Automotive Cybersecurity Market

Automotive Cybersecurity Market Size:

The global automotive cybersecurity market size reached US$ 3.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 14.2 Billion by 2032, exhibiting a growth rate (CAGR) of 17.68% during 2024-2032. The market is experiencing steady growth driven by increasing sales of passenger and commercial vehicles, the growing preferences of individuals for seamless connectivity and access to cloud-based services, and the escalating demand for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications.

Automotive Cybersecurity Market Analysis:

• Market Growth and Size: The global automotive cybersecurity market is experiencing robust growth, driven by the increasing adoption of connected vehicles.
• Technological Advancements: The development of AI-driven threat detection, secure OTA updates, and robust encryption are shaping the automotive cybersecurity landscape. These innovations help combat evolving cyber threats effectively.
• Industry Applications: Automotive cybersecurity solutions find applications in various vehicle types, including passenger cars, commercial vehicles, and electric vehicles, with each segment witnessing growing demand for cybersecurity measures.
• Geographical Trends: North America leads the market, driven by established automotive industries and stringent regulations. However, Asia-Pacific is also emerging as a fast-growing market due to the increasing sales of passenger and commercial vehicles in the region.
• Competitive Landscape: Key players in the automotive cybersecurity market are investing heavily in R&D to maintain their authority as industry leaders. Additionally, collaborations with automotive manufacturers and regulatory bodies are common strategies to set industry standards.
• Challenges and Opportunities: While the market faces challenges, such as the increasing complexity of vehicle software, diverse regional regulations, and the need for consumer awareness, it also encounters opportunities like the growing demand, particularly in emerging regions, and the need for innovative solutions to address evolving threats.
• Future Outlook: The future of the automotive cybersecurity market looks promising, with continued growth expected due to the expanding global population and the rising sales of vehicles.
   

Automotive Cybersecurity Market Trends:

Increasing Connectivity of Vehicles

The rising shift towards connectivity due to several factors, including consumer demand for advanced infotainment, navigation, and telematics systems, and the development of autonomous and semi-autonomous vehicles represent one of the primary factors contributing to the market growth. In addition, the growing preferences of individuals for seamless connectivity, access to cloud-based services, and the ability to control their vehicles remotely through smartphone apps are positively influencing the market. These features rely on extensive software systems, communication networks, and data exchanges, making vehicles more susceptible to cyber threats. Along with this, the introduction of autonomous and semi-autonomous vehicles introduces an entirely new dimension to automotive cybersecurity. These vehicles rely heavily on sensors, cameras, radar, lidar, and sophisticated software algorithms to navigate and make decisions. Moreover, the escalating demand for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications for achieving safer and more efficient transportation systems is facilitating the market growth. The interconnectivity of vehicles with each other and with roadside infrastructure creates additional attack vectors for cybercriminals, driving the need to protect the integrity and confidentiality of these communication channels.

Evolving Regulatory Landscape

The automotive industry is subject to evolving regulatory frameworks and standards related to cybersecurity. Governing authorities and regulatory bodies around the world are recognizing the need to ensure the safety and security of connected and autonomous vehicles. This evolving regulatory landscape is offering a favorable market outlook. ISO/SAE 21434 is a standard specifically developed for automotive cybersecurity. It provides guidelines and requirements for automotive manufacturers and suppliers to manage cybersecurity throughout the lifecycle of vehicles. Moreover, ISO/SAE 21434 encourages collaboration between automakers and their supply chain partners. It highlights the need for a coordinated approach to cybersecurity, where all stakeholders work together to achieve a common goal. In line with this, various countries and regions are developing their cybersecurity regulations for vehicles, supporting the market growth. Furthermore, Regulatory bodies are addressing the growing road safety concerns by requiring automakers to demonstrate their commitment to cybersecurity and ensuring they have mechanisms in place to respond to incidents.

Cyber Threat Landscape

The growing and evolving cyber threat landscape is creating a positive outlook for the market. Hacktivist groups and nation-states are focusing on exploiting vulnerabilities in connected vehicles for political or espionage purposes. They are also looking to compromise vehicle systems for gathering sensitive information or disrupt transportation networks. In addition, rising incidences of ransomware attacks are supporting the growth of the market. These attacks can immobilize a vehicle or expose personal data, leading to financial losses and privacy violations. Apart from this, the introduction of new technologies like 5G connectivity and the Internet of Things (IoT) is leading to rising cybersecurity attacks. Cybercriminals can exploit vulnerabilities in the supply chain, third-party software components, and even in-vehicle entertainment systems to gain access to critical vehicle systems. The escalating cyber threat landscape is increasing the need for robust automotive cybersecurity solutions. As a result, automakers and cybersecurity firms are making continuous investments in research and development (R&D) activities, threat intelligence, and security awareness training.

Automotive Cybersecurity Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on security type, form, vehicle type, and application.

Breakup by Security Type:

• Application Security
• Wireless Network Security
• Endpoint Security
   

Wireless network security accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the security type. This includes application security, wireless network security, and endpoint security. According to the report,  wireless network security represented the largest segment.

Wireless network security is paramount in ensuring secure communication within and between vehicles. It encompasses protecting vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications. The increasing reliance on wireless networks for updates, diagnostics, and connectivity requires stringent security measures. Automotive cybersecurity solutions in this category focus on encryption, authentication, and intrusion detection to thwart potential cyber threats.

Application security in the automotive industry involves a range of practices and technologies to protect vehicle software from cyber threats. It begins with thorough vulnerability scanning and testing. This process involves identifying weaknesses in the software code that could be exploited by cybercriminals. Security experts conduct these tests to discover and rectify potential vulnerabilities before they can be used maliciously.

Endpoint security in the automotive sector pertains to securing individual devices and components within vehicles. This includes protection against unauthorized access to the electronic control units (ECUs), sensors, and onboard computers of vehicles. Endpoint security solutions aim to detect and mitigate threats that may compromise the integrity and safety of the vehicle.

Breakup by Form:

• In-Vehicle
• External Cloud Services
   

In-vehicle dominates the market

The report has provided a detailed breakup and analysis of the market based on the form. This includes in-vehicle and external cloud services. According to the report, in-vehicle accounts for the majority of the market share.

In-vehicle security refers to cybersecurity solutions that are integrated directly into the onboard systems of vehicles. These solutions are designed to protect the internal electronic components, software, and data from cyber threats. In-vehicle security measures often include intrusion detection systems, secure boot processes, and secure communication protocols.

External cloud services in automotive cybersecurity involve the use of cloud-based solutions to monitor, manage, and enhance the security of connected vehicles. These services provide real-time threat detection, software updates, and data analysis from external servers. They offer the advantage of centralized security management and can quickly respond to emerging threats across a fleet of vehicles. External cloud services are particularly valuable for automakers and fleet operators looking to ensure the cybersecurity of their connected vehicles efficiently.

Breakup by Vehicle Type:

• Passenger Car
• Commercial Vehicle
• Electric Vehicle
   

Passenger car holds the largest share in the industry

A detailed breakup and analysis of the market based on the vehicle type have also been provided in the report. This includes passenger car, commercial vehicle, and electric vehicle. According to the report, passenger car accounted for the largest market share.

Passenger cars constitute a significant portion of the automotive cybersecurity market. The increasing integration of advanced infotainment systems, connectivity features, and autonomous driving technologies in modern passenger vehicles has led to a heightened need for robust cybersecurity solutions. Key players are focusing on enhancing threat detection and prevention in these vehicles to protect personal data and ensure passenger safety.

Commercial vehicles, including trucks and buses, are also a vital segment in the automotive cybersecurity market. These vehicles are crucial for the logistics and transportation industry, making them potential targets for cyberattacks. Ensuring the security of communication networks, vehicle data, and cargo information is paramount. Market players are developing specialized cybersecurity solutions tailored to the unique needs of commercial vehicles.

Electric vehicles (EVs) represent an emerging and transformative segment in the automotive cybersecurity market. EVs rely heavily on complex software systems for battery management, charging infrastructure, and vehicle performance. Market leaders are actively investing in securing EVs against cyber threats, ensuring that the electric vehicle revolution progresses securely and with confidence among consumers and manufacturers.

Breakup by Application:

• ADAS and Safety
• Body Control and Comfort
• Infotainment
• Telematics
• Powertrain Systems
• Others
   

Infotainment represents the leading market segment

The report has provided a detailed breakup and analysis of the market based on the application. This includes ADAS and safety, body control and comfort, infotainment, telematics, powertrain systems, and others. According to the report, Infotainment represented the largest segment.

Automotive infotainment systems integrate entertainment, navigation, and connectivity features. Cybersecurity safeguards these systems, preventing unauthorized access to personal data and ensuring a seamless, secure entertainment experience.

Automotive cybersecurity ensures the security of advanced driver assistance systems (ADAS) and safety features. It safeguards technologies like adaptive cruise control and lane-keeping assist, protecting them from potential cyber threats, ensuring safe driving experiences for consumers.

Cybersecurity facilitates securing functions related to interior climate control, lighting, and seating systems. In addition, protecting these systems ensures passenger comfort and convenience while maintaining security against unauthorized access.

Telematics systems collect and transmit data for various purposes, including vehicle tracking and diagnostics. Automotive cybersecurity aids in protecting sensitive data, ensuring the reliability and safety of telematics applications.

Powertrain systems installed in the automotives aid in enhancing their performance. Cybersecurity safeguards several components of these systems like the engine control unit, ensuring that they are immune to cyber threats and maintaining vehicle performance and efficiency.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest automotive cybersecurity market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America leads the automotive cybersecurity market, primarily driven by the presence of major automobile manufacturers and technology companies. Stringent regulations and the high adoption of connected vehicles contribute to its growth. Key players in the region invest significantly in R&D activities to stay ahead in cybersecurity innovation.

The Asia-Pacific region exhibits rapid growth potential, due to the burgeoning automotive industry in countries like China and India. The increasing integration of advanced technologies in vehicles and growing awareness of cybersecurity drive market expansion. Moreover, collaborations between regional governments and cybersecurity firms bolster security measures.

Europe has a robust automotive cybersecurity market due to the concentration of luxury car manufacturers and stringent regulatory standards. Additionally, with a strong emphasis on data protection and privacy, European nations are at the forefront of cybersecurity advancements, making it a significant player in the global market.

Latin America is witnessing steady growth in automotive cybersecurity, primarily as more vehicles become connected. However, the market is still emerging, with a focus on raising awareness about the importance of cybersecurity in the automotive sector. Investments in infrastructure and technological advancements are gradually expanding the market.

The Middle East and Africa are increasingly adopting enhanced automotive cybersecurity solutions, albeit at a slower pace compared to other regions. In addition, the increasing sales of connected vehicles in the region are driving the need for robust cybersecurity solutions. Moreover, continuous investments and rising partnerships among industry investors are expected to drive market growth in the coming years.

Leading Key Players in the Automotive Cybersecurity Industry:

The key players in the market are continually investing in research and development (R&D) activities to stay ahead in the cybersecurity game. They are focusing on enhancing threat detection mechanisms by leveraging artificial intelligence and machine learning algorithms. This enables the real-time monitoring of the digital ecosystem of a vehicle, swiftly identifying any anomalies or suspicious activities that may indicate a cyberattack. Additionally, key players are working towards implementing secure over-the-air (OTA) software updates, allowing vehicles to receive critical security patches and updates seamlessly, reducing vulnerabilities. Along with this, these market leaders are emphasizing the importance of end-to-end encryption for communication within the vehicle and with external systems, ensuring data integrity and confidentiality.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Aptiv PLC
• Capgemini SE
• Continental AG
• DENSO Corporation
• GuardKnox
• HARMAN International (Samsung Electronics Co. Ltd.)
• Karamba Security Ltd.
• NXP Semiconductors N.V.
• Upstream Security Ltd.
• Vector Informatik GmbH
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• September 30, 2021: Rohde & Schwarz and Vector Informatik GmbH announced their collaboration on closed-loop scenario testing of automotive radar sensors for advanced driver assistance systems (ADAS) and autonomous driving (AD). By coupling the DYNA4 virtual test drive simulation platform from Vector with the latest Rohde & Schwarz radar moving object stimulation system enables powerful verification of safety-critical ADAS functions. These include emergency braking in an integrated hardware-in-the-loop (HiL) environment, offering enhanced safety.
• September 04, 2023: Karamba Security Ltd., a world leader in end-to-end product security, and Upstream Security Ltd., the leading provider of cloud-based cybersecurity and data management platforms declared their partnership to deliver an end-to-end automotive threat & vulnerability management (TVM) solution.

Automotive Cybersecurity Market Report Scope:

Key Questions Answered in This Report:

• How has the global automotive cybersecurity market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global automotive cybersecurity market?
• What is the impact of each driver, restraint, and opportunity on the global automotive cybersecurity market?
• What are the key regional markets?
• Which countries represent the most attractive automotive cybersecurity market?
• What is the breakup of the market based on the security type?
• Which is the most attractive security type in the automotive cybersecurity market?
• What is the breakup of the market based on the form?
• Which is the most attractive form in the automotive cybersecurity market?
• What is the breakup of the market based on the vehicle type?
• Which is the most attractive vehicle type in the automotive cybersecurity market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the automotive cybersecurity market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global automotive cybersecurity market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the automotive cybersecurity market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global automotive cybersecurity market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the automotive cybersecurity industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.