Automotive Cyber Security Market Assessment, By Component [Software, Services], By Organization Size [Large Enterprises, Small and Medium Enterprises], By Vehicle Type [Passenger Vehicle, Commercial Vehicles], By Propulsion Type [ICE, Electric, Hybrid], B

Automotive Cyber Security Market Assessment, By Component [Software, Services], By Organization Size [Large Enterprises, Small and Medium Enterprises], By Vehicle Type [Passenger Vehicle, Commercial Vehicles], By Propulsion Type [ICE, Electric, Hybrid], By Application [ADAS and Safety, Infotainment, Body Electronics, Powertrain, Telematics] By Region, Opportunities, and Forecast, 2017-2031F

Global Automotive Cyber Security Market is projected to witness a CAGR of 15.3% during the forecast period 2024-2031, growing from USD 3.53 billion in 2023 to USD 11.03 billion in 2031.

Automotive cybersecurity is concerned with protecting vehicles, electronic systems, and associated vehicle control networks from cyber threats and attacks. Features in vehicles today include infotainment systems, ADAS, autonomous driving capabilities, and V2V & V2I communication. It has brought forth the need for robust cybersecurity measures in automotive industry. As vehicles are more connected and autonomous, there has been tremendous growth in the need for robust cybersecurity measures in the automotive industry.

According to Upstream's Automotive Cybersecurity report, the highest number of cyberattacks were in 2022, encompassing various areas, with telematics and application servers at the forefront, accounting for 35% of attacks. Following closely remote keyless entry systems encountered 18%, electronic control units at 14%, automotive and smart mobility APIs at 12%, infotainment systems at 8%, mobile applications at 6%, and EV charging infrastructure at 4%.

Increasing Adoption of Connected Vehicles to Propel the Market Demand

The global automotive cyber security market has been greatly impacted by the increased adoption of connected vehicles in the market. Being connected, vehicles include infotainment systems, wireless communication, telematics, and vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, which makes the attack surface for potential cyber threats and vulnerabilities a concern. Connected vehicles have become a new target for cyberattacks such as remote hacking, unauthorized access to vehicle systems, data breaches, etc. With increasingly interconnected components inside a vehicle, they become a potential portal for malicious players. Secure OTA software updates become possible with the adoption of connected vehicles. These updates help to mitigate vulnerabilities and apply patches, which ensure vehicles are shielded from newly emerging threats.

For instance, in May 2023, VicOne launched its new Smart Cockpit Protection Solutions, designed specifically for OEMs, to protect customers' data privacy. The two key components of the new product from VicOne are the Smart Cockpit Security App, which ensures data privacy for information within in-vehicle infotainment systems, and the Smart Cockpit Mobile SDK, which provides strong protection of OEM car companion apps. Adopting these solutions, together with VicOne's other cybersecurity offerings, OEMs can benefit from a strong, multi-layered defense against cyber threats, ranging from the most fundamental system level to the application layer.

Increasing Adoption of Electric Vehicles to Surge the Market Demand

With increased adoption of electric vehicles, exposure to cyber threats is increasing. As automotive industries move away from internal combustion engines to electric propulsion systems, the demand for software complexity, connectivity, and data exchanging makes them more vulnerable to various cyber threats. Most electric vehicles are designed with sophisticated software systems to manage power distribution and battery and control regenerative braking among other critical functionalities. More complex the software systems are, the bigger the attack surface and prospects of potential cyber-attacks are. Most of the vehicles are fitted with the most sophisticated software systems such as ADAS and autonomous driving functionalities. Such features are highly dependent on a lot of sensor data and communication and hence are expected to be prime targets for manipulation or disruption.

For instance, in September 2022, Elektrobit and Argus Cyber Security announced the launch of EB zoneo SwithCore Shield, an advanced system that combines embedded intrusion detection and prevention with advanced network management systems for next generation vehicles. The joint effort has resulted in a compact, embedded module which includes the Argus Ethernet Intrusion Detection and Prevention System (IDPS). The system is perfectly suited for automotive Ethernet networks and is easily integrated within the electrical and electronic architecture of the vehicle as automotive-grade switch firmware.

Implementation of ADAS Disrupts Automotive Cyber Security Market Trend

Advanced driver assistance systems capabilities have been the most significant push behind the market development of automotive cybersecurity. Vehicles are now enabled with advanced ADAS technologies such as adaptive cruise control, lane departure warning, and automatic emergency braking amongst others. The sophistication and complexity of vehicles have now been on an exponential rise. It has opened a new segment of cyber vulnerabilities and threats that might compromise the safety and functionality of such systems. The automotive industry is, therefore, now paying more emphasis on cybersecurity solutions for protection of ADAS and other automotive systems.

For example, in September 2022, electric automaker XPeng released China's first ADAS, tailor-made for urban driving scenarios. The company introduced its City Navigation Guided Pilot (City NGP) ADAS.

Government Initiatives

Governments play a crucial role in shaping the global automotive cyber security market through initiatives which involve implementing or promoting various policies of network security at the global level. Initiatives are often given to data security, privacy regulations, and standardization for rebuilding trust and confidence among businesses and consumers. Governments invest in infrastructure development, provide incentives, and create supportive regulatory frameworks that enable businesses to adopt the cloud and foster innovation.

According to a United Nations Economic Commission for Europe's Cybersecurity report, cybersecurity in automotive will drive significant investments, increasing from USD 4.9 billion in 2020 to USD 9.7 billion in 2030. The initiative of the UN Regulations framework set to drive innovation and foster economic prospects for a wide array of stakeholders, including suppliers, IT companies, specialized niche enterprises, and startups, especially in the software development and services market.

Key Players Landscape and Outlook

Global automotive cyber security market is rapidly growing owing to increased importance of companies which deal in the concept of developing sophisticated automotive cyber security infrastructure. Moreover, the market is expanding remarkably due to the setting up of proper cloud infrastructure and large investments made by companies to enhance research and development resources, engage in collaboration projects, enhance marketing efforts, and to expand distribution networks. All these factors together support the fast expansion of the market.

In February 2023, Elektrobit announced the immediate availability of EBtresos 9, the new release of its leading foundational software. The software enables automotive manufacturers and suppliers to develop advanced electronic control units based on AUTOSAR standard. The new release fully supports AUTOSAR R20-11 and fully integrates the innovative onboard intrusion-detection capabilities delivered by Argus CAN IDPS. What is especially impressive is that these state-of-the-art intrusion detection capabilities are the result of innovation of the Argus Cyber Security solution that won the 2023 CES innovation award.