Global automotive cybersecurity market is anticipated to observe a CAGR of 18.93% during the forecast period 2024–2031, rising from USD 7.83 billion in 2023 to USD 31.34 billion in 2031. The market has experienced significant growth in recent years. It is projected to maintain a strong pace of expansion in the coming years due to growing production and sales of connected and automated vehicles, rising implementation of advanced driver-assistance system (ADAS) technology, and growing demand for semi-autonomous and autonomous vehicles. Also, an increase in demand for electric vehicles, a rapid personalization trend, and a rise in per capita income propels the global automotive cybersecurity market growth. Vehicle owners in the automotive industry demand cybersecurity significantly as it acts as a shield, safeguarding their modern automobiles from computer-based threats. In addition, during the present times, automakers are introducing advanced vehicles that store personal data and driving patterns. Cybersecurity helps prevent this data and avoids endangering security and privacy, boosting the global automotive cybersecurity market demand.
Increasing investment in different research and development activities to advance the functioning of connected cars is projected to propel the global automotive cybersecurity market growth. Governments across emerging countries are implementing different rules and regulations to protect vehicle owner information and spread awareness concerning cybersecurity. Moreover, companies are collaborating to address the rising demand and recognize potential issues to reduce cybersecurity threats.
For instance, in May 2024, Keysight Technologies, Inc. announced a partnership with ETAS GmbH to provide automakers and automotive suppliers with an all-inclusive automotive cybersecurity solution to ensure the protection of vehicles.
Rising Adoption and Launch of Connected Cars Drive Market Growth
In the automotive industry, the demand for connected cars is rising as they are equipped with advanced features, including artificial intelligence, 5G, and the Internet of Things, creating opportunities for automakers to dominate the largest global automotive cybersecurity market share. Connected cars enhance mobility and safety for drivers, and they are equipped with cutting-edge connectivity, propelling the global automotive cybersecurity market demand. Companies in the market are introducing connected cars featuring emergency service connectivity, Wi-Fi hotspots, and cloud-based telematics for better navigation and alerts, which is anticipated to foster market growth significantly in the forecast period. The rapid adoption and production of connected cars, coupled with the emergence of software-defined vehicles (SDV), are driving the global automotive cybersecurity market growth. In addition, companies are launching a platform to address the rising demand for cybersecurity in connected cars.
For instance, in May 2022, Trend Micro Inc. launched VicOne, a vehicle cybersecurity solution venture, to address the issue faced by connected car makers in conforming with new international standards and regulations. This also aims to reinforce the global competitiveness of Taiwan’s automotive supply chain and aid in attaining a foothold in the coming connected car market by addressing the vehicle cybersecurity specifications demanded of global automakers.
Click Here: https://www.marketsandata.com/industry-reports/automotive-cybersecurity-market
Rising Investment by Companies in Automotive Cybersecurity Drives Market Growth
The demand for electric and hybrid vehicles is rising across developed as well as developing countries, propelling the global automotive cybersecurity market growth. Manufacturers of electric vehicles are investing heavily in advancing the features of EVs to offer a seamless driving experience. The investment by companies also amplifies the requirement for purpose-built IoT cybersecurity solutions that efficiently safeguard mobility. In addition, investment offers opportunities to enhance the application and features of automobiles and accelerate the company’s development of automotive security products along with expansion plans.
For instance, in April 2024, Upstream Security Ltd. received an investment from Cisco Systems, Inc. to protect mobility-connected vehicles and IoT devices across the globe. This investment offers opportunities to deepen the impact on the IoT sector along with automotive and transportation.
As the automotive industry accelerates toward a future dominated by connected and autonomous vehicles, the importance of robust automotive cybersecurity cannot be overstated. With the integration of advanced technologies, vehicles are becoming increasingly sophisticated, offering unparalleled convenience, efficiency, and safety. However, this digital transformation also introduces significant cybersecurity challenges. This blog post explores the evolving landscape of automotive cybersecurity, the risks involved, and the measures necessary to safeguard the vehicles of tomorrow.
The Evolution of Automotive Cybersecurity
Traditionally, vehicles were standalone entities with minimal connectivity. However, the advent of the Internet of Things (IoT), artificial intelligence (AI), and advanced communication systems has revolutionized the automotive sector. Modern vehicles are now equipped with a plethora of digital features, including:
- Advanced Driver Assistance Systems (ADAS): These systems enhance driving safety and convenience through features like adaptive cruise control, lane-keeping assistance, and automated parking.
- Infotainment Systems: Connected infotainment systems provide navigation, entertainment, and real-time traffic updates, enhancing the driving experience.
- Telematics: Telematics systems enable remote monitoring, diagnostics, and software updates, improving vehicle maintenance and fleet management.
- Autonomous Driving Capabilities: Autonomous vehicles (AVs) rely on complex algorithms, sensors, and communication networks to navigate and make decisions without human intervention.
While these advancements offer numerous benefits, they also create potential entry points for cyberattacks, making cybersecurity a paramount concern.
Cybersecurity Risks in the Automotive Sector
The increasing connectivity and reliance on digital systems expose vehicles to various cybersecurity threats. Some of the key risks include:
- Unauthorized Access: Hackers can gain unauthorized access to a vehicle’s systems, potentially compromising critical functions like steering, braking, and acceleration. This poses significant safety risks to drivers, passengers, and pedestrians.
- Data Breaches: Modern vehicles collect and transmit vast amounts of data, including personal information, driving patterns, and location data. Cybercriminals can target this data for identity theft, financial fraud, and other malicious activities.
- Remote Attacks: Through vulnerabilities in wireless communication protocols, attackers can remotely infiltrate a vehicle’s systems. This can lead to scenarios where hackers control a vehicle from a distance, jeopardizing safety and security.
- Malware and Ransomware: Just as with computers, vehicles can be infected with malware and ransomware. This can disrupt vehicle operations, disable critical systems, and demand ransom payments for restoration.
- Supply Chain Vulnerabilities: The automotive supply chain involves numerous third-party suppliers and manufacturers. A single weak link in this chain can expose the entire ecosystem to cyber threats.
Strategies for Enhancing Automotive Cybersecurity
Addressing the cybersecurity challenges in the automotive sector requires a multi-faceted approach involving manufacturers, suppliers, regulatory bodies, and cybersecurity experts. Key strategies include:
- Robust Security by Design: Cybersecurity should be integrated into the vehicle design and development process from the outset. This involves implementing secure coding practices, conducting thorough security assessments, and adhering to industry standards.
- Regular Software Updates: Vehicles should be equipped with mechanisms for over-the-air (OTA) software updates. This ensures that security patches and updates can be deployed promptly to address vulnerabilities.
- Encryption and Authentication: Implementing strong encryption and authentication protocols helps protect data transmission and prevent unauthorized access. This includes securing communication channels between vehicles, infrastructure, and cloud services.
- Intrusion Detection and Prevention Systems: Advanced intrusion detection and prevention systems (IDPS) can monitor vehicle networks for suspicious activities and potential threats. These systems can take proactive measures to mitigate risks.
- Collaboration and Information Sharing: Collaboration between automakers, suppliers, cybersecurity firms, and regulatory bodies is crucial. Sharing information about emerging threats and best practices can enhance the overall security posture of the industry.
- Compliance with Regulations: Adhering to regulatory requirements and industry standards, such as ISO/SAE 21434 (Road Vehicles — Cybersecurity Engineering), helps ensure that vehicles meet rigorous cybersecurity benchmarks.
Government Favorable Rules and Regulations Push the Market Demand
Governments across the globe are introducing emission standards, laws, and rules due to rising environmental concerns, which resulted in the rise in the cost of offering electrical drivetrain components in the forecast period. In addition, across some specific countries, the integration of safety features, including rear-view mirror, emergency braking, lane departure warning system, stability control, and rear-view mirror has been made compulsory. Also, governments of different countries are implementing regulations focused on developing cybersecurity standards and the best methods to guide producers and other stakeholders. Additionally, the increasing investment in research and development activities by legal authorities focused on improving cybersecurity standards is driving the growth of the global automotive cybersecurity market.
For instance, in January 2024, the United Nations announced an expansion of its cybersecurity management regulation to motorcycles and scooters. This move is particularly significant given the development of features like adaptative cruise control and advanced connectivity in the motorcycle industry, which are raising concerns about potential cyber risks.
Passenger Cars Dominate with the Largest Share in the Global Automotive Cybersecurity Market
Passenger cars register the largest market share in the global market due to an increase in per capita of individuals, rising investments towards autonomous mobility, and growing sales of luxury-class vehicles in emerging countries. Manufacturers of passenger cars are introducing passenger cars equipped with connected features, including passenger vehicle telematics, infotainment systems, and autonomous capabilities. Also, they are investing in advancing features of connected passenger cars to protect sensitive data and confirming the safety of passenger cars coupled with passengers driving the demand for passenger cars. Governments in emerging countries are implementing different systems to protect the function of four-wheelers from cyber threats.
For instance, in November 2023, the Indian Ministry of Road Transport and Highways proposed uniform Cyber Security and Management Systems requirements for certain categories of four-wheelers, including commercial and passenger vehicles to prevent their functions from cyber threats.
North America Registers the Largest Automotive Cybersecurity Market Size
North America dominates the largest market size in the global market due to its large production of passenger vehicles, rising penetration of connected cars, and growing purchasing power of the middle-class income population. Also, the demand for automotive cybersecurity is rising due to increasing demand from consumers for comfortable driving and the safety of drivers and passengers. Manufacturers in the North America automotive cybersecurity market is spreading awareness concerning cyber-attacks on vehicles that encourage the adoption of electric functions in connected vehicles as well as hybrid vehicles which further drives the market growth. Also, companies in North America are planning to set up an automotive penetration testing lab to address the growing demand.
For instance, in April 2024, Argus Cyber Security Ltd., one of the leading companies in automotive cyber security, announced the establishment of a new penetration testing lab in Detroit, Michigan, to address the rising requirement from North American original equipment manufacturers (OEMs) and Tier 1 suppliers for domestic cyber security penetration testing services.
Future Market Scenario (2024–2031F)
1. Advanced innovation in the technology of vehicles and favorable government policies drive the demand for automotive cybersecurity market growth.
2. Incorporating formal methods and validation approaches has become essential in confirming the security of automotive systems, fostering the global automotive cybersecurity market growth.
3. Vehicle-to-everything communication technology allows vehicles to communicate with other vehicles and integrates lane departure warning systems, fostering global market growth.
4. The forward collision warning system is another groundbreaking technology in the global market that boasts revenue.
Contact
Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343–3258
Email: [email protected]
Website: https://www.marketsandata.com