As auto manufacturers begin to launch the initial wave of electric vehicles (EVs) such as the Chevrolet Volt and the Nissan Leaf into the market, and as cities and utilities deploy charging equipment infrastructure to support these new vehicles, the industry is grappling with a wide variety of technology and business issues surrounding EV adoption.
According to a new report from Pike Research, one of the major challenges that remains to be resolved is the question of implementing effective cyber security measures to ensure that EV charging transactions are safe and private. The new study finds that investment in EV cyber security systems will total $432 million during the period from 2011 to 2015.
"The prevailing philosophy of the EV industry has been to 'build first, secure later,'" says senior analyst Bob Lockhart. "This poses many risks for financial transactions, customer privacy, and the integrity and reliability of the grid infrastructure. Utilities and key vendors are just beginning to focus on addressing these issues, and the security solutions implemented will have a strong influence on the success and credibility of EVs as a replacement for internal combustion engine vehicles."
Lockhart adds that several important areas for EV cyber security investment include:
- Securing financial transactions that are required for EV recharging
- Implementing secure and hardened IT environments on electric vehicle service equipment (EVSE) and distribution grid hardware
- Secure end-to-end communications throughout the EV infrastructure
- Authoritative identification of vehicle owners/operators for recharging transactions
- Compliance with applicable data privacy laws and other regulations
Pike Research's analysis finds that the largest segment for EV cyber security investment will be Smart Charging Management, which will garner $274 million in worldwide revenue between 2011 and 2015. Other key market segments include Data Analytics and Customer Information Management.
Pike Research's report, "Electric Vehicle Cyber Security", presents a detailed analysis of key cyber security risks for EV charging infrastructures based upon three key security standards: ISO 27002:2005 for IT networks, NISTIR 7628 Volume 2 for Personal Data Privacy, and NIST 800-82 for ICS networks. The study includes a comprehensive examination of business requirements, technology issues, and key industry players that are shaping the emerging EV cyber security market. Global revenue forecasts are included through 2015, including segmentation by region, security segment, and risk type.
source: Pike Research