The global automotive cybersecurity market size was valued at USD 1.44 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 21.4% from 2019 to 2025. The growing emphasis on OEMs on autonomous driving and connected car systems have increased the risk of data breaching, thus augmenting the demand for cybersecurity 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 cybersecurity solution. Hence, technological advancements in autonomous and semi-autonomous vehicles trigger the demand for automotive cybersecurity 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 the application, the automotive cybersecurity market can be classified into the 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 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 the endpoint, application, and wireless network security. The wireless network is the leading segment. Rising need to ensure network security via restricted device management in-vehicle terminals due to the increasing number of connected cars resulting in a high probability of attacks on network interfaces will drive the segment.
The 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 cybersecurity standards for the automotive industry.
Based on vehicle type, the market can be segmented into commercial vehicles, passenger cars, and Electric Vehicle (EV). Passenger car is the dominant segment. However, the EV segment will register the fastest CAGR from 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 the U.S. Reduced cost of battery-operated vehicles is further promoting the adoption of EVs, thereby boosting the segment growth.
Based on services, the market is bifurcated into external cloud and in-vehicle services. In-vehicle services are the leading segment. The 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 are 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 the high demand for automobiles. Moreover, increasing investments and critical measures undertaken by the local government to tackle cyberattacks in the automotive market will drive the region’s growth. APAC is projected to be the second-largest market due to the changing consumer lifestyle along with increasing purchasing power and rapidly growing urbanization in the region. Germany led the European market in 2018 on account of the presence of prominent automobile manufacturers, such as Porsche, Audi, Ford, Opel, BMW, Volkswagen, and Mercedes-Benz.
Some of the prominent players in the automotive cybersecurity market include:
Argus Cyber Security Ltd.
Arilou Technologies
Vector Informatik GmbH
NXP Semiconductors N.V.
HARMAN International
Symantec Corporation
Denso Corporation
Honeywell International, Inc.
Guardknox Cyber-Technologies Ltd.
Report Attribute |
Details |
The market size value in 2020 |
USD 2.1 billion |
The revenue forecast in 2025 |
USD 5.6 billion |
Growth Rate |
CAGR of 21.4% from 2019 to 2025 |
The base year for estimation |
2018 |
Historical data |
2015 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD million and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Security, vehicle type, application, service, region |
Regional scope |
North America; Europe; Asia Pacific; Rest of World |
Country scope |
U.S.; Canada; Mexico; U.K.; Germany; France; Spain; Russia; Turkey; Italy; China; India; Japan; South Korea; Thailand; Brazil; South Africa; Iran |
Key companies profiled |
Argus Cyber Security Ltd.; Arilou Technologies; Vector Informatik GmbH; NXP Semiconductors N.V.; HARMAN International; Symantec Corporation; Denso Corporation; Honeywell International, Inc.; Guardknox Cyber-Technologies Ltd. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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 this study, Grand View Research has segmented the global automotive cybersecurity market report based on 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
The U.S.
Canada
Mexico
Europe
U.K.
Germany
France
Spain
Russia
Turkey
Italy
Asia Pacific
China
India
Japan
South Korea
Thailand
Rest of World
Brazil
South Africa
Iran
b. The global automotive cyber security market size was estimated at USD 1.7 billion in 2019 and is expected to reach USD 2.1 billion in 2020.
b. The global automotive cyber security market is expected to grow at a compound annual growth rate of 21.4% from 2019 to 2025 to reach USD 5.6 billion by 2025.
b. Asia Pacific dominated the automotive cyber security market with a share of 36.3% in 2019. This is attributable to changing consumer lifestyle along with increasing purchasing power and rapid growing urbanization in the region.
b. Some key players operating in the automotive cyber security market Argus Cyber Security Ltd.; Arilou Technologies; Vector Informatik GmbH; NXP Semiconductors N.V.; HARMAN International; Symantec Corporation; Denso Corporation; Honeywell International, Inc.; and Guardknox Cyber Technologies Ltd.
b. Key factors that are driving the market growth include the growing emphasis of OEMs on autonomous driving as well as connected car systems that have increased the risk of data breaching and increasing usage of e-mobility.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.
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