Automotive Cyber Security Market Size, Share, By Service (In-Vehicle and External Cloud Services), By Vehicle Type (Passenger Car, Commercial Vehicle, and Electric Vehicle), By Security (Endpoint Security, Application Security, and Wireless Network Security), By Application (Telematics System, Infotainment System, Powertrain System, Body Control & Comfort System, and ADAS & Safety System), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Automotive Cyber security Market Size was valued at US$ 12.7 billion in 2024 and is projected to grow at a CAGR of 8.7% to reach US$ 26.6 billion by 2034.

Automotive cybersecurity is the practice of protecting connected vehicles from digital attacks. As cars increasingly rely on computers and software to operate, they also become more vulnerable to hacking. A successful cyberattack on a car could allow a hacker to take control of the vehicle's steering, brakes, or other critical systems.

The automotive cybersecurity market is experiencing significant growth due to the increasing number of connected vehicles on the road. These vehicles are equipped with various sensors and software that collect and transmit data, making them vulnerable to cyberattacks.

The automotive cybersecurity market is made up of several different segments, including-

• In-vehicle cybersecurity solutions
• Vehicle-to-everything (V2X) security solutions
• Cloud-based automotive cybersecurity solutions

In-vehicle cybersecurity solutions protect vehicle electronic control units (ECUs) from unauthorized access and manipulation. V2X security solutions secure the communication between vehicles and other devices, such as traffic lights and infrastructure. Cloud-based automotive cybersecurity solutions provide real-time threat detection and monitoring for vehicles.

To protect the safety of drivers and passengers. A hacked car could be caused to crash, or it could be disabled altogether, leaving the occupants stranded.

To protect the privacy of drivers and passengers. Cars collect data about their occupants, such as their location, driving habits, and conversations. This data could be stolen by hackers and used for malicious purposes.

To protect the value of cars. Cars are becoming increasingly expensive, and a hacked car could be worthless.

Key Drivers of Target Market:      

Increasing adoption of connected vehicles:

• Connected vehicles are equipped with internet connectivity, which allows them to exchange data with other vehicles, infrastructure, and the cloud. However, this connectivity makes them more vulnerable to cyberattacks, as hackers can access a vehicle's systems remotely.

Rise of autonomous vehicles:

• Autonomous vehicles can operate without human input. They rely on a complex network of sensors, software, and computers to function. This complexity makes autonomous vehicles even more vulnerable to cyber-attacks than connected vehicles.

Growing emphasis on safety features: 

• Modern cars are equipped with many advanced safety features, such as automatic emergency braking and lane departure warning. Software often controls these safety features, making them vulnerable to cyber-attacks. A hack could turn off a safety feature, putting the lives of the driver and passengers at risk.

Increasing government regulations:

• Governments worldwide are starting to develop regulations that address the cyber security risks associated with connected and autonomous vehicles. These regulations are expected to create a demand for automotive cyber security solutions.

More complex automotive electronics:

• Modern vehicles are packed with electronics, which control everything from the engine to the entertainment system. The increasing complexity of automotive electronics makes vehicles more vulnerable to cyber-attacks.

Restrains:

High Cost:

•  Implementing robust cyber security measures in vehicles can be very expensive. This is especially true for smaller automakers and budget-conscious consumers. The hardware, software, and ongoing security maintenance cost can add up quickly.

Complexity:

• The automotive industry and its cyber threats are constantly evolving. This complexity makes it difficult for automakers to keep their vehicles secure. They must invest in research and development to stay ahead of the curve, which can strain resources.

Lack of Standardization:

• More standardization in the automotive cyber security industry needs to be implemented. This makes it difficult for different companies to collaborate on developing and implementing security solutions. It also creates confusion for consumers, who may need help knowing what to look for when buying a secure vehicle.

Opportunities

In-vehicle cyber security:

• This area covers software and hardware products that shield cars against viruses, tampering, and unwanted access. As cars become more interconnected, the need for in-car cyber security solutions will only increase.

Services provided by external clouds:

• Security services provided to automobiles via the cloud are included in this category. These services include vulnerability management, intrusion detection/prevention, and security information and event management (SIEM).

Autonomous cars and ADAS security:

• Due to their heavy reliance on software and sensors, autonomous vehicles and ADAS are susceptible to hacks. Security solutions that can prevent these systems from being hacked are in greater demand.

The Market is segmented based on based on by Service, by Vehicle Type, by Security, by Application and Region.

Service Insights

• In-Vehicle- Currently, the in-vehicle segment holds the larger market share, accounting for around 70% of the total automotive cyber security market. This dominance is due to the extensive use of connected car technologies and the need to secure in-vehicle systems directly. This segment focuses on security solutions deployed within the car and includes technologies like firewalls and Intrusion Detection/Prevention Systems (IDS/IPS).
• External Cloud Services- This segment is expected to witness the fastest growth in the coming years. This is driven by factors like an increasing reliance on cloud-based services for connected car functionalities and a growing demand for advanced security features like threat intelligence and remote diagnostics. Potential cost savings compared to in-vehicle solutions are also drawing more focus to this segment.

