents in the automotive sector is alarmingly high. A cyber attack on a connected vehicle can cost about $1.1 million on average. This cost shows the immediate financial hit and the deep operational and reputational risks. Connected cars create up to 25 gigabytes of data per hour, making it harder and costlier to protect them from cyber threats.

Year	Market Value (USD Billion)	CAGR
2023	11.39	22.42% from 2025 to 2032
2024	13.94	22.42% from 2025 to 2032
2032	70.31	22.42% from 2025 to 2032

Investing in Proactive Measures

To lessen the deep economic impact of cyber threats, the auto industry is now putting more money into cybersecurity investment. Governments are setting strict cybersecurity rules for connected cars, boosting market growth. By investing ahead of time in advanced security, companies can protect their goods and gain consumer trust. Yet, the high cost of making strong cybersecurity can stop smaller car makers from doing so.

The Connected Car Cyber Security Market, valued at USD 11.39 billion in 2023, is set to grow. It will increase to USD 13.94 billion by 2024 and reach USD 70.31 billion by 2032. This growth shows how vital cybersecurity investment is for the future of car safety.

Innovative Solutions and Future Developments

The future of automotive cybersecurity looks bright as we head toward 2025 and beyond. The growth of connected vehicles is sparking new automotive solutions. These are meant to tackle upcoming cybersecurity challenges.

Around 1,836 startups across the globe have been studied for their innovative ideas. The StartUs Insights Discovery Platform shows us their work on connected vehicles. They focus on better connectivity, smart sensors, and self-driving tech. This points to an exciting future for cars.

In the US and Europe, startup activity in this field is notable. These startups work on high-speed 5G communication for cars. This tech allows cars to share data instantly.

Also, cars are getting smarter with sensors like LiDAR and radar. These improvements help cars perform better, even in tough conditions or over long distances.

Nowadays, cars have systems that help drives much more. This includes automatic braking and lane-keeping. These features make driving safer by reducing mistakes.

Using blockchain and encryption tech makes cars more secure. Blockchain ensures safe data sharing. At the same time, better encryption protects car data from hackers.

Vehicle-to-Infrastructure (V2I) and Vehicle-to-Vehicle (V2V) tech are also key. They allow cars to communicate in real time. But, keeping this data safe is a big challenge that needs smart solutions.

Software-defined vehicles (SDVs) are changing the future of cars. Companies, like Honda, work with Amazon Web Services. They want to improve how cars collect data and update software over the air. This is a big step forward in making cars more connected and secure.

In summary, innovative automotive solutions are quickly changing. Keeping cars secure and efficient is essential for the future. Continuous innovation and new technologies are crucial for this.

Conclusion

The growing world of connected cars is exciting. By 2025, we're looking at a market worth $166 billion. Nearly 75% of all vehicles will be online. This means more risks for cyber attacks, putting a spotlight on the need for strong security.

Artificial intelligence (AI) and automation are making our cars smarter. They're not just improving how we drive but also making cars safer from hackers. By 2025, Vehicle Security Operations Centers (VSOCs) will play a key role. They'll watch over cars, ensuring any threats are quickly handled. Keeping up with rules and staying ahead of issues will also be vital.

Half of all car users are open to buying connected car services. Technologies like 5G and vehicle-to-vehicle communication are paving the way. They aim to lower accidents and make driving smoother. Yet, cybersecurity threats could go up by 50% by 2025. It's important for those making and maintaining cars to stay alert.

Looking forward, connected cars will bring lots of new data. This will lead to better car features and personal touches. Working together, car makers and tech companies will keep making driving more tuned to our needs. With this tech-driven shift, quick updates and new ways to earn through subscriptions will emerge. But remember, top-notch security is key to keeping everything running smoothly and safely.

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Sean Cassy is a renowned automotive industry expert, marketing strategist, and writer with over 35 years of experience. As the co-founder of Turbo Marketing Solutions, Sean has been at the forefront of crafting effective marketing solutions for automotive dealerships across North America.

With a passion for the written word and an encyclopedic knowledge of the automotive world, Sean has written thousands of engaging blog posts, articles, and marketing pieces for dealerships representing all major brands. His work spans from luxury marques to domestic favorites and independent pre-owned dealers.

Over the course of his career, Sean's marketing strategies and content have helped generate over $2 billion in sales for his clients in the automotive retail space. He brings this wealth of expertise and industry insight to every piece he pens.

Through his new blog "Dealers and Drivers", Sean aims to provide a unique blend of automotive enthusiasm and industry analysis, drawing from his decades working with dealers while catering to the interests of car aficionados. Sean's writing offers readers an insider's perspective on the rapidly evolving automotive retail landscape.

Follow him on this exciting new journey exploring the intersection of automotive passion and the retail experience.

You can follow Sean on LinkedIn: https://www.linkedin.com/in/seancassy/ and on his website: https://www.seancassy.com