Automotive Cyber Security Market, By Form (In-vehicle, External Cloud Service), By Component (Hardware, Software, and Services), By Vehicle (Fuel-based Vehicles, Passenger Cars, Commercial Vehicles, Electric Vehicles, Passenger Cars and Commercial Vehicles), By Application (Telematics, Infotainment Systems, Powertrain Systems, ADAS & Safety Systems, Body Control Systems) and Regions 2024-2032

Market Brief

"The automotive cybersecurity market size reached US$ 2.72 bn in 2023. Looking forward, Reports and Insights expects the market to reach US$ 12.34 billion by 2032, exhibiting a growth rate (CAGR) of 18.3% during 2024-2032."

Automotive cybersecurity is the practice of securing the electronic systems, software, and networks within vehicles to defend against cyber threats and attacks. It encompasses strategies and safeguards to protect vehicle data, software integrity, and critical functions like safety systems and engine control from unauthorized access, manipulation, or disruptions.

This field is crucial to ensure the safety and security of contemporary connected vehicles, which heavily rely on software and communication networks for functions such as navigation, entertainment, and advanced driver assistance systems (ADAS).

Comprehensive analysis and insights into the global the automotive cyber security market provide valuable information for businesses in the industry. Clarity and understanding of market trends help companies tailor their products to meet customer demands more effectively.

Read the global the automotive cyber security market research report overview and other sections to know more about market coverage and highlights taken from the full report:

Automotive Cyber Security Market Report Overview:

The global automotive cyber security market report provides comprehensive insights into driving factors, restraints, opportunities, and trends, with provision of in-depth supporting information, data, and statistics and actionable insights. Though covered and provided extensively across the report, the data and information format are simple, yet dynamic in order to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use.

Automotive cyber security market share and revenues are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based. Automotive cyber security market growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others.

Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, strategies, product launches, agreements, expansion, mergers & acquisitions, and others. 

The global automotive cyber security market report is segmented according to product type, form, spf, distribution channel & region. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of MEA).

Automotive Cyber Security Market Trends Analysis and Insights:

Increasing Connectivity and IoT Integration: Modern vehicles are now equipped with various communication technologies that enable internet connectivity and interaction with external devices. This connectivity facilitates functionalities such as remote diagnostics, software updates, and the ability to manage vehicle functions through smartphone apps. Additionally, connected infotainment systems offer internet access, streaming services, and real-time information to both drivers and passengers. Telematics systems collect and transmit data related to vehicle performance and driver behavior, commonly used for insurance and fleet management purposes. Furthermore, advanced driver assistance systems (ADAS), which include features like adaptive cruise control and lane-keeping assist, rely on sensors and connectivity to operate effectively.

However, the increased connectivity and integration of IoT devices have expanded the potential attack surface, making it crucial to secure these systems against cyber threats. For instance, on May 08, 2023, Qualcomm is poised to acquire Autotalks, an Israeli fabless chipmaker renowned for its specialization in the advancement of semiconductor and system-on-a-chip technology, particularly in the context of improving automotive safety. This acquisition of Autotalks by Qualcomm is estimated to be valued within the range of $350 million to $400 million.

Regulation and Compliance: Government authorities and industry regulators have acknowledged the necessity of establishing cybersecurity standards in the automotive sector to safeguard consumers and ensure the security of connected vehicles. These standards encompass guidelines for secure software development, threat assessment, and incident response. As a result, automotive manufacturers and their suppliers are now obligated to meet these cybersecurity standards and demonstrate compliance. Failure to do so can lead to legal repercussions, damage to reputation, and potential safety hazards for consumers.

AI and Machine Learning for Threat Detection: AI and machine learning technologies are playing a pivotal role in bolstering cybersecurity in the automotive industry. They serve several key functions, including anomaly detection, behavior-based monitoring, and predictive analytics. Anomaly detection involves the use of AI and machine learning algorithms to scrutinize the copious data generated by vehicles and connected systems. These algorithms are adept at identifying unusual patterns or behaviors that may signal a cyberattack or security breach. Behavior-based monitoring goes beyond known attack patterns by enabling AI systems to learn the typical behavior of vehicles and systems. Any deviations from this established norm can then be flagged as potential threats. Furthermore, predictive analytics leverages machine learning models to forecast potential security threats based on historical data and emerging trends, enabling proactive security measures. For instance, Cisco has announced its acquisition of the software company Splunk for a substantial sum of $28 billion. This strategic move aims to assist clients in enhancing their security and observability capabilities through the utilization of artificial intelligence (AI), as stated in a press release on September 21, 2023. Cisco's objective is to contribute to various aspects of organizational security and resilience, encompassing areas such as threat detection, response, prediction, and prevention, benefiting organizations of all sizes.

What Factors Are Restraining Growth of Automotive Cyber Security Market?  

Cost Constraints: The implementation of robust cybersecurity measures in vehicles demands significant investments in research, development, and the integration of advanced security technologies. These expenditures can potentially raise the overall cost of vehicles, potentially dissuading price-sensitive consumers from making a purchase. 

Complexity and Interoperability Challenges: As vehicles become more connected and feature-rich, their software and communication systems grow in complexity. Ensuring that various components and systems, often sourced from different manufacturers, can securely interact and share data without introducing vulnerabilities poses a substantial challenge. Achieving industry-wide interoperability and standardization remains an ongoing concern due to the need for coordination among stakeholders and adherence to common security standards. Neglecting these complexities can lead to security gaps and hinder the effective implementation of cybersecurity measures.

Limited Awareness and Education: There is a potential lack of awareness among consumers regarding the cybersecurity risks associated with their connected vehicles. Many may not fully comprehend the possible repercussions of cyberattacks on their safety and personal information. Furthermore, some automotive companies and suppliers may not prioritize educating consumers and industry stakeholders about cybersecurity. This insufficient awareness can lead to a reduced demand for advanced cybersecurity solutions and could impede the growth of the market. It is essential to enhance education and awareness about automotive cybersecurity to address this constraint effectively.

What are the Opportunities for Leading Automotive Cyber Security Providers?  

Expanding Connected Vehicle Market: With the increasing popularity of connected vehicles like electric cars and autonomous vehicles, there is a growing demand for robust cybersecurity solutions. These vehicles rely heavily on complex software and communication systems, making them more vulnerable to cyber threats. Automotive cybersecurity manufacturers have the opportunity to develop and provide advanced security solutions to protect these vehicles from potential attacks. 

Regulatory Landscape: Governments and regulatory bodies worldwide are introducing strict cybersecurity standards and regulations for the automotive industry to enhance security and protect consumers. Leading automotive cybersecurity manufacturers can seize the opportunity to play a crucial role in assisting automakers and suppliers in meeting these regulatory requirements. This may involve offering tailored cybersecurity solutions and consulting services to ensure compliance with the evolving cybersecurity standards.

Increasing Adoption of Over-the-Air (OTA) Software: The growing adoption of Over-the-Air (OTA) software updates by automakers offers a chance for automotive cybersecurity manufacturers to seize. They can take advantage of this trend by creating secure OTA update solutions, effectively safeguarding the update procedure against potential cyber threats. In essence, these solutions ensure that when vehicles receive updates remotely, their security remains intact, enhancing both the safety of vehicles and the confidence of automakers and consumers in the integrity of these updates.

Global Expansion: In the context of the global automotive industry, where cybersecurity threats can arise from various locations, top-tier manufacturers in the automotive cybersecurity sector have a chance to broaden their reach on an international scale. They can achieve this by offering their cybersecurity solutions and services to automakers and suppliers across the world. This approach allows them to cater to the worldwide demand for automotive cybersecurity, ensuring that vehicles in different regions benefit from robust protection against cyber threats. This global expansion enables them to play a significant role in enhancing the safety and security of connected vehicles on a global scale.

What are the Factors Driving the Automotive Cyber Security Demand in North America Region?

The United States is a major automotive market with a significant demand for connected cars. While the country experienced a decline in demand, similar to the global market, in 2020, it is anticipated that this demand will rebound in the coming years. According to the Bureau of Economic Analysis (BEA), in 2020, retail sales of light vehicles in the United States totaled 14.5 million units. Leading automotive brands such as Ford, Chevrolet, Jeep, Ram, and GMC achieved impressive sales figures during the first quarter of 2020, with 489,051 units, 429,529 units, 182,667 units, 140,486 units, and 118,718 units sold, respectively. This significant growth in the automotive industry underscores the heightened need for cybersecurity. General Motors' OnStar platform stands out as one of the most widely used software platforms and security systems in the country. This increasing adoption and penetration of connected vehicles are driving up the demand for cybersecurity solutions in the automotive sector. In 2023, the United States saw a momentous achievement in electric car sales, reaching an unprecedented milestone of 1.6 million units, as reported by the International Energy Agency (IEA).

What Fuels Automotive Cyber Security Demand in Europe?

Due to the increasing demand for cybersecurity solutions in smart vehicles, self-driving cars, and connected transportation, the European automotive cybersecurity market saw significant growth, reaching $403.45 million in 2020. Germany, as one of the most economically significant countries in Europe, holds a substantial market share of 10.2% in the European automotive cybersecurity market. This is attributed to the development of self-sufficient cloud software connectivity, open-standard interfaces for cars, cross-platform mobile solutions, and the establishment of an automotive data taxonomy. These factors create a favorable environment for the increased adoption of automotive cybersecurity solutions in the region. Moreover, the growth of research and development efforts aimed at enabling smartphone integration with infotainment systems in driverless cars is a key driver of market expansion in Europe. Additionally, the rising consumer preference for personalized automotive experiences contributes to the thriving environment for the further expansion of the automotive cybersecurity market.

What are the Factors Contributing to the Significant of Asia Pacific Automotive Cyber Security Market?

The Asia Pacific automotive cybersecurity market has experienced remarkable growth and reached a revenue of US$ 1,468.4 million in 2022. It now ranks as the third-largest region in the global automotive cybersecurity market. The modern automobile has become highly sophisticated, equipped with numerous microprocessors, various electronic control units, and extensive lines of software code. These vehicles also incorporate various connected devices and features such as Bluetooth, built-in cellular communication, and Wi-Fi, enabling functions like remote start and car location tracking. However, while these advancements enhance convenience, they also expose vehicles in the Asia Pacific automotive cybersecurity market to potential hackers. This vulnerability arises from technologies like vehicle-to-infrastructure, vehicle-to-vehicle, vehicle-to-cloud, and vehicle-to-everything communication. If malicious actors were to gain remote control over features such as automated braking and remote start, it could pose significant risks and consequences in terms of vehicle safety and functionality.

What are the Aspects that are Driving the Automotive Cyber Security Market in Latin America?  

Latin America boasts a significant automotive industry, with major players like Mexico, Brazil, and Argentina experiencing growth in vehicle production and sales. With the rise of connected vehicles, there is an escalating demand for cybersecurity solutions to safeguard these automobiles from cyber threats, which can include hacking attempts and data breaches. Latin American nations are actively engaged in crafting and implementing regulations and standards for automotive cybersecurity, often aligning them with global norms to enhance vehicle safety and security.

What is the Stance on Automotive Cyber Security Market in Middle East and Africa?

Several countries in the Middle East and Africa, including the United Arab Emirates, Saudi Arabia, and South Africa, are witnessing burgeoning automotive industries. This growth necessitates the adoption of cybersecurity solutions to shield vehicles from cyber threats. The MEA region is undergoing a gradual shift towards connected and autonomous vehicles, which rely extensively on software and communication systems, rendering them susceptible to cyberattacks. Consequently, the implementation of automotive cybersecurity measures becomes increasingly imperative to ensure passenger safety and protect sensitive data. Governments and regulatory bodies in the MEA region are actively involved in formulating cybersecurity regulations and standards for the automotive sector, aiming to ensure that manufacturers implement robust cybersecurity measures.

Leading Automotive Cyber Security Providers & Competitive Landscape:

The automotive cyber security market is highly competitive, with several key players vying for market share and actively engaging in strategic initiatives. These companies focus on product innovation, technological advancements, and expanding their product portfolios to gain a competitive edge. These companies are continuously investing in research and development activities to enhance their product offerings and cater to the evolving needs of customers in terms of efficiency, performance, and sustainability.

Company List

• ESCRYPT
• Continental AG
• Bosch Limited
• HARMAN International
• DENSO CORPORATION
• Aptiv
• Karamba Security
• SafeRide Technologies
• ARILOU Automotive Cyber Security, part of NNG Group
• GUARDKNOX
• Infineon Technologies AG
• Argus Cyber Security Ltd.
• Intel Corporation
• Lear Corporation
• SBD Automotive Ltd
• Honeywell International Inc.
• Vector Informatik GmbH
• NXP Semiconductors
• Capgemini
• secunet

Recent Development

• In June 2023: BlackBerry Limited has entered into a partnership with Upstream Security, a leading automotive cybersecurity platform. The aim of this collaboration is to enhance the overall security of vehicles manufactured by leveraging BlackBerry IVY's telemetry data and edge computing capabilities. Upstream Security's cloud-native Vehicle Detection and Response (V-XDR) platform is designed to identify cybersecurity threats, anomalies, and operational insights in the automotive sector.

Research Scope

Report Metric	Report Details
Market size available for the years	2021-2032
Base Year	2023
Forecast Period	2024-2032
Compound Annual Growth Rate (CAGR)	18.3%
Segment covered	Type, component, vehicle, applications and regions.
Regions Covered	North America:  The U.S. & Canada Latin America: Brazil, Mexico, Argentina, & Rest of Latin America Asia Pacific: China, India, Japan, Australia & New Zealand, ASEAN, & Rest of Asia Pacific Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, & Rest of Europe The Middle East & Africa:  Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA
Fastest Growing Country in Europe	Germany
Largest Market	North America
Key Players	ESCRYPT, Continental AG, Bosch Limited, HARMAN International, DENSO CORPORATION, Aptiv, Karamba Security SafeRide Technologies, ARILOU Automotive Cyber Security, part of NNG Group, Infineon Technologies AG, Argus Cyber Security Ltd., Intel Corporation, Lear Corporation, SBD Automotive Ltd, Honeywell International Inc., Vector Informatik GmbH, NXP Semiconductors, Capgemini and secunet.

Automotive Cyber Security Market Segmentation

By Form

• In-Vehicle
• External Cloud Service

By Component

• Hardware
• Software
• Services

By Vehicle

• Fuel-based Vehicles
• Passenger Cars
• Commercial Vehicles
• Electric Vehicles
• Passenger Cars
• Commercial Vehicles

By Application

• Telematics
• Infotainment Systems
• Powertrain Systems
• ADAS & Safety Systems
• Body Control Systems

By Region

North America

• United States
• Canada

Europe

• Germany
• United Kingdom
• France
• Italy
• Spain
• Russia
• Poland
• Benelux
• Nordic
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• South Korea
• ASEAN
• Australia & New Zealand
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Argentina

Middle East & Africa

• Saudi Arabia
• South Africa
• United Arab Emirates
• Israel
• Rest of MEA