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Rise In Connected Cars Fuels Growth In The Automotive Cybersecurity Market: A Key Factor Shaping the Future of the Automotive Cybersecurity Market in 2025
Automotive Cybersecurity Market Size
The surge in connected cars is playing an integral role in fueling the expansion of the automotive cybersecurity market. Essentially, a connected car is a vehicle equipped with an inherent system that enables internet access. Cybersecurity in these vehicles includes elements like advanced threat intelligence, designed to safeguard cars from typical security issues. As an example, in August 2022, the UK Government projected that around 40% of new cars in the UK could possess self-driving capabilities by 2035, mirroring trends observed in global markets.
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What is the future CAGR of the automotive cybersecurity market, and how will it impact industry expansion?
In recent years, there has been a swift expansion in the automotive cybersecurity market. It's projected to increase from $2.77 billion in 2024 to $3.26 billion in 2025, with a compound annual growth rate (CAGR) of 17.9%. Factors contributing to the growth during the historic period include a rise in the adoption of connected and autonomous vehicles, the implementation of stringent government regulations and industry standards, an escalation in the demand for advanced driver assistance systems (ADAS), growing preference for luxury vehicles, and an upsurge in the number of cyber threats targeting automotive systems.
In the coming years, the automotive cybersecurity market is anticipated to witness a dramatic surge in size, potentially reaching a worth of $6.81 billion by 2029, which represents a compound annual growth rate (CAGR) of 20.2%. Factors contributing to growth during this forecast period include an increase in electric vehicles adoption, integration of 5G technology into connected cars, broadened attack surface, heightened reliance on over-the-air (OTA) software updates, growth of the automobile sector in developing markets, and a rising awareness and investment in proactive cybersecurity measures. Predicted trends for this period involve the creation of integrated cybersecurity solutions, a focus on secure vehicle-to-everything (V2X) communication, application of blockchain technology to ensure safe data sharing, partnerships between car manufacturers and cybersecurity firms for threat intelligence, and the use of behavior-based anomaly detection for real-time threat spotting.
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What are the most significant trends transforming the automotive cybersecurity market today?
Advancing technology is becoming an increasingly important trend in the automotive cybersecurity market. To maintain their market standing, significant players in the field are putting their focus on technological advancements. In 2024, SGS Société Générale de Surveillance SA, a certification, inspection and testing company based in Switzerland, introduced a cybersecurity audit. This audit is meant to secure the cybersecurity of the automotive supply chain. As auto systems become more and more digital, heightened cybersecurity measures are crucial for maintaining product quality and consumer trust. The UN Regulation No. 155 (UN R-155) requires automotive manufacturers to tackle risks associated with suppliers in their Vehicle Cybersecurity Management System (V-CSMS), to ensure the safety of vehicles and components. Conducting audits of the V-CSMS of suppliers aids manufacturers in effectively managing these dependencies.
Which key market segments comprise the automotive cybersecurity market and drive its revenue growth?
The automotive cybersecurity market covered in this report is segmented -
1) By Security Type: Network Security, Application Security, Endpoint Security, Wireless Security, Cloud Security
2) By Form: In-Vehicle, External Cloud Service
3) By Vehicle: Passenger Car, Commercial Vehicle
4) By Application: Telematics System, Body Control And Comfort System, Infotainment System, Powertrain System, Other Applications
Subsegments:
1) By Network Security: Intrusion Detection Systems (IDS), Firewalls, Secure Network Protocols
2) By Application Security: Secure Coding Practices, Application Vulnerability Testing, Software Updates And Patching
3) By Endpoint Security: Anti-Malware Solutions, Endpoint Detection And Response (EDR), Device Authentication
4) By Wireless Security: Secure Communication Protocols, Encryption Solutions, Wireless Intrusion Prevention Systems (WIPS)
5) By Cloud Security: Data Encryption And Protection, Identity And Access Management (IAM), Cloud Security Posture Management (CSPM)
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What regions are at the forefront of automotive cybersecurity market expansion?
North America was the largest region in the automotive cybersecurity market in 2024. The regions covered in the automotive cybersecurity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Who are the leading players fueling growth in the automotive cybersecurity market?
Major companies operating in the automotive cybersecurity market include Aptiv PLC, Argus Cyber Security, Arilou Technologies, Continental AG, ESCRYPT GmbH, GuardKnox Cyber Technologies Ltd., Harman International Industries Inc., Trillium Secure Inc., SafeRide Technologies Ltd., Lear Corporation, Karamba Security, Intel Corporation, Infineon Technologies AG, Cisco Systems Inc., Delphi Technologies PLC, Vector Informatik GmbH, Symantec Corporation, Regulus Cyber, C2A Security Ltd., XShield Ltd., Apriori Technologies Inc., AutoCrypt Co Ltd., Idaptive Automotive Cybersecurity, GuardSquare NV, Altimetrik Corp., Identiq Automotive Ltd., Guardtime AS, ForgeRock Automotive, AutomotiveCyber GmbH, Thales Group, NXP Semiconductors NV, Green Hills Software
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What Is Covered In The Automotive Cybersecurity Global Market Report?
•Market Size Forecast: Examine the automotive cybersecurity market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the automotive cybersecurity market for a structured understanding.
•Key Players Overview: Analyze major players in the automotive cybersecurity market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the automotive cybersecurity market.
•Segment Contributions: Evaluate how different segments drive overall growth in the automotive cybersecurity market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the automotive cybersecurity market.
•Industry Challenges: Identify potential risks and obstacles affecting the automotive cybersecurity market.
•Competitive Landscape: Review strategic developments in the automotive cybersecurity market, including expansions, agreements, and new product launches.
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