Vehicle Type Insights

• Passenger Car- This segment of the automotive cyber security market currently holds the largest market share due to rising investment in autonomous driving technology. The increased adoption of L2 (partially automated) autonomous vehicles and the steadily growing popularity of connected features and Advanced Driver-Assistance Systems (ADAS) in passenger cars, especially in luxury and mid-size segments, are driving sales in this category.
• Electric Vehicle- This segment is projected to witness the fastest growth due to the growing consumer interest in EVs and awareness of hybrids' limitations. The many Government subsidies promoting EV adoption and an increased reliance on wireless battery management systems in EVs, which creates new security vulnerabilities, are also major market contributors.
• Commercial Vehicle- This is expected to be a significant segment, although potentially smaller than passenger cars currently. The increasing adoption of connected features and telematics in commercial fleets for tracking and management is going to generate significant growth. Additionally, a growing awareness of cyber security risks in commercial vehicles will also make significant contributions towards the expansion of the automotive cyber security market.

Security Insights

• Endpoint Security- This segment of the automotive cyber security market focuses on protecting individual Electronic Control Units (ECUs) within a vehicle. ECUs are mini-computers that control various functions like engine performance, braking, and infotainment. Endpoint security solutions use techniques like intrusion detection, access control, and encryption to safeguard these ECUs from unauthorized access and malicious software.
• Application Security- This segment within the automotive cybersecurity market deals with securing the software applications running on a vehicle's infotainment system, telematics unit, and other connected features. Application security solutions involve code reviews, vulnerability scanning, and patching to identify and address weaknesses in these applications that attackers could exploit.
• Wireless Network Security- This segment focuses on protecting wireless connections using technologies like firewalls, intrusion detection/prevention systems (IDS/IPS), and encryption protocols. Wireless network security safeguards vehicles from unauthorized access to data transmitted over the air, preventing remote attacks and manipulation.

Application Insights:

• Telematics System- This segment of the automotive cyber security market is expected to be the fastest-growing segment driven by the increased integration of telematics in commercial vehicles for fleet management and data analysis. The growing demand for features like remote diagnostics and vehicle tracking also contributes significantly to the market.
• Infotainment System- This segment held the largest market share in 2022, mainly due to a heightened focus on improved connectivity options (Wi-Fi, Bluetooth) for enhanced user experience and rapid integration of new features like navigation and streaming services.
• Powertrain System- With the rise of electric vehicles (EVs), securing the powertrain system has become crucial. Hackers could manipulate battery management systems or disrupt motor control units, creating potentially fatal encounters. This segment is expected to grow significantly due to the increasing complexity of EV powertrain systems.
• Body Control & Comfort System- This segment of the automotive cybersecurity market will grow moderately as these systems become more sophisticated with features like automated climate control and ambient lighting.
• ADAS & Safety System- This segment is expected to grow significantly as ADAS systems rely heavily on sensors and software, creating potential attack vectors. A successful cyberattack could compromise critical safety features like automatic emergency braking.

Regional Insights:

On region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

• Asia Pacific currently holds the dominant share of the automotive cyber security market at around 44%, driven by growing public infrastructure. Factors like the rising production of passenger cars and the growing popularity of connected car features are major market drivers. Expanding economies, increasing disposable income, and the presence of major manufacturing hubs like China and India.
• The North America market is expected to witness the fastest growth in the Automotive Cyber security Market during the forecast period due to well-established smart city infrastructure, cyber security, and a focus on advanced functionalities and data analytics.
• Europe has a traditionally automotive solid market with established players. Stringent regulations and growing awareness of cyber threats are driving market growth.
• Latin America: Developing autonomous vehicles and advanced driver-assistance systems (ADAS) will necessitate robust cyber security measures, propelling the regional automotive cyber security market forward.
• Middle East & Africa: The target market in this region is expected to witness significant growth in the coming years, as regions with stricter data privacy laws and cyber security mandates will see faster adoption of automotive cyber security solutions. 

Automotive Cyber security Market Report Scope:

Attribute	Details
Market Size 2024	US$ 12.7 billion
Projected Market Size 2034	US$ 26.6 billion
CAGR Growth Rate	8.7 %
Market Segmentation	By Service- In-Vehicle and External Cloud Services By Vehicle Type - Passenger Car, Commercial Vehicle, and Electric Vehicle By Security- Endpoint Security, Application Security, and Wireless Network Security By Application- Telematics System, Infotainment System, Powertrain System, Body Control & Comfort System, and ADAS & Safety System
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the Automotive Cyber security Market report based on By Service, Vehicle Type, By Security, By Application and Region:

Segmentation:

By Service:

• In-Vehicle
• External Cloud Services

By Vehicle Type:

• Passenger Car
• Commercial Vehicle

• Electric Vehicle

By Security:

• Endpoint Security
• Application Security
• Wireless Network Security

By Application:

• Telematics System
• Infotainment System
• Powertrain System
• Body Control & Comfort System
• ADAS & Safety System

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Automotive Cyber security Market includes Arilou Technologies, Argus Cyber Security Ltd., NXP Semiconductors N.V., HARMAN International, Continental AG, ESCRYPT, Vector Informatik GmbH, Karamba Security, Robert Bosch GmbH.

• In October 2022, Denso and NTT Communications Corporation launched a VSOC to address growing cyber risks within the automotive industry. This mutually beneficial agreement will help create better security against vehicular hacking.

• Arilou Technologies*
  • Company Overview
  • Chipset Portfolio
  • Key Highlights
  • Financial Performance
• Argus Cyber Security Ltd.
• NXP Semiconductors N.V.
• HARMAN International
• Continental AG
• ESCRYPT
• Vector Informatik GmbH
• Karamba Security
• Robert Bosch GmbH
• Symantec Corporation

 “*” marked represents similar segmentation in other categories in the respective section.