The National Highway Traffic Safety Administration (NHTSA) defines Cybersecurity, within the context of road vehicles, as the protection of automotive electronic systems, communication networks, control algorithms, software, users, and underlying data from malicious attacks, damage, unauthorized access, or manipulation. According to the Alliance of Automobile Manufacturers, there are seven critical areas in cybersecurity for connected vehicles:
The Global Automotive Cyber Security Market is projected to grow at a CAGR of around 14.8% during the forecast period, i.e., 2022-27. The new cybersecurity compliance, including UNECE WEP.29, Auto Data (China), ISO/SAE 21434, etc., issued by various countries like the US, Europe, & China, has surged the demand for automotive cybersecurity solutions from various OEMs, such as BMW, GM, Ford, Kia, Mahindra, among others.
The rapid escalation in the adoption of technologies like autonomous driving technology, keyless entry, wireless connectivity, etc., coupled with the burgeoning electrification of existing transportation fleets with the deployment of ADAS features, have heightened the demand for automotive security solutions.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico|
|South America: Brazil, Argentina, Rest of South America|
|Europe: Germany, The UK, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China. Japan. India. South Korea. Rest of Asia Pacific|
|Middle East & Africa: Israel, Turkey, South Africa, Rest of Middle East & Africa|
|Key Companies Profiled||Infineon Technologies AG, Continental AG (Argus Cyber Security), Robert Bosh GmbH (ESCRYPT GmbH), Garrett Motion Inc., Intel Corporation, Aptiv Plc., C2A Security, Garrett Motion, Harman International Industries, Inc., Denso Corporation, Lear Corporation, SBD Automotive & NCC Group, Arilou Technologies, Karamba Security, Vector Informatik GmbH|
|Unit Denominations||USD Million/Billion|
In addition, the surging demand for connected vehicles & semi-autonomous vehicles and massive investments by automakers in cybersecurity solutions to enhance customer experiences have further boosted the global market to a greater extent.
Moreover, the application of Artificial Intelligence (AI) & 5G to support automated driving systems is growing at a faster pace. Auto OEMs are actively focusing on providing enhanced customer experience by adopting these next-generation solutions and leveraging preventive & predictive maintenance to improve the overall product quality. However, the risk of cyber intrusion increases considerably, and the need for sophisticated automotive cyber security solutions is growing manifold.
Key Trend in the Global Automotive Cyber Security Market
The continuous growth in infrastructure creation for intelligent transport systems across the globe is catalyzing the sales of connected vehicles, particularly passenger cars. The private sector entities are not the only pioneers investing substantially in this area. Many governments worldwide are also increasingly formulating regulations to support the intelligent transport infrastructure. The key objectives of the Governments behind being an active partner in the space are reducing the carbon footprints via reducing traffic congestion and the usage of fossil fuels. The countries such as Germany, France, the US, the UK, UAE, Spain, Canada, etc., have been actively pushing the intelligent transport system.
The integration of advanced solutions such as Artificial Intelligence, 5G, etc., into the digital cockpit of passenger cars has opened fresh revenue streams for the cybersecurity services providers in the automotive sector. Moreover, the alliances of automakers with technology & semiconductor solution providers to develop autonomous vehicles are also contributing to the surging demand for cybersecurity solutions in the connected vehicles industry. For instance:
Based on the Application, the Advanced Driver-Assistance Systems (ADAS) & Safety systems have experienced a notable uptick in demand globally. The newly built vehicles have been equipped with advanced human interface systems to provide every kind of assistance to drivers, from parking in a blind spot to automatic braking by acquiring data through LiDAR sensors. Therefore, with rising advancements in vehicle assisting technologies, the demand for protecting data through encryption has been evolving continuously, i.e., leading to the surging sales of automotive cybersecurity solutions. In this regard, massive investments have been poured into R&D to create cutting-edge cybersecurity solutions. For instance:
On the other hand, Body Control & Comfort emerged as another leading application that has witnessed considerable demand owing to its smart features, such as HVAC, seat control, lighting, etc. It consists of the maximum number of electronic gadgets and hosts the proper functioning and controlling through the vehicle bus. Moreover, this application has been advancing considerably and is equipped with AI- & ML-based hardware & software to enable high performance & luxury, which, in turn, has heightened the demand for cybersecurity. For instance:
Furthermore, in 2018, Mercedes-Benz developed magic body control systems that can detect the road ahead to adjust to the bumps & ruts. The vehicle body reacts to the road flaw in a fraction of seconds and adjusts accordingly through suspension motion, thereby protecting passengers from unwanted exertion on the way.
Of both, the Embedded deployment of automotive cybersecurity solutions is in more demand than Cloud-based for protecting Electronic Control Units (ECUs) connected using wired or wireless connections in the connected cars. The Embedded deployment acquired a notable share in the Global Automotive Cybersecurity Market during 2017-19. The hardware component runs on Trusted Platform Module, i.e., used for secure key authentication, encryption, & decryption. Since it acts as the gateway, it requires a strong cybersecurity barrier to prevent any intrusion.
