Press release
Strategic Forecast for the Automotive Cybersecurity Industry: Market Outlook 2025-2034
Automotive Cybersecurity Market Size
Automotive Cybersecurity Market Size Growth Forecast: What to Expect by 2025?
The size of the automotive cybersecurity industry has seen a considerable growth in recent years. The sector is projected to expand from $2.77 billion in 2024 to $3.26 billion in 2025, at a Compound Annual Growth Rate (CAGR) of 17.9%. Factors such as the rising adoption of autonomous and connected cars, strict governmental rules and industrial standards, increased demand for state-of-the-art driver assistance systems (ADAS), growing preference for luxury vehicles, and rising number of cyber threats aimed at automotive systems contributed to the historical growth.
How Will the Automotive Cybersecurity Market Size Evolve and Grow by 2029?
In the coming years, the automotive cybersecurity market is projected to experience substantial growth, reaching a value of $6.81 billion by 2029 at a compound annual growth rate (CAGR) of 20.2%. This growth during the forecast period is attributed to several factors such as the increasing adoption of electric cars, integration of 5G technology in vehicles, expansion of potential attack surfaces, growing dependency on over-the-air software updates, the burgeoning automotive industry in new markets, and heightened consciousness and investment in cybersecurity measures. Key trends during this period include the production of integrated cybersecurity solutions, focus on securing vehicle-to-everything (v2x) communication, employment of blockchain technology for secure data exchange, cooperation between car manufacturers and cybersecurity firms for threat analysis, and usage of behaviour-based anomaly detection for real-time threat identification.
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What Drivers Are Propelling the Growth of Automotive Cybersecurity Market Forward?
The rise in the count of internet-enabled vehicles notably aids in advancing the automotive cybersecurity market. Essentially, a connected car has the ability to tap into the internet via an existing connectivity mechanism within the vehicle. Automotive cybersecurity comprises elements like complex threat intelligence to safeguard against common security issues prevailing in such cars. For example, as per the UK government's estimation in August 2022, nearly 40% of all new vehicles in the UK are projected to possess autonomous driving functionalities by 2035, a pattern that mirrors global market trends.
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Which Emerging Trends Are Transforming the Automotive Cybersecurity Market in 2025?
Technological breakthroughs are becoming a trending factor in the evolution of the automotive cybersecurity industry. Major players in this sector are concentrating on innovation to maintain their leadership in the market. For example, in June 2024, the Swiss-company SGS Société Générale de Surveillance SA, which specializes in testing, inspection, and certification, introduced a cybersecurity audit. This helps ensure cybersecurity throughout the automotive supply chain process. Considering the growing digitalization of vehicle systems, improving cybersecurity measures is crucial in preserving product quality and strengthening customer loyalty. The UN Regulation No. 155 (UN R-155) requires vehicle makers to consider supplier-related risks in their Vehicle Cybersecurity Management System (V-CSMS) to protect vehicles and components. Performing V-CSMS audits for suppliers provides an efficient means for manufacturers to handle these dependencies.
What Are the Key Segments in the Automotive Cybersecurity Market?
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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Who Are the Key Players Shaping the Automotive Cybersecurity Market's Competitive Landscape?
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
What Geographic Markets Are Powering Growth in the Automotive Cybersecurity Market?
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
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