Automotive Cyber Security Market

Automotive Cyber Security Market Outlook (2024 to 2034)

Valuation of the global automotive cyber security market size is expected to reach US$ 2.54 billion in 2024 and further climb to US$ 15.13 billion by the end of 2034. The market has been thoroughly analyzed and is projected to expand at 19.5% CAGR from 2024 to 2034, according to a new research study by Fact.MR, a marketing intelligence provider.

Automotive cybersecurity solutions play a critical role in protecting communications among cars, connected devices, and the cloud, as well as securing the vehicle's internal software. This ensures overall automotive data security and prevents hackers from gaining control of the vehicle.

Introduction of vehicle-to-vehicle (V2X) communication, allowing vehicles to interact with infrastructure and each other, widens the potential for cyber threats. Therefore, ensuring the security of communication systems is vital for the safe operation of connected cars, thereby driving the automotive cyber security market growth.

Key Market Growth Drivers

• With cars becoming more interconnected, there is a rising demand for cybersecurity to protect critical data and systems from cyberattacks.
• Increasing development and deployment of autonomous and semi-autonomous vehicles are crucial drivers in the growth of the automotive cybersecurity market, necessitating robust defenses against malicious attacks.
• Governments worldwide are enacting stringent regulations in the automotive sector to ensure security, boosting the adoption of automotive cybersecurity systems.
• Deployment of automotive cybersecurity solutions is increasing due to their ability to provide real-time threat detection and response using artificial intelligence and machine learning.
• Need for robust cybersecurity measures to defend against vulnerabilities and attacks is amplified by the growing popularity of electric vehicles, which heavily rely on software and networking for operation.
• Automotive manufacturers, tech firms, and cybersecurity companies are collaborating to enhance their industry presence and develop robust systems, marking a significant automotive cyber security market trend.
• Automotive manufacturers are prioritizing the integration of cybersecurity systems into vehicles, driven by the substantial financial risks posed by cyberattacks on vehicles.

Report Attribute	Detail
Automotive Cyber Security Market Size (2024E)	US$ 2.54 Billion
Forecasted Market Value (2034F)	US$ 15.13 Billion
Global Market Growth Rate (2024 to 2034)	19.5% CAGR
North America Market Value (2024E)	US$ 857.2 Million
East Asia Market Growth Rate (2024 to 2034)	20.7% CAGR
Services Segment Value (2034F)	US$ 5.64 Billion
Telematics Segment Value (2034F)	US$ 3.65 Billion
Key Companies Profiled	Harman International; Karamba Security; Robert Bosch GmbH; Continental AG; NXP Semiconductors N.V.; Honeywell International, Inc.; Secunet AG; Intel Corporation; Cisco Systems Inc.; Tata Elxsi; Argus Cyber Security; AutoCrypt.

Why is Requirement for Automotive Cyber Security Systems Rising So Fast?

“Rapidly Increasing Integration of Wi-Fi, Bluetooth, GPS, and IoT in Vehicles”

Integration of Wi-Fi, Bluetooth, GPS, and IoT devices, along with other technologies, is increasing vehicle connectivity and converting current cars into intricately linked systems. Convenience, navigation, and entertainment are all improved by this connectedness, but the potential of cyberattacks is also greatly increased. Hackers use these connections to obtain illegal access to car systems, possibly risking vital operations such as engine control, braking, and steering. Because of these, demand for strong automotive cyber security solutions is becoming important to keep private information safe from unwanted attacks, guaranteeing the dependability and safety of connected cars.

What is the Key Challenge Faced by Automotive Cyber Security Providers?

“Complexity of Technical Systems and Continuously Evolving Nature of Cyberattacks”

Leading players in the market encounter challenges stemming from the complexity of modern vehicle systems, including interconnected electronic control units (ECUs) and sophisticated software. Cyberattacks typically exploit vulnerabilities in these ECUs and software components. Safeguarding this intricate network demands extensive technological know-how, advanced tools, and substantial financial investments.

The task is further complicated by evolving cyber threat landscapes, necessitating proactive threat detection, regular updates, and continuous monitoring to uphold the security and reliability of these complex automotive systems. All of these factors are contributing to the expansion of the automotive cyber security market size.

Country-wise Insights

The North American region is poised to hold 33.7% of the worldwide automotive cyber security market share in 2024 and by 2034 the region is projected to account for 36.2%. The presence of some leading market players in the region and the well-established automobile sector drive demand for automotive cyber security systems.

What is the Demand Outlook for Automotive Cyber Security Solutions in the United States?

“Continuous Automotive Innovations and Strict Regulations Governing Car Cybersecurity”

Attribute	United States
Market Value (2024E)	US$ 626.6 Million
Growth Rate (2024 to 2034)	20.3% CAGR
Projected Value (2034F)	US$ 3.98 Billion

The United States is known for its well-established automotive sector, which continually innovates, offering lucrative growth opportunities for automotive cybersecurity. To enhance car cybersecurity, the United States government has implemented stringent regulations. A key driver of market expansion in the country is the initiatives led by the Cybersecurity and Infrastructure Security Agency (CISA) and the National Highway Traffic Safety Administration (NHTSA). These regulations aim to ensure automakers employ robust cybersecurity measures to protect vehicles from potential cyber threats.

What is Behind High Adoption of Cyber Security Systems in South Korea?

“High Adoption of Connected Car Technology”

Attribute	South Korea
Market Value (2024E)	US$ 67.7 Million
Growth Rate (2024 to 2034)	20.4% CAGR
Projected Value (2034F)	US$ 433.8 Million

In the East Asia region, South Korea is poised to hold 11% revenue share in 2024. The rising adoption of connected car technology is mostly being driven by South Korea’s strong connectivity and widespread 5G network coverage. However, these automotive technologies require cybersecurity systems to tackle malicious attacks. The rising connectivity of vehicles with technologies is increasing the attack surface for online dangers including malware, illegal access, and data breaches.

Category-wise Insights

Based on vehicle type, the market is segmented into fuel-based vehicles and electric vehicles. Even though the adoption of electric vehicles is increasing at a significant pace globally, fuel-based vehicles still dominate the market. Due to this, the fuel-based vehicle segment holds a significant market share.

Which Component-based Segment Accounts for a Significant Market Share?

“Increasing Complexity of Automobile Technologies Pushing Demand for Cyber Security Services”

Attribute	Services
Segment Value (2024E)	US$ 1.05 Billion
Growth Rate (2024 to 2034)	21% CAGR
Projected Value (2034F)	US$ 5.64 Billion

Increasing complexity of the latest vehicles interconnected systems and other technical devices are key factors that boosting demand for services in the market for automotive cyber security. With the implementation of more complex electronics, networking features, and autonomous driving capabilities the need for cyber security systems increasing for vehicle protection against malicious threats.

Because automotive manufacturers and suppliers sometimes lack the technical knowledge necessary to handle these security issues internally, they commonly contract out cybersecurity services. Risk analyses, security testing, incident response strategies, and ongoing monitoring are included in these services.

Why are Automotive Cyber Security Systems Extensively Used in Telematics?

“Solutions Facilitating Handling of Private Data in Telematics”

Attribute	Telematics
Segment Value (2024E)	US$ 638.4 Million
Growth Rate (2024 to 2034)	20.6% CAGR
Projected Value (2034F)	US$ 3.65 Billion

Role of automotive cyber security solutions is particularly critical in telematics systems, which transmit sensitive data over wireless networks. Telematics technologies facilitate communication between vehicles and external systems like remote diagnostics, fleet management platforms, and navigation services, relying on connectivity to gather and transmit data on driver behavior, vehicle performance, and location details.

Because telematics involves handling private data, there is a growing adoption of automotive cybersecurity systems. These systems are essential to safeguard against unauthorized access, data breaches, and manipulation of crucial vehicle information.

Competitive Landscape

Key players in the automotive cyber security market are focusing on models such as providing advisory services on risk assessment, incident response, compliance, and others. Also, some players are launching subscription and maintenance premium packages to generate more revenue. These subscription plans involved software upgrades, maintenance services, and 24*7 support.

• In June 2024, a leading expert in automotive cyber security globally, Argus Cyber Security, revealed that it was working with Microsoft to develop an advanced, end-to-end platform for mobility and automotive security. This Argus Vehicle Security Platform is made up of two integrated solutions that combine the automotive cybersecurity expertise of Argus with powerful software development and security technologies from Microsoft, one of the most innovative technology firms in the world and a pioneer in the field of artificial intelligence.
• In February 2024, the automotive cybersecurity and smart mobility technology company AutoCrypt introduced AutoCrypt CSTP, a comprehensive cybersecurity testing platform that complies with SAC's GB and GB/T standards as well as UNECE's Regulations 155/156. Its purpose is to enable integrated cybersecurity testing for vehicle-type approval.
• In October 2023, one of the top providers of design and technology services worldwide, Tata Elxsi, stated that it would be working in tandem with the Indian Institute of Science (IISc) to develop an automotive cyber security solution within the parameters of an existing Memorandum of Understanding (MoU).

Fact.MR provides detailed information about the price points of key companies in the automotive cyber security market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Automotive Cyber Security Market Research

• By Component :

  • Hardware
    • Hardware Security Modules (HSMs)
    • Secure Vehicle Network Gateways
    • Trusted Platform Modules (TPMs)
  • Software
    • Embedded Firewalls
    • Encryption & Cryptography
    • Biometrics & Authentication
  • Services
    • Professional Services
      • Security Consulting & Risk Assessment
      • Integration & Deployment
      • Support & Maintenance
    • Managed Services

• By Application :

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

• By Vehicle :

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

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa