Automotive Cyber Security Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for vehicle security is expected to grow at a rapid pace, with a current value of $3.31 billion in 2024 expected to reach $12.9 billion by 2032. This represents a CAGR of 18.51 % over the forecast period. The integration of newer and more advanced technology such as connected vehicles, driverless cars and the Internet of Things into the automobile industry is driving the demand for enhanced security solutions. The threat of cyber-attacks on vehicles is growing as they become increasingly interconnected. Consequently, comprehensive security measures are required to protect sensitive data and ensure passenger safety. The key players in the market, such as Harman, Bosch and McAfee, are investing heavily in developing new products and forming strategic alliances. It is becoming increasingly common for, for example, automobile manufacturers and security companies to work together to develop a comprehensive security framework that can respond to emerging threats. Furthermore, the rise in regulatory standards and the increased public awareness of the importance of vehicle security are expected to propel the market growth.

Regional Market Size

Regional Deep Dive

The global market for automobile cyber security is gaining momentum in different regions, driven by the rising trend of vehicle-to-everything and the rising threat of cyber-attacks. The North American market is characterized by the strong presence of leading car manufacturers and technology companies, which are heavily investing in automobile cyber security solutions to protect their own vehicles and data. Europe is characterized by stricter regulations for vehicle security. Asia-Pacific is characterized by the rapid development of advanced technology such as artificial intelligence and machine learning to enhance automobile security. Africa and the Middle East are beginning to recognize the importance of automobile cyber security, and there are several local initiatives to develop the industry. Latin America is a developing region, but as the number of electrified and connected vehicles increases, the awareness and investment in automobile cyber security are increasing.

Europe

• The European Union has implemented the General Data Protection Regulation (GDPR), which has significant implications for automotive cybersecurity, particularly concerning data privacy and protection.
• Organizations like the European Automobile Manufacturers Association (ACEA) are advocating for standardized cybersecurity measures across the automotive industry to ensure a unified approach to vehicle security.

Asia Pacific

• Countries like Japan and South Korea are leading the charge in integrating advanced cybersecurity technologies, with companies such as Toyota and Hyundai investing in AI-driven security solutions.
• The rise of electric vehicles (EVs) in China has prompted local manufacturers to prioritize cybersecurity, leading to partnerships with tech firms specializing in cybersecurity solutions.

Latin America

• Brazil is seeing increased investment in automotive cybersecurity as local regulations begin to catch up with global standards, prompting manufacturers to enhance their security protocols.
• Emerging startups in the region are focusing on developing innovative cybersecurity solutions tailored to the unique challenges faced by the automotive sector.

North America

• The National Highway Traffic Safety Administration (NHTSA) has introduced guidelines for automotive cybersecurity, pushing manufacturers to adopt robust security measures in their vehicles.
• Major automotive players like Ford and General Motors are collaborating with cybersecurity firms such as McAfee and Palo Alto Networks to enhance their vehicle security systems.

Middle East And Africa

• The UAE government has launched initiatives to promote smart mobility, which includes a focus on automotive cybersecurity as part of its broader smart city strategy.
• Local automotive manufacturers are beginning to collaborate with international cybersecurity firms to enhance their vehicle security capabilities, recognizing the growing threat landscape.

Did You Know?

“By 2025, it is estimated that over 90% of new vehicles will be connected to the internet, significantly increasing their vulnerability to cyber threats.” — IHS Markit

Segmental Market Size

Automobile cyber security is experiencing rapid growth as vehicles become more connected and more self-driving. This market plays a key role in protecting vehicle systems against cyber attacks and ensuring passenger safety and data privacy. Demand is also being driven by the growing number of cyber attacks on vehicle systems, as well as stricter regulations, such as the European Union’s General Data Protection Regulation and the U.S. National Highway Traffic Safety Administration’s guidelines on vehicle cyber security. The automobile cyber security market is currently in the implementation stage, with some companies such as Tesla and Ford already deploying advanced solutions. Applications include intrusion detection systems, secure software updates, and data encryption, which are crucial for protecting vehicle-to-everything (V2X) communications. The rise of electric vehicles and government regulations to tighten cyber security are boosting growth. Artificial intelligence and machine learning are reshaping the market by enabling real-time threat detection and response.

Future Outlook

“Automotive cyber security will be a growing market from 2024 to 2032, with a CAGR of 18.51% from $3.31 billion to $12.9 billion. The main reason for this growth is the increasing complexity of vehicle systems and the rising number of connected vehicles, which will reach 300 million by the year 2030. And the need for advanced security solutions, intrusion detection systems, encryption, and secure software development, will be on the rise as well. Artificial intelligence and machine learning will be used to enhance security in cyber security. These new tools will allow real-time detection and response to threats, thus increasing the resilience of vehicle systems to cyber attacks. And the introduction of regulatory frameworks and standards such as the ISO/SAE 21434 for road vehicles will stimulate investment in cyber security, and help create a more secure vehicle environment. Awareness of cyber risks will increase, which will drive the demand for secure vehicles, and drive innovation in the industry.