The market for microsegmentation is growing significantly owing to increasing adoption of connected and autonomous vehicles. Microsegmentation is commonly used in autonomous vehicles as it helps isolate critical vehicle systems and networks in zones to prevent cyber attacks and ensures safe operations. Microsegmentation enhances vehicle security by restricting how systems communicate with each other while allowing vital functions. The use of microsegmentation ensures that even if a hacker gains access to one component or system, they cannot spread to other critical areas.
The Global Microsegmentation Market is estimated to be valued at US$ 2682.72 Bn in 2024 and is expected to exhibit a CAGR of 61% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Microsegmentation Market are AutoX, Inc., Baidu, BMW AG, Daimler AG, EasyMile, Ford Motor Company, GM Cruise LLC, Hyundai, Tesla, Inc., and Waymo LLC. These players are focusing on integrating advanced microsegmentation solutions in their autonomous driving systems to minimize cyber risks.
The growing demand for advanced driver-assistance systems and connected vehicle technologies from automakers is propelling the microsegmentation market. Major automakers are collaborating with leading technology providers to enhance vehicle network security through microsegmentation.
The global deployment of autonomous vehicles would further spur the demand for robust microsegmentation solutions over the forecast period. Several companies are expanding their operations globally to cater to the surging requirements from automakers and technology startups developing autonomous driving systems.
Market Key Trends
The use of software-defined microsegmentation is gaining traction as it provides greater scalability, flexibility and visibility for isolating vehicle domains compared to traditional hardware-based solutions. Leading automotive cybersecurity companies are integrating software-defined microsegmentation capabilities that can dynamically isolate any unsafe vehicle component or system in real-time without affecting other critical operations. This trend is expected to accelerate over the coming years.
Porter’s Analysis
Threat of new entrants: Established players in the industry like Tesla and Waymo have significant capital investments in R&D which create barriers for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power as there are several players offering microsegmentation solutions. However, switching costs associated with technology integration can increase buyer stickiness to existing vendors.
Bargaining power of suppliers: Suppliers have low bargaining power due to availability of alternative component suppliers and lack of product differentiation between suppliers.
Threat of new substitutes: Threat of substitution is moderate as autonomous vehicles and other last mile connectivity solutions can replace the need for certain microsegmentation applications.
Competitive rivalry: The industry has intense competition between technology giants as they compete to capture market share through investments in next-gen capabilities and partnerships.
Geographical regions
North America dominates the market currently with over 40% share due to presence of proactive governments and availability of advanced infrastructure to support autonomous driving technologies. Significant R&D investments and testing of these solutions is concentrated in the US and Canada.
Fastest growing region: Asia Pacific region is expected to grow at the fastest pace during the forecast period led by countries like China, Japan and South Korea. This can be attributed to increasing automobile production, developing transportation infrastructure and focus of OEMs to expand presence through partnerships with local technology players in these countries.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research.
2. We have leveraged AI tools to mine information and compile it.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.