Vehicle-to-Everything (V2X) Cybersecurity Market Size - By Component (Software, Services), By Vehicle (Passenger Cars, Commercial Vehicles), By Communication, By Security & Forecast, 2024 – 2032

Vehicle-to-Everything Cybersecurity Market Size

Vehicle-to-Everything (V2X) Cybersecurity Market size was valued at USD 1.2 billion in 2023 and is estimated to register a CAGR of over 12.3% between 2024 and 2032. The increasing adoption of connected vehicles has significantly fueled the volume of data exchanged between vehicles and external systems. For instance, in December 2023, the European Commission projected that each connected vehicle is expected to generate approximately 100 gigabytes of data per hour. This data includes information from sensors, navigation systems, vehicle-to-vehicle (V2V), and vehicle-to-infrastructure (V2I) communications.
 

The enhanced connectivity improves driving safety and convenience but also escalates the risk of cyber-attacks. Implementing robust cybersecurity measures are crucial to protect this data from unauthorized access and to ensure secure communication channels among vehicles, infrastructure, and cloud services. Effective cybersecurity protocols are essential to prevent potential threats such as data breaches, spoofing attacks, and unauthorized control over vehicle systems, thereby maintaining the integrity and safety of the vehicle network.  
 

Furthermore, governments and regulatory bodies globally are enforcing stringent standards to ensure the cybersecurity of connected vehicles. Automotive manufacturers and technology providers must comply with these regulations. For instance, the EU's GDPR and the U.S. NIST guidelines specify clear requirements for data protection and privacy. Adhering to these standards is essential to avoid legal penalties, maintain market trust, and ensure cybersecurity measures meet industry standards.
 

V2X systems integrate various manufacturers, technologies, and standards. The primary challenge is ensuring interoperability across these diverse systems and components while maintaining robust security measures. Without standardized security protocols, manufacturers may implement different measures, leading to gaps and inconsistencies. This lack of uniformity creates vulnerabilities and complicates the process of securing the entire network. Establishing comprehensive standards and protocols is essential but challenging due to the differing interests and technologies involved.
 

Vehicle-to-Everything Cybersecurity Market Trends

V2X (Vehicle-to-Everything) communication systems necessitate stringent security measures to ensure data integrity and privacy. Advanced encryption techniques, such as quantum-resistant cryptography, are being integrated to protect data transmitted between vehicles and infrastructure. For instance, In July 2022, NIST approved PQSquare Technologies' quantum-resistant cryptographic solutions for key sharing and authentication. These encryption methods prevent eavesdropping and data tampering. Additionally, multi-factor authentication protocols are being deployed to verify the identities of devices and users within the network. This ensures that only authorized entities can access and transmit data, thereby reducing the risk of malicious attacks.
 

V2X systems require regular software updates to address vulnerabilities and enhance functionality. Developers are creating secure over-the-air (OTA) update mechanisms to ensure these updates are delivered safely and efficiently. These mechanisms use cryptographic techniques to verify the authenticity and integrity of update packages, preventing malicious entities from injecting harmful code. By enabling secure updates for all devices in the V2X network, OTA updates maintain robust security without necessitating physical access to each device.
 

Vehicle-to-Everything Cybersecurity Market Analysis

Based on component, the market is divided into software and services. In 2023, software accounted for a market share of over 63%. The increasing trend of connected vehicles, which communicate with other vehicles (V2V), infrastructure (V2I), pedestrians (V2P), and networks (V2N), necessitates robust cybersecurity measures. As vehicles become more interconnected, the risk of cyber threats rises, driving the need for sophisticated software solutions to protect these communications. V2X cybersecurity software ensures secure data transmission, safeguarding against potential attacks that could compromise vehicle safety and functionality.
 

Further, as the automotive industry advances towards higher levels of connectivity, the demand for secure communication protocols, encryption, and authentication mechanisms are growing? in the market. Moreover, automakers and suppliers must comply with regulations such as the UNECE WP.29 cybersecurity guidelines and the ISO/SAE 21434 standard. These mandates drive the adoption of cybersecurity software to ensure compliance and avoid legal repercussions. Regulatory requirements compel manufacturers to integrate comprehensive security measures into their V2X systems, fostering the development and deployment of advanced cybersecurity software solutions.
 

Based on the vehicle, the V2X cybersecurity market is categorized into passenger cars and commercial vehicles. Passenger cars are expected to hold over USD 2.1 billion by 2032. The increasing affordability of these vehicles is driving demand and boosting the segment's growth. According to the International Organization of Motor Vehicle Manufacturers, global passenger car production reached 67.1 million units in December 2023.
 

Moreover, enhanced safety features drive the demand for V2X cybersecurity in passenger cars. V2X communication allows vehicles to exchange critical information, such as traffic conditions, road hazards, and the actions of other vehicles. Securing these communications is essential to prevent cyber-attacks that could cause accidents or malfunctions. Implementing robust cybersecurity measures ensure the integrity and confidentiality of data, enabling reliable safety systems to respond in real-time to potential dangers. This reduces the risk of collisions and enhances overall road safety.
 

North America has a significant share of the vehicle-to-everything cybersecurity market with around 35% in 2023, driven by advancements in technology and increasing demand for efficient automotive solutions. Collaboration between the public and private sectors are strengthening the cybersecurity ecosystem. Initiatives such as the Department of Transportation's Connected Vehicle Pilot Program promote partnerships focused on developing and implementing secure V2X communication technologies. These collaborations facilitate the sharing of knowledge, resources, and best practices, thereby enhancing the overall security posture of V2X systems in North America.
 

Moreover, Europe is leading the implementation of Cooperative Intelligent Transport Systems, which depend heavily on secure V2X communication. The European Commission's C-ITS Strategy highlights cybersecurity as a critical component, encouraging the development and deployment of secure V2X technologies. This focus drives the demand for advanced cybersecurity solutions to protect the integrity and reliability of C-ITS applications.
 

Furthermore, in the Asia Pacific region, rapid urbanization and the development of smart cities are major drivers for V2X cybersecurity. Countries such as China, Japan, and South Korea are investing heavily in smart transportation infrastructure, including secure V2X communication systems. Integrating cybersecurity measures in these initiatives is essential to protect critical infrastructure and ensure the safety of urban mobility solutions.
 

Vehicle-to-Everything Cybersecurity Market Share

Herman International and Bosch Mobility dominate the market with around 14% market share in 2023. Herman International offers advanced threat detection systems that utilize artificial intelligence and machine learning to monitor V2X communication networks in real-time. These systems detect anomalies, alert operators to potential security breaches, and enable swift risk mitigation.
 

Bosch provides comprehensive V2X communication platforms with integrated security features. These platforms ensure secure data exchange between vehicles, infrastructure, and other entities. Bosch's solutions include encryption, secure messaging, and authentication to protect against cyber threats. Additionally, the company offers cybersecurity management solutions with monitoring, detection, and response capabilities. These solutions use advanced technologies to continuously monitor V2X networks, detect potential threats, and respond to incidents to prevent or minimize damage.
 

Vehicle-to-Everything Cybersecurity Market Companies

Major players operating in the vehicle-to-everything (V2X) cybersecurity industry are:

• ETAS
• Bosch Mobility
• Blackberry Ltd.
• Continental AG
• Qualcomm
• Herman International (Samsung Electronics Company)
• Autotalks
   

Vehicle-to-Everything Cybersecurity Industry News

• In April 2024, Autotalks partnered with Secure-IC to develop a V2X communication chipset. Autotalks strategically licensed Secure-IC’s Securyzr IP and integrated it into its chipsets. This integration was further enhanced by Autotalks' V2X Security firmware, leveraging the hardware to create a state-of-the-art, certifiable V2X Hardware Security Module.
   
• In September 2023, Qualcomm Technologies, Inc. partnered with JLR to integrate 5G capabilities into select next-generation JLR vehicles, including the Range Rover, Defender, Discovery, and Jaguar brands. Utilizing Qualcomm's Snapdragon Auto 5G Modem-RF, JLR aims to deliver modern luxury in-vehicle experiences through efficient and seamless connectivity.
   

The vehicle-to-everything (V2X) cybersecurity market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD) from 2021 to 2032, for the following segments:

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Market, By Component

• Software
• Services
  • Professional services
  • Managed services

Market, By Vehicle

• Passenger cars
• Commercial vehicles
  • Light commercial vehicles
  • Heavy commercial vehicles

Market, By Communication

• Vehicle-to-vehicle
• Vehicle-to-infrastructure
• Vehicle-to-pedestrian
• Vehicle-to-network

Market, By Security

• Network security
• Endpoint security
• Application security
• Cloud security

The above information is provided for the following regions and countries:

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