Automotive Cybersecurity Market 2025 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034
Page: 215 | Report Code: AT250205 | Research Suite: Report (PDF) & Market Data (Excel)
The global market value of the automotive cybersecurity
market is valued at USD 2.5 billion in 2023, and a CAGR of 18.6% is expected
during the forecast period. Increasing growth in vehicle connectivity is
driving the demand in the market. With the incorporation of technologies like
artificial intelligence, machine learning, and edge computing, autonomous
vehicles have made significant improvements recently. Increasing emphasis on
socio-economic and environmental trends on cybersecurity is a driving factor in
the market.
Demand for automotive cybersecurity solutions is growing at a rapid pace all over the world. Moreover, the advent of software-defined vehicles in conjunction with growing cloud-based applications in the automotive sector is also expected to create lucrative opportunities for the automotive cybersecurity market.
The technology that connects driverless vehicles to the internet is typical with the help of a cloud platform. Connecting vehicles to the networks is dangerous. The attack surface grows as more vehicles are linked to the networks. In current scenarios, there is a surge in the installation of sensors and software used in automobiles.
Growth
Drivers
The rise of connected cars, and over-the-air updates increases the risk of cyber threats, driving the need for robust cybersecurity solutions. Autonomous and electric vehicles rely heavily on software, sensors, and AI, making them more vulnerable to cyberattacks. The need for real-time threat detection and secure software updates is fueling cybersecurity demand.
AI-driven security solutions help in detecting anomalies, malware, and
unauthorized access in real-time. Companies like TESLA, BMW, and Toyota are
partnering with cybersecurity firms to secure their vehicles. Block chain is
being explored for secure data sharing and vehicle identification management.
Technologies like PKI and TLS are being adopted to secured vehicle communications are driving growth in the market. Increasing growth in passenger vehicles, and technological advancements are driving the demand in the market. Moreover, due to the adopting technologies, it is crucial for the suppliers and manufacturers in the automobile industry to adopt National Highway Traffic Safety Administration NHTSA's rules and prioritize vehicle cyber security.
Setting internal procedures and policies to ensure systems will
be secure in anticipated real-world circumstances, including the presence of
potential vehicle cyber security threats, is another aspect of giving vehicle
cyber security a high priority. The environment for automotive cyber security
is dynamic and is anticipated to evolve frequently.
Segmentation
Based
on Vehicle Type:
·
Passenger Vehicles
·
Light Commercial Vehicles
·
Heavy Commercial Vehicles
Based
on Propulsion Type:
·
ICE Vehicles
·
Electric Vehicles
Based
on Vehicle Autonomy:
·
Non-autonomous Vehicles
·
Semi-autonomous Vehicles
·
Autonomous Vehicles
Based
on EV Application:
·
ADAS & safety
·
Body control & comfort
·
Infotainment
·
Telematics
·
BMS & powertrain systems
·
Communication systems
·
Charging management
Regional
Outlook
·
Asia Pacific
·
North America
·
Latin America
·
Middle East and Africa
·
Europe
The
Automotive Cybersecurity Market based on Vehicle Type
On the basis of vehicle type, The Automotive Cybersecurity market is segmented into Passenger Vehicles, Light Commercial Vehicles, and Heavy commercial vehicles. Passenger vehicle is the leading segment due to high connectivity solutions such as telematics, infotainment, and ADAS increasing cybersecurity risks.
EVs rely heavily on software and connected technologies,
necessitating robust cyber-security measures. Increasing concern about data
privacy and vehicle hacking incidents drive cybersecurity investments in
passenger vehicles. Commercial vehicles are also witnessing significant growth
during the forecast period. Light Commercial Vehicles, and Heavy commercial
vehicles are witnessing moderate growth in the market.
The
Automotive Cybersecurity Market based on EV application
Based on EV application, The Automotive Cybersecurity market
is segmented into ADAS & safety, Body control & comfort, Infotainment,
Telematics, BMS & powertrain systems, Communication systems, and Charging
management. ADAS and Safety features are the leading segment in the market, and
is expected to dominate the market during the forecast period.
The
Automotive Cybersecurity Market based on Propulsion Type
On the basis of the propulsion type, the automotive
cybersecurity market is segmented into ICE vehicles and electric vehicles. IEC
vehicles are the leading segment in the market and are expected to dominate the
market during the forecast period. Modern ICE vehicles are equipped with
various connected features, such as infotainment systems, GPS navigation, and
wireless connectivity. These features introduce potential vulnerabilities that
can be exploited by hackers to gain unauthorized access to the vehicle’s
systems.
Increasing demand for luxury, and mid-sized vehicles are
driving growth in the market. Rising concern over vehicle pollution is the key
cause behind the significant market growth. Increasing demand for
software-defined vehicles are driving the market towards new height.
Regional
Outlook
On the basis of regions, the Automotive Cybersecurity Market is segmented into 5 regions: Asia Pacific, North America, Latin America, Europe, Middle East and Africa. North America is the leading segment in the market, and is expected to dominate during the forecast period. Region has one of the highest rate of connected vehicle adoption, integrating IoT and Telematics in modern cars.
Rise of Vehicle-to-Everything communication
increases cybersecurity risks, driving demand for security solutions. The
Cybersecurity best practices for modern vehicles guide encourages manufacturers
to integrate robust security measures. Strong presence of tech giants like
Intel, and IBM are based in the U.S. Increasing cases of vehicle hacking, ransomware
attacks, and data breaches drive automakers to adopt cybersecurity measures.
Investment in AI based cybersecurity solutions and block chain technology further strengthen North America’s market position. High vehicle connectivity, strict regulations, strong industry presence, rising cyber threats, and government support is driving the market towards significant growth. Automotive cybersecurity market is experiencing significant growth in Asia Pacific, and Europe.
Due to high volume of vehicle production, and the rising demand for electric and semi-autonomous vehicles are driving growth in India, and China like emerging economies. Increasing adoption of connected and autonomous vehicles, are necessitating robust cybersecurity measures. The presence of major luxury car manufacturers in countries like Germany and The United Kingdom, who integrate high-end technologies into their vehicles, also contributes to the demand for advanced cyber-security solutions. In both the regions surge in connected vehicle technologies underscores the critical need for vehicle cybersecurity. Middle East and Africa, and Latin America is witnessing significant growth in the market due to technological advancements.
Key
Players
·
Shields
·
Vector Informatik GmbH
·
NXP Semiconductors N.V.
·
Harman International
·
Broadcom Inc.
·
Denso Corporation
·
Continental AG
·
Karamba Security
·
Honeywell International, Inc.
·
Guard Knox Cyber-Technologies Ltd
· Other Players