Automotive software is the “wow” factor to help automakers deliver a more fantastic, customized automotive experience while helping to reduce the bill of materials and enabling greater efficiencies. Today more than 90% of automotive innovation comes via software.
Cars already contain up to 100 electronic control units (ECUs) supported by millions of lines of code, and advanced AI algorithms are being developed for autonomous driving. Estimates of lines of code in a new car are 100 to 150 million. Automobiles have more lines of code than an F-35 fighter or a Boeing 787. Tech is a major reason why the average cost of a new vehicle in the U.S. in late 2020 exceeded $40,000. That’s just the average. Because cars are now rolling computers, 40% of the cost is in electronic systems.
Electronic systems as % of total car cost
What is the cost of not having automotive cybersecurity?
FCA (Fiat Chrysler) recalled about 1.4 million Jeeps in 2015 due to a cybersecurity vulnerability leading to remote exploitation. It’s estimated to have cost them around $600 million (fines, lawsuits, insurance, fixing/recall costs). This would put the cost of NOT having security at around $400 per vehicle.
Automaker Brand at Risk
If your car was hacked, how would that change your brand perception of that particular automaker? In a report by KPMG’s Consumer Loss Barometer, car buyers are highly concerned with automotive cybersecurity. Some buyers stated rejecting future purchases of a compromised brand.
Cyber is not an IT issue – it’s a business issue. Every OEM needs to consider cyber as part of their value proposition and brand experience.
How does a hack affect an automotive's brand perception?
Zero-Day Price Sheet
Deeper, Disturbing Trend in the Marketplace
Cyber Attacks and Cyber Crimes
The rogue authoritarian regime, North Korea, has used cybercrimes to mitigate the effect of sanctions. Cyberattacks accounted for an estimated 2.77% of the country’s GDP in 2019. The regime raised $2,000,000,000 from cyberattacks for 2016 and 2019, according to a United Nations Security Council Sanctions Committee report.
Global cybercrimes are estimated to reach $6,000,000,000,000 ($6T) by the end of 2021, which is more than the global illicit drug crime market. Cybercrime is expected to continue to grow 15% annually, reaching $10,000,000,000,000 ($10T) by 2025. In fact, a cybercriminal can earn $2 Million per year. Contrast that with an average NFL player—who works with the specter of serious head injury—who earns $860,000, and the appeal of cybercrime is clear.