CybersecurityPress Release

Automotive cybersecurity market to be worth $6.0 Billion by 2028

CHICAGO, June 23, 2023 /PRNewswire/ — Automotive Cybersecurity Market size is projected to grow from USD 2.5 billion in 2023 to USD 6.0 billion by 2028, at a CAGR of 18.5%, according to a new report by MarketsandMarketsThe demand for automotive cybersecurity solutions is fueled by the increased use of electronics per vehicle, a growing number of connected cars, reinforcement of mandates by regulatory bodies for vehicle data protection, significantly growing global automotive V2X market, and the rising sales of electric vehicles globally.

Automotive Cybersecurity Market Scope:

Report CoverageDetails
Market SizeUSD 6.0 billion in 2028
Growth Rate18.5% of CAGR
Largest MarketAsia Pacific
Market DynamicsDrivers, Restraints, Opportunities & Challenges
Forecast Period2023 – 2028
Forecast UnitsValue (USD Billion)
Report CoverageRevenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments CoveredApplication, Offering, Form Type, Security Type, Approach,  Vehicle Type, Propulsion Type, Vehicle Autonomy, EV Application, and Region
Geographies CoveredAsia Pacific, Europe, North America, and the Rest of the World
Report HighlightsUpdated financial information/Company Evaluation Quadrant
Key Market OpportunitiesAdvent of software-defined vehicles
Key Market DriversElectric vehicles more vulnerable to cyber attacks

Passenger vehicle segment is expected to have largest share in the global automotive cybersecurity market

The passenger vehicles segment is anticipated to dominate the global automotive cybersecurity industry in the foreseeable future. This is owing to the rising demand for connected vehicle technology paired with the increasing sales of luxury vehicles. Also, the increasing focus towards V2X technology owing to the rising concerns over traffic, safety, as well as pollution levels is anticipated to bolster revenue growth for the passenger vehicles segment of the global automotive cybersecurity market. For instance, Audi A4 and Cadillac CTS are passenger vehicles that are equipped with V2X technology. Moreover, the rising adoption of ADAS equipped passenger vehicles is also another major factor creating the need for automotive cybersecurity solutions globally.

Endpoint security segment is expected to have significant growth opportunities in global automotive cybersecurity market

The endpoint security segment is anticipated to have significant growth opportunities in Europe and Asia Pacific during the forecast period. Rising concerns pertaining to the safety and security in Europe and Asia Pacific regions are also likely to increase the demand for endpoint security solutions. New vehicles launched in the global market contain around 100 million lines of code and are typically deployed with complex software by automotive manufacturers/OEMs. Automotive OEMs are opting for endpoint security solutions in order to maintain the safety as well as security of a vehicle’s entire code base. All these aforementioned factors are expected to augment revenues for endpoint security segment of the automotive cybersecurity market in the foreseeable future.

“Germany to lead the automotive cybersecurity market in Europe”

Germany is the largest automobile market in Europe. It is one of the most advanced and innovative automotive industries in the world. It is known for its engineering excellence and presence of automotive players such as Volkswagen, Audi, Mercedes-Benz, and Daimler, among others. In addition, Germany is one of the leading vehicle manufacturers in Europe, owing to the presence of OEMs and tier 1 companies. Luxury vehicle manufacturers like BMW, Volkswagen, and Mercedes Benz have their head offices in Germany. Germany is one of the countries in Europe to have agreed to follow WP.29 regulations for automotive cybersecurity, which will help accelerate the demand for automotive cybersecurity solutions in the country during the forecast period.

Key Market Players:

The automotive cybersecurity companies are Robert Bosch GmbH (Germany), Continental AG (Germany), Harman International (US), DENSO Corporation (Japan), and Aptiv PLC (Ireland), among others. These companies have adopted strategies of new product development, expansions, collaborations, partnerships, and acquisitions to gain traction in the market. Collaborations were the most adopted strategy, among others.

Recent Developments:

  • In February 2023, ETAS (a subsidiary of Robert Bosch GmbH) offered ESCRYPT C_ycurRISK, a software tool for threat analysis and risk assessment. It allows the automotive OEMs and suppliers to identify security vulnerabilities during vehicle development and reduce cyber risks systematically.
  • In January 2023, HL Mando Corporation collaborated with Argus Cyber Security. Through this collaboration, the Argus CAN Intrusion Detection Systems (IDS) solution was applied to HL Mando’s electrification system products, such as brakes and steering, beginning in January 2023.
  • In October 2022, NTT Communications Corporation, along with DENSO Corporation (DENSO), was supposed to develop the security operation center technology for vehicles (VSOC1) to respond to the threat of increasingly sophisticated cyber-attacks against vehicles.
  • In November 2022, Garrett Motion Inc. developed multi-layered on-and-off board intrusion detection systems (IDS) to identify cyber threats, which support OEMs to enhance vehicle security.
  • In November 2021, NXP Semiconductors collaborated with Ford Motor Company to deliver enhanced driver experiences, convenience, and services like over-the-air updates across its global fleet of vehicles, including the 2021 Ford F-150 pickup, Mustang Mach-E, and Bronco SUVs.
  • In October 2021, Renesas Electronic Corporation acquired Celeno Communications (Israel) to develop more advanced Wi-Fi connectivity capabilities to deliver end-to-end connectivity solutions for clients and access points.
  • In September 2021, Harman International collaborated with Renault (France) to provide the Harman Kardon sound system to the Renault MĂ©gane E-TECH 100% electric that is expected to be launched in 2022.
  • In July 2021, ETAS Korea, a subsidiary of Robert Bosch GmbH, signed a partnership agreement with Suresoft Tech Co., Ltd. (South Korea) to offer consulting services and solutions related to cybersecurity testing of in-vehicle systems to Korean automotive manufacturers and suppliers.
  • In July 2021, NXP Semiconductors collaborated with Moter Technologies, Inc. (US) to combine its new S32G2 high-performance automotive processors with MOTER’s insurance data science expertise and software. This is expected to enable vehicle data monetization with new and improved automotive insurance services.
  • In May 2021, ESCRYPT, a subsidiary of ETAS Inc, which is a subsidiary of Robert Bosch GmbH, partnered with Alyne GmbH and KPMG to offer joint expertise in developing the Product Security Organisation Framework (PROOF).
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