Automotive Cyber Security Market

Increasing need for Cybersecurity in vehicles to boost market growth

The automotive industry is witnessing rise in demand for advanced vehicle Cybersecurity in previous few years as Cybersecurity vulnerabilities related to vehicles are recurrent and safety and advanced driver assistance systems (ADAS) of vehicles can be compromised. The hackers can manipulate any autonomous and self-operating function that can directly cause a crash, the hackers can also access vehicle occupant’s private information like present location, earlier GPS destinations, and smartphone contacts. Cybersecurity in automotive vehicles should be extensive, wide-ranging, and protecting both front-end and back-end of the vehicle systems and all the infrastructure on which the connected cars are totally dependent.

The automotive Cybersecurity market is rising speedily due to an upsurge in number of cyber-attacks on vehicles, as the use of electronics in the vehicles has increased. The In-vehicle applications and technologies are getting extra complicated due to increased quantity of ECUs in the vehicle. The advancement of vehicle connectivity has made the vehicles more inclined to cyber-attacks. Electronic components in vehicles are used for numerous applications like ADAS systems, telematics, communication, powertrain & body electronics and infotainment which has made the vehicles more exposed to cyberattacks.

To avoid these cyberattacks stakeholders have started implementing and investing in automotive Cybersecurity systems to make the electronic platforms of the vehicles more robust and safer from attacks.

Thus, it is anticipated that this aspect will accelerate automotive Cybersecurity market revenue globally. Integration of safety features in vehicles like, emergency braking, stability control, rear-view mirror, lane departure warning system has been made compulsory by the country specific governments. The growing demand for connected luxury vehicles has given rise to the development of automotive Cybersecurity market revenue which is driving the market CAGR.

The surge in cyber threats targeting the automotive sector is a significant driver of the Global Automotive Cybersecurity Market Industry. As vehicles become more technologically advanced, they also become attractive targets for cybercriminals. Reports indicate that cyberattacks on automotive systems have increased, with incidents involving unauthorized access to vehicle controls and data breaches. This alarming trend compels manufacturers to prioritize cybersecurity investments. The market is projected to grow substantially, reaching 21.5 USD Billion by 2035, as companies seek to fortify their defenses against evolving cyber threats. The urgency to protect vehicles from potential attacks is a driving force behind the industry's expansion.

The rise in vehicle connectivity is a primary driver of the Global Automotive Cybersecurity Market Industry. As vehicles become more integrated with the Internet of Things, the potential for cyber threats escalates. In 2024, the market is valued at 3.31 USD Billion, reflecting the urgent need for robust cybersecurity measures. Connected vehicles, equipped with advanced technologies such as V2X communication, are susceptible to various cyberattacks. This connectivity trend necessitates the implementation of comprehensive cybersecurity frameworks to protect sensitive data and ensure the safety of passengers. The increasing reliance on software and connectivity in vehicles underscores the critical importance of cybersecurity in the automotive sector.

Regulatory compliance is increasingly shaping the Global Automotive Cybersecurity Market Industry. Governments worldwide are establishing stringent regulations to safeguard against cyber threats in the automotive sector. For instance, the European Union has introduced the General Safety Regulation, which mandates cybersecurity measures for connected vehicles. Compliance with these regulations is essential for manufacturers to avoid penalties and ensure consumer trust. As the regulatory landscape evolves, automotive companies must invest in cybersecurity solutions to meet these standards. This proactive approach not only mitigates risks but also enhances the overall security posture of the automotive ecosystem, thereby driving market growth.

The integration of advanced technologies such as artificial intelligence and machine learning is propelling the Global Automotive Cybersecurity Market Industry. These technologies enable automotive manufacturers to develop sophisticated cybersecurity solutions capable of detecting and mitigating threats in real-time. AI-driven systems can analyze vast amounts of data to identify anomalies and potential vulnerabilities, enhancing the overall security framework of connected vehicles. As the industry embraces these innovations, the demand for robust cybersecurity solutions is expected to rise significantly. This trend aligns with the projected market growth, indicating a strong correlation between technological advancements and the need for enhanced cybersecurity measures.

Consumer awareness regarding cybersecurity in vehicles is driving the Global Automotive Cybersecurity Market Industry. As individuals become more informed about the risks associated with connected vehicles, their demand for enhanced security features increases. Consumers are now prioritizing safety and security when purchasing vehicles, prompting manufacturers to integrate advanced cybersecurity measures. This shift in consumer behavior is reflected in the growing market, which is expected to experience a CAGR of 18.53% from 2025 to 2035. The emphasis on security not only influences purchasing decisions but also shapes the development of innovative cybersecurity solutions within the automotive industry.

By Region, the study segments the market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The North America Automotive Cybersecurity Market accounted for USD 520 million in 2021 and is expected to exhibit a 23.84% CAGR during the study period. This is attributed to the growing demand for automated driving assistance features in vehicles across the region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Cybersecurity Market Share by Region 2024 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The Asia-Pacific automotive Cybersecurity market is the second- largest market share and is expected to grow at a CAGR of 20.50% from 2024 to 2030. This is due to the rapidly growing demand for automotive vehicles, and advanced connectivity features in vehicles. Moreover, China  market held the largest market share, and the India market was the fastest growing market in the Asia-Pacific region. The growth of market in Asia-Pacific can be attributed to the rising demand for connected features in passenger cars, especially in China, South Korea, India, and Japan.

Europe  market accounts for the third-largest market share due to the consumers demand for comfort driving, automated features and safety of driver and the passengers. Further, the Germany  Market held the largest market share, and the UK  market was the fastest growing market in the European region. The market growth in Europe is due to rising concerns of cyber-attacks on vehicles and the presence of major tier -1 suppliers in the region.

The Middle East & Africa  market is rapidly growing due upsurge in demand for luxury vehicles and the adoption of electronic functions in modern vehicles. Also, The South America  market has seen significant progress due to growth in the automotive industry, and rising demand for advanced safety and comfort features amongst the population.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the automotive Cybersecurity market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Cybersecurity industry must offer technologically advanced and cost-effective solutions to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global Cybersecurity industry to benefit clients and expand the automotive Cybersecurity market sector is to manufacture locally to reduce the operating costs. In recent years, the advancement in Cybersecurity systems industry has provided the automotive industry with some of the most significant benefits.

The automotive Cybersecurity market major player such as Intel Corporation, Escrypt Embedded Systems, Secunet AG, Cisco Systems Inc., Harman International Industries Inc., NNG Software Developing and Commercial LLC.

Harman International (Harman) is an American audio electronics company, involved in designing and engineering of connected products and solutions for automobile manufacturers worldwide. It is a subsidiary of Samsung Electronics since 2017. The company manufactures connected car systems, audio and visual products, and automation solutions. In September 2022, Harman International has announced HARMAN Ready Care, set of solutions for cognitive distraction, stress-free routing, and personalized comfort to improve safety and reduce driver stress.