Automotive Cyber Security Market Size, Share, Growth Analysis, By Offering, By Application Type, By Form Type, By Security Type, By Region - Industry Forecast 2024-2031

Global Automotive Cyber Security Market size was valued at USD 2.90 billion in 2022 and is poised to grow from USD 3.52 billion in 2023 to USD 16.39 billion by 2031, at a CAGR of 21.2% during the forecast period (2024-2031).

The global automotive cybersecurity market has experienced significant growth recently, largely driven by the rising adoption of connected and autonomous vehicles. As vehicles become more integrated into the digital landscape, they are increasingly vulnerable to cybersecurity threats, highlighting the importance of robust security measures within the automotive industry. This market expansion is largely due to heightened awareness among both manufacturers and consumers about the risks associated with cyberattacks on vehicles. Security experts are dedicating their efforts to research and development to integrate defense mechanisms that counter the growing cyber threats targeting electric vehicles (EVs). As advancements in self-driving technology continue, embedding these security features into the design of vehicles has become crucial. Many current technologies use cloud platforms to connect driverless cars to the internet, which increases their vulnerability. With the growing number of connected vehicles, the potential attack surface also expands. Modern cars are equipped with over 150 sensors that collect extensive data, including driving patterns and vehicle location, which can be exploited if not properly secured. Another key driver of the automotive cybersecurity market is the evolving regulatory environment. Governments and regulatory bodies are establishing stringent standards and guidelines to protect interconnected vehicles, prompting manufacturers to invest heavily in advanced cybersecurity solutions. Additionally, the incorporation of cutting-edge technologies like vehicle-to-everything (V2X) communication and over-the-air (OTA) updates further fuels the need for comprehensive cybersecurity measures. As the automotive industry continues to undergo digital transformation, ensuring vehicle security from cyber threats remains a critical priority, making the automotive cybersecurity market a dynamic and essential sector in the coming years.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Automotive Cyber Security market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Automotive Cyber Security Market Segmental Analysis

Global automotive cyber security market is segmented based on offering, application type, form type, security type, approach, vehicle type, propulsion type, vehicle autonomy, ev application, and region. Based on offering, the market is segmented into software, and hardware. Based on application type, the market is segmented into ADAS & safety, body control & comfort, infotainment, telematics, powertrain systems, and communication systems. Based on form type, the market is segmented into in-vehicle, and external cloud services. Based on security type, the market is segmented into application, wireless network and endpoint. Based on approach, the market is segmented into intrusion detection system, and security operations centre. Based on vehicle type, market is segmented into passenger car, light commercial vehicle, and heavy commercial vehicle. Based on propulsion type, the market is segmented into ICE vehicles, and electric vehicles. Based on vehicle autonomy, the market is segmented into non-autonomous vehicles, semi-autonomous vehicles, and autonomous vehicles. Based on ev application, the market is segmented into ADAS & safety, body control & comfort, infotainment, telematics. BMS & powertrain systems, communication systems, and charging management. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Automotive Cyber Security Market

In response to increasing cyber threats, governments have implemented new regulations to bolster cybersecurity. For example, the UK's Department for Digital, Culture, Media and Sport (DCMS) publishes an annual "Cybersecurity Breaches Survey," which provides verified data on prevalent data breaches. Additionally, the European Confederation of Directors Associations and the Internet Security Alliance (ISA) have collaborated to produce a handbook on cyber-risk management aimed at European company boards. The Internet of Things (IoT) market has seen substantial growth due to significant reductions in device costs and evolving business models. This growth encompasses a wide range of connected devices, including consumer electronics, machinery, meters, wearables, and vehicles. Despite the high incidence of attacks on consumer IoT devices, there is a growing recognition of the need for robust cybersecurity in the business sector to prevent disruptions in manufacturing and related industries. The rollout of 5G technology is expected to accelerate the adoption of connected devices, particularly in sectors advancing towards Industry 4.0. IoT has enabled full integration of cellular connectivity in the fourth industrial revolution, enhancing machine-to-machine communication and further driving market expansion.

Restraints in the Global Automotive Cyber Security Market

To effectively detect and respond to cyberattacks, organizations need to be well-prepared and equipped with diverse resources. Recovery from a breach or attack often necessitates a complete suspension of operations for several days, which can be particularly challenging if there is insufficient planning and infrastructure in place. In many enterprises across the Middle East, Asia-Pacific, and Latin America, a lack of preparedness and an over-reliance on traditional detection methods are common issues. This can significantly delay recovery efforts and exacerbate the impact of cyber incidents.

Market Trends of the Global Automotive Cyber Security Market

The growing integration of advanced technologies in vehicles, such as 5G connectivity and the Internet of Things (IoT), is significantly boosting connectivity and enhancing user experiences. However, this increased connectivity also raises the risk of cyber threats, leading to a heightened demand for robust cybersecurity solutions. The adoption of these technologies facilitates features like remote vehicle monitoring and control, which introduces new potential vulnerabilities for cyberattacks. Consequently, there is an urgent need for comprehensive cybersecurity strategies that safeguard not only data but also the vehicle control systems. This growing need is becoming crucial for both automotive manufacturers and consumers to ensure the security and integrity of modern vehicles.