Automotive Cyber Security Market Size, Share, Growth, and Industry Analysis, By Type (Software-based, Hardware-based, Network & Cloud and Security Services & Frameworks), By Application (ADAS & Safety, Body control & comfort, Infotainment, Telematics, Powertrain, Communication system), By Form (Passenger cars, Commercial Vehicles, Electrical Vehicle), By Security (Application security, Network security and Endpoint security), Regional Insights, and Fo

Updated On: 22 April 2024

Automotive Cyber Security market REPORT OVERVIEW

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The global Automotive Cyber Security market size was valued at USD 570.7 million in 2020 and is expected to reach USD 29150 million by 2027, at CAGR of 75.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the Automotive Cyber Security market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Automotive Cyber Security is dedicated software crafted to shield vital car data from potential cyber intrusions. The demand for this technology is intricately linked with demographic factors and overall economic well-being. The profitability of companies in this sector hinges on their adeptness at accurate bidding, securing contracts, and proficient cost management.

In this industry, the size of a company significantly influences its operations. Larger enterprises leverage economies of scale, particularly in financing, and have the capacity to offer a wide spectrum of services across multiple locations. Conversely, smaller firms can compete effectively by carving out niches in specific services or concentrating their efforts on distinct geographic areas. This diversity of approaches underscores the dynamic nature of the automotive cyber security sector.

COVID-19 Impact: Dual Impact on Automotive Cyber Security Market

The impact of COVID-19 on the Automotive Cyber Security market is mixed, encompassing both positive and negative aspects. The pandemic heightened awareness of digital vulnerabilities within the automotive sector, emphasizing the critical need for robust cyber security measures. This development is a positive outcome, highlighting the imperative of safeguarding automotive systems against cyber threats. However, disruptions in production and supply chains prompted some companies to redirect resources away from cyber security initiatives, temporarily shifting focus towards more immediate challenges. This aspect introduces a negative impact, potentially weakening the prioritization of cyber security measures. Overall, the pandemic underscored the importance of cyber security while introducing challenges that influenced its implementation within the automotive industry.

LATEST TRENDS

"Innovations Driving the Automotive Cyber Security Market"

The Automotive Cyber Security market includes a constant evolution. With the surge in in-vehicle connectivity and IoT (Internet of Things) integration, safeguarding interconnected systems has become important. Concerns about securing autonomous vehicle technologies are on the rise. Machine learning and AI-powered solutions are employed for real-time threat detection. Regulatory frameworks and compliance standards are shaping the industry, while collaborations and partnerships between automotive and cyber security firms are driving comprehensive solutions. Blockchain is explored for tamper-proof communication. Information sharing, zero-trust security, and emphasis on Over-the-Air updates are gaining prominence. Dedicated Security Operation Centers monitor and respond to threats in real-time. These trends collectively reflect the evolving strategies in automotive cyber security.

Automotive Cyber Security market SEGMENTATION

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• By Type

Based on type, the market can be segmented into Software-based, Hardware-based, Network & Cloud and Security Services & Frameworks.

• By Application

Based on application, the market can be divided into ADAS & Safety, Body control & comfort, Infotainment, Telematics, Powertrain, Communication system.

• By Form

Based on form, the market can be divided into Passenger cars, Commercial Vehicles, Electrical Vehicle.

• By Security

Based on security, the market can be divided into Application security, Network security and Endpoint security

DRIVING FACTORS

"High-profile cyber attacks and incidents increase the demand in the market"

The automotive cyber security market has witnessed notable breaches, such as vehicle hijacking incidents, emphasizing the pressing need for robust and advanced cyber security measures. These prominent events serve as stark reminders of the industry's susceptibility to cyber threats and the critical necessity for thorough security protocols. It is imperative for automotive companies to invest in cutting-edge cyber security markets to fortify their systems and protect against potential attacks. This heightened vigilance is essential in safeguarding not only sensitive data but also the safety and integrity of vehicles and their passengers, thereby ensuring a resilient and secure automotive ecosystem in an increasingly interconnected digital landscape.

