V2X Cybersecurity Market Size, Share & Industry Analysis, By Connectivity (DSRC and Cellular), By Unit Type (On-board Unit (OBU) and Roadside Unit (RSU)), By Communication (Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), and Vehicle-to-Cloud (V2C)), By Vehicle Type (Commercial Vehicle and Passenger Car), and Regional Forecast, 2024-2032

The global V2X cybersecurity market size was valued at USD 1.48 billion in 2023. The market is projected to grow from USD 1.74 billion in 2024 to USD 7.73 billion by 2032, exhibiting a CAGR of 20.5% during the forecast period.

V2X (vehicle-to-everything) cybersecurity refers to the measures and practices implemented to secure communication and data exchange within the context of V2X systems. It encompasses communication between vehicles (V2V), between vehicles and infrastructure (V2I), between vehicles and pedestrians (V2P), and other forms of connectivity involving everything in the vehicular environment. The primary goal of V2X cybersecurity is to safeguard the integrity, confidentiality, and availability of data exchanged within the connected vehicular ecosystem. As vehicles become more connected and autonomous, ensuring robust cybersecurity is critical to prevent unauthorized access, protect sensitive information, and maintain the safety and functionality of the overall transportation system.

The report comprises solutions offered by companies, such as Infineon Technologies AG, Qualcomm Technologies, Inc., NXP Semiconductors, AUTOCRYPT Co., Ltd., and Lear Corporation, Autotalks Ltd., among others.

The COVID-19 pandemic accelerated the digitization of various industries, including transportation. With an increased focus on connected vehicles and intelligent transportation systems, there may have been an intensified demand for V2X solutions, including cybersecurity measures. Moreover, the shift to remote work posed challenges in terms of securing remote connections and ensuring the cybersecurity of distributed systems, which could indirectly impact considerations for V2X cybersecurity.

V2X Cybersecurity Market Trends

Growing Adoption of C-V2X in Autonomous Vehicles to Fuel Market Growth

 The rollout of 5G networks and the adoption of C-V2X technology in autonomous vehicles plays a significant role in enhancing the capabilities, including safety and communication capabilities, of these vehicles. C-V2X allows autonomous vehicles to communicate with each other (V2V), with infrastructure (V2I), with pedestrians (V2P), and with other road users. This communication enhances situational awareness and helps in making more informed driving decisions. Vehicles equipped with the C-V2X system can receive real-time traffic information, allowing them to optimize routes and avoid congested areas. This contributes to improved traffic flow and overall transportation efficiency. Moreover, C-V2X technology can complement other sensor systems in electric vehicles, such as lidar, radar, and cameras. This integrated approach provides a more comprehensive view of the environment, contributing to safer navigation in diverse conditions.

V2X Cybersecurity Market Growth Factors

Enhanced Road Safety Benefits to Drive Market Growth

 V2X technology plays a crucial role in improving road safety by enabling real-time communication between vehicles. It facilitates collision avoidance systems, warnings about potential hazards, and cooperative maneuvers to prevent accidents. V2X cybersecurity helps optimize traffic flow by providing vehicles with information about road conditions, traffic signals, and upcoming congestion. This can lead to more efficient routing, reduced travel times, and improved overall traffic management.

Moreover, V2X technology extends communication to pedestrians and cyclists, improving their safety by alerting drivers about their presence and intentions. This enhances overall awareness and reduces the risk of accidents involving vulnerable road users. In addition, optimized traffic flow and reduced congestion contribute to lower fuel consumption and emissions. V2X technology plays an important role in supporting eco-friendly driving patterns and reducing the environmental impact of transportation.

RESTRAINING FACTORS

Uncertain Regulatory