Automotive Cybersecurity Market Size - By Security Type (Application Security, Network Security, Endpoint Security), Form (In-vehicle Cybersecurity, External Cloud Cybersecurity), Vehicle Type, Application & Global Forecast, 2023 - 2032

Automotive Cybersecurity Market Size

Automotive Cybersecurity Market size was valued at USD 2.9 billion in 2022 and is estimated to register a CAGR of over 14% between 2023 and 2032. Automotive manufacturers are partnering with cybersecurity firms, technology companies, and research institutions to develop comprehensive solutions. Collaboration enables the integration of cybersecurity measures throughout the vehicle's lifecycle, i.e., from design to production to maintenance.
 

For instance, in January 2023, Valeo and C2A Security collaborated to improve software- defined vehicle cybersecurity. Through this partnership, Valeo is able tocan improve the cybersecurity management of its products, give its clients more assurance, and transform cybersecurity into a true business enabler.

The automotive industry is becoming more digitally connected with the rise of connected vehicles, autonomous driving, and vehicle-to-vehicle (V2V) communication. This increased connectivity creates a larger attack surface for cyber threats, driving the automotive cybersecurity market demand.
 

Amid the rapid evolution of automotive cybersecurity, a potential pitfall lies in the asymmetry between cyber attackers' agility and the automotive industry's ability to respond. As vehicles become more connected and autonomous, complex vulnerabilities emerge, challenging the industry's capacity to rapidly identify, patch & mitigate new threats. This pitfall highlights the risk of a time gap between threat discovery and effective countermeasures, leaving vehicles exposed to potential breaches. Without a concerted effort to enhance real-time threat detection, agile response mechanisms & proactive vulnerability management, the industry will face challenges in safeguarding vehicles against ever-evolving cyber threats.
 

COVID-19 Impact

The automotive cyber security market was among the hardest hit sectors by COVID-19 as autonomous vehicle sales dipped considerably owing to physical limitations, broken supply chains, and economic slowdowns. However, lately, efforts in electrification and digitization have revolutionized industry trends. Furthermore, the growing adoption of cloud-based applications coupled with the shifting consumer preference toward the mobility ecosystem will strengthen the industry outlook.
 

Automotive Cybersecurity Market Trends

An emerging trend in the automotive cybersecurity industry is the increasing adoption of bug bounty programs by automakers. Bug bounty programs invite ethical hackers and cybersecurity experts to identify vulnerabilities in vehicle software systems and report them for a reward. This proactive approach leverages the collective expertise of the cybersecurity community to identify and address potential threats before they can be exploited maliciously. The trend highlights a collaborative shift in the industry, fostering a culture of transparency, continuous improvement, and swift response to emerging cyber threats, ultimately enhancing the security posture of connected vehicles.
 

Automotive Cybersecurity Market Analysis

The passenger vehicle segment accounted for 60% of the automotive cybersecurity market share in 2022. The increasing integration of advanced connected features in passenger vehicles, such as infotainment systems, passenger vehicle telematics, and autonomous capabilities, is driving the demand for robust automotive cybersecurity solutions. Protecting sensitive data and ensuring the safety of passengers & vehicle systems fuel the market growth.
 

For instance, in April 2023, Hyundai Motor Group and Aptiv announced a USD 4 billion joint venture, Motional, to develop autonomous driving technology. Similarly, in March 2023, Toyota invested USD 500 million in Pony.ai, a Chinese company developing self-driving technology for use in both taxis and cars. As autonomous vehicles improve, forging partnerships to fortify cybersecurity measures becomes instrumental in addressing emerging threats and fostering trust in the transformative landscape of self-driving vehicles.
 

The in-vehicle cybersecurity segment held over 68% of the automotive cybersecurity market share in 2022, due to the rapid proliferation of connected vehicles. With vehicles becoming digital hubs, safeguarding sensitive data and ensuring real-time protection against cyber threats will drive the in-vehicle cybersecurity segment growth.
 

North America automotive cybersecurity market size dominated around USD 1 billion in 2022. The market experiences a unique growth driver through the convergence of stringent autonomous vehicle regulations and the imperative for robust security. As the region witnesses accelerated testing and deployment of autonomous vehicles, regulatory bodies mandate rigorous cybersecurity protocols to ensure public safety & data protection. This alignment creates a niche for specialized cybersecurity solutions that cater to both compliance and advanced threat mitigation, offering a competitive edge to companies capable of seamlessly integrating regulatory compliance with cutting-edge security measures in the dynamic landscape of autonomous mobility.
 

Automotive Cybersecurity Market Share

Major companies involved in the automotive cybersecurity market are:

• AT&T
• Cisco Systems Inc
•  Continental AG
•  Denso Corporation
•  Intel Corporation
• Robert Bosch GmbH
• Harman International
• Microsoft Corporation
   

Automotive Cybersecurity Industry News:

• In June 2023, BlackBerry Limited partnered with automotive cybersecurity platform, Upstream Security to help automakers improve the security posture of their vehicles. Through this partnership, OEMs can utilize & pre-process data at the vehicle's edge, thereby providing a wide range of useful insights in real-time, maintaining cybersecurity compliance, and reducing cloud connectivity costs by combining Upstream's V-XDR platform with BlackBerry IVY.
   
• In September 2021, LG Electronics acquired Cybellum to enhance its cybersecurity capabilities. The company's Cyber Digital Twins platform can access the source code and build a comprehensive picture of a vehicle's software components & instantly flag any vulnerabilities that might be exploited. The software scans for vulnerabilities using a real-time threat intelligence feed and then provides a comprehensive assessment of those vulnerabilities along with fixes.
   

This automotive cybersecurity market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Security Type

• Application Security
• Network Security
• Endpoint Security

Market, By Form

• In-vehicle Cybersecurity
• External Cloud Cybersecurity

Market, By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

Market, By Application

• ADAS & Safety
• Body Control & Comfort
• Infotainment
• Telematics
• Powertrain Systems
• Communication System

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Netherlands
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia