Automotive Cyber Security Market to Expand at 19.5% CAGR, Reaching $15.13 Billion by 2034
By 2024, the automotive cyber security industry is estimated to be valued at US$ 2.54 billion, and by 2034, it is projected to grow even more to US$ 15.13 billion. Based on a thorough analysis, the market is expected to grow at a 19.5% compound annual growth rate (CAGR) between 2024 and 2034, according to a new research study by marketing intelligence company Fact.MR.
Automotive cybersecurity solutions are essential for safeguarding internal software in vehicles as well as communications between automobiles, linked devices, and the cloud. This keeps hackers out of the car and guarantees the security of automotive data overall.
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The potential for cyber risks increases with the introduction of vehicle-to-vehicle (V2X) communication, which enables cars to communicate with infrastructure and with each other. Thus, maintaining communication system security is essential for the secure functioning of connected automobiles, which is fueling the growth of the automotive cyber security market.
An important development in the automotive cyber security market is the cooperation of cybersecurity businesses, IT companies, and automakers to strengthen their industry presence and create reliable solutions. Because car intrusions represent significant financial risks, automakers are placing a higher priority on the integration of cybersecurity technologies.
Key Companies Profiled
Harman International; Karamba Security; Robert Bosch GmbH; Continental AG; NXP Semiconductors N.V.; Honeywell International, Inc.; Secunet AG; Intel Corporation; Cisco Systems Inc.; Tata Elxsi; Argus Cyber Security; AutoCrypt.
Quickly Growing Wi-Fi, Bluetooth, GPS, and Internet of Things Integration in Cars
Modern automobiles are becoming more and more connected because to the integration of Wi-Fi, Bluetooth, GPS, and Internet of Things devices, among other technologies. This connection enhances convenience, navigation, and entertainment, but it also significantly raises the risk of cyberattacks. Hackers may jeopardize essential functions like steering, brakes, and engine control by using these connections to gain unauthorized access to automotive systems. As a result, there is an increasing need for robust automotive cyber security solutions to protect sensitive data from unauthorized access and ensure the reliability and security of connected automobiles.
Technical system complexity and the constantly changing nature of cyberattacks
Prominent industry participants face obstacles arising from the intricacy of contemporary automotive systems, encompassing networked electronic control units (ECUs) and advanced software. Cyberattacks usually take advantage of holes in these software and ECUs. Protecting this complex network requires a high level of technological expertise, sophisticated instruments, and significant financial resources.
In order to maintain the security and dependability of these intricate automotive systems, proactive threat identification, frequent upgrades, and ongoing monitoring are required due to the always changing cyber threat environments. The size of the automotive cyber security industry is growing due to all of these reasons.
The well-established automotive industry in the US is renowned for its constant innovation, which presents profitable development prospects for automotive cybersecurity. The US government has imposed strict standards to improve cybersecurity for cars. The National Highway Traffic Safety Administration (NHTSA) and the Cybersecurity and Infrastructure Security Agency (CISA) are leading projects that are contributing significantly to the country's market expansion. The purpose of these requirements is to guarantee that automakers use strong cybersecurity defenses to shield cars from possible online attacks.
By 2024, South Korea is expected to have an 11% revenue share in East Asia. Strong connection and extensive 5G network coverage in South Korea are major factors driving the growing use of connected automobile technologies. To combat malicious assaults, these automobile technologies need cybersecurity solutions. The increasing amount of technology that cars are connected to is expanding the attack surface for internet threats including malware, unauthorized access, and data breaches.
Competitive Landscape
Leading companies in the automotive cyber security space are concentrating on business models that include risk assessment, incident response, compliance, and consulting services. In an effort to increase money, several players are now introducing premium membership and maintenance packages. These subscription packages included 24x7 support, maintenance services, and software upgrades.
- Leading worldwide authority on automotive cyber security, Argus Cyber Security, disclosed in June 2024 that it was collaborating with Microsoft to create a cutting-edge, comprehensive platform for mobility and vehicle security. The two integrated solutions that make up the Argus Vehicle Security Platform combine Argus's automotive cybersecurity expertise with Microsoft's robust software development and security technologies. Microsoft is a leading artificial intelligence pioneer and one of the world's most innovative technology companies.
- The automotive cybersecurity and smart mobility technology startup AutoCrypt launched AutoCrypt CSTP in February 2024. It is a complete cybersecurity testing platform that conforms with UNECE Regulations 155/156 and SAC's GB and GB/T standards. Its goal is to make integrated cybersecurity testing possible for certification of vehicle types.
- Within the confines of an existing Memorandum of Understanding (MoU), Tata Elxsi, one of the leading global providers of design and technology services, announced in October 2023 that it would be collaborating with the Indian Institute of Science (IISc) to develop an automotive cyber security solution.
Segmentation of Automotive Cyber Security Market Research
- By Component :
- Hardware
- Hardware Security Modules (HSMs)
- Secure Vehicle Network Gateways
- Trusted Platform Modules (TPMs)
- Software
- Embedded Firewalls
- Encryption & Cryptography
- Biometrics & Authentication
- Services
- Professional Services
- Security Consulting & Risk Assessment
- Integration & Deployment
- Support & Maintenance
- Managed Services
- Professional Services
- Hardware
- By Application :
- Telematics
- Infotainment Systems
- Powertrain Systems
- ADAS & Safety Systems
- Body Control Systems
- By Vehicle :
- Fuel-Based Vehicles
- Passenger Cars
- Commercial Vehicles
- Electric Vehicles
- Passenger Cars
- Commercial Vehicles
- Fuel-Based Vehicles
- By Region :
- North America
- Western Europe
- Eastern Europe
- Latin America
- East Asia
- South Asia & Pacific
- Middle East & Africa
The automotive cyber security market is poised for significant growth over the next decade, driven by the increasing digitization and connectivity of vehicles. As the industry embraces advanced technologies such as autonomous driving, IoT, and connected cars, the need for robust cyber security measures becomes more critical than ever.
FAQ:
What is the projected demand growth for automotive cybersecurity?
Worldwide demand for automotive cyber security solutions is forecasted to increase at a CAGR of 19.5% from 2024 to 2034.
What is the expected growth rate of the market in Japan?
The market in Japan is projected to expand at a CAGR of 20.2% through 2034.
What is the market outlook for East Asia?
The market in East Asia is projected to generate revenue worth US$ 4.05 billion by 2034.
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