Global Automotive Cybersecurity Market Forecast 2024-2032

The global automotive cybersecurity market was valued at $3885.80 in 2023 and is expected to reach $18068.65 million by 2032, growing at a CAGR of 18.36% during the forecast period 2024-2032. The base year considered for the study is 2023, and the estimated period is between 2024 and 2032. The market study has also analyzed the impact of COVID-19 on the global automotive cybersecurity market qualitatively and quantitatively.

Automotive cybersecurity refers to the security mechanisms and cybersecurity protocols implemented to prevent unauthorized access to vehicles and their cloud systems. In contrast to standard antivirus software that can be installed on personal devices, automotive cybersecurity is an ongoing, proactive process integrated into the vehicle's design. This approach ensures vehicles are protected against current threats and remain secure over time through over-the-air updates. By integrating cybersecurity measures directly into the vehicle's design, it enhances resilience against both present and future threats.

MARKET INSIGHTS

Key growth enablers of the global automotive cybersecurity market:

Rising popularity of autonomous fleets and autonomous vehicles

The rising popularity of autonomous fleets and autonomous vehicles is a significant driver in the global automotive cybersecurity market. Autonomous fleets are still in the testing phase and are not road-ready. During this phase, they are showcasing significant potential and benefits. As commercial fleet operators, including car rental services and delivery companies, increasingly rely on connectivity and software for vehicle management, they face rising cybersecurity risks. This growing dependence is driving up the demand for automotive cybersecurity solutions.

Autonomous vehicles (AVs) have been operating on the road since 2020, with ongoing advancements despite various challenges. Key stakeholders, including OEMs and technology companies, are making rapid innovations. In 2023, Waymo collaborated with Uber to offer autonomous ride-hailing services in Metro Phoenix, highlighting the commercial potential for cybersecurity solutions and the accelerating momentum in the AV sector.

Surge in EV sales and heightened need to secure charging station infrastructure
Growing innovation in vehicle technology is fueling demand for advanced automotive cybersecurity solutions

Key growth restraining factors of the global automotive cybersecurity market:

Difficulties associated with integrating cybersecurity measures throughout the lifecycle of the vehicle

The complexity of in-vehicle software and the challenges of integrating cybersecurity measures throughout the vehicle lifecycle hinder the growth of the global automotive cybersecurity market. The rising number of electronic control units (ECUs) and microchips from diverse suppliers complicates the creation of a unified, secure vehicle system, necessitating significant expertise and rigorous testing.

Regulations such as R155 require OEMs to implement and maintain threat analysis and risk assessment (TARA) throughout the vehicle lifecycle, addressing integration issues and enhancing security. Although these regulations are advantageous in the long term, they pose substantial temporary challenges for automotive manufacturers and OEMs.

High cost associated with implementing automotive cybersecurity solutions

Global Automotive Cybersecurity Market | Top Technology Trends

Generative AI is being increasingly adopted for software development, hardware configuration, and automotive cybersecurity testing. Predictions suggest that by 2026, over 80% of enterprises will use GenAI-enabled applications, up from less than 5% in 2023. In the automotive cybersecurity sector, companies like Upstream Security are utilizing GenAI to enhance Vehicle Security Operations Centers (vSOC). GenAI has transformative potential by enabling efficient analysis of large data sets, detecting patterns, filtering incident alerts, and automating investigations, which significantly improves threat analysis and risk assessment in automotive cybersecurity.
The trend of Secure by Design and standardization with AUTOSAR (Automotive Open System Architecture) is crucial for advancing automotive cybersecurity and is widely adopted by industry stakeholders. Secure by Design principles emphasize incorporating security measures into the vehicle development process from the design stage rather than adding them later. This approach ensures that security is an integral part of the vehicle's architecture, addressing potential vulnerabilities early in the design phase and throughout the vehicle's entire lifecycle.

SEGMENTATION ANALYSIS

Market Segmentation - Vehicle Propulsion Type, Offering, and Security Type -

Market by Vehicle Propulsion Type:

ICE Vehicle
Electric Vehicle

Market by Offering:

Hardware
Software

Market by Security Type:

In-Vehicle Security
Connected Vehicle Security

The connected vehicle security segment is estimated to be the leading security type category over the forecast period.

Connected network security is vital for safeguarding a vehicle's connection to external networks, such as cellular and Wi-Fi, ensuring that data and communications are protected from threats like man-in-the-middle attacks. This involves securing the Telematics Unit (TMU), which collects and transmits sensitive data by using encryption and authentication methods for secure communication, as well as managing vulnerabilities through proactive identification and patching of software and firmware weaknesses.

Additionally, Security Information and Event Management (SIEM) systems collect and analyze real-time data to quickly identify and respond to threats. Advanced diagnostics and remote monitoring by some automotive manufacturers further enhance security by detecting and addressing potential issues early, providing valuable insights for effective cyberattack responses.

REGIONAL ANALYSIS

Geographical Study based on Four Major Regions:

North America: The United States and Canada
Europe: The United Kingdom, Germany, France, Italy, Spain, Hungary, Poland, and Rest of Europe
Asia-Pacific: China, Japan, India, South Korea, Indonesia, Thailand, and Rest of Asia-Pacific.

In 2023, Asia-Pacific was the largest region in the global automotive cybersecurity market.

The APAC hosts some of the largest automotive markets in the world, including China, Japan, and India. The high volume of vehicle production in these countries requires robust cybersecurity measures to protect the increasing number of connected and autonomous vehicles.

Globally, the Chinese market ranks first in overall automotive production, making it the largest market for automotive cybersecurity in Asia. This is driven by the vast volume of automotive production, increased adoption of electric vehicles, incorporation of advanced in-vehicle infotainment (IVI) systems, and robust government support.

Japan's automotive sector is also increasingly aware of cybersecurity risks due to a significant rise in cyberattacks targeting both vehicles and the IT/OT systems supporting daily operations and manufacturing. To address these threats, the Japanese government is actively involved, playing a key role in promoting automotive cybersecurity protocols through organizations such as the Japan Automobile Manufacturers Association (JAMA) and the Japan Auto Parts Industries Association (JAPIA).

Rest of World: Latin America, the Middle East & Africa

COMPETITIVE INSIGHTS

Major players in the global automotive cybersecurity market:

Infineon Technologies AG
NXP Semiconductors NV
Continental AG
Robert Bosch GmbH
Aptiv PLC
Upstream Security

Key strategies adopted by some of these companies:

Infineon Technologies AG acquired GaN Systems Inc in 2023 to strengthen its position in power semiconductors. This acquisition provides Infineon with access to GaN transistor technology, enhancing the development of more secure and efficient electric vehicles.
Infineon Technologies AG acquired Imagimob in 2023 to leverage the company's expertise in AI and machine learning. This acquisition aims to enhance predictive maintenance in vehicles, improve cybersecurity, and ensure compliance with global regulations on over-the-air updates.
Infineon Technologies AG and ETAS, a subsidiary of Robert Bosch GmbH, have collaborated to enhance the security of next-generation AURIX microcontrollers using ESCRYPT CycurHSM 3.x. This integration aims to meet the rising demand for high-performance hardware and robust automotive cybersecurity solutions in software-defined vehicles.

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Frequently Asked Questions (FAQs):

1. What is the projected global automotive cybersecurity market size and growth rate?

A: The global automotive cybersecurity market is expected to reach $18068.65 million by 2032, growing at a CAGR of 18.36% during the forecast period.

2. Are there any globally accepted automotive cybersecurity standards?

A: Yes, ISO/SAE 21434 is the internationally recognized voluntary standard for automotive cybersecurity.

3. Which is the fastest-growing region in the global automotive cybersecurity market?

A: Europe is estimated to be the fastest-growing region in the global automotive cybersecurity market.

Product Code: 92237

1. RESEARCH SCOPE & METHODOLOGY

1.1. STUDY OBJECTIVES
1.2. METHODOLOGY
1.3. ASSUMPTIONS & LIMITATIONS

2. EXECUTIVE SUMMARY

2.1. MARKET SIZE & ESTIMATES
2.2. MARKET OVERVIEW
2.3. SCOPE OF STUDY
2.4. CRISIS SCENARIO ANALYSIS
2.5. MAJOR MARKET FINDINGS
- 2.5.1. GENERATIVE AI IS REDEFINING CYBERSECURITY IN THE AUTOMOTIVE SECTOR
- 2.5.2. AUTONOMOUS VEHICLES AND FLEETS DEMAND ADVANCED CYBERSECURITY SOLUTIONS

3. MARKET DYNAMICS

3.1. KEY DRIVERS
- 3.1.1. RISING POPULARITY OF AUTONOMOUS FLEETS AND AUTONOMOUS VEHICLES
- 3.1.2. SURGE IN EV SALES AND HEIGHTENED NEED TO SECURE CHARGING STATION INFRASTRUCTURE
- 3.1.3. GROWING INNOVATION IN VEHICLE TECHNOLOGY IS FUELING DEMAND FOR ADVANCE AUTOMOTIVE CYBERSECURITY SOLUTIONS
3.2. KEY RESTRAINTS
- 3.2.1. DIFFICULTIES ASSOCIATED WITH INTEGRATING CYBERSECURITY MEASURES THROUGHOUT THE LIFECYCLE OF THE VEHICLE
- 3.2.2. HIGH COST ASSOCIATED WITH IMPLEMENTING AUTOMOTIVE CYBERSECURITY SOLUTIONS

4. KEY ANALYTICS

4.1. PARENT MARKET ANALYSIS
4.2. KEY TECHNOLOGY TRENDS
- 4.2.1. USE OF GENERATIVE AI IN VSOC BY CYBERSECURITY PROVIDERS
- 4.2.2. SECURE BY DESIGN AND STANDARDIZATION WITH AUTOSAR
4.3. PORTER'S FIVE FORCES ANALYSIS
- 4.3.1. BUYERS POWER
- 4.3.2. SUPPLIERS POWER
- 4.3.3. SUBSTITUTION
- 4.3.4. NEW ENTRANTS
- 4.3.5. INDUSTRY RIVALRY
4.4. GROWTH PROSPECT MAPPING
- 4.4.1. GROWTH PROSPECT MAPPING FOR NORTH AMERICA
- 4.4.2. GROWTH PROSPECT MAPPING FOR EUROPE
- 4.4.3. GROWTH PROSPECT MAPPING FOR ASIA-PACIFIC
- 4.4.4. GROWTH PROSPECT MAPPING FOR REST OF WORLD
4.5. MARKET MATURITY ANALYSIS
4.6. MARKET CONCENTRATION ANALYSIS
4.7. VALUE CHAIN ANALYSIS
- 4.7.1. RESEARCH AND DEVELOPMENT
- 4.7.2. COMPONENT SUPPLIERS
- 4.7.3. INTEGRATION OF SYSTEMS
- 4.7.4. DEPLOYMENT AND OTA UPDATES
4.8. KEY BUYING CRITERIA
- 4.8.1. COST
- 4.8.2. SECURITY EFFECTIVENESS
- 4.8.3. SYSTEM INTEGRATION AND COMPATIBILITY
- 4.8.4. SAFE OTA UPDATES
4.9. GLOBAL AUTOMOTIVE CYBERSECURITY MARKET REGULATORY FRAMEWORK

