The global automotive cybersecurity market size was around USD 6.1 billion in 2021 and is anticipated to reach USD 28.6 billion by 2030, expanding at a CAGR of around 18.5% during the forecast period, 2022 to 2030. The growth of the market is attributed to the increasing awareness regarding automotive cybersecurity solutions among original equipment manufacturers (OEMs) across the globe.
Connected vehicles are a progressive step or an advance of Internet of Things (IoT). A connected vehicle is referred to a vehicle that is capable of connecting to nearby vehicles or devices over wireless network. The connected vehicle technologies facilitate connections and sharing information between entertainment applications, smartphones of drivers, other vehicles, city intersections, and others. These connected vehicles are embedded with chipsets and antennas that help with the connection. Connected vehicles can send and receive data, download software updates, connect to other devices, and provide wireless internet to drivers and passengers in cars. The connected vehicle technologies allow users to remotely operate their cars such as locking or unlocking doors, opening or closing doors, controlling temperature inside cars, starting and stopping engines, and others. This technology provides users with several security features such as Geo-Fencing, locations sharing, emergency SOS calls, and others. Users can use this technology for connecting entertainment applications and remote parking as well. The connected vehicle technologies help in tracking vehicles, reduce chances of accidents, navigate, and provide remote access to various car functions. However, with the increasing integration of connected vehicle technologies have increased the risks of cyber threats in recent years. Rising risks of data theft, taking control of vehicles, and other automotive cyber security threats have increased the demand for automotive security systems in the automobile industry.
Automotive cyber security refers to a system or systems used to protect automobiles from unauthorized access, harmful attacks, cyber threats, and other damages. Hardware and software are used in vehicles to protect them from hackers. Implementing cyber security ensures that hackers cannot steal any sensitive data such as GPS locations, cannot manipulate or control the vehicle, or cause any damage to the vehicle. Automotive cyber security provides access control & authentication, protect from any external attacks, and detect & report incidents.
COVID-19 Impact
The outbreak of COVID-19 affected the global automotive cybersecurity negatively. The lockdown, social distancing policies, travel bans, and other pandemic-related restrictions resulted in decrease in demand for luxury or technologically advanced vehicles. The decreased demand for automobiles, halt in production, shut down of several manufacturing units, and disruption of the supply chain negatively impacted the transportation and automotive sector. This in result affected the global automotive cybersecurity market adversely. However, the automotive cybersecurity market is expected to grow in the post-pandemic period, due to slack in the pandemic-related restrictions, increasing research & development activities, and growing demand for technologically advanced connected vehicles across the globe.
Market Dynamics
The global automotive cybersecurity market research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global automotive cybersecurity market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.
Major Trends:
High adoption of electric vehicles is one of the key market trends
Rising awareness regarding negative effects of carbon emissions on the environment propels the demand for electric vehicles across the globe. Wide adoption of electric vehicles increases demand for wireless battery management systems that helps in increasing the battery life and reduces volume in battery packs. Wireless battery management systems help maintaining mandatory security protocols for electric vehicles. High demand for electric vehicles helps boosting the global automotive cybersecurity market.
Key Drivers:
Increasing number of connected vehicles drive the global automotive cybersecurity market
High adoption of various applications such as infotainment, powertrain electronics, communication systems, and others in connected vehicles make these vehicles prone to cyberattacks. Several original equipment manufacturers (OEMs) are integrating automotive cybersecurity solutions to counter cyberattacks. Connected cars need consistent implementation of security codes and software to minimize the chances of security lags. The growing demand and adoption of connected vehicles is expected to fuel the global automotive cybersecurity market in the coming years.
Growing cases of cyberattacks boosts the global automotive cybersecurity market
Increasing sales of connected vehicles have resulted in growing incidences of cyber security threats across the automotive industry globally. Several OEMs are integrating automotive cyber security solutions including hardware and software to protect the sensitive data.
Existing Challenges:
High installation costs hamper the global automotive cybersecurity market growth
Installing technologically advanced cybersecurity systems in vehicles is expensive. These systems work with new car models and do not work with the old ones. Adoption of cybersecurity systems results in increase in the costs of vehicles, which restrains the growth of the automotive cybersecurity market.
Emerging Opportunities:
Growing adoption of technological advancements offer growth opportunities
Rising living standard, increasing disposable income, and growing awareness regarding automotive security results in increasing demand for innovative and advanced automotive security solutions among consumers across the globe. High demand for technologically advanced security features such as navigation, voice recognition, infotainment applications, and others that offer enhanced driver experience offer lucrative opportunities to the market players.
