The Global Automotive Cybersecurity market is projected to grow at a CAGR of around 14.8% during the forecast period of 2022-27, says MarkNtel Advisors in their recent research report. The rising demand for connected vehicles due to improved safety, increased efficiency, and increased reliability is driving the market growth. These vehicles are made of a variety of electronic components, such as telematics, body electronics, infotainment, and ADAS, among others, that store & process a large amount of data to automate vehicle functions & ensure smooth operation. This has raised concerns about vehicle vulnerability to cyberattacks, which can cause irregular driving, speed enhancement, and severe road accidents. Therefore, to minimize the security concerns & provide passengers & pedestrians with enhanced safety & security, vehicle manufacturers increasingly adopted automotive cybersecurity solutions in the historical years.
Although, in 2020 a temporary halt in the production of vehicles & a decline in the sales of passenger vehicles contributed to a marginal dip in demand for automotive cybersecurity solutions. However, with the resumption of economic activities & boost in vehicle production activities, across North America, Asia-Pacific, and Europe, the demand for cybersecurity solutions is slowly regaining its pace. Additionally, the launch of cybersecurity regulations by the European Union derived the growth of the market. For instance, in 2020, the European Union mandated the use of cybersecurity solutions in all new vehicles by July 2022 & all new vehicles produced by 2024.
Furthermore, the increase in disposable income & rising demand for luxury vehicles manufactured by Tesla, Chevrolet, Bugatti, etc., across the world, is expected to contribute largely to the demand for cybersecurity solutions in the coming years. For instance, Bugatti announced to deliver 80 vehicles by 2022. Hence, an increase in vehicle production activities with semi-automatic & fully automatic capabilities is expected to drive the demand for automotive cybersecurity solutions in the forthcoming, further states the research report, " Global Automotive Cybersecurity Market Analysis, 2022-2027."
Passenger Vehicles to Gain Traction in the Global Automotive Cybersecurity Market
Based on the vehicle type, the market bifurcates into Passenger Vehicles, Light Commercial Vehicles (LCV), and Medium & Heavy Commercial Vehicles (HCV). Of them, the Passenger Vehicle segment held a significant market share in the Global Automotive Cybersecurity Market during 2017-2021. The rising sales of luxury and mid-luxury passenger vehicles equipped with V2X technologies, owing to the growing concern over traffic efficiency, energy savings, and passenger & pedestrian safety, have increased the demand for automotive cybersecurity solutions from the passenger vehicle. The passenger vehicles are equipped with a considerable number of Electronic Control Units (ECUs), combined with the integration of data transfer network systems such as GPS, Wi-Fi, Bluetooth, etc., & are more prone to cyberattacks compared with the other two categories of vehicles. Moreover, the rising concern of government & passengers for vehicle safety, owing to an increase in vehicle pooling services, has increased the demand for automotive cybersecurity globally.
North America to Dominate the Global Automotive Cybersecurity Market during 2022-2027
Geographically, North America is home to prominent automotive manufacturers producing lightweight & heavy-weight automated & electronic vehicles for customers across the globe. The rising sales of automated vehicles by automotive manufacturers have significantly contributed to the growth of automotive cybersecurity solutions across the region. For instance, in 2021, Tesla reported an 87% increase in the sales of vehicles compared to 2020, reaching a total of around 936,172 vehicle deliveries in 2021. Additionally, Ford Automotive is consistently encouraging the production of automated electric vehicles in order to increase vehicle deliveries. Hence, these initiatives by the vehicle manufacturers to increase the production of automated & electric vehicles across the world are expected to contribute largely to the demand for automotive cybersecurity in North America.
Additionally, the launch of the Automated Vehicles Comprehensive Plan in January 2021 by the US Department of Transportation under the Automated Vehicle 4.0 is expected to boost the revenue growth of the automotive cybersecurity market. Under the plan, the government aims to prioritize safety, emphasize security & cybersecurity, ensure vehicle data privacy & enhanced mobility & accessibility, among many others. This initiative by the US Transportation Department is expected to create immense opportunity for the growth of the market, reveals MarkNtel Advisors in their research report, "Global Automotive Cybersecurity Market Analysis, 2022-2027."
According to MarkNtel Advisors, the leading players in the Global Automotive Cybersecurity Market are Amazon Web Services, Microsoft Corporation, Continental AG, IBM Corporation, Herman International, Tesla Inc., Wejo Limited, Oracle Corporation, Xevo Inc., Tech Mahindra Ltd, Vinli Inc., SmartO, The Floow ltd, Otonomo Technologies, Caruso GmbH.
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