Automotive Cybersecurity Market

According to Stratistics MRC, the Global Automotive Cybersecurity Market is accounted for $3.01 billion in 2024 and is expected to reach $9.22 billion by 2030 growing at a CAGR of 20.5% during the forecast period. Automotive cybersecurity involves protecting automotive electronic systems, communication networks, control algorithms, software, users, and underlying data from malicious attacks, damage, unauthorized access, or manipulation. It ensures the safety and integrity of connected and autonomous vehicles by implementing measures like encryption, authentication and secure communication protocols to prevent cyber threats and safeguard vehicle functionality and user data.

According to the International Energy Agency, global sales of electrified vehicles surpassed 6.9 million units in 2021.

Market Dynamics:

Driver:

Electric vehicles more vulnerable to cyber attacks

EVs are equipped with complex electronic systems and interconnected software, making them susceptible to potential hacking attempts. As EV adoption grows, the risk of cyber threats targeting critical components, such as battery management systems and autonomous driving features, becomes more prominent. Automotive cybersecurity solutions are crucial in safeguarding EVs from unauthorized access and potential data breaches, ensuring the safety of drivers and passengers, and maintaining the trust of consumers in the reliability and security of electric vehicles.

Restraint:

High cost of automotive cybersecurity solutions

Integrating robust cybersecurity measures into vehicles requires significant investments in research, development, and implementation. Additionally, ensuring continuous updates and upgrades to keep up with evolving cyber threats adds to the overall cost. For automakers, cost-sensitive markets, and consumers, these expenses may be seen as a barrier to adoption. Striking a balance between cost-effective solutions and robust protection is crucial to encouraging widespread adoption of automotive cybersecurity and ensuring the safety and security of connected vehicles without significantly inflating the price of automobiles.

Opportunity:

The advent of software-defined vehicles

As vehicles become more software-driven and connected, there is a greater need for advanced cybersecurity solutions to protect these complex systems. Software-defined vehicles enable over-the-air updates, remote diagnostics, and enhanced vehicle customization, but they also open new avenues for potential cyber threats. This creates a demand for cutting-edge cybersecurity technologies, including secure software development practices, continuous monitoring, and real-time threat detection. Companies focusing on providing comprehensive and adaptive cybersecurity solutions for software-defined vehicles can capitalize on this opportunity, ensuring the safety and security of future automotive technology.

Threat:

Time lag in delivery of cybersecurity updates

With the rapid evolution of cyber threats, prompt delivery of security patches and updates is crucial to address vulnerabilities and protect connected vehicles. However, the automotive industry faces challenges in efficiently deploying updates across a diverse fleet of vehicles due to complex supply chains, regulatory requirements, and coordination with multiple stakeholders. Delays in delivering cybersecurity updates can leave vehicles exposed to potential attacks and compromise the safety of drivers and passengers. Overcoming these challenges and establishing efficient update mechanisms are essential to enhancing the cybersecurity resilience of the automotive sector.

Covid-19 Impact:

The COVID-19 outbreak forced governments throughout the world to implement stringent lockdowns and mandate social seclusion in order to stop the virus's spread. The result was a sharp decline in demand for new cars. Additionally, the raw material supply was reduced, supply networks were disrupted internationally, and production rates in the car sector slowed down. The car industry's losses have made it harder for cutting-edge cybersecurity technology to be adopted. With the ongoing immunization, however, the automotive sector is anticipated to get back on track eventually, and the use of automotive cybersecurity solutions amid increased demand for connected automobiles is anticipated to rise over time.

The wireless security segment is expected to be the largest during the forecast period

The wireless security segment is expected to have a lucrative growth. Wireless security in the automotive cybersecurity market involves measures and technologies implemented to protect wireless communication systems in vehicles from cyber threats and attacks. As modern vehicles increasingly incorporate wireless technologies like Bluetooth, Wi-Fi, and cellular connectivity, the risk of potential cyber attacks also rises. To address this, automotive cybersecurity solutions focus on encryption, authentication, intrusion detection, and secure communication protocols to safeguard against unauthorized access and data breaches. These measures play a crucial role in ensuring the safety and reliability of connected vehicles, protecting both driver and passenger privacy, and preventing potential hacking attempts on critical automotive systems.

The electric vehicles segment is expected to have the highest CAGR during the forecast period

The electric vehicles segment is anticipated to witness the fastest CAGR growth during the forecast period. Concerns about EVs' advanced electronic systems being open to hacking and illegal access are developing as EV use rises. Automotive cybersecurity solutions for electric vehicles (EVs) include a variety of methods, including as encrypted communication protocols, real-time monitoring, and intrusion detection systems. These steps are essential for protecting crucial EV components including battery management systems and autonomous driving capabilities, as well as for guaranteeing the general security and dependability of the EV ecosystem.

Region with largest share:

It is anticipated that the Asia Pacific automotive cybersecurity market will remain in the majority of the market share throughout the projected period. The number of cyber attacks has been rising steadily across APAC. However, a lack of security measures and the rising popularity of work-from-home policies have led to a rapid increase in cyber attacks. The two most prevalent kinds of cyber attacks are malware and ransom ware assaults. Still, malware and ransom ware assaults are 1.6 times more common in APAC nations than elsewhere in the world. Since 2018, ransom ware assaults have increased in frequency around the globe. 

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, with the region's advanced automotive industry and high adoption of connected vehicles, the need for robust cybersecurity solutions is crucial. The North American market focuses on developing technologies to protect vehicles from cyber threats, ensuring the safety of drivers, passengers, and sensitive data. It involves the implementation of secure communication protocols, encryption, and intrusion detection systems to mitigate potential risks. Government regulations and industry standards further drive the growth of automotive cybersecurity in North America, fostering a competitive landscape to address emerging challenges in the connected automotive ecosystem.

Key players in the market

Some of the key players in Automotive Cybersecurity market include NXP Semiconductors N.V., Robert Bosch GmbH, Honeywell International, Inc., Harman International, Denso Corporation, Guard Knox Cyber-Technologies Ltd., Continental AG, Arilou Automotive Cybersecurity, Aptiv PLC, Karamba Security, SafeRide Technologies, Broadcom Inc., Vector Informatik GmbH, Sheelds, Upstream Security Ltd Cybellum and RunSafe Security.

Key Developments:

In January 2024, Damon Motors Inc. announced collaboration with NXP® Semiconductors (“NXP”), a leader in automotive processing and renowned provider of vehicle electrical/electronic (E/E) architecture and electrification solutions. Through this collaboration, NXP's state-of-the-art technology has been integrated into Damon's electronic control units (ECU) and other electronic systems. NXP’s robust and dependable automotive system solutions have been meticulously designed to elevate performance and ensure adherence to stringent industry standards. NXP’s extensive technical expertise, reference designs, and application will help Damon accelerate development cycles and streamline electronic system designs.

In October 2023, Honeywell launched Cyber Watch, a breakthrough enterprise solution designed to help organizations better identify, mitigate and manage the latest Operational Technology (OT) cyber threats.

In February 2023, ETAS (a subsidiary of Robert Bosch GmbH) offered ESCRYPT CycurRISK, a software tool for threat analysis and risk assessment. It allows the automotive OEMs and suppliers to identify security vulnerabilities during vehicle development and reduce cyber risks systematically.

Vehicle Types Covered:
• Passenger Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Electric Vehicles

Form Types Covered:
• In-Vehicle
• External Cloud Services

Security Types Covered:
• Application Security
• Wireless Security
• Endpoint Security
• Cloud Security
• Network Security
• Other Security Types

Offerings Covered:
• Hardware
• Service
• Software

Approaches Covered:
• Intrusion Detection System
• Security Operations Centre

Vehicle Autonomies Covered:
• Non-autonomous Vehicles
• Semi-autonomous Vehicles
• Autonomous Vehicles

Applications Covered:
• Advanced Driver Assistance Systems (ADAS) & Safety
• Body Control & Comfort
• Infotainment
• Telematics
• Battery Management System (BMS) & Powertrain Systems
• Communication Systems
• Charging Management Other Applications
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances