CAGR: 16.7%Current Market Size: USD 1.98 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global automotive cybersecurity market is expected to grow from USD 1.98 billion in 2022 to USD 6.8 billion by 2030, at a CAGR of 16.7% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising demand for electric vehicles.
A key element of automotive cyber security is the protection of connected vehicle systems, including software and communication networks, from tampering of any kind. The complexity of modern vehicles explains the need for automotive cyber security. In the coming years, automotive security solutions are expected to see an increase due to the rapid adoption of technologies like autonomous driving, keyless entry, wireless connectivity, and other similar technologies, as well as the increased electrification of existing fleets via ADAS features. As a condition of approval for new designs, automotive manufacturers and suppliers are increasingly being forced to implement cybersecurity solutions. Many automotive manufacturers and their suppliers are updating their processes and systems in advance of regulations becoming effective. An adaptive cybersecurity technology examines actions and occurrences in order to protect against and stop threats before they occur. Companies can use an adaptive security architecture to enforce proportionally while continuously analyzing risks, giving proportional enforcement. Auto manufacturers often lack adaptive security throughout their operations, making it easier to defend a scattered workforce. By introducing and progressing connected automobiles and reinforcing vehicle data security rules by regulatory bodies, market growth is expected to continue. There are a number of factors limiting the growth of the automotive cybersecurity market, including a lack of standards, poor component integration, which may lead to a cyberattack, and other security issues.
Sample Request: - Global Automotive Cybersecurity Market
Market Dynamics:
Drivers:
The growing demand for connected car technology and cybersecurity standards in government initiatives further influences the market. In addition, the automotive cybersecurity market is positively impacted by the expansion of the automotive sector, the increase in investments, and the increase in disposable income.
Restraints:
In connected cars, there are additional services such as E-calls, multimedia streaming, and remote diagnostics that are changing the entire automotive industry. In the automotive industry, the ecosystem has evolved from static to dynamic, where each actor is responsible for a share of the revenue. The fact that the ecosystem is populated with so many stakeholders makes it difficult to implement a pricing model.
Opportunities:
In addition to the growing sale of electric vehicles worldwide, one of the major factors driving the growth of the automotive cybersecurity market is the fact that electric vehicles are more likely to be attacked by hackers. As the market grows, the demand for personalization and connectedness increases in software. Because connected vehicles are connected to the internet and wireless networks, they are as vulnerable as smartphones and smart appliances.
Challenges:
Market growth is expected to be stymied by the high cost of automotive cybersecurity solutions and the increasing complexity of vehicle electronic systems. Aside from pricing strategy discrepancies among stakeholders and a delay in cybersecurity updates, the automotive smart antenna market is expected to face challenges in the near future.
Segmentation Analysis:
The global automotive cybersecurity market has been segmented based on vehicle type, security, application, and region.
By Vehicle Type
The vehicle type segment includes commercial vehicles and passenger vehicles. The passenger vehicles segment led the largest share of the automotive cybersecurity market with a market share of around 58% in 2022. A growing number of connected automobiles will drive demand for network security via restricted device management in-vehicle terminals, resulting in an increased risk of network interface attacks. Demand for cybersecurity software is increasing in passenger vehicles as government support for autonomous vehicles takes the form of mandatory legislation.
By Security
The security segment includes wireless network security, endpoint security and application security. The wireless network security segment led the largest share of the automotive cybersecurity market with a market share of around 46.7% in 2022. A growing number of cyber security threats have fueled the demand for wireless network security. Also, market growth is expected to accelerate over the projected period as security flaws and data loss are avoided. Over the next few years, the wireless network security industry is also likely to benefit from several firms' increased reliance on wireless networks in order to reduce maintenance costs and increase operating income.
By Application
The application segment includes telematics, communication system, ADAS technology, powertrain system and others. The ADAS technology segment led the largest share of the automotive cybersecurity market with a market share of around 28% in 2022. A combination of sensors, actuators, processors, mapping systems, and different software systems allows cars to be safer, automated and strengthened for safe driving. This has been possible through the use of ADAS technology. One of the reasons ADAS are in high demand is the growing concern for road and traffic safety among individuals and governments alike.
Global Automotive Cybersecurity Market- Sales Analysis.
The sale of automotive cybersecurity expanded at a CAGR of 16.2% from 2016 to 2022.
It is expected that the automotive cybersecurity market will grow due to factors such as an increase in demand for automotive cybersecurity, government efforts to integrate connected car technologies, and the imposition of mandatory cybersecurity requirements. It is anticipated that adaptive security will be used in future years to improve vehicle security, as well as the increasing complexity of automobile electronic systems will continue to increase.
Consumer expectations for customized experiences are transforming the automobile industry and driver preferences. Personalization and connectivity lead to increased software, which increases risk. As with smartphones and smart appliances, connected cars are capable of sharing the internet and wireless network access with other cars and external devices in a similar way.
A downside of connected vehicles is their vulnerability to possible hacking attacks. Due to their added features over conventional vehicles, they are constantly in demand. It is, therefore, necessary to take appropriate security measures to protect the functions of connected cars from manipulation as more and more connected cars appear on the road.
Thus, owing to the aforementioned factors, the global automotive cybersecurity market is expected to grow at a CAGR of 16.7% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the automotive cybersecurity market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the automotive cybersecurity market and held a 38.3% share of the market revenue in 2022.
Global Automotive Cybersecurity Market - Country Analysis:
Germany's automotive cybersecurity market size was valued at USD 0.14 billion in 2022 and is expected to reach USD 0.48 billion by 2030, at a CAGR of 16.8% from 2023 to 2030.