5. MARKET BY VEHICLE PROPULSION TYPE

5.1. ICE VEHICLE
- 5.1.1. MARKET FORECAST FIGURE
- 5.1.2. SEGMENT ANALYSIS
5.2. ELECTRIC VEHICLE
- 5.2.1. MARKET FORECAST FIGURE
- 5.2.2. SEGMENT ANALYSIS

6. MARKET BY OFFERING

6.1. HARDWARE
- 6.1.1. MARKET FORECAST FIGURE
- 6.1.2. SEGMENT ANALYSIS
6.2. SOFTWARE
- 6.2.1. MARKET FORECAST FIGURE
- 6.2.2. SEGMENT ANALYSIS

7. MARKET BY SECURITY TYPE

7.1. IN-VEHICLE SECURITY
- 7.1.1. MARKET FORECAST FIGURE
- 7.1.2. SEGMENT ANALYSIS
7.2. CONNECTED VEHICLE SECURITY
- 7.2.1. MARKET FORECAST FIGURE
- 7.2.2. SEGMENT ANALYSIS

8. GEOGRAPHICAL ANALYSIS

8.1. NORTH AMERICA
- 8.1.1. MARKET SIZE & ESTIMATES
- 8.1.2. NORTH AMERICA AUTOMOTIVE CYBERSECURITY MARKET DRIVERS
- 8.1.3. NORTH AMERICA AUTOMOTIVE CYBERSECURITY MARKET CHALLENGES
- 8.1.4. KEY PLAYERS IN NORTH AMERICA AUTOMOTIVE CYBERSECURITY MARKET
- 8.1.5. COUNTRY ANALYSIS
  - 8.1.5.1. UNITED STATES
  - 8.1.5.1.1. UNITED STATES AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.1.5.2. CANADA
  - 8.1.5.2.1. CANADA AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
8.2. EUROPE
- 8.2.1. MARKET SIZE & ESTIMATES
- 8.2.2. EUROPE AUTOMOTIVE CYBERSECURITY MARKET DRIVERS
- 8.2.3. EUROPE AUTOMOTIVE CYBERSECURITY MARKET CHALLENGES
- 8.2.4. KEY PLAYERS IN EUROPE AUTOMOTIVE CYBERSECURITY MARKET
- 8.2.5. COUNTRY ANALYSIS
  - 8.2.5.1. UNITED KINGDOM
  - 8.2.5.1.1. UNITED KINGDOM AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.2.5.2. GERMANY
  - 8.2.5.2.1. GERMANY AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.2.5.3. FRANCE
  - 8.2.5.3.1. FRANCE AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.2.5.4. ITALY
  - 8.2.5.4.1. ITALY AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.2.5.5. SPAIN
  - 8.2.5.5.1. SPAIN AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.2.5.6. POLAND
  - 8.2.5.6.1. POLAND AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.2.5.7. HUNGARY
  - 8.2.5.7.1. HUNGARY AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.2.5.8. REST OF EUROPE
  - 8.2.5.8.1. REST OF EUROPE AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
8.3. ASIA-PACIFIC
- 8.3.1. MARKET SIZE & ESTIMATES
- 8.3.2. ASIA-PACIFIC AUTOMOTIVE CYBERSECURITY MARKET DRIVERS
- 8.3.3. ASIA-PACIFIC AUTOMOTIVE CYBERSECURITY MARKET CHALLENGES
- 8.3.4. KEY PLAYERS IN ASIA-PACIFIC AUTOMOTIVE CYBERSECURITY MARKET
- 8.3.5. COUNTRY ANALYSIS
  - 8.3.5.1. CHINA
  - 8.3.5.1.1. CHINA AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.3.5.2. JAPAN
  - 8.3.5.2.1. JAPAN AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.3.5.3. INDIA
  - 8.3.5.3.1. INDIA AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.3.5.4. SOUTH KOREA
  - 8.3.5.4.1. SOUTH KOREA AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.3.5.5. INDONESIA
  - 8.3.5.5.1. INDONESIA AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.3.5.6. THAILAND
  - 8.3.5.6.1. THAILAND AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.3.5.7. REST OF ASIA-PACIFIC
  - 8.3.5.7.1. REST OF ASIA-PACIFIC AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
8.4. REST OF WORLD
- 8.4.1. MARKET SIZE & ESTIMATES
- 8.4.2. REST OF WORLD AUTOMOTIVE CYBERSECURITY MARKET DRIVERS
- 8.4.3. REST OF WORLD AUTOMOTIVE CYBERSECURITY MARKET CHALLENGES
- 8.4.4. KEY PLAYERS IN REST OF WORLD AUTOMOTIVE CYBERSECURITY MARKET
- 8.4.5. REGIONAL ANALYSIS
  - 8.4.5.1. LATIN AMERICA
  - 8.4.5.1.1. LATIN AMERICA AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES
  - 8.4.5.2. MIDDLE EAST & AFRICA
  - 8.4.5.2.1. MIDDLE EAST & AFRICA AUTOMOTIVE CYBERSECURITY MARKET SIZE & OPPORTUNITIES

9. COMPETITIVE LANDSCAPE

9.1. KEY STRATEGIC DEVELOPMENTS
- 9.1.1. MERGERS & ACQUISITIONS
- 9.1.2. PRODUCT LAUNCHES & DEVELOPMENTS
- 9.1.3. PARTNERSHIPS & AGREEMENTS
9.2. COMPANY PROFILES
- 9.2.1. INFINEON TECHNOLOGIES AG
  - 9.2.1.1. COMPANY OVERVIEW
  - 9.2.1.2. PRODUCTS
  - 9.2.1.3. STRENGTHS & CHALLENGES
- 9.2.2. NXP SEMICONDUCTORS NV
  - 9.2.2.1. COMPANY OVERVIEW
  - 9.2.2.2. PRODUCTS
  - 9.2.2.3. STRENGTHS & CHALLENGES
- 9.2.3. CONTINENTAL AG
  - 9.2.3.1. COMPANY OVERVIEW
  - 9.2.3.2. PRODUCTS
  - 9.2.3.3. STRENGTHS & CHALLENGES
- 9.2.4. ROBERT BOSCH GMBH
  - 9.2.4.1. COMPANY OVERVIEW
  - 9.2.4.2. PRODUCTS
  - 9.2.4.3. STRENGTHS & CHALLENGES
- 9.2.5. APTIV PLC
  - 9.2.5.1. COMPANY OVERVIEW
  - 9.2.5.2. PRODUCTS
  - 9.2.5.3. STRENGTHS & CHALLENGES
- 9.2.6. UPSTREAM SECURITY
  - 9.2.6.1. COMPANY OVERVIEW
  - 9.2.6.2. PRODUCTS
  - 9.2.6.3. STRENGTHS & CHALLENGES
- 9.2.7. HARMAN INTERNATIONAL INDUSTRIES INC
  - 9.2.7.1. COMPANY OVERVIEW
  - 9.2.7.2. PRODUCTS
  - 9.2.7.3. STRENGTHS & CHALLENGES
- 9.2.8. GARRETT MOTION INC
  - 9.2.8.1. COMPANY OVERVIEW
  - 9.2.8.2. PRODUCTS
- 9.2.9. VICONE INC
  - 9.2.9.1. COMPANY OVERVIEW
  - 9.2.9.2. PRODUCTS
- 9.2.10. VECTOR INFORMATIK GMBH
  - 9.2.10.1. COMPANY OVERVIEW
  - 9.2.10.2. PRODUCTS
- 9.2.11. GUARDKNOX CYBER TECHNOLOGIES LTD
  - 9.2.11.1. COMPANY OVERVIEW
  - 9.2.11.2. PRODUCTS
- 9.2.12. KARAMBA SECURITY LTD
  - 9.2.12.1. COMPANY OVERVIEW
  - 9.2.12.2. PRODUCTS