Global Automotive Cybersecurity Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

The Automotive Cybersecurity market is experiencing robust expansion, with market size projected to increase from XX billion in 2024 to xx billion by 2031, demonstrating a consistent year-over-year growth rate of 18.4%. Automotive Cybersecurity Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Endpoint, Application, Wireless Network), by applications (ADAS & Safety System, Infotainment, Body Electronics, Powertrain, Telematics) And regions (North America(United States.Canada.Mexico), South America(Brazil.Argentina.Chile.Rest of South America), Europe(Germany.France.Italy.United Kingdom.Benelux.Nordics.Rest of Europe), Asia Pacific(China.Japan.India.South Korea.Australia.Southeast Asia.Rest of Asia-Pacific), MEA(Middle East.Africa)) : Industry Forecast and Opportunity Analysis for 2024 - 2031

The process of protecting vehicles from its involvement in terms of cyber threats, especially concerning their systems and networks that are connected to the internet, is referred to as the automotive cybersecurity market. In addition, cyber threats have increased tremendously due to the level of connection and application of advanced technology in machines. Protection against these cybercrimes includes protecting vehicle electronic systems, in-car computer systems, and data transmissions for automobiles using system integrity, access control (to cars), confidentiality, and high availability by employing global automotive cybersecurity solutions (GACS). It’s only through this that an automobile can effectively attain these attributes. Furthermore, firewalls, intrusion detection systems (IDS), encryption techniques, and secure coding practices, among other services, are some of the technologies that are employed in this regard.

Automotive Cybersecurity Report Highlights

Report Metrics	Details
Forecast period	2019-2031
Base Year Of Estimation	2023
Growth Rate	CAGR of 18.4%
By Product Type	Endpoint, Application, Wireless Network
Key Market Players	Sheelds Vector Informatik GmbH NXP Semiconductors N.V. Harman International Broadcom Inc. Denso Corporation Honeywell International Inc. Guard Knox Cyber-Technologies Ltd.
By Region	North America(United States.Canada.Mexico) South America(Brazil.Argentina.Chile.Rest of South America) Europe(Germany.France.Italy.United Kingdom.Benelux.Nordics.Rest of Europe) Asia Pacific(China.Japan.India.South Korea.Australia.Southeast Asia.Rest of Asia-Pacific) MEA(Middle East.Africa)

Automotive Cybersecurity Market Trends

By now, you should have realised that the global automotive cybersecurity market is growing extremely well as a result of an increase in the connectivity of vehicles and new technologies in autonomous driving. With vehicles going more connected than ever before using advanced infotainment systems, telematics, and vehicle-to-everything (V2X) communication, cyber threats have become more prevalent, necessitating strong cybersecurity measures. As such, car manufacturers, together with technology companies, are investing in advanced encryption, secure software updates, and attack detection systems to protect their cars against cyber-attacks. Regulatory attention to vehicle cybersecurity is also increasing as an important trend; this means that automakers are now faced with regulations designed by governments and other players that require them to adhere to or follow through with safety and security simple plans across connected and/or autonomous vehicles. As a result, there has been an increase in innovation aimed at creating multi-layer cybersecurity frameworks that incorporate both hardware security modules as well as cloud-based solutions aimed at promoting security for vehicles connected to networks.

Automotive Cybersecurity Market Leading Players

The key players profiled in the report are Sheelds, Vector Informatik GmbH, NXP Semiconductors N.V., Harman International, Broadcom Inc., Denso Corporation, Honeywell International Inc., Guard Knox Cyber-Technologies Ltd.

Growth Accelerators

The increased connectivity of automobiles and the growing reliance on software and electronic systems in modern cars drives the global automotive cyber security market. However, as cars are more connected via fun-filled infotainment systems, vehicle-to-everything (v2x) communication networks, or autonomous driving technologies, there is also increased exposure to cyber insecurities. For this reason, car manufacturers are prioritising protection of critical vehicle systems against hacking, data breaches, and other cyber threats, leading to a rise in demand for strong cyber security solutions. Another driver is the increase in regulatory pressure and industry guidelines that focus on automotive cyber security. Thus, world governments and their representative bodies are coming up with strict regulations to ensure vehicle safety as well as data privacy through cyber security measures. Consequently, car manufacturers and technology providers have had to invest massively into these technologies to meet regulations while protecting vehicles from any form of cyber theft. The market is driven by a need to safeguard more complex and interconnected automotive systems.

Automotive Cybersecurity Market Segmentation analysis

The Global Automotive Cybersecurity is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Endpoint, Application, Wireless Network . The Application segment categorizes the market based on its usage such as ADAS & Safety System, Infotainment, Body Electronics, Powertrain, Telematics. Geographically, the market is assessed across key Regions like North America(United States.Canada.Mexico), South America(Brazil.Argentina.Chile.Rest of South America), Europe(Germany.France.Italy.United Kingdom.Benelux.Nordics.Rest of Europe), Asia Pacific(China.Japan.India.South Korea.Australia.Southeast Asia.Rest of Asia-Pacific), MEA(Middle East.Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The global automotive cybersecurity market is characterised by a mix of well-established technology companies, car manufacturers, and specialised companies that provide cybersecurity services. Major industry players include traditional leaders in cybersecurity such as McAfee, Kaspersky, and Trend Micro, as well as automobile manufacturers like Toyota, General Motors, and Volkswagen, which are heavily investing in their own cybersecurity capabilities. Besides, there is an increasing influx of specialised car security start-ups to the market that provide innovative solutions and disrupt conventional security mechanisms. The competition landscape remains fluid, with new entrants coming up while current ones expand their scope to cater for changing demands within the automotive sector.

Challenges In Automotive Cybersecurity Market

Due to the increasing complexity of connected vehicle systems and changing cyber threats, the global automotive cybersecurity market is facing big challenges. As cars are being integrated into the Internet, autonomous functions, and digital systems, they are becoming targets for cyber-attacks. These systems need advanced data protection that can secure all vehicle components, from entertainment systems to vital safety controls. However, rapid technological advances frequently outstrip strong security development, enabling vulnerabilities in auto networks to persist. A further challenge is that effective cybersecurity solutions have high costs and are intricate to apply across different automotive platforms. It is hard for car manufacturers to find a balance between a complete digital protection strategy and economic efficiency, particularly in the case of small-sized car companies or those operating in price-sensitive zones.

Risks & Prospects in Automotive Cybersecurity Market

There are ample possibilities for the global automotive cybersecurity industry as the proliferation of connected and autonomous vehicles increases the demand for strong security measures. The integration of more advanced electronic systems into automobiles has necessitated that they be protected from cyber threats such as data breaches, hacking, and malware attacks. This indicates that there is a need for protective software for automobile communications systems, electronic control units (ECUs), and over-the-air (OTA) updates, hence presenting growth opportunities for security providers. In addition, increased adoption of electric vehicles (EVs) and vehicle-to-everything (V2X) communication systems raises the demand for automobile cybersecurity. The governments and industries are increasingly creating regulations and others such as ISO/SAE 21434, which compels car manufacturers to infuse up-to-date security systems in their designs. Therefore, automobile producers, along with tech companies, can now formulate holistic protective computer programs that enhance data protection and assure the safety of vehicles while complying with globally emerging standards.

Key Target Audience

As mentioned above, inductive inference is a key element of the global automotive cybersecurity market. Automotive manufacturers, suppliers, and technology companies are among the major players in this industry. They create and implement cybersecurity solutions for connected cars and autonomous vehicles that are susceptible to cyber threats. Therefore, they must focus on safety features such as infotainment systems or driver assistance systems in order to preserve sensitive data.,, Moreover, government bodies, regulatory agencies, and cyber security service providers also participate in this business. Government bodies and regulators set the rules involved in automotive cyber security, while service providers offer specialised services as well as tools for threat identification prevention or deterrence. The rise of connected cars has coincided with more sophisticated cyber-attacks, making it an important market segment in future automotive sectors.

Merger and acquisition

The automotive cybersecurity market has witnessed significant merger and acquisition activity in recent years, as companies seek to strengthen their market positions, expand their product offerings, and accelerate technological advancements. Notable deals include: Continental's Acquisition of Argus Cyber Security: This deal was targeted towards enhancing Continental’s ability to guard against intrusion, authenticate individuals using vehicles, and ensure secure communication. Avast Corporation’s Acquiring Cylance: Although primarily focused on consumers, and designed to protect individual devices from cyber threats through the collection of digital traces left behind after each interaction with virtual domains that we visit. These mergers and acquisitions show that there is a growing interest in cybersecurity within the automotive industry and an ongoing effort towards meeting changing security needs.