On account of its presence of prominent automobile manufacturers, such as Porsche, Audi, Ford, Mercedes-Benz, etc., Germany led the European market in 2018. Moreover, as cloud-based applications become more prevalent in the automotive industry, market players will have profitable opportunities in the Projection period. The introduction of wireless battery management systems for electric vehicles will also contribute to the growth of the automotive cybersecurity market.
China’s automotive cybersecurity market size was valued at USD 0.15 billion in 2022 and is expected to reach USD 0.52 billion by 2030, at a CAGR of 17% from 2023 to 2030.
The country's auto industry has been boosted even more by the growing demand for connected and semi-autonomous vehicles, as well as significant investments by manufacturers in cybersecurity solutions. Additionally, the threat of cyberattacks is on the rise exponentially, which calls for the development of advanced automotive cyber security systems in the future.
India's automotive cybersecurity market size was valued at USD 0.11 billion in 2022 and is expected to reach USD 0.38 billion by 2030, at a CAGR of 16.9% from 2023 to 2030.
Technology advancements in the automotive industry that utilize Battery Management Systems and sensors are leading to an increasingly viable cybersecurity solution. Therefore, technological advancements in autonomous and semi-autonomous vehicles raise the need for automotive cybersecurity policies, resulting in an increase in data volume and a growth in networking capabilities.
Key Industry Players Analysis:
To increase their market position in the global automotive cybersecurity market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
16.7% |
Market Size |
1.98 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Vehicle Type, By Security, By Application, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Capgemini, Intel Corporation, Argus Cyber Security Ltd., Lear Corporation, ESCRYPT, HARMAN International, Aptiv, SafeRide Technologies, GUARDKNOX, Bosch Limited, and DENSO CORPORATION. |
By Vehicle Type |
|
By Security |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Automotive Cybersecurity Market by Vehicle Type:
Global Automotive Cybersecurity Market by Security:
Global Automotive Cybersecurity Market by Application:
Global Automotive Cybersecurity Market by Region:
Global automotive cybersecurity market is expected to reach USD 6.8 billion by 2030, at a CAGR of 16.7% from 2023 to 2030.
Rising government initiatives and increasing sales of electric vehicles.
North American region will witness more growth in the automotive cybersecurity market.
Based on the vehicle type, the automotive cybersecurity market is segmented into passenger vehicles and commercial vehicles.
Leading players in the automotive cybersecurity market are Capgemini, Intel Corporation, Argus Cyber Security Ltd., Lear Corporation, ESCRYPT, HARMAN International, Aptiv, SafeRide Technologies, GUARDKNOX, Bosch Limited, DENSO CORPORATION among others.
Political Factors- Pressure organisations can influence the corporate environment by forming powerful media coalitions. These organisations are put under pressure by these groups, which organise protests and prepare marketing campaigns. These pressure groups have the ability to influence government legislation, which can have an impact on the general business climate, so the automotive cybersecurity market should keep a watch on them. The automotive cybersecurity market should collaborate closely with these organisations in order to gain their trust. It should also invest in ethical and philanthropic projects in order to strengthen ties with the community.
Economic Factors- The skills and knowledge of the personnel have a significant impact on the success of the automotive cybersecurity company. If the automotive cybersecurity market is to remain competitive, skilled personnel must constantly be accessible. To understand how to successfully engage individuals with the necessary skill set, the automotive cybersecurity industry should evaluate changes in labour demand and supply. As a result of a tight labour market and strong worker unions, the automotive cybersecurity market firm may confront a number of challenges. It may, for example, exert pressure on the automotive cybersecurity market to accept an exorbitant pay increase, or it could halt output by launching a strike.
Social Factors- When the automotive cybersecurity industry's products/services are largely aimed at young consumers, there are two positive demographic indicators: rapid population growth and a growing proportion of the young population group. Understanding how the host country sees immigration is critical for the automotive cybersecurity industry since it informs whether or not diversity management strategies are required if immigrants from various cultural backgrounds are welcomed. To encourage inclusiveness and diversity, the automotive cybersecurity industry's marketing strategies should be revised. A positive outlook on migration also demonstrates how simple it is for enterprises in the automotive cybersecurity sector to hire people from varied cultural backgrounds.
Technological Factors-These countries should be prioritised in the market for industrial and institutional cleaning chemicals because they make it easier for firms to pursue goals such as cost reduction, innovation, and value creation. A solid technological base also indicates that it will be more difficult for the automotive cybersecurity sector to leverage technology to develop a long-term competitive advantage because it may be easy for competitors to duplicate. By making the right technology investments, the automotive cybersecurity sector may increase customer satisfaction, increase operational efficiency, and distinguish itself as an innovative firm.
Environmental Factors- Businesses are under pressure to reduce their environmental impact as a result of stringent environmental legislation in a variety of countries. In response, the automotive cybersecurity market should adopt ethical production methods, encourage ethical consumption among its target market, work to improve its brand's sustainability reputation, and ensure full compliance with local and international environmental laws, or face harsh, reputation-damaging criticism from relevant stakeholders.
Legal Factors- Employment law protects workers' rights, including the right to a fair wage, equality, equity, inclusion, fairness, and physical and psychological safety. While some countries fail to properly enforce employment laws, others impose severe penalties for breaking any of the listed employee rights. Before entering or operating in such countries, the automotive cybersecurity market should investigate the safety of the working environment. To prevent both direct and indirect discrimination, the proper mechanisms must be in place. Employer brand recognition in the automotive cybersecurity business can be improved by effective adherence to employment rules, which is required for attracting and retaining top talent in the market.
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