The global automotive cybersecurity market size, valued at nearly US$2 Bn in 2022, is set to witness robust growth in the coming years. The upsurge of connected, autonomous, shared, and electric vehicles is revolutionizing the automotive industry and driving the growth of the automotive cybersecurity market worldwide.
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Market Analysis in Brief
After a decade of steady growth, the automotive industry experienced a slowdown over the past couple of years due to cyclical demand fluctuations and the rise of shared mobility business models. Additionally, the expected transition to comply with new emission norms and vehicle electrification contributed to this slowdown. Despite this, the industry maintained a growth rate between 3% and 4% from 2013 to 2017. The future of mobility, driven by connected, autonomous, shared, and electric vehicles, will be the primary force propelling the automotive cybersecurity market.
Key Report Findings
1. Shooting EV Sales: The increasing sales of electric vehicles (EVs) will significantly boost the automotive cybersecurity market.
2. Connected Technology Gains: The market benefits as connected technology becomes more prevalent worldwide.
3. ADAS Growth: The growing prominence of Advanced Driver Assistance Systems (ADAS) will enhance automotive cybersecurity market revenue.
4. North America Leads: North America dominates the global automotive cybersecurity space.
5. Leading Players: Continental, Harman, Karamba Security, Vector, NXP, and Cisco Systems, Inc. are the top industry players.
The Rise of Connected Vehicle Technology
Connected vehicles are expected to dominate mobility innovations in the long term, emphasizing the critical importance of vehicle vulnerability and security. The growing threat of malicious cyber-attacks on advanced technology automobiles and accessories drives the demand for automotive cybersecurity. The global automotive cybersecurity market will progress impressively in the long-term future.
Massive Investments by Automakers in Security
Automakers are investing in securing vulnerable technologies by integrating cybersecure software and hardware. However, the advent and commercialization of
autonomous vehicles are likely to be prone to cyber-attacks, thereby increasing the need for cybersecurity. The growing demand for connected vehicles that meet safety, comfort, and security needs also brings an increased threat of cyber-attacks, which will be a key driver of the automotive cybersecurity market.
New Technological Advancements
Leading automakers such as Daimler AG and Uber are collaborating on self-driving vehicle technology. Investments by top technology innovators such as Tesla Motors are expected to rise, delivering a seamless driving experience. Self-driven vehicles will mark a significant milestone for the industry. These technological advancements are predicted to establish cybersecurity policies for all industry operators, paving the way for the growth of the automotive cybersecurity market.
Supportive Governments and Industry Authorities
The SPY Car Act of 2015 established cybersecurity standards to protect vehicle owners from security and privacy threats. Such government and allied authority initiatives will play an important role in driving demand for automotive cybersecurity measures. Additionally, rising government interest in developing smart cities and intelligent transport systems (ITS) will further supplement the demand for connected vehicles, thereby increasing the need for automotive cybersecurity.
The Japanese Automobile Manufacturers Association (JAMA) launched a cybersecurity group under the Electronic Information Exchange Committee, involving WP.29, to collaborate with stakeholders on cybersecurity. Japanese automakers with a market share in the US joined the US Automotive Information Sharing and Analysis Center (Auto-ISAC) to share insights related to various cyber-attacks with their US counterparts. Similarly, South Korea followed UNECE WP.29 regulations.
Growth Opportunities
Post-Pandemic Opportunities
The global COVID-19 pandemic imposed demand-supply constraints and sustainability issues for automotive industry participants. As the situation subsides and the industry recovers, new opportunities are likely to emerge in the automotive cybersecurity market. Innovation strategies and new partnerships will provide a much-needed boost to the system. The growing preference for private vehicles is predicted to be a key factor influencing vehicle sales patterns and advanced technology niches such as automotive cybersecurity.
Key Segments Overview
ADAS to Spearhead as Passenger Vehicles Raise Demand
Autonomous driving, connected vehicles, electrification, and shared mobility, known as ACES, are presenting new dimensions to the automotive industry. The increasing digitization of automobiles makes them more susceptible to potential cyber-attacks, hacking, and information theft. ADAS is becoming more prevalent in luxury and premium vehicle categories. Electric vehicles are also equipped with basic ADAS functionalities, which interact with chipsets and electronic control units locally or on the cloud. Securing these systems from cyber-attacks will increase demand for automotive cybersecurity measures, pushing the market upward.
Growth Opportunities Across Regions
North America Leads, Asia Pacific Lucrative
North America currently leads the demand for automotive cybersecurity due to supportive government regulations designed to tackle rising cyber-attacks. The convergence of the ICT and automotive industries has fostered the advent of the connected vehicle ecosystem in North America. Factors such as growing vehicle production, increasing vehicle safety norms, and the penetration of connected vehicle systems, along with the rising sales of luxury and premium vehicles, contribute to market growth.
Asia Pacific's automotive cybersecurity market is expected to showcase excellent growth potential. The optimistic growth prospects for connected vehicles in the region, coupled with the focus on advanced technologies, will drive market growth in the future.
Competitive Landscape
The global automotive cybersecurity market is a diverse ecosystem comprising automakers, hardware manufacturers, and security software suppliers. The market has seen significant investments from venture capitalists towards cybersecurity providers. Product innovation focusing on accuracy remains the focal area for automotive cybersecurity suppliers. Leading companies are working on providing security updates and system issue resolutions within stipulated timelines, which is likely to offer them a competitive edge.
Leading Players
Key players driving the competition landscape of the automotive cybersecurity market include Continental, Karamba Security, Harman, Escrypt, Vector, NXP, Cisco Systems, Inc., Argus Cyber Security Ltd., and BT Security.
Regional Classification of the Global Automotive Cybersecurity Market
North America
• U.S.
• Canada Europe
• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific
Latin America
• Brazil
• Mexico
• Rest of Latin America
Middle East and Africa
• GCC
• South Africa
• Rest of Middle East & Africa