Automotive Cyber Security Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

The automotive cyber security is referred to the security or protection of the vehicles systems that are vulnerable to cyber threats such as software, network, etc.  

MARKET OVERVIEW 

The market valuation of the automotive cyber security market was valued at approximately USD xx billion in 2023 and is projected to reach USD xx billion in 2034 exhibiting a CAGR of xx.x% during the forecast period of 2024-2034. The market is aligned with diverse sector, which makes it a sustainable and growing market. 

GROWTH DRIVERS 

The rise in vehicle connectivity coupled with IoT integration is one of the primary drivers of the market. The European Union Agency for Cybersecurity discloses an in-depth analysis which states that under a new regulation set by the United Nations, car manufacturers are required to secure vehicles against cyberattacks. Moreover, they also stated that by 2025 around 75% of vehicles are projected to be connected.

The rise in the adoption of autonomous vehicles is another significant driver of the market as this segment of vehicles are more incident to cyber-attacks. Moreover, the growth and expansion of the electric vehicle market is another significant driver of the market as they are operated and relied on complex software which is vulnerable to cyber-attacks.    

   
MARKET SEGMENTATION: 

·         By Offering Type- software, hardware and services 

·         By Security Type- End point, application and end point 

·         By Application- ADAS and safety, body control and comfort, infotainment, telematics, powertrain systems and communication systems   

·         By Deployment Type- in-vehicle and external cloud services 

·         By Vehicle- passenger vehicle and commercial vehicles 

·         By Vehicle Autonomy- non-autonomous, semi-autonomous and autonomous vehicles 

·         By Regions- North America, Europe, Asia Pacific, South America, Middle East and Africa 

Automotive Cyber Security Market Segment by Security Type Review: 

The endpoint security involves the safeguarding of the electronic units, sensors and other electronic components of the vehicle that are connected with the external networks from any kind of unauthorized access that may hamper the security whereas the application security focuses on the software applications that are used in the vehicles. The network security protects the communication channel among different types of components inside the vehicles.  

Regional Analysis: 

North America is a significant market driven by the presence of high adoption of connected vehicles and presence of global automotive players. Europe is another significant market driven by the robust automotive manufacturing hub and strict mandates related to cybersecurity. APAC is a rapidly growing market driven by rise in the adoption of electric vehicle market. MEA is a promising market driven by the smart city project initiatives. South America another growing market driven by rise in cyber security initiatives.      

Key Challenges: 

The automotive cyber security market involves substantial investment for the implementation and further updates where small manufacturers with limited financial budget may not be able to do such investment. Moreover, there is lack of awareness among many vehicle owners about the cybersecurity risk resulting in limited demand.     
  

Competitive Landscape: 

In the highly competitive automotive cyber security market, companies are investing heavily in research and development to innovate and improve their products and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share.

The key news and development includes-

·         In September 2024, BlackBerry Limited enhanced its QNX® OS for Safety by adding a POSIX-compliant, ISO 26262-certified integrity-checking filesystem. This update provides OEMs and embedded software suppliers with an additional validation layer for safety-critical systems. The QNX® Filesystem for Safety (QFS), certified to ISO 26262 ASIL B, verifies filesystem integrity at runtime, enabling developers to detect and address any corruption to maintain system safety.

·         In August 2024, Option 3 announced that ENIGMA, its cybersecurity platform, acquired Onclave Networks. ENIGMA focuses on Zero Trust, a security paradigm gaining traction as traditional tools lose effectiveness. Onclave's Zero Trust principles, modeled after U.S. Department of Defense methods, significantly reduce security breaches, attack surfaces, network complexity, and operational costs. This acquisition enhances ENIGMA's capability to secure devices, services, and personnel across diverse environments.

·         In February 2023, ETAS (a subsidiary of Robert Bosch GmbH) offered ESCRYPT C_ycurRISK, a software tool for threat analysis and risk assessment. It allows the automotive OEMs and suppliers to identify security vulnerabilities during vehicle development and reduce cyber risks systematically.

·         In January 2023, HL Mando Corporation collaborated with Argus Cyber Security. Through this collaboration, the Argus CAN Intrusion Detection Systems (IDS) solution was applied to HL Mando’s electrification system products, such as brakes and steering, beginning in January 2023.

·         In October 2022, NTT Communications Corporation, along with DENSO Corporation (DENSO), was supposed to develop the security operation center technology for vehicles (VSOC1) to respond to the threat of increasingly sophisticated cyber-attacks against vehicles.

·         In November 2022, Garrett Motion Inc. developed multi-layered on-and-off board intrusion detection systems (IDS) to identify cyber threats, which support OEMs to enhance vehicle security.

·         In November 2021, NXP Semiconductors collaborated with Ford Motor Company to deliver enhanced driver experiences, convenience, and services like over-the-air updates across its global fleet of vehicles, including the 2021 Ford F-150 pickup, Mustang Mach-E, and Bronco SUVs.

·         In October 2021, Renesas Electronic Corporation acquired Celeno Communications (Israel) to develop more advanced Wi-Fi connectivity capabilities to deliver end-to-end connectivity solutions for clients and access points.

·         In September 2021, Harman International collaborated with Renault (France) to provide the Harman Kardon sound system to the Renault Mégane E-TECH 100% electric that is expected to be launched in 2022.

·         In July 2021, ETAS Korea, a subsidiary of Robert Bosch GmbH, signed a partnership agreement with Suresoft Tech Co., Ltd. (South Korea) to offer consulting services and solutions related to cybersecurity testing of in-vehicle systems to Korean automotive manufacturers and suppliers.

·         In July 2021, NXP Semiconductors collaborated with Moter Technologies, Inc. (US) to combine its new S32G2 high-performance automotive processors with MOTER’s insurance data science expertise and software. This is expected to enable vehicle data monetization with new and improved automotive insurance services.

·         In May 2021, ESCRYPT, a subsidiary of ETAS Inc, which is a subsidiary of Robert Bosch GmbH, partnered with Alyne GmbH and KPMG to offer joint expertise in developing the Product Security Organisation Framework (PROOF).    

Global Key Players:  

·         Sheelds

·         Vector Informatik GmbH

·         Continental AG

·         Robert Bosch AG

·         NXP Semiconductors N.V.

·         Harman International

·         Broadcom Inc.

·         Denso Corporation

·         Honeywell International, Inc.

·         Guard Knox Cyber-Technologies Ltd.

·         Other Players