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Technological Advancements In Cloud Car Platform Revolutionizes Automotive Cybersecurity Industry Trends Gaining Momentum in the Global External Cloud Automotive Cyber Security Services Market
External Cloud Automotive Cyber Security Services Market Growth
External Cloud Automotive Cyber Security Services Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The market for external cloud automotive cyber security services has seen swift expansion in the past several years. It's projected to increase from $2.44 billion in 2024 to $2.71 billion in 2025, boasting a compound annual growth rate (CAGR) of 10.9%. The phenomenal growth observed during the historic period can be credited to the spreading of connected vehicles and in-car connectivity, an uptick in the sophistication and intricacy of automotive cyber threats, regulatory emphasis on cyber security within the automotive industry, spiking consciousness of cyber security risks within the automotive realm, and an increase in the amount of cyber attacks aimed at automotive systems.
External Cloud Automotive Cyber Security Services Market Size Forecast: What's the Projected Valuation by 2029?
The market size for external cloud automotive cyber security services is predicted to experience a significant increase in the upcoming years, reaching $4.72 billion in 2029 with a compound annual growth rate (CAGR) of 14.9%. This growth in the projected period is due to the expansion of the electric and self-driving vehicle markets, continued advancements in over-the-air (OTA) software updates, adoption of cloud-based platforms for vehicle data storage and processing, and more collaboration between car manufacturers and cyber security service providers. The rise in cyber threats targeted at contemporary vehicles also contributes to this growth. The forecast period will see major trends such as the rise of AI and machine learning in automotive cyber security, increasing requirements for real-time threat intelligence and monitoring, a focus on comprehensive encryption for in-car and cloud communication, the development of blockchain-based security solutions for vehicle data, and the integration of cyber security as a critical part in vehicle design and development.
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What Are the Drivers Transforming the External Cloud Automotive Cyber Security Services Market?
The growth of the external cloud automotive cyber security services market is likely to be fueled by the increasing number of connected cars. These vehicles, equipped with integrated connectivity systems, can access the internet and communicate with other vehicles. As the prevalence of these smart connectivity cars rises, so does their susceptibility to cyber threats, underscoring the need for cyber security services. For instance, in a report by Internet of Business, a UK-based tech news source, it is predicted that the number of connected cars will surge by 270% to 125 million by 2022. As a result, this growing number of connected cars is accelerating the demand for the external cloud automotive cyber security services market.
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What Long-Term Trends Will Define the Future of the External Cloud Automotive Cyber Security Services Market?
The evolution of technology is a significant emerging trend in the external cloud automotive cyber security services market. Market participants are persistently experimenting with and implementing new technologies to stay ahead. For example, Wipro, an IT firm based in India, unveiled a Cloud Car platform in March 2022, complete with a comprehensive cybersecurity system. This development allows car manufacturers to resolve software issues through over-the-air updates. The platform separates previously merged hardware and software, thus facilitating manufacturers to scale up software upgrades.
Which Segments in the External Cloud Automotive Cyber Security Services Market Offer the Most Profit Potential?
The external cloud automotive cyber security services market covered in this report is segmented -
1) By Security: Endpoint Security, Application Security, Wireless Network Security
2) By Electric Vehicle Type: Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-In Hybrid Electric Vehicle
3) By Vehicle Type: Passenger Car, Commercial Vehicle
4) By Application: Telematics System, Infotainment System, Powertrain System, Body Control And Comfort System, Communication System, ADAS And Safety System
Subsegments:
1) By Endpoint Security: Antivirus And Anti-Malware Solutions, Endpoint Detection And Response (EDR), Device Control Solutions
2) By Application Security: Web Application Firewalls (WAF), Application Security Testing (AST), Secure Software Development Lifecycle (SDLC) Tools
3) By Wireless Network Security: Intrusion Detection Systems (IDS), Virtual Private Networks (VPN), Secure Access Service Edge (SASE)
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Which Firms Dominate the External Cloud Automotive Cyber Security Services Market by Market Share and Revenue in 2025?
Major companies operating in the external cloud automotive cyber security services market include Continental AG, Denso Corporation, Aptiv PLC, NXP Semiconductors N. V., Honeywell International Inc., Trillium Secure Inc., Escrypt GmbH, Vector Informatik GmbH, Karamba Security, Guardknox Cyber Technologies Ltd., Upstream Security Ltd., Capgemini SE, Robert Bosch GmbH, SafeRide Technologies, Arilou Automotive Cybersecurity, Argus Cyber Security, BlackBerry, Cybellum Technologies LTD, MIRA Ltd., BT Security, Cisco Systems Inc., Dell Technologies Inc., Fortinet Inc., International Business Machines Corporation, Microsoft Corporation, Palo Alto Networks Inc., Trend Micro Inc., Check Point Software Technologies Ltd.
Which Regions Offer the Highest Growth Potential in the External Cloud Automotive Cyber Security Services Market?
North America was the largest region in the external cloud automotive cyber security services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the external cloud automotive cyber security services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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