Scope of the Report
The global automotive cybersecurity market research report includes an assessment of the market trends, market segments, and regional markets. Market overview, industry trends, and market dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Automotive Cybersecurity Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2022–2030
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Segmentation
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Type (Network Security, Application Security, Endpoint Security, and Others), Form (External Cloud Services and In-vehicle), Component (Hardware, Software, and Service), Vehicle Type (Passenger Vehicle, Commercial Vehicle, and Electric Vehicle), and Application (Infotainment Systems, Body Control Systems, Powertrain Systems, Telematics, ADAS & Safety Systems, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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HARMAN International; Continental AG; Aptiv; Robert Bosch GmbH; DENSO CORPORATION; ARILOU Automotive Cybersecurity (NNG Group); SafeRide; Karamba Security; GUARDKNOX; Upstream Security Ltd.; Green Hills Software; Elektrobit; ETAS; Vector Informatik GmbH; Argus Cyber Security Ltd.; BT; Intel Corporation; Cisco Systems, Inc.; NNG Software Developing and Commercial Llc.; NXP Semiconductors; SBD Automotive Ltd.; Infineon Technologies AG; Lear Corp.; Honeywell International Inc.; Capgemini; secunet Security Networks AG; Sectigo Limited; Microchip Technology Inc.; Synopsys, Inc.; Trend Micro Incorporated; Nissan Motor Co., Ltd. (Nissan Motor Corporation); Hyundai Motor Company; Honda Motor Co., Ltd. (Honda Motor Company); Ford Motor Company; and Others
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Market Segment Insights
Application security segment expands rapidly
Based on types, the global automotive cybersecurity market is divided into network security, application security, endpoint security, and others. The application security segment is projected to hold a large share in the market revenue during the forecast period, owing to increasing sales of luxury and mid-sized connected cars across the globe. Growing number of connected cars results in increasing number of cyber threats. This is a major factor driving the application security segment in the coming years.
The network security segment is anticipated to expand at a rapid pace in during the forecast period, owing to increasing adoption of wireless technologies in vehicles by automotive manufacturers. Wide adoption of wireless technologies in vehicles leads to growing safety concerns such as illegal remote access to vehicles, which helps in spurring the network security segment growth.
In-vehicle segment holds a large market share
In terms of form, the global automotive cybersecurity market is bifurcated into external cloud services and in-vehicle. The in-vehicle segment is estimated to witness a significant CAGR during the forecast period, owing to increasing demand for luxury, connected, and secure vehicles across the globe. Several automotive manufacturers are developing with vehicles with integrated cybersecurity systems. Increasing demand for integrated security systems such as advanced driver-assistance system, infotainment system, and other connected systems to get overall security against hackers spurs the in-vehicle segment growth.
Hardware segment to expand rapidly
According to component, the global automotive cybersecurity market is segregated into hardware, software, and service. The hardware segment is expected to expand at a high CAGR during the forecast period, owing to growing utilization of innovative and technologically advanced devices and equipment in connected cars. Increasing adoption of encrypted USB flash drives, intrusion prevention system, and other devices propels the hardware segment growth.
Passenger vehicle segment holds a key market share
On the basis of vehicle type, the global automotive cybersecurity market is divided into passenger vehicle, commercial vehicle, and electric vehicle. The passenger vehicle segment is projected witness a rapid growth during the forecast period, increasing sales of luxury and medium-sizes passenger cars across the globe. Rising living standards propel the sales of mid-sized and luxury vehicles as well. Passenger cars are equipped with a greater number of electronic control units than commercial vehicles. These units make passenger cars more prone to cyberattacks than other types of vehicles. Growing concerns regarding safety, traffic, and pollution levels drives the demand for connected vehicle services and cybersecurity in vehicles. Rising adoption of security features in passenger vehicles boosts the passenger vehicle segment growth.
The electric vehicle segment is anticipated to register a huge expansion in the coming years, due to increasing awareness regarding effects of carbon emission on the environment across the globe. Growing government supporting policing and reduced cost of battery-operated vehicles further boost the growth of the electrical vehicle segment.
Infotainment segment holds high market revenue share
Based on application, the global automotive cybersecurity market is segregated into infotainment systems, body control systems, powertrain systems, telematics, ADAS & safety systems, and others. The infotainment segment is expected to hold a significant market share during the forecast period, due to increasing usage of smartphones and smartphones applications that are connected to vehicles across the globe. Various infotainment applications such as Android Auto, Apple CarPlay, and others support many features such as navigation, media player, and others. Increasing demand for such infotainment applications in passenger vehicles drives the growth of the infotainment segment.
The telematics segment is anticipated to expand in the coming years, owing to growing integration of telematics solutions in commercial vehicles globally. Wide adoption of telematics in commercial vehicles fleet help the fleet owners to improve vehicle efficiency and productivity. Increasing demand for data analytics and cost-effectiveness in repair and maintenance of commercial vehicles boost the telematics segment growth.
