Automotive Cybersecurity Market Analysis

Automotive Cybersecurity Market Analysis

Based on the security, the market is segmented into application, network, and endpoint security. The application segment accounted for over 45% of the market share in 2024 and is expected to exceed USD 4.5 billion by 2034. As vehicles increasingly depend on external APIs for various services, the focus on API security measures has intensified. Key measures include robust authentication protocols, rate limiting, and encryption for all API communications. Automotive companies are developing specialized API gateways to monitor and control access to vehicle systems, preventing unauthorized data exposure and protecting against API-based attacks.
 

For instance, in May 2024, VicOne announced a partnership with 42Crunch to enhance API security for software-defined vehicles (SDVs) and the connected-vehicle ecosystem. This collaboration enables automotive OEMs and suppliers to benefit from faster and more accurate detection of the latest OWASP Top 10 API security vulnerabilities during development, and quicker identification of potential threats at application runtime. This trend highlights the necessity of securing the growing number of third-party integrations in modern vehicles.  
 

Based on form, the automotive cybersecurity market is divided into in-vehicle cybersecurity and external cloud cybersecurity. The in-vehicle cybersecurity segment is expected to exceed USD 7 billion by 2034, due to several key factors. The integration of dedicated HSMs in vehicles is becoming standard practice. These modules provide a secure environment for cryptographic operations, key storage, and sensitive data processing.
 

HSMs act as trust anchors in vehicles, protecting critical functions from cyber-attacks and ensuring secure communication between various vehicle components. The trend is driven by the need for robust key management systems and the increasing complexity of in-vehicle networks. Manufacturers are developing more sophisticated HSMs with enhanced processing capabilities and stronger encryption algorithms.
 

Vehicle manufacturers are incorporating advanced AI-based intrusion detection systems to monitor and protect in-vehicle networks. These systems use machine learning algorithms to establish baseline vehicle behavior patterns and detect anomalies that might indicate cyber-attacks. The trend involves developing more sophisticated detection mechanisms that can identify both known and unknown threats while minimizing false positives.
 

The U.S. automotive cybersecurity market accounted for 80% of the revenue share in 2024. The U.S. automotive industry faces increasing regulatory pressure to enhance cybersecurity measures. The National Highway Traffic Safety Administration (NHTSA) and other regulatory bodies are introducing mandatory guidelines, driving the adoption of comprehensive automotive cybersecurity solutions. Compliance is crucial for manufacturers to avoid penalties and maintain market access.
 

In Europe, the growing adoption of electric vehicles (EVs) has heightened the focus on securing charging infrastructure and connected components. Automakers and charging network providers are investing in advanced cybersecurity measures to protect EV systems and the energy management ecosystem. The European Union's General Data Protection Regulation (GDPR) has raised data privacy and security standards, compelling automakers to ensure compliance and avoid hefty fines.
 

In the Asia Pacific region, the rapid expansion of autonomous driving technologies is increasing the demand for comprehensive automotive cybersecurity solutions. Automakers and technology companies are collaborating to develop secure autonomous vehicle systems that can withstand cyber threats and ensure passenger safety.