Global Automotive End-point Authentication Market: Snapshot
Keen companies operating in the global automotive end-point authentication market have two key strategies for growth – carefully-considered acquisitions and product development through research and development. This has made competition stiff in the market. New players, however, find it difficult to foray into the market on account of the substantial upfront capital required for setting up of manufacturing units for automotive end-point authentication. Hence, there are just a handful of small and medium sized companies in the market.
Majorly fuelling the market is the stringent regulatory requirements in different parts of the world that are compelling automobile manufacturers to develop vehicles having improved safety and security features, leveraging end-point authentication as a major technology. Besides, automotive end-point authentication technology aids in stemming thefts and damages to vehicles. This is also expected to catalyze growth in the market.
A report by Transparency Market Research forecasts the global automotive end-point authentication market to expand at a healthy 8.6% CAGR from 2017 to 2025. At this rate, the market is expected to reach a value of US$1.115 million by 2025 from US$0.504 million in 2017.
Fuel Efficiency Leads to Swift Expansion of Hybrid and Electric Vehicles Segment
The global automotive end-point authentication market can be classified into conventional and hybrid and electric vehicles depending upon the type of vehicle. Among them, the conventional vehicles such as passenger vehicles, sports-utility vehicles, and multi-utility vehicles use diesel. Those include pickup trucks, buses, three wheelers, construction vehicles, hatchbacks, sedans, etc.
Among the two types of vehicles, the conventional vehicles accounted for about 50.0% share in the global automotive end-point authentication market. The hybrid and electric vehicles segment too is expanding at a swift pace on account of their fuel efficiency and environmentally friendly nature. This in turn is set to improve the application areas of end-point authentication systems in hybrid and electric vehicles.
Europe Emerges Dominant due to Surging Sales in Hybrid and Electric Vehicles Segment
Geographically, Europe grossed the maximum revenue – about 30.0% of the overall revenue – in 2016. Germany is a dominant market in Europe. Going forward, the rising application of end-point authentication systems in electric and hybrid vehicles, which are witnessing increasing sales, are predicted to bring about further growth in the market.
North America trails Europe in terms of revenue in the global automotive end-point authentication market. It generated 25.0% of the revenue in 2016. The U.S. is a leading contributor in the region and is also considered a crucial market in the entire world.
Asia Pacific comes in a third place vis-à-vis revenue in the global automotive end-point authentication market. In 2016, it generated about 20% of the total revenues. China is the forefront of driving the market in the Asia Pacific region on account of a massive resource and technological capabilities in the automotive sector. Further, ever-increasing demand for passenger vehicles in the fast-expanding emerging economies of Indian and China is also serving to bolster the automotive end-point authentication market in Asia Pacific.
In contrast to the market for automotive end-point authentication in Asia Pacific, North America, and Europe, the market in the Middle East and Africa and Latin America is expected to see moderate demand in the upcoming years. Growing investments in the automotive sector and demand for advanced driver assistance systems in vehicles are the primary growth drivers in the region.
Some of the prominent participants in the global automotive end-point authentication market are Garmin Ltd., Continental AG, Samsung Electronics Co., Fujitsu Ltd., Hitachi Ltd., Ltd., Symantec Corporation, VOXX International Corporation, Valeo S.A., Synaptics Incorporated, and Sonavation, Inc.
Automotive End-Point Authentication Market: Overview
This market research study analyzes the automotive end-point authentication market on global basis and provides estimates in terms of revenue (US$ Mn) from 2016 to 2025. It describes the market dynamics affecting the industry and analyzes their impact through the forecast period. Moreover, it highlights the significant opportunities for market growth in the next eight years. The market is segmented on the basis of geography into North America, Europe, Asia Pacific, Middle East and Africa (MEA), and Latin America.
End-point authentication is a type of mechanism, which is used to detect or verify a network’s external source or remote connecting device. This allows only authorized end-point devices to be connected to specific networks. Through the use of security systems, authentication mechanisms are implemented, which identify and grant access in specific network environments to the frequent remote users. End-point authentication helps in not only identifying the user but also the connecting device logged on to the network.
In order to have access to the network, the connecting device has to comply with the security standards of the network. In automobiles, there are several features for end-point authentication such as service and maintenance updates, door lock status, real time diagnostic monitoring, navigation, battery status and advanced driver assistance systems.
Automotive End-Point Authentication Market: Segmentation
These segments have been estimated in terms of revenue (US$ Mn). In addition, the report has been segmented based on authentication type, which includes, smart phone application, wearables and biometric vehicle access. By vehicle type the market is categorized into conventional and hybrid and electric vehicles. For better understanding of the automotive end-point authentication market, the study comprises market attractiveness analysis, where the vehicle type segment is benchmarked based on their market scope, growth rate and market attractiveness. Competitive rivalry is projected to be high among key players to acquire higher share of the market in the coming years.
Automotive End-Point Authentication Market: Competitive Analysis
The global automotive end-point authentication market is fragmented with few medium and large companies. Entry into this market is not restricted as there is no monopoly of business and the market has huge scope and opportunity. However, setting up of manufacturing units for automotive end-point authentication require huge capital and resource, which is not feasible for most of the small and medium sized companies. Increasing private equity investments and merger and acquisitions of companies in the automotive sector has been of great influence to the automotive end-point authentication market.
Significant growth in the automotive sector coupled with economic reforms in major developing countries has been able to bolster the growth of this market. In addition, government regulations relating to vehicular safety is one of the major driving factors motivating the growth of this market across the globe. Asia Pacific, Middle East and Africa, and Latin America are key markets for the future and are expected to provide huge opportunities to the global automotive end-point authentication manufacturers because of the increasing application of end-point authentication system in vehicles of the aforementioned regions.
The report also provides company market share analysis of the various industry participants. Acquisition is the main strategy being widely followed by leading market players. In case of an acquisition, the acquirer takes advantage of existing synergies. As a result, both companies are expected to emerge more profitable and stronger than before. Key players in the global automotive end-point authentication market have been profiled and their company overview, financial overview, business strategies and recent developments have been covered in the report. Major market participants profiled in this report include: Continental AG, Garmin Ltd., Fujitsu Ltd., Hitachi Ltd., Samsung Electronics Co., Ltd., VOXX International Corporation, Symantec Corporation, Synaptics Incorporated, Valeo S.A., and Sonavation, Inc.
The global automotive end-point authentication market is segmented as below:
Global Automotive End-Point Authentication Market: By Authentication Type
- Smart Phone Application
- Biometric Vehicle Access
Global Automotive End-Point Authentication Market: By Vehicle Type
- Conventional Vehicles
- Hybrid and Electric Vehicles
Global Automotive End-Point Authentication Market: By Connectivity Type
- Cellular Network
Global Automotive End-Point Authentication Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of Middle East and Africa
- Latin America
- Rest of Latin America