Embedded Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The embedded security market is expected to reach a CAGR of 5.5% during the forecast period of 2021 - 2026. Embedded security solutions help manufacturers ensure their products and devices are protected from cyberthreats. In defense, security-based differentiation in their product are lined up using a multi-layer security approach. When the technology is mission-critical, the device has to perform with unerring reliability and predictability and cannot allow the compromise of data or security on the end-user system. Players are focused on integrating Linux, an open source-based hypervisor, and a secure boot solution in the defense sector. A player such as Wind River announced its acquisition of Star Lab in January 2020. The acquisition broadens the comprehensive Wind River portfolio with software for Linux cybersecurity and anti-tamper, virtualization, and cyber resiliency in the defense sector.

• Growing IoT applications increases the need for IoT security, which drives the market. The IoT will consist of billions of digital devices, services, and other physical objects having the potential to seamlessly connect, interact, and exchange information. Security for IoT will be a critical concern that must be addressed in order to enable several current and future applications. The vital building blocks for embedded security for IoT is Cryptographic Algorithms and hardware architecture for extremely low power memory and processing requirements, Trusted Platform module, and Standardized Security Protocol. In April 2020, Sectigo announced a partnership with Infineon Technologies AG to provide automated certificate provisioning for Infineon’s OPTIGA Trusted Platform Module (TPM) 2.0 using Sectigo IoT Identity Manager.
• The adoption of wearable devices in healthcare increases the demand for embedded security, which drives the market. Wearable devices are creating an increasingly large footprint in the healthcare world. As medical wearable technology is quickly expanding in applications and volume, there is an increasing need for strong, scalable, and cost-effective authentication between devices known as Machine-to-Machine (M2M) authentication. Intrinsic-ID and Maastricht Instruments are working together in the context of the European project INSTET to add advanced security in the medical wearable devices through SRAM Physical Unclonable Function (PUF). An embedded SRAM PUF in the MCU can be a giant step toward cheaper and more robust security.
• However, the impact of Covid-19 on the market is restraining growth. The embedded security hardware market witnesses a significant decline in sales owing to the discontinuance of industrial activities and subsequently lowered demand for integration services and sales of new embedded security interfaces products. However, a player such as Mozilla announced in March 2020, the creation of a COVID-19 Solutions Fund as part of the Mozilla Open Source Support Program (MOSS). Through this fund, they will provide awards of up to USD 50,000 each to open source technology projects which are responding to the COVID-19 pandemic in some way where Mozilla will provide the embedded security solutions too.
• Recently University of Florida Center for Safety, Simulation, and Advanced Learning Technologies released an open-source ventilator. Further, its Secure Open Source Fund supports security audits for widely used open-source software projects as well as any work needed to fix the problems that are found.

Scope of the Report

Embedded system security is an approach to protect software running on embedded systems from attack. It comprises hardware components with a minimal operating system and software providing to end-users such as automotive, healthcare, consumer electronics, etc.

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Key Market Trends

Automotive Segment to Witness Significant Growth

• The vehicle car is rapidly becoming a large element of the IoT, connected by a variety of means to the outside world through an increasing number of wireless technologies. In the coming years, the market sales of connected cars will overpass the sales of traditional cars. While the benefits of improved connectivity are beneficial, it also opens up a sea of opportunities for digital invaders and malicious hackers to try to access the systems. According to Upstream Security's 2020 Global Automotive Cybersecurity info, from 2018 to 2019, there was a 99% increase in automotive cybersecurity incidents.
• Effective automotive security is about integrating an embedded firewall, protecting communications, authenticating communications, and encrypting data, which helps to protect privacy. In April 2020, BlackBerry Limited announced the launch of QNX Black Channel Communications Technology, a new software solution that OEMs and embedded software developers can use to ensure safe data communication exchanges within their safety-critical systems and is certified to ISO 26262 ASIL D.
• Further, in March 2020, Automotive Grade Linux (AGL), a collaborative cross-industry effort developing an open-source platform for connected car technologies, announces three new members: MERA, Mocana, and Osaka NDS. They planned to design plug-n-play solutions that integrate with the AGL platform to enable scalable, end-to-end security, to protect any AGL-based systems on-board connected or autonomous vehicles.
• Further, the advanced driver-assistance systems (ADAS) that are making today's cars safer and enabling the emergence of autonomous vehicles are challenging the automotive electronics industry to achieve new levels of complexity, performance, and safety. Also, according to Goldman Sachs, the market for ADAS is estimated to increase to USD 96 billion in 2025 from USD 3 billion in 2015. The unique demands of these applications led to the extensive use of complex ASICs that combine digital processing, analog, RF, and power management functions in single silicon die. As a result, critical safety features are managed on-chip.
• Further, in January 2020, NXP revealed its S32G (a single-chip version of two processors), an automotive microprocessor, and an enterprise network processor. The S32G functions as a gateway processor for connected vehicles, as it offers enterprise-level networking capabilities. It also enables the latest data-intensive ADAS applications while providing vehicles with secure communication capabilities.
• This new processor is already sampling, and car OEMs are currently testing S32G. Also, Audi director quoted that they found the unique combination of networking, performance, and safety features of the S32G processor to be ideal for use in their next-generation ADAS domain controller in Audi.

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