Automotive Cybersecurity Market Analysis and Global Forecast 2023-2033

Automotive Cybersecurity Market Overview

The Automotive Cybersecurity Market Size is expected to reach USD 6.84 Billion by 2033. The Automotive Cybersecurity Market industry size accounted for USD 2.51 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 18.24% from 2023 to 2033. The Automotive Cybersecurity Market refers to the segment of the automotive industry that focuses on the protection of automotive electronic systems, communication networks, and software applications from cyber threats. This market encompasses various technologies, solutions, and services aimed at ensuring the security, integrity, and reliability of vehicles’ digital and electronic components.

The market is driven by the increasing integration of advanced technologies in vehicles, such as autonomous driving, connected car features, and the Internet of Things (IoT). As vehicles become more connected and reliant on software, the need for robust cybersecurity measures to protect against potential threats and vulnerabilities has grown significantly.

Global Automotive Cybersecurity Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic had a significant impact on the Automotive Cybersecurity Market. The automotive industry faced significant disruptions in global supply chains due to lockdowns and restrictions. This affected the production and delivery of vehicles and automotive components, including cybersecurity solutions. The delays and shortages impacted the implementation of new cybersecurity measures in vehicles. The pandemic altered consumer behaviour and preferences, with a noticeable shift towards personal vehicle ownership over shared mobility solutions. This increased the demand for connected and autonomous vehicles, which in turn heightened the need for robust cybersecurity solutions to protect these advanced systems. The rise in remote work and the increased use of digital platforms led to a surge in cyber threats and attacks. The automotive sector, with its growing reliance on connected technologies, became a target for cybercriminals. This heightened the awareness and urgency for enhanced automotive cybersecurity measures. While the pandemic posed challenges, it also created opportunities for growth in the automotive cybersecurity market. The increasing adoption of electric vehicles (EVs), autonomous driving technologies, and connected car features provided a fertile ground for the development and deployment of advanced cybersecurity solutions.

Automotive Cybersecurity Market Dynamics

The major factors that have impacted the growth of Automotive Cybersecurity Market are as follows:

Drivers:

Ø  Technological Advancements

Advances in artificial intelligence (AI), machine learning (ML), and blockchain technologies are being leveraged to develop innovative cybersecurity solutions. These technologies enhance the ability to detect, prevent, and respond to cyber threats in real-time. The automotive sector is becoming an attractive target for cybercriminals due to the increasing reliance on digital technologies. The rise in cyber threats, including hacking, data breaches, and ransomware attacks, is driving the demand for effective cybersecurity solutions. Automotive companies are investing heavily in research and development to create advanced cybersecurity technologies. This investment is driven by the need to stay ahead of cyber threats and ensure the security of next-generation vehicles.

Restraint:

• Perception of High Implementation Costs and Integration Challenges

Developing and integrating advanced cybersecurity solutions into vehicles can be expensive. The high costs associated with hardware, software, and ongoing maintenance can be a significant barrier for automakers, especially smaller companies with limited budgets. Integrating cybersecurity solutions into existing vehicle platforms and architectures can be challenging. Ensuring compatibility and seamless integration without disrupting vehicle operations is a significant hurdle for automakers.

Opportunity:

⮚     Growth of Connected and Autonomous Vehicles

The rapid development and adoption of connected and autonomous vehicles offer substantial opportunities for cybersecurity solutions. Protecting the sophisticated systems and communication networks in these vehicles is critical, driving demand for advanced cybersecurity technologies. As vehicles become more equipped with advanced infotainment systems, securing these systems against cyber threats becomes crucial. Companies can develop specialized cybersecurity solutions for protecting infotainment and telematics systems. The increasing complexity of in-vehicle networks (e.g., CAN, LIN, Ethernet) creates opportunities for advanced network security solutions. Protecting these networks from internal and external threats is essential for vehicle safety and functionality.

Automotive Cybersecurity Market Segment Overview

By Offering

Based on Offering, the market is segmented based on Software and Hardware. The software segment dominant the market, led by the rising integration of ADAS in vehicles. ADAS elements are being included by automakers to improve safety and give customers access to cutting-edge driver assistance resources by giving drivers real-time notifications and support

By Electric Vehicle Application Type

Based on Electric Vehicle Application Type, the market segment has been divided into ADAS & safety, Body control & comfort, BMS & powertrain systems, Communication systems, Charging management and Others. The ADAS & safety segment dominant the market. ADAS and safety systems rely on a network of sensors, cameras, radar, and software, creating multiple points of vulnerability. These systems require real-time data processing, making them susceptible to latency issues and cyber attacks that could delay critical safety functions. ADAS systems collect and process a significant amount of data, raising concerns about data security and privacy.

