Automotive Cybersecurity Market by Offering (Hardware, Software, Services), Security Type (Network Security, Endpoint Security), Deployment Mode, Application (ADAS & Safety, Telematics, and Infotainment), and Geography - Global Forecast to 2030

The Automotive Cybersecurity Market is projected to reach $13.9 billion by 2030, at a CAGR of 19.9% from 2024 to 2030. 

The growth of this market is driven by the growing number of connected cars, the growing adoption of telematics and cellular network in the automotive sector, rising incidents of cyberattacks and data breaches, and increasing government mandates for vehicle data protection. However, the high cost of automotive cybersecurity solutions restrains the growth of the automotive cybersecurity market.

Furthermore, the growing cloud-based applications in the automotive industry and the emergence of electric vehicle wireless battery management systems are expected to offer significant growth opportunities for the market’s growth. However, misconceptions and lack of knowledge regarding automotive cybersecurity solutions and the growing complexity of vehicle electronics systems are major challenges for the players operating in this market.

Growing Number of Connected Cars Driving the Growth of the Automotive Cybersecurity Market

In today’s modern world, advanced technologies have become integral to human life, with digitally connected devices and applications commonly used in homes, offices, and cars. The advent of IoT technology has influenced innovations in connected cars. A connected vehicle comes equipped with a host of smart and convenient features. The features of connected car technology improve the overall driving and ownership experience. Connected cars enable the driver to connect with online platforms, facilitating real-time communications. Additionally, vehicle-to-vehicle connectivity technology allows connected cars to communicate with each other. Vehicle-to-vehicle connectivity enables the sharing of vital information such as traffic movement, road conditions, and speed limits.

Furthermore, with automotive IoT technologies such as radar, vision, V2X, and LiDar, connected cars produce a large amount of data, including information about the driver, the vehicle, and the passengers. Although all generated data is pre-processed in the vehicle, data exchange between cars and infrastructure happens via the cloud, and at the same time, it can be vulnerable to hackers. Thus, advances in connected cars also come with security challenges. As a result, connected cars need to secure their systems and overcome security challenges. Considering the potential of connected cars for the automotive cybersecurity market, prominent players are strategizing to expand their businesses to increase their market shares. For instance,

• In October 2021, Fujitsu Limited (Japan) collaborated with Trend Micro (Japan) to strengthen connected car security measures.
• In February 2021, eSOL Co., Ltd. (Japan) and Karamba Security Ltd. (Israel) combined eSOL’s eMCOS and Karamba’s XGuard solutions to offer advanced cyber-protection for connected cars.

Click here to: Get a Free Sample Copy of this report

Key Findings in the Automotive Cybersecurity Market Study:

In 2024, Software Segment is Expected to Account Largest Share of the Market

Based on offering, in 2024, the software segment is expected to account for the largest share of the automotive cybersecurity market. The large market share of this segment is attributed to the increase in cyber-attacks, increasing focus on software-centric security capabilities, and the rising vulnerabilities on IoT devices. In addition, the benefits offered by cybersecurity, such as high performance, reliability, comprehensive vulnerability coverage, efficiency, and security of real-time applications, further augment the growth of this segment. Several providers are investing in R&D to improve the software and make them more affordable for small and medium-scale enterprises. The software segment is also projected to register the highest CAGR during the forecast period.

Network Security Segment Projected to Register the Highest CAGR

Based on security type, the network security segment is projected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the rising need to ensure network security via restricted device management in-vehicle terminals, the increasing need to protect connected network infrastructure, the increase in data and security breaches, and the growing demand for filtering and monitoring network traffic.

External Cloud Services Segment Projected to Register the Highest CAGR

Based on deployment mode, the external cloud services segment is projected to register the highest CAGR during the forecast period. The growing adoption of connected cars, the rise in data breaches and security concerns, and the growing number of cloud-connected devices are expected to support this segment's growth.

Asia-Pacific: The Fastest-growing Regional Market

In 2024, Asia-Pacific is expected to account for the largest share of the automotive cybersecurity market, followed by North America, Europe, Latin America, and the Middle East & Africa. Furthermore, Asia-Pacific is slated to register the fastest growth rate during the forecast period. The growth of this regional market is attributed to the increasing cybersecurity guidelines for vehicles in Asian countries, increasing demand for infotainment and navigation services, growing cybercrimes, and rising demand for connected features in passenger cars, particularly in China, Japan, South Korea, and India.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market participants in the past three to four years. The key players operating in the automotive cybersecurity market are Thales Group (France), NXP Semiconductors N.V. (Netherlands), UL LLC (U.S.), HARMAN International (U.S.), Renesas Electronics Corporation (Japan), STMicroelectronics N.V. (Switzerland), Garrett Motion Inc. (Switzerland), Argus Cyber Security Ltd (Israel), Vector Informatik GmbH (Germany), Karamba Security Ltd. (Israel), Synopsys, Inc. (U.S.), DENSO Corporation (Japan), Guardknox Cyber-Technologies Ltd. (Israel), and Infineon Technologies AG (Germany).

Scope of the Report:

Automotive Cybersecurity Market, by Offering                              

• Software
• Hardware
• Services

Automotive Cybersecurity Market, by Security Type

• Network Security
• Application Security
• Endpoint Security

Automotive Cybersecurity Market, by Deployment Mode

• In-vehicle
• External Cloud Services

Automotive Cybersecurity Market, by Application

• ADAS & safety
• Body Control & Comfort
• Infotainment
• Telematics
• Powertrain Systems
• Communication Systems
• Other Applications

Automotive Cybersecurity Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa

Key questions answered in the report: