Automotive Cybersecurity Market Snapshot

“The Global Automotive Cybersecurity Market is expected to grow rapidly at a 17.8% CAGR consequently, it will grow from its existing size of from $4.2 billion in 2023 to $14.3 billion by 2030.”

The definition of cybersecurity

For a better understanding of the importance of cybersecurity in the automotive sector to better understand the importance of automotive cybersecurity, it is beneficial to look over the particular requirements specific to the automotive industry and then examine them against the usual cybersecurity concerns that are prevalent across all connected systems and devices.

Since the past few years, the industry of automobiles has been in the midst of technological development. Complex inter-connectable technologies are emerging that both manufacturers and OEMs are adopting in a rapid pace. They include infotainment and entertainment system, advanced driver-assistance systems (ADAS), and various modern electric vehicles.

What is common to all of these systems is their dependence on digital technology in the form of one or an alternative. Sensors, microprocessors and actuators and communication systems each execute their functions using digital methods. Data is digitally recorded, digitized as relayed data, examined, and processed before being distributed among these systems to do efficient work.

Digital systems that are interconnected provide remarkable capabilities that can significantly improve safety and reliability, however they also pose the risk of security. The system is built upon trust. If the code or data is modified or damaged to even a small degree then the ecosystem can be in error or not function all at all. Certain or all parts of the ecosystem may fail to ensure the safety that was intended or, more seriously, even be subverted in order to cause harm.

The entire digital ecosystem needs to be complete, accurate and secure as specified by official industry standards. It must be able be thoroughly questioned for credibility through vetted processes, and it must be possible to confirm that the whole system is safe. These standards are the basis for cybersecurity as the science and art of safeguarding data, devices and networks from malicious access or use.

Cybersecurity affects virtually every kind or digital app in any way. If properly implemented, cyber security guarantees the security, confidentiality and integrity of data that is being safeguarded.

Demand Outlook

Automotive cybersecurity is an application that protects against unauthorised access, damage attacks, as well as other illegal activities that could affect internet-connected vehicles as well as automotive communication systems users, and their data.

Modern automobiles can communicate with the web, which gives greater autonomy, enhanced communications capabilities, as well as mobility sharing capabilities. Automobiles can send information to both their makers and users, despite the fact that this increased connectivity has made them more vulnerable to hackers.

Every modern vehicle has electronic brake accelerator, control engine steering, and security system controls. This makes it possible for hackers to remotely control the vehicle. There can be security issues when connected security systems are used for vehicles.

Additionally cybersecurity solutions to protect data are required by an array of number of rules of the government or regulatory structures. The demand to protect the automotive industry has risen due to the growing demand in the industry for cybersecurity.

Key Takeaway

• Asia Pacific generated the largest market share, which was around 36 percent in 2023.
• North America became the second-largest market between 2023 and 2030.
• According to car type The electronic car (EV) sector is forecast to grow at a rate of 27% between 2023 until 2030.
• Security type: The security of wireless networks was the main focus. over 41% of the revenue share in 2023.
• In terms of security type, the application security was responsible for greater than 33% the revenue share in 2023.
• Through application, the informationtainment segment was responsible for greater than 38% the revenue share in 2023.
• Based on the application this, the ADAS and safety segment is predicted to expand at a rate of 24% between 2023 until 2032.
• In terms of format, the in-vehicle segment was the leading market in 2023.

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Automotive Cybersecurity Market Dynamics

Growth Factors

It is believed that the market for cybersecurity in automotive is growing as a result of the growing demand for car cybersecurity solutions caused by the increase in cyberattacks targeting the automobile industry. Cybercrime is growing and it is expected that the increased awareness of customers of security issues will be a factor in profitable business possibilities.

Therefore, businesses and owners are encouraged to install automobile cybersecurity protections in place to protect themselves from cybercrime, which is the reason why this sector is growing.

The rise of connected vehicles as well as the enforcement of data protection and security laws by regulators are predicted to further fuel market growth.

Growth Drivers

The use of electronics is increasing per vehicle, and growing number of connected vehicles

The weight of cars is reduced due to electrification. This has led to the demand for electronic devices in the automotive industry has increased dramatically. The growing use of electronics makes vehicles more vulnerable to cyberattacks.

The electronic components utilized in the telematics, infotainment engines, body, communication as well as advanced driver assist technology (ADAS) technology and other systems could be vulnerable to cyberattacks. Therefore, those who are interested in establishing reliable auto-related electronic platforms are beginning to invest in cybersecurity technologies.

With the rise in automobile connectivity vehicles is becoming more susceptible to hackers. The complexity of applications in vehicles is increasing because more ECUs and software that contain 30-40 millions of lines are utilized. Every single line of the software must to be secured.

In 2022, a significant majority of all new cars according to estimates from industry experts, will be network connected. Many OEMs and security service suppliers are taking action to reduce cybersecurity risks. However, no guarded architecture will ever offer an unwavering level of security in the long term.

Security codes should be utilized frequently in connected vehicles due to. Manufacturers are focused on reducing the chance of security vulnerabilities and improving updates to software as a result. This has led to the market for cybersecurity in the automotive sector is predicted to grow in the coming years because increase in the number of connected cars grows.

Restraint

The complexity is growing in the electronic vehicle system

Because of the increasing need for safety in vehicles in regards to accident prevention as well as driver safety and sophisticated data and communications security electronic driver assistance systems are becoming increasingly important (parking as well as speed regulation, the detection of blind spots and pre-collision alert, etc.). Due to this, automobile electronic designs are becoming more complex and make it easier for hackers to infiltrate an automobile. There is an increasing demand for contemporary infotainment systems as well as features for comfort such as automated cooling, memory-assisted seating adjustment, automatic closing of the tailgate and performance controls.

The software in modern, high-end automobile currently contains over 100 million line of code (greater that Windows 7 and Boeing 787). There are many lines of code due to the possibility of an Man in the Middle attack in the event of an over-the-air upgrade. Due to the physical hardening of hardware, and the more complex software solutions to deal with these issues, OEM implementation costs will increase, stifling the pace of growth in the market.

Opportunity

Introduction to electronic vehicle wireless battery management system

For manufacturers around the world the advent to wireless management of batteries (wBMS) opens up an enormous ROI (ROI) potential. In the future generation of EVs with wBMS, it can reduce the size in battery packs by up 15 percent and also up to 90 percent in the wire. Additionally the battery's life is increased with this latest technology.

This is why it is vital that wireless energy management systems follow an extremely secure procedure. General Motors and Analog Devices, Inc. (Analog) have partnered to install Analog's wireless BMS in it's Ultium battery platform after the company introduced its wireless BMS in 2020.

Through the integration of all integrated circuits hardware and software to provide battery management, power and RF communications, as well as the functions of a system into a single system-level device that can support ASIL-D security and module-level security The new wBMS improves on the firm's established and leading-edge BMS batteries cell monitoring technology. Due to the increasing usage of wBMS the company is expected that the need security solutions in the automotive industry will rise.

Impact of COVID-19:

COVID-19 COVID-19 is expected to remain in the market for a short period of time however its impact in the cybersecurity of automotive field is unclear.

All governments around the globe were prompted by the breakout of COVID-19 in order to enforce strict lockdown measures that prohibit the export and import of raw materials throughout the majority of 2020, and for a few months in 2021. This led to a availability of the essential raw materials that are used in the manufacturing of automobiles drastically diminished.

Additionally, a massive shut down caused companies that manufacture components to either completely or partially cease production. The global delays in projects and other actions connected to the creation and integration of the most cutting-edge security solutions in connected vehicles are caused by the negative COVID-19 virus effects.

Automotive Cybersecurity Market Segment Analysis

Vehicle Type Insights

Based on the type of vehicle, commercial vehicles, passenger cars and electric vehicles are the segments of the market (EV). It is the electric car (EV) segment is the largest in the year 2022 is predicted to increase by 27 percent. As more people become conscious of the negative consequences on electric vehicles and focusing their attention to economic growth this market has grown. But, in anticipation of greater infrastructure development, local governments in a number of places are offering incentives that encourage purchasing of electric vehicles.

Innovations in technology for information and energy are revolutionizing the way EVs produce and manage, store and utilize energy. This increases the chance that cyberattacks will result in negative consequences. The increasing technology of automation and the connectivity of electric and advanced automobiles has increased the possibility of cybersecurity breaches.

Most OEMs and major electric vehicle companies are dependent on security due to the increase in cyber-attacks, as well as the need to manage this increasingly complicated environment, whether it is network security or in-car security. A lot of businesses feel the need to trust independent producers and open information sources in lack of any knowledge or control.

Security Type Insights

Based on security-related insights Based on security insights, endpoint, application and wireless security for networks are the three main segments of the market. In 2023 the wireless security segment accounted for greater than 41% of the revenue share. To track the operational aspects of a vehicle and alter the test when it is taking place experts in the field of automotive can make use of the Wi-Fi-based wireless system to track the hundreds of channels throughout tests.

Modern cars incorporate numerous channels for sharing information that include wireless channels to allow a range of applications.

As the auto industry develops in the future, cars will allow more complicated wireless communication applications and, therefore it will be essential to consider building secure wireless technologies based on a solid foundation for the equipment and layers of software designed to safeguard software development methodologies.

Security of applications was responsible for a significant share of revenue of 37 percent in the industry in 2023. Automobile Makers now often offer mobile apps which provide a user-friendly and user interface. They provide a wide array of options like remote vehicle start-up as well as fuel level monitoring and improved inspections. In addition, the development of mobile apps provides an array of number of benefits for the owners of vehicles.

Application Insights

Based on the application, the ADAS and safety system infotainment, powertrain, body electronics and the telematics segment of the cyber security for vehicles market. The infotainment industry accounted for greater than 35 percent of the revenue part in 2023 and is expected to grow quickly over the next couple of years.

The entire industry of automobiles is trying to come up with modern technology that can provide greater connectivity options, improve the safety of vehicles, and improve the user experience in cars. One of the major technologies, referred to as"the "In-Vehicle Infotainment System," acts as the hub for all modern car systems, which integrates their functions in a way that all of them can be controlled and managed via the same hub.

The ADAS and safety systems market is predicted to grow by a staggering CAGR of 20% between 2023 until 2030. The vehicles may behave in a similar way to drivers who are monitoring the weather, seeing objects in the road and making an informed decision in real-time to increase security with ADAS technology. A few examples of ADAS capabilities are automated clutch controls, monitoring of drivers front pedestrian recognition as well as collision prevention.

The need for a continuous connection between the vehicle's ECU (ECU) to the cloud via a number of cloud-based services that can improve the processing of sensors and the subsequent navigation of vehicles is likely to increase due to the rapid development in autonomic driving.

Form Insights

By 2023 the automotive category was the top-performing market. In-vehicle-connected services are technologies that permit connections between internal systems as well as the ones found in external systems or in remote locations. Because of its mobile connectivity this is the device that has highest connectivity in the modern car. Automobile manufacturers had to adapt to evolving consumer needs and expectations, resulting in the advancement of ever-more advanced technology.

The growth of cloud-based services that are external to the company is increased by advancements in the cloud framework and infrastructure. Cloud services offer an extremely reliable technology since automated vehicles produce an enormous amount of information. Additionally cloud technology will result in a greater rate of data as more devices and vehicles are connected to the cloud.

Competitive Landscape of the Automotive Cybersecurity Market

• Broadcom Inc.
• Denso Corporation
• Honeywell International, Inc.
• Continental AG
• Argus
• Guard Knox Cyber-Technologies Ltd.
• Robert Bosch GmbH
• Sheelds
• Vector Informatik GmbH
• NXP Semiconductors N.V.
• Harman International

Recent Developments in Automotive Cybersecurity Market

October 4, 2023: Argus Wins AutoTech Breakthrough Award For “Automotive Cyber Security Innovation of the Year

In January 2023, the international centre for automotive technology (ICAT), which certifies autos for security and compliance with local regulations, has announced that it intends to invest in a facility that will develop cyber security skills.

In October 2022, New Salesforce Automotive Cloud Helps the Industry Deliver on the Promise of Connected Vehicles and Next-Gen Customer Experiences

In October 2022, Denso Company and NTT Communications Corporation announced the creation of the vehicle security operation centre (VSOC) in response to the growing cyber risks against automobiles.

The next generation of vehicles will have powerful network management systems due to the launch of the EB zoneo SwithCore Shield pre-integrated solution in September 2022 from Argus Cyber Security Ltd. and Elektrobit.

In November, 2021, NXP Semiconductors joined hands with Ford Motor Company for delivering enhanced driver experiences, and services, such as over-the-air updates

In October,2021, Renesas Electronic Corporation acquired Celeno Communications (Israel) . The aim of the acquisition is developing more advanced Wi-Fi connectivity capabilities to offer end-to-end connectivity solutions for clients

Automotive Cybersecurity Market Regional Insights

Asia Pacific held the highest market share, which was around 36 percent in 2023 and is expected to grow during the forecast. It is known that the number of cyberattacks is increasing in steady increments throughout APAC. However, the absence of security measures as well as the increasing popularity of work-from-home policies have resulted in the rapid growth in cyberattacks. The two most frequent types of cyberattacks are ransomware and malware.

The number of ransomware and malware attacks in APAC countries is yet 1.6 times more than that of the world. The ransomware attacks of 2018 have risen in the number of attacks across the globe. Cyberattacks targeting the automotive industry are becoming more frequent since connected cars and digitalization have increased. These attacks target cars and can compromise vital vehicle information which can cause owners substantial loss.

Over the forecast time, North America became the second largest market for automotive cybersecurity. Automotive cybersecurity is a market in North America will expand due to the growing adoption of automated passenger vehicles. In light of the growing concentration on reducing emissions from vehicles as well as the focus of the auto industry has shifted towards hybrid vehicles, which are currently the dominant market.

To address the growing environmental issues, government organizations along with environmental agencies are applying emission standards, regulations and laws. This may increase the price of electric drivetrain components as well as energy diesel engines in the projected time.

Segments Covered in the Automotive Cybersecurity Market

Automotive Cybersecurity Market By Security Type 

• Endpoint Security
• Application Security
• Wireless Network Security

Automotive Cybersecurity Market By Vehicle Type 

• Passenger Car
• Commercial Vehicle
• Electrical Vehicle

Automotive Cybersecurity Market By Application 

• ADAS & Safety System
• Infotainment
• Body Electronics
• Powertrain 
• Telematics

Automotive Cybersecurity Market By Form 

• In-Vehicle Services
• External Cloud Services

Automotive Cybersecurity Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

Frequently Asked Questions:

What is the automotive cybersecurity market size?

Automotive Cybersecurity Market is expected to grow rapidly at a 5.26% CAGR consequently, it will grow from its existing size of from $31.78 billion in 2023 to $52.85 billion by 2030.

Who are the prominent players operating in the automotive cybersecurity market?

The major players operating in the automotive cybersecurity market are Sheelds, Vector Informatik GmbH, NXP Semiconductors N.V., Harman International, Broadcom Inc., Denso Corporation, Honeywell International, Inc., Continental AG, Guard Knox Cyber-Technologies Ltd., Robert Bosch GmbH and Others.

Which are the driving factors of the automotive cybersecurity market?

The driving factors of the automotive cybersecurity market are the increased use of electronics per vehicle, growing number of connected cars and automotive industry has dramatically increased.

Which region will lead the global automotive cybersecurity market?

Asia Pacific region will lead the global automotive cybersecurity market during the forecast period 2023 to 2030.