Securing Japan's Connected Roads: Cloud Cybersecurity Market Insights for the Automotive Industry

Introduction

As Japan emerges as a global leader in automotive technology and embraces the era of connected vehicles, it becomes imperative to implement stringent cybersecurity measures. The connectivity of vehicles, infrastructure, and cloud-based platforms introduces new challenges and dangers. This article examines the Japanese market for automotive cloud cybersecurity, providing valuable insights and statistics on its growth and significance.

Japan's Increasing Need for Automotive Cloud Cybersecurity

The automotive industry in Japan has a long tradition of innovation and excellence. With the introduction of connected vehicles, the country has incorporated technological advances, providing road users with enhanced safety, convenience, and efficiency. However, this development also introduces new vulnerabilities that cybercriminals can exploit, necessitating comprehensive cloud-based cybersecurity solutions for the automotive industry.

Statistics Reflecting Japan's Market Expansion

The Japanese market for cloud-based automotive cybersecurity has experienced significant growth and is exhibiting optimistic trends. Let's examine some critical numbers that shed light on the expansion of this market:

The automotive cybersecurity market in Japan was valued at approximately 25 billion (approximately $227 million) in 2020, and is projected to reach 76 billion (approximately $689 million) by 2026, expanding at a CAGR of approximately 20% over the forecast period.

Government Initiatives: Recognizing the significance of automotive cybersecurity, the Japanese government has taken proactive measures to combat evolving threats. In 2020, the government will release the "Automotive Security Assurance Guideline," which details the best cybersecurity practices for connected vehicles. These initiatives stimulate market expansion by fostering awareness and compliance.

Collaboration and Research: In Japan, the advancement of automotive cloud cybersecurity relies heavily on the collaborative efforts of automotive manufacturers, technology companies, and research institutions. The Automotive Security Working Group (ASWG), comprised of major manufacturers and IT firms, collaborates actively to develop industry-wide cybersecurity standards and countermeasures.

Cyberthreats on the Rise The number of cyberthreats targeting connected vehicles in Japan has consistently increased. The National Police Agency of Japan reports that the number of assaults on automobiles increased by 22.8% in 2020 compared to the previous year. This upward trend underscores the urgent need for comprehensive cybersecurity solutions to safeguard vehicles and their occupants.

Adoption of Connected Vehicle Technology: Japan is known for adopting new technologies rapidly. Estimates indicate that by 2025, more than 90 percent of newly sold automobiles in Japan will be connected. This expanding connected vehicle ecosystem drives demand for cloud-based automotive cybersecurity solutions.

Government Regulations and Business Initiatives

The Japanese government has implemented regulations and initiatives to improve cloud security for automotive applications:

Road Transport Vehicle Act Revision: In 2019, Japan revised the Road Transport Vehicle Act to include cybersecurity provisions, mandating that vehicle manufacturers implement cybersecurity measures.

Center for Automotive Safety Cybersecurity Certification: The ASCC was established by the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) to promote the development and certification of safe automotive systems.

Collaboration with the United States: Japan and the United States have signed an agreement to strengthen automotive cybersecurity cooperation, including information exchange, joint exercises, and research collaboration.

Conclusion

As the country embraces connected vehicles and the opportunities they present, the automotive cloud cybersecurity market in Japan is expanding rapidly. The escalating number of cyber threats, in conjunction with proactive government regulations and industry collaboration, emphasizes the need for robust cybersecurity measures. As Japan continues to pioneer innovative automotive technologies, maintaining the safety and security of its interconnected roads remains a top priority.

Author's Note

N-Geneki delivers reliable and timely market intelligence to its clients. N-Geneki helps clients make business decisions.