The global automotive cybersecurity market, valued at nearly US$2 billion in 2022, is on the brink of significant growth, driven by evolving trends in the automotive industry and the increasing need for cybersecurity measures in connected vehicles.
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The automotive industry has experienced fluctuating growth rates over the past decade. While cyclical demand fluctuations and the rise of shared mobility models have impacted growth, recent years have seen a steady trajectory between 3% and 4% from 2013 to 2017. The transition to new emission norms and vehicle electrification are reshaping the industry. The upsurge in connected, autonomous, shared, and electric vehicles is revolutionizing mobility and will be a major driver of the automotive cybersecurity market worldwide.
Key Report FindingsConnected vehicles are poised to dominate future mobility innovations, emphasizing the critical need for vehicle security. The increasing threat of cyber-attacks on advanced automobiles and accessories drives demand for automotive cybersecurity. The global automotive cybersecurity market is set for impressive progress in the long term.
Massive Investments by Automakers in SecurityAutomakers are investing heavily in securing vulnerable technologies by integrating cyber-secure software and hardware. The commercialization of autonomous vehicles, prone to cyber-attacks, further drives the need for cybersecurity. The demand for connected vehicles, addressing safety, comfort, and security, brings an equally growing threat of cyber-attacks, pushing the automotive cybersecurity market forward.
New Technological HeadwaysLeading automakers like Daimler AG and technology innovators such as Tesla Motors are making significant strides in self-driving vehicle technology. These technological advances will establish cybersecurity policies for industry operators, paving the way for the growth of the automotive cybersecurity market.
Supportive Governments and Industry AuthoritiesThe SPY Car Act of 2015 established cybersecurity standards to protect vehicle owners from security and privacy threats. Government initiatives will play a crucial role in propelling demand for automotive cybersecurity measures. The development of smart cities and intelligent transport systems (ITS) further supplements the demand for connected vehicles, emphasizing the need for automotive cybersecurity.
To enhance cybersecurity, the Japanese Automobile Manufacturers Association (JAMA) launched a cybersecurity group under the Electronic Information Exchange Committee, involving WP.29. Japanese automakers with a market share in the US joined the US Automotive Information Sharing and Analysis Center (Auto-ISAC) to share insights on cyber-attacks. South Korea also follows UNECE WP.29 regulations.
Growth OpportunitiesAbatement of Pandemic Opens New Doors
The global COVID-19 pandemic posed demand-supply constraints and sustainability issues for the automotive industry. As the situation improves, new opportunities are expected to emerge in the automotive cybersecurity market. Innovation strategies and renewed partnerships will provide a much-needed thrust to the system. The growing preference for private vehicles will direct changes in vehicle sales patterns and advanced technology niches such as automotive cybersecurity.
Overview of Key SegmentsADAS to Lead as Passenger Vehicles Raise Demand
Autonomous driving, connected vehicles, electrification, and shared mobility (ACES) are presenting new dimensions to the automotive industry. Increasing digitization of automobiles makes them a target for cyber-attacks, hacking, and information theft. ADAS is gaining traction among luxury and premium vehicles, including electric vehicles equipped with basic ADAS functionalities. To secure these systems from cyber-attacks, the demand for automotive cybersecurity measures will increase, driving market growth.
Growth Opportunities Across RegionsNorth America Leads, Asia Pacific Shows Potential
North America is at the forefront of automotive cybersecurity demand due to supportive government regulations tackling rising cyber-attacks. The convergence of the ICT and automotive industries in North America has led to the advent of the connected vehicle ecosystem. Factors such as growing vehicle production, increasing safety norms, penetration of connected vehicle systems, and rising sales of luxury and premium vehicles contribute to market growth.
Asia Pacific is expected to showcase excellent growth potential for new markets. The optimistic growth prospects of connected vehicles in the region and the focus on advanced technologies in wireless network-oriented vehicles will drive market growth in the future.
Competition Landscape AnalysisThe increasing connectivity features in new-age vehicles pose greater threats, attracting new entrants to the market with lucrative opportunities to serve automakers. Intensifying competition between key players and new entrants is transforming the market landscape. Most automakers are likely to procure cybersecurity solutions from suppliers, which are then integrated into vehicle hardware. However, the lack of robust in-house capabilities among automakers may lead to vulnerabilities during the lag time.
The global automotive cybersecurity market comprises a diverse ecosystem of automakers, hardware manufacturers, and security software suppliers. Significant investments from venture capitalists towards cybersecurity providers are observed. Product innovation emphasizing accuracy remains the focal area for automotive cybersecurity suppliers. Leading companies are working on providing timely security updates and issue resolutions, offering a competitive edge.
Leading PlayersKey players driving the competition in the automotive cybersecurity market include Continental, Karamba Security, Harman, Escrypt, Vector, NXP, Cisco Systems, Inc., Argus Cyber Security Ltd., and BT Security.
Regional Classification of the Global Automotive Cybersecurity MarketNorth America
Europe
Asia Pacific
Latin America
Middle East and Africa
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