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.