The global automotive cyber security market size was valued at USD 1.44 billion in 2018 and is projected to witness a CAGR of 21.4% over the forecast period. Growing emphasis of OEMs on autonomous driving and connected car systems have increased the risk of data breaching, thus augmenting the demand for cyber security solutions in the automotive market. Moreover, increasing usage of e-mobility across the globe is expected to drive the market.
Trends, such as robust connectivity, machine learning, 3D printing, and social network of things, will continue to gain traction. Significant developments in the automotive industry augmenting the use of Battery Management Systems (BMS) and sensors are resulting in a more feasible and viable cyber security solution. Hence, technological advancements in autonomous and semi-autonomous vehicles trigger the demand for automotive cyber security policies resulting in increasing data and expansion in networking capacities.
Cloud and mobile computing technologies unfold several opportunities for the market. Development of a reliant cloud software infrastructure, open-car standard interfaces, mobile cross platforms, and automotive data taxonomy offers several growth avenues to the market. The industry is continuously evolving to enable smartphone support with car systems for autonomous vehicles.
This is expected to offer lucrative growth opportunities for the implementation of intelligent transport systems. Rising cases of malicious attacks due to increased adoption of connected cars will also drive the market. However, safety issues, commonly accepted standards, and financial impacts are some of the factors that may hamper the growth.
Based on application, the automotive cyber security market can be classified into ADAS & Safety system, infotainment, body electronics, powertrain, and telematics. Infotainment is anticipated to be the largest segment over the forecast years. ADAS & safety system is also expected to witness a healthy growth. The segment is currently witnessing groundbreaking technological advances in ADAS and autonomous driving technologies, which is expected to augment the demand for a constant connection from the vehicle’s ECU to several cloud services that enhance sensor processing and subsequent vehicle maneuvering.
Based on security, the market can be segmented into endpoint, application, and wireless network security. Wireless network is the leading segment. Rising need to ensure network security via restricted device management in-vehicle terminals due to increasing number of connected cars resulting in a high probability of attacks on network interfaces will drive the segment.
Application segment will witness the fastest CAGR of 23.4% from 2019 to 2025. The Japanese IPA vehicle information security guide revealed a complete life-cycle of the vehicle, for the third-party and supplier approach towards security. Recently, ISO and SAE (Society of Automotive Engineers) collaboratively worked towards defining cyber security standards for the automotive industry.
Based on vehicle type, the market can be segmented into commercial vehicle, passenger car, and Electric Vehicle (EV). Passenger car is the dominant segment. However, EV segment will register the fastest CAGR form 2019 to 2025 as potential markets, such as the U.S. and Europe, are witnessing increasing sales of EVs. Apart from luxury or sports cars, new energy vehicles are also responsible for exponential growth in the segment. For example, recently launched Tesla Model 3 witnessed high sales in U.S. Reduced cost of battery-operated vehicles is further promoting the adoption of EVs, thereby boosting the segment growth.
Based on services, automotive cyber security market is bifurcated into external cloud and in-vehicle services. In-vehicle services is the leading segment. Rise in the use of endpoint applications, such as radio, mobile, smart antenna, in automobiles is fueling the demand for in-vehicle services.
External cloud services is the fastest-growing segment owing to the development of cloud infrastructure and framework. The cloud services offer a highly reliable technology as autonomous cars generate a large amount of data. Moreover, the rise in the number of cloud-connected devices and vehicles, cloud technology will trigger a higher rate of information sharing.
The cloud features comprise open APIs that recognize and connect to vehicles enabling a seamless flow of data across mobility systems, life cycle management, data security, and load balancing. It also allows for vehicle programming, remote diagnostic, monitoring and service logging.
North America is the dominant regional market due to high demand for automobiles. Moreover, increasing investments and critical measures undertaken by the local government to tackle cyber attacks in the automotive market will drive the region’s growth. APAC is projected to be the second largest market due to changing consumer lifestyle along with increasing purchasing power and rapid growing urbanization in the region. Germany led the Europe market in 2018 on account of the presence of prominent automobile manufacturers, such as Porsche, Audi, Ford, Opel, BMW, Volkswagen, and Mercedes-Benz.
Prominent industry participants include Argus Cyber Security Ltd.; Arilou Technologies; Vector Informatik GmbH; NXP Semiconductors N.V.; HARMAN International; Continental AG; ESCRYPT; Karamba Security; Robert Bosch GmbH; Symantec Corporation; Denso Corporation; Honeywell International, Inc.; and Guardknox Cyber Technologies Ltd.
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Attribute |
Details |
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Base year for estimation |
2018 |
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Actual estimates/Historical data |
2015 - 2017 |
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Forecast period |
2019 - 2025 |
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Market representation |
Revenue in USD Million and CAGR from 2019 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, and Rest of World |
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Country scope |
U.S., Canada, Mexico, U.K., Germany, France, Spain, Russia, Turkey, Italy, China, India, Japan, South Korea, Thailand, Brazil, South Africa, and Iran |
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Report coverage |
Revenue forecast, company share, competitive landscape, and growth factors and trends |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive cyber security market report on the basis of security, vehicle type, application, service, and region:
Security Outlook (Revenue, USD Million, 2019 - 2025)
Endpoint
Application
Wireless Network
Vehicle Type Outlook (Revenue, USD Million, 2019 - 2025)
Passenger Car
Commercial Vehicle
Electrical Vehicle
Application Outlook (Revenue, USD Million, 2019 - 2025)
ADAS & Safety System
Infotainment
Body Electronics
Powertrain
Telematics
Service Outlook (Revenue, USD Million, 2019 - 2025)
In-vehicle Services
External Cloud Services
Regional Outlook (Revenue, USD Million, 2019 - 2025)
North America
U.S.
Canada
Europe
Mexico
U.K.
Germany
France
Spain
Russia
Turkey
Italy
Asia Pacific
China
India
Japan
South Korea
Thailand
Rest of World
Brazil
South Africa
Iran
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