On the other hand, the demand for Integrated (Cloud-Based) automotive cybersecurity solutions is anticipated to grow incrementally over the forecast years since it provides real-time data regarding any potential theft or threat to users.
By Vehicle Autonomy:
Here, Semi-Autonomous Vehicles acquired a significant demand since automotive manufacturers have inclined their production towards partially autonomous vehicles, which require less human intervention and are equipped with numerous sensors to guide & make decisions on their own. Vehicles in this segment are deployed with ADAS systems, body control units, safety systems, telematics, etc., which creates a strong need for deploying automotive cybersecurity solutions. Similarly, as the autonomy of vehicles rises to completely autonomous, the integration of cybersecurity solutions at multiple stages is required since the risk of network penetration also surges significantly.
However, driverless vehicles connected with smartphones, external networks, etc., substantially boost the chances of cyber-attacks like ransomware, IoT attacks, etc. As a result, automakers have shifted their emphasis toward deploying cybersecurity solutions in vehicles for mitigating such risks. Owing to the profoundly growing production of autonomous vehicles globally, they are projected to witness considerable demand for cybersecurity solutions in the forthcoming years. For instance:
By Vehicle Type:
Of these three, Passenger vehicles have shown significant growth in the adoption of automotive cybersecurity solutions during the historical period. The increasing production & sales of connected & luxury vehicles, coupled with the integration of features like Wi-Fi, Bluetooth, GPS, etc., into them, require the continuous transmission of data & communication via telematics components such as GSM, 3G, 4G, and LTE. Due to this, the demand for automotive cybersecurity solutions for establishing secured communication networks among various connected devices in passenger vehicles has increased significantly. For instance:
Moreover, passenger vehicles have a more complex network & electronic control units than light commercial & heavy commercial vehicles to provide comfort to consumers, which increases the chances of cyber-attacks. As a result, to address these cyber-attacks, many automakers have started integrating cybersecurity solutions into passenger vehicles. Hence, the rising production of passenger vehicles equipped with cybersecurity solutions would continue boosting the global market in the coming years.
Of them all, Wireless Network Security acquired a notable share in the Global Automotive Cybersecurity Market. It owes to the incorporation of wireless technologies like Bluetooth, Wi-Fi, IoT, AI, LTE, etc., in vehicles by automotive manufacturers, which, in turn, has propagated the need for securing these networks to defend against any breach. Furthermore, the deepening emphasis on connected vehicle technology and rising security concerns over preventing remote access to vehicle electronics have augmented the deployment of wireless security.
On the other hand, application security is also a globally emerging trend in the automotive cybersecurity market. OEMs have been providing versatile mobile applications to end-consumers that enable them to connect with their cars seamlessly. Mobile connectivity provides users with every basic detail about vehicles, including fuel availability, servicing period, etc. It also poses the threat of data compromise, thereby augmenting the need for application security to deter malware, phishing, Trojans, etc.
Based on the Geography, the Global Automotive Cybersecurity market expands across:
Of all regions globally, North America observed a significant need for automotive cybersecurity solutions during 2017-21, prominently due to the increasing demand for self-driving vehicles & connected transportation, coupled with massive automotive production in countries like the US, Canada, etc., as well as mounting inclination towards electric vehicles. Hence, owing to the increased demand for automotive cyber security solutions, companies like LG Electronics, Honeywell, Upstream Security Ltd., etc., are establishing joint ventures to bring innovative automotive cybersecurity solutions across North American countries. In the region, the US witnessed substantial sales of electric vehicles during 2017-20, which, in turn, has accelerated the demand for automotive cybersecurity systems & solutions in the country.
Key Driver: Autonomous Vehicles Gaining Traction Worldwide
The autonomous vehicles are inbuilt with IoT & AI-driven technologies, such as sensors, including adaptive cruise control, active steering, Anti-lock Braking Systems (ABS), GPS navigation technology, lasers, & radars. The end user's inclination towards self-driving vehicles in Europe and North America has soared immensely due to the launch of cost-effective and stylish cars from automakers such as Tesla.
Eventually, investments in the development of autonomous vehicles have been picking up worldwide. Companies like GM, Ford, Volkswagen, etc., are progressively working toward launching passenger & commercial vehicles in the coming years. In addition, tech giants like Google & Apple are all set to foray into this space and have already launched prototypes.
Amid these developments, the integration of telematics & intelligent traffic control, AV software & mapping, connectivity/infotainment, HMI, & voice recognition features into autonomous vehicles would massively contribute to the meteoric rise in the demand for cyber security, and, as a result, would drive the Global Automotive Cyber Security Market during 2022-27.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Automotive Cyber Security Market is projected to grow at a CAGR of around 14.8% during 2022-27.
A. Passenger Vehicles are anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Automotive Cyber Security Market during the forecast period.
A. The soaring sales of electric & autonomous vehicles worldwide would provide substantial growth opportunities for the Global Automotive Cyber Security Market during 2022-27.