Automotive Cyber Security Market Size By Security (Hardware Security, Software Security, Network Security, Cloud Security), By Type (Passenger/Consumer Vehicles, Commercial Vehicles), By Application (On-board Diagnostic [OBD], Communication, Safety Systems, Infotainment, Telematics), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2030

Industry Growth Drivers

Automotive Cyber Security Market size valued at USD 450 million in 2021 and is anticipated to record a CAGR of more than 20% between 2022 and 2030. Substantial growth in demand for cybersecurity in connected vehicles due to increasing incidences of cyberattacks may impact the industry landscape.
 

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Growing disposable incomes and rising living standards have increased the adoption of next-gen autonomous and premium motor vehicles across developed and developing economies. Leveraging advanced technologies such as AI and cellular networks, these vehicles offer a range of benefits such as in-car navigation, telematics, and infotainment systems.
 

The growing complexity of these advanced vehicular systems increases their vulnerability to cyberattacks, creating new growth prospects for the vehicle cyber security market. While initial deployment costs could act as a restraining factor, a supportive government regulatory framework on vehicle cyber safety may positively influence the industry expansion.
 

Increasing cyberattacks to foster network security segment

In terms of security, the market is segregated into network, software, hardware, and cloud security. The network security segment accounted for about 35.45% of the automotive cyber security market share in 2021. The demand for network security is expected to grow substantially through 2030 propelled by increasing incidences of cyberattacks across the automotive sector. 
 

These security solutions target different cyber attackers and restrict their entry into the user network, thus protecting the data. Network security is inclusive of hardware and software technologies that help manage easy access to the network, offering it a competitive advantage over other security counterparts.
 

Technology proliferation to drive passenger vehicles demand

With regards to the vehicle type, the industry is bifurcated into passenger and commercial vehicles. The passenger vehicles segment held over 81.9% of the automotive cyber security market share in 2021. Increasing autonomous vehicle sales due to rising living standards and growing awareness about automotive cybersecurity will fuel the market revenue.
 

Tech players globally have been utilizing advanced technologies like in-vehicle connectivity to offer a wide range of benefits such as mobile phone connectivity, navigation, voice recognition, communication, and infotainment services to their users. These attributes offer ease of operations and substantially boost the demand for passenger vehicles in the market.
 

Advanced connectivity to boost demand communication application

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Regarding the product application, the automotive cybersecurity market is categorized into communication, safety systems, on-board diagnostic (OBO), infotainment, telematics, and others. The communication segment captured as much as 32.2% of the overall revenue share. The advancements in automotive communication technology, with the help of embedded modems and smartphones with Bluetooth connectivity, led to several technological innovations such as vehicle-to-internet communication, short-range communication, V2I, and V2V.
 

These technologies are highly utilized across the automotive sector to allow the vehicle to communicate & share real-time data with other objects and vehicles. Besides, their ability to improve the overall security & efficiency of the roadways will further drive car cyber security industry.
 

North America to account for a substantial market share

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In terms of the regional landscape, North America held nearly 36.2% of the industry revenue in 2021. The growth of the automotive cyber security market in North America is driven by the proliferating demand for highly connected vehicles and the emergence of several cybersecurity and automotive firms. 
 

Collaborative government efforts along with initiatives by leading tech players will further augment the market size. For instance, the U.S. Department of Transportation has been encouraging the automotive companies in the region to share their work and details related to cybersecurity with researchers to help them tackle potential car attacks.
 

Europe is another pivotal revenue ground for car cybersecurity industry. The continent houses some of the best automakers who are consistently involved in the development of advanced connected vehicle technologies.
 

Portfolio expansion remains the key growth strategy

Some of the major industry players include Argus Cyber Security Ltd, Arilou Technologies Ltd, AT&T Inc., Audi AG, Bayerische Motoren Werke (BMW) AG, BT Group (BT Security), Capio, Inc., Cisco Systems, Inc., Cognata, Continental AG, Daimler AG, Ford Motor Company, General Motors, Honda Motor Company Ltd, Hyundai Motor Company, Intel Corporation, Karamba Security, Lear Corporation, Nebula Systems, Ltd, Nissan Motor Corporation, Symantec Corporation, Tesla Inc., TriLumina Corporation, Volkswagen AG and Volvo Group. These firms consistently focus on undertaking strategic tactics to expand their footprint in the market.
 

For instance, in October 2021, Infineon Technologies introduced a plug-and-play safety solution for vehicle-to-everything communication (V2X), SLS37 V2X hardware security module (HSM). The module works on a highly tamper-resistant, secure microcontroller designed to fulfill the security requirements of V2X applications within telematics control units.
 

Impact of COVID-19 on the vehicle cyber security market growth

The industry 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. Further, the growing adoption of cloud-based applications coupled with the shifting consumer preference toward the mobility ecosystem could strengthen the industry outlook.
 

This market research report on automotive cybersecurity includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2030, for the following segments:

Market, By Security

• Network Security
• Software Security
• Cloud Security
• Hardware Security

Market, By Type

• Passenger Vehicle
  • Communication
  • Safety Systems
  • On-Board Diagnostic (OBD)
  • Infotainment
  • Telematics
  • Others
• Commercial Vehicle
  • Communication
  • Safety Systems
  • On-Board Diagnostic (OBD)
  • Infotainment
  • Telematics
  • Others

Market, By Application

• Communication
• Safety Systems
• On-Board Diagnostic (OBD)
• Infotainment
• Telematics
• Others

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
  • Japan
  • South Korea
  • Australia and New Zealand
  • India
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • GCC
  • South Africa