Asia Pacific to dominate the global automotive cybersecurity market
In terms of region, the global automotive cybersecurity market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The automotive cybersecurity market in Asia Pacific held a large share in 2021 and it is expected to register a high CAGR during the forecast period. Increasing disposable income, rising sales of medium sized & luxury cars, and growing awareness of various car safety features in countries such as India, Japan, and China are estimated to boost the automotive cybersecurity market in Asia Pacific. India and China are considered as a hub for passenger vehicles production. High demand for electric vehicles, increasing production of vehicles, and rising penetration of connected cars & other advanced technologies in Asia Pacific fuels the automotive cybersecurity market in the region.
The automotive cybersecurity market in North America is anticipated to expand rapidly in the coming years, owing to the increasing demand for connected vehicles in the region. Supportive government policies, presence of leading market players, and emergence of various automotive & cybersecurity firms in the region boosts the market growth in North America. Various cross-industry collaborations between mobile network operators and automotive original equipment manufacturers in North America propels the market further in the region.
Segments
The global automotive cybersecurity market has been segmented on the basis of
Type
- Network Security
- Application Security
- Endpoint Security
- Others
Form
- External Cloud Services
- In-vehicle
Component
- Hardware
- Software
- Service
Vehicle Type
- Passenger Vehicle
- Commercial Vehicle
- Electric Vehicle
Application
- Infotainment Systems
- Body Control Systems
- Powertrain Systems
- Telematics
- ADAS & Safety Systems
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- HARMAN International
- Continental AG
- Aptiv
- Robert Bosch GmbH
- DENSO CORPORATION
- ARILOU Automotive Cybersecurity (NNG Group)
- SafeRide
- Karamba Security
- GUARDKNOX
- Upstream Security Ltd.
- Green Hills Software
- Elektrobit
- ETAS
- Vector Informatik GmbH
- Argus Cyber Security Ltd.
- BT
- Intel Corporation
- Cisco Systems, Inc.
- NNG Software Developing and Commercial Llc.
- NXP Semiconductors
- SBD Automotive Ltd.
- Infineon Technologies AG
- Lear Corp.
- Honeywell International Inc.
- Capgemini
- secunet Security Networks AG
- Sectigo Limited
- Microchip Technology Inc.
- Synopsys, Inc.
- Trend Micro Incorporated
- Nissan Motor Co., Ltd. (Nissan Motor Corporation)
- Hyundai Motor Company
- Honda Motor Co., Ltd. (Honda Motor Company)
- Ford Motor Company
- Others
Competitive Landscape
Key market players competing in the global automotive cybersecurity market are HARMAN International; Continental AG; Aptiv; Robert Bosch GmbH; DENSO CORPORATION; ARILOU Automotive Cybersecurity (NNG Group); SafeRide; Karamba Security; GUARDKNOX; Upstream Security Ltd.; Green Hills Software; Elektrobit; ETAS; Vector Informatik GmbH; Argus Cyber Security Ltd.; BT; Intel Corporation; Cisco Systems, Inc.; NNG Software Developing and Commercial Llc.; NXP Semiconductors; SBD Automotive Ltd.; Infineon Technologies AG; Lear Corp.; Honeywell International Inc.; Capgemini; secunet Security Networks AG; Sectigo Limited; Microchip Technology Inc.; Synopsys, Inc.; Trend Micro Incorporated; Nissan Motor Co., Ltd. (Nissan Motor Corporation); Hyundai Motor Company; Honda Motor Co., Ltd. (Honda Motor Company); Ford Motor Company; and others. Some of these major companies have adopted various business development strategies including acquisitions, mergers, collaborations, partnerships, product launches, and production capacity expansion to expand their consumer base and enhance their market share.
- In November 2021, NXP Semiconductors, a US and Netherland-based designer and manufacturer of semiconductors, collaborated with Ford Motor Company to offer advanced connected car experiences and other expanded services to consumers. The advanced services are incorporated into global vehicle fleet of Ford Motor Company including 2021 Ford F-150 pickup, Bronco SUVs, and Mustang Mach-E. These vehicles integrate vehicle networking processors such as i.MX 8 by NXP Semiconductors to upgrade the vehicle experience for consumers.
- In November 2021, Green Hills Software, GUARDKNOX, and NXP Semiconductors partnered to develop innovative and secure automotive platform, which targets the next generation of vehicle architecture to produce service oriented vehicles. The platform facilitates manufacturers and suppliers to overcome technological challenges such as hardware and software integration.
- In May 2021, HARMAN International, a US-based audio electronics company, launched an innovative end-to-end 5G Testing Lab for 5G CP devices. The launch helps device manufacturers and chipmakers to execute functional tests, validating applications, and other protocols in a 5G radio environment.
- In January 2020, Continental AG, a Germany-based multinational manufacturer of automotive parts, launched an innovative online platform to standardize and automate developments and integration of new software into a vehicle.
- In January 2020, Aptiv, a US and Ireland-based supplier of automotive technology, launched Smart Vehicle Architecture at the Consumer Electronics Show in 2020. The new launch helps in integrating innovative software to automate vehicles, reduce complexities, offer new functionalities, and enhance lifecycle management.
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