By Form Type

Based on Form Type, the market segment has been divided into In-vehicle and External cloud services. The in-vehicle segment dominant the market. In-vehicle-connected services are technologies that allow links between internal systems and those present in remote or external systems. Due to its mobile connectivity, the device with the most connections in a modern automobile. Car OEMs had to adjust to changing consumer demands and expectations, which resulted in the development of ever-more-advanced technologies.

By Application

Based on Application, the market segment has been divided into Powertrain systems, ADAS & safety, Infotainment, Body control & comfort and Others. The infotainment segment dominant the market. There are several factors contributing to its dominance due to modern vehicles increasingly integrate advanced infotainment systems that provide a wide range of functionalities, including entertainment, navigation, communication, and connectivity. These systems often rely on complex software and communication protocols, making them susceptible to cyber threats. As a result, automakers and consumers alike are prioritizing cybersecurity measures for infotainment systems to safeguard sensitive personal and vehicle data.

Global Automotive Cybersecurity Market Regional Analysis

Based on region, the global Automotive Cybersecurity Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Automotive Cybersecurity Market followed by the Asia-Pacific and Europe regions.

Automotive Cybersecurity North America Market

North America holds a dominant position in the Automotive Cybersecurity Market. North America region managing the high costs associated with advanced cybersecurity solutions and addressing the complexity of integrated systems. The presence of technology giants and automotive manufacturers in the US and Canada supports the development of cutting-edge cybersecurity solutions. The region has a high penetration of connected cars and is at the forefront of autonomous vehicle development. The fast pace of technological advancements requires constant updates to cybersecurity measures.

Automotive Cybersecurity Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Automotive Cybersecurity Market industry. It’s driven by increasing vehicle production and rising disposable incomes. Increasing investment in smart city projects incorporating connected vehicles. China is the largest market, with a focus on connected cars and electric vehicles and Japan is known for its technological advancements and cybersecurity expertise.

Competitive Landscape

The global Automotive Cybersecurity Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Robert Bosch
• Harman International
• Denso Corporation
• Aptiv
• Karamba Security
• SafeRide Technologies
• Arilou Technologies
• GuardKnox
• Vector Informatik
• Continental AG

Key Development

In December 2023: LG and Cybellum collaborated and introduced cybersecurity management systems for auto manufacturers. The solution is capable of monitoring and maintaining vehicle cybersecurity. This cybersecurity platform enables cyber guarantee and quick response to the attacks for original equipment manufacturers which ensures overall cyber safety of the vehicle.

In October 2023: TTTECH and Mobileye collaborated in a strategic partnership to secure a higher level of autonomy in autonomous vehicle technology. TTTech’s software knowledge and Mobileye’s vision architecture are the springboard for driving cars in the future. The final objective is to design systems that not only assure higher safety standards but also have more dependable functionality in the future.

Scope of the Report

Global Automotive Cybersecurity Market, by Offering

• Software
• Hardware

Global Automotive Cybersecurity Market, by Electric Vehicle Application Type

• ADAS & safety
• Body control & comfort
• BMS & powertrain systems
• Communication systems
• Charging management
• Others

Global Automotive Cybersecurity Market, by Form Type

• In-vehicle
• External cloud services

Global Automotive Cybersecurity Market, by Application

• Powertrain systems
• ADAS & safety
• Infotainment
• Body control & comfort
• Others

Global Automotive Cybersecurity Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: USD 6.84 Billion
CAGR (2023-2033)	18.24%
Base year	2022
Forecast Period	2023-2033
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Offering, Electric Vehicle Application Type, Form Type, Application
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa
Key Vendors	Robert Bosch, Harman International, Denso Corporation, Aptiv, Karamba Security, SafeRide Technologies, Arilou Technologies, GuardKnox, Vector Informatik and Continental AG.
Key Market Opportunities	·       Growth of Connected and Autonomous Vehicles ·       Cybersecurity for Infotainment Systems
Key Market Drivers	·       Technological Advancements ·       Rise in Cyber Threats

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Automotive Cybersecurity Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Automotive Cybersecurity Market historical market size for the year 2021, and forecast from 2023 to 2033
• Automotive Cybersecurity Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Automotive Cybersecurity Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.