Automotive Cyber Security Market Analysis

Automotive Cyber Security Market Overview:

Automotive Cyber Security Market Size was valued at USD 2.79 billion in 2023. The Automotive Cyber Security Market industry is projected to grow from USD 3.31 billion in 2024 to USD 12.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.51% during the forecast period (2024- 2032). Cloud security denoting a broad set of policies, technologies and controls deployment are the market drivers that are driving the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Cyber Security Market Trends

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  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 cyber security 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 cyber security 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 cyber security 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.

Automotive Cyber Security Market Segment Insights:

Cyber Security Type Insights

The automotive cyber security market segmentation, based on security type, includes Network Security, Endpoint Security, Application Security, Wireless Security and Cloud Security. Network security focuses on tools used to protect applications, data, and resources at the network level with a primary focus on protecting against unauthorized access in between parts of the complete network structure. Cloud security comprises the protections associated to data encryption, multifactor authentication, server, application, database monitoring, scanning and analytics tools. Endpoint security safeguards the endpoints or entry points of end-user devices such as desktops, laptops, and mobile devices from being exploited by malicious performers and movements. Application security is the method of developing and testing security features within the applications to avoid security vulnerabilities against threats like unauthorized access and modification. Wireless network security mostly protects a wireless network from unauthorized and malicious access efforts. Wireless network security segment held the majority share in 2021 in the Automotive Cyber Security Market and is expected to grow at a higher rate in the forecast period.

January 2023: The International Centre for Automotive Technology (ICAT), a certification agency of vehicle safety and compliance, is planning to invest in a centre that will develop the expertise for cybersecurity of the vehicles.

Cyber Security Vehicle Type Insights

The Automotive Cyber Security Market data has been bifurcated by vehicle type into passenger vehicles and commercial vehicles. Passenger vehicles like hatch back, sedan and SUVs are leading the global cyber security market. The passenger vehicles segment dominated the market growth in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. The automotive cyber security market is increasing positively due to increasing demand for comfort, safety, and convenience features in the vehicle. The usage of cyber security in light & heavy commercial vehicles has also increased due to autonomous driving features and increased use of electronic components. The passenger vehicle cyber security market is expected to reach USD 5.48 billion, and the commercial vehicle cyber security market segment is expected to reach USD 3.46 billion by 2030.

July 2021: ETAS Korea, has partnered with Suresoft Tech Co. Ltd. (South Korea) to provide consulting services to Korean automotive manufacturers and distributers related to cybersecurity testing of in-vehicle systems.

Figure 1: Cyber Security Market, by Vehicle Type, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cyber Security Application Insights

The automotive cyber security market segmentation, based on application, includes Telematics, On Board Diagnostic (OBD), Infotainment, Communication Channels, Powertrain, Safety Systems, and others. The usage of electronics in automotive vehicles has increased at a rapid pace which has helped in overall weight reduction of the vehicle. Increase in usage of electronics has made the automotive vehicle more prone to cyber-attacks which in turn has given growth in adoption of cyber security solutions in vehicles. The demand for cyber security in connected vehicles is there by enhancing the automotive cyber security market.

Cyber Security Regional Insights

By Region, the study segments the market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The North America automotive cyber security 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 Cyber Security Market Share By Region 2024 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Asia-Pacific automotive cyber security 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 automotive cyber security market held the largest market share, and the India automotive cyber security 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 automotive cyber security 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 automotive cyber security market held the largest market share, and the UK automotive cyber security 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 automotive cyber security market is rapidly growing due upsurge in demand for luxury vehicles and the adoption of electronic functions in modern vehicles. Also, The South America automotive cyber security market has seen significant progress due to growth in the automotive industry, and rising demand for advanced safety and comfort features amongst the population.

Cyber Security Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the automotive cyber security 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 cyber security 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 cyber security industry to benefit clients and expand the automotive cyber security market sector is to manufacture locally to reduce the operating costs. In recent years, the advancement in cyber security systems industry has provided the automotive industry with some of the most significant benefits.

The automotive cyber security 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.

List of the Key Companies in the Automotive Cyber Security Market include

• Intel Corporation (U.S.)


• Escrypt Embedded Systems (Germany)


• Secunet AG (Germany)


• Cisco Systems Inc. (U.S.)


• Harman International Industries Inc. (U.S.)


• NNG Software Developing and Commercial LLC. (Hungary)


• Argus Cyber Security (Israel)


• Intel Corporation (U.S.)


• NXP Semiconductors N.V. (Netherlands)


• Karamba Security (Israel)

Cyber Security Industry Developments

November 2021: NXP Semiconductors, has collaborated with Ford Motor Company to deliver enhanced driver convenience, and experience. Services like over-the-air updates will be delivered for vehicle models like Mustang Mach-E and Ford F-150 pickup.

March 2022: Siemens Canada has expanded its footprint in New Brunswick and extended its cybersecurity services with the launch of the Critical Infrastructure Defense Center (CIDC). The center is the first facility in the Siemens area to specialize in Critical Infrastructure Protection (CIP) with a focus on Operational Technology (OT).

Automotive Cyber Security Market Segmentation:

Cyber Security Type Outlook (USD Billion, 2018-2030)

• Network Security


• Endpoint Security


• Application Security


• Wireless Security


• Cloud Security

Cyber Security Vehicle Type Outlook (USD Billion, 2018-2030)

• Passenger Vehicle


• Commercial Vehicle

Cyber Security Application Outlook (USD Billion, 2018-2030)

• Telematics


• On Board Diagnostic (OBD)


• Infotainment


• Communication Channels


• Powertrain


• Safety Systems


• Others

Cyber Security Regional Outlook (USD Billion, 2018-2030)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • South Africa
  
  
  
  


• South America
  
  
  
  • Brazil