Automotive Cybersecurity Market size was valued at USD 3 Billion in 2023 and is projected to cross USD 14 Billion by the end of 2036, registering more than 15% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of automotive cybersecurity is evaluated at USD 4.5 Billion.
The reason behind the expansion is the increasing sales of electric vehicles. EVs are becoming increasingly autonomous and networked and have various points of entry into electric vehicle (EV) charging systems, such as EV connectors, user terminals, Internet connections, and maintenance terminals, making them more vulnerable to cybersecurity attacks. As per the International Energy Agency, sales of electric vehicles increased by 3.5 million in 2023 compared to 2022, a 35% annual rise.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
15% |
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Base Year Market Size (2023) |
USD 3 Billion |
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Forecast Year Market Size (2036) |
USD 14 Billion |
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Regional Scope |
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Vehicle Type (Passenger, Light Commercial, Heavy Commercial)
Passenger segment is predicted to capture automotive cybersecurity market share of around 62% by the end of 2036. The segment growth can be ascribed to the rising popularity of passenger vehicles. In wealthy nations, passenger cars are the most widely used form of transportation and have become increasingly popular among drivers in recent years due to the rising middle class and rising standards of life in emerging nations.
Attack surfaces increase as passenger vehicles connect to more networks, including the cloud (V2C), as a result, the need for automotive cybersecurity becomes increasingly evident since passenger safety and public health are seriously threatened by the possible hazards of vehicle hacking, which include the ability to disable or even crash a car.
As per the European Union, in the EU, there were 560 passenger automobiles on average for every 1,000 residents in 2022.
Propulsion Type (ICE Vehicles, Electric Vehicles)
The ICE vehicles segment in automotive cybersecurity market is set to garner substantial revenue in the coming years. The reason behind the growth of the segment can be attributed to the rising production of ICE vehicles. Contemporary ICE automobiles have a range of linked amenities installed, including WIFI connectivity, GPS navigation, and infotainment systems, and are also becoming more susceptible to cybersecurity threats, which may augment the adoption of automobile cybersecurity.
For instance, it was projected that China would produce approximately 22 million internal combustion engine (ICE) automobiles overall by 2030.
Offering (Hardware, Software)
The software segment is foreseen to generate a robust revenue share soon led by the rising integration of ADAS in vehicles. ADAS elements are being included by automakers to improve safety and give customers access to cutting-edge driver assistance resources by giving drivers real-time notifications and support. With the adoption of ADAS technologies, more than 20,840 deaths per year, or around 60% of all road deaths, might be prevented.
Smart automotive steering systems are essential for advanced driver assistance systems (ADAS) to function to incorporate functions like adaptive cruise control, automated emergency braking, and lane-keeping assistance, software and security integration to defend against unauthorized access, and maintain the integrity of communication networks, and shield antivirus software from any online dangers.
Our in-depth analysis of the automotive cybersecurity market includes the following segments:
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Offering |
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Application |
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Security Type |
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Approach |
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Vehicle Autonomy |
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Propulsion Type |
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Vehicle Type |
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APAC Market Statistics
Asia Pacific automotive cybersecurity market is projected to hold revenue share of over 35% by the end of 2036. The market expansion in the region is propelled by the increasing government initiatives against cybersecurity threats. The APAC area is witnessing a significant surge in cyberattacks in contrast to other parts of the world, therefore the government is taking actions that mostly address concerns related to national security, cyber security threat perceptions, and risks to vital information infrastructure.
For instance, to protect cars from cyberattacks, the Ministry of Road Transport and Highways (MoRTH) a ministry of the Government of India, has proposed standardizing Cyber Security and Management Systems (CSMS) requirements for passenger and freight carriers since it is imperative to implement laws that set strict automotive cybersecurity guidelines to guarantee that OEMs, automakers, and service providers in the connected vehicle ecosystem follow strong security protocols.
Additionally, on January 5, 2023, China published the "Auto data security compliance and practice guidance to maintain the safety and security of the autonomous vehicle industry, which emphasizes how crucial cybersecurity and data protection are to the creation of intelligent transportation systems.
Besides this, cloud computing, or simply "cloud," is quickly becoming popular in Japan, and this is good for the country's economy and society in many ways. As connected and automated guided vehicles become more common, automakers there have already begun working with cloud service providers, which may increase the demand for automotive cybersecurity.
North American Market Analysis
The North American automotive cybersecurity market will also register a massive CAGR and will hold the second position led by the increasing personal disposable income. As a result, there is an increased ability to purchase cars, leading to robust demand for automobile cybersecurity in the region.
Regulations and best practices for vehicle cyber security are being released by the United States which addresses training, product development, incident response, and other cybersecurity-related topics. For instance, the National Highway Traffic Safety Administration (NHTSA) of the United States has updated its Cybersecurity Best Practices for the Safety of Modern Vehicles to encourage manufacturers of vehicles and equipment to review the guidance and decide whether to apply it to their particular systems.
In addition, cybersecurity and the safety of motor vehicles are shared in Canada by the commercial sector, all governmental levels, and individual citizens by staying up to date with how the automotive cyber landscape is changing to successfully manage and mitigate cyber security risks and related vulnerabilities.
The automotive cybersecurity market is dominated by the top players who are making headway in the market by implementing several tactics, such as mergers and acquisitions, and new product development.
Author Credits: Saima Khursheed
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