"Regulatory mandates, consumer vigilance, and industry cooperation intersect for the market growth"

The automotive industry is experiencing a confluence of factors propelling the advancement of cyber security measures. Stringent governmental regulations, coupled with heightened consumer awareness of cyber threats, are catalyzing a transformative shift. Moreover, collaborative endeavours among automotive manufacturers, cyber security firms, and technology providers are fostering the creation and deployment of comprehensive security solutions. This synergy of regulatory mandates, consumer vigilance, and industry cooperation underscores the importance of automotive cyber security market growth. It signifies a collective endeavour to fortify the digital resilience of vehicles, protect sensitive data, and ensure the safety and trust of both manufacturers and consumers in an era where technology and transportation intersect at an unprecedented pace.

RESTRAINING FACTORS

"Budget Constraints Pose Challenges for Smaller Automotive Entities, Leading to a Market Slowdown"

Cost constraints pose a significant challenge, particularly for smaller automotive entities with limited financial resources. The rapid evolution of technology introduces complexities, as staying ahead of emerging threats requires constant adaptation. Legacy systems in older vehicles may lack the robust security features of newer models, necessitating costly retrofitting or upgrades. Ensuring interoperability between diverse vehicle systems can lead to compatibility issues. Some consumers may resist software updates, leaving their vehicles vulnerable. Balancing connectivity with security remains an ongoing struggle for manufacturers. Additionally, the global nature of automotive supply chains introduces potential security risks. Navigating the intricate and evolving regulatory landscape adds another layer of complexity. The lack of standardized cyber security protocols across the industry can result in varying levels of protection. Lastly, a shortage of skilled cyber security professionals further hinders comprehensive defence strategies and may be a hindrance to market growth.

Automotive Cyber Security market REGIONAL INSIGHTS

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"North America leading the global automotive cyber security market shares"

North America has emerged as the dominating region in the automotive cyber security market share due to obvious factors attributing to the concentration of global tech giants in the region, propelling cyber security innovations and investments. The heightened adoption of connected and autonomous vehicles in North America has created a surge in demand for robust cyber security measures. Rigorous government mandates and industry benchmarks reinforce the need for cyber security protocols in vehicles, further propelling the market. Moreover, the region boasts a well-established automotive infrastructure, a mature cyber security ecosystem, and an unwavering commitment to consumer safety and privacy. Additionally, North America benefits from a thriving research and development landscape and collaborations between automakers, tech firms, and cyber security entities, fostering continuous progress in the field.

KEY INDUSTRY PLAYERS

"Key Players Creating a Security Wall against Cyber Threats for Market Growth"

The key players in the Automotive Cyber Security Market are the major companies globally. They excel in developing specialized solutions, technologies, and services dedicated to safeguarding vehicles from cyber threats and attacks. With a collective commitment to the automotive industry, these companies stand at the forefront of creating innovative cyber security measures. Their expertise lies in ensuring the safety and security of connected vehicles and autonomous driving systems. Through their efforts, they play a crucial role in shaping the future of automotive technology by establishing robust defences against evolving cyber threats. These companies collectively contribute to fortifying the integrity and reliability of vehicles in an increasingly connected and digitized automotive landscape. Their endeavours underscore the critical importance of cyber security in the automotive sector and exemplify their dedication to advancing the safety and security of modern vehicles.

List of Market Players Profile

• Cisco Systems (U.S.)
• Harman (TowerSec) (U.S.)
• Intel Corporation (U.S.)
• Trillium (U.S.)
• Security Innovation (U.S.)
• Symphony Teleca & Guardtime (U. S. and Estonia)
• SBD Automotive & Ncc Group (U.K.)
• BT Security (U.K.)
• ESCRYPT Embedded Systems (Germany)
• Secunet AG (Germany)
• Utimaco GmbH (Germany)
• Arilou Technologies (Israel)
• Argus (Israel)
• NXP Semiconductors (Netherlands)

REPORT COVERAGE

The report brings together extensive research on the qualitative and quantitative factors affecting the market. It gives an overall macro and micro view of the online reputation service industry. This research profiles a report with extensive studies on the online reputation management services market that describe the firms affecting the forecasting period. Detailed studies also offer a comprehensive analysis by inspecting factors such as segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others.

Furthermore, the post-COVID-19 pandemic’s effect on international market restrictions and a deep understanding of how the industry will recover and strategies are also stated in the report. Finally, the competitive landscape has also been examined in detail to provide clarification of the competitive landscape.