Automotive Cybersecurity Market, Global, 2023?2030

Automotive Cybersecurity Market, Global, 2023‒2030

Automotive Cybersecurity is Driving Transformational Growth Through Strategic OEM Partnerships to Accelerate Technology Advancements and Regulatory Compliance

With increasing connectivity features, advanced cybersecurity solutions will be necessary to secure next-gen connected vehicles. OEMs should establish a comprehensive cybersecurity model to proactively address the evolving threat landscape, especially with the advent of generative AI. With imminent global regulatory mandates, cybersecurity is not just a local concern but a top priority for automotive OEMs worldwide. Automakers are actively seeking partnerships with specialist companies to seamlessly adopt best practices and ensure regulatory compliance. These partnerships, including those with ethical hackers, demonstrate a proactive approach to identifying vulnerabilities.

UNECE WP.29 regulation will trigger cybersecurity market growth in 60+ member nations, namely Japan, the European Union, and South Korea. Countries such as China and India are developing their versions of automotive cybersecurity regulations, following WP.29, which is expected to fuel growth in these regions. While lacking comprehensive federal mandates, increasing awareness, market competition, and state-level regulations in North America drive adoption. OEMs proactively integrate security features to meet consumer demand and maintain brand reputation.

Regulatory mandates, though the need of the hour, place a significant financial burden on OEMs, particularly when adapting older vehicle models to meet updated standards. With stringent cybersecurity regulations shaping the automotive industry, manufacturers must constantly navigate the delicate balance between introducing cutting-edge features and ensuring robust protection against cyber threats. Smart mobility is forecast to trigger increased vehicle interactions with other IoT devices (e.g., traffic signals, charging units, smart buildings, and sensors). ISO 15118 provides guidelines for encrypted vehicle-to-charging and vehicle-to-grid communication security. More stringent regulations to safeguard data storage and transmission inside and outside vehicles will likely emerge in the future.

The analysis encompasses the automotive cybersecurity of passenger vehicles, including cars and light-duty pickup trucks. In addition to studying passenger vehicle cybersecurity trends and their impact on the market, the analysis outlines potential business models and partnership strategies automakers adopt to implement cybersecurity frameworks in vehicles. It highlights noteworthy cybersecurity specialist companies offering security products, solutions, and services to OEMs. The forecast projects the total addressable market opportunity for passenger vehicle cybersecurity from 2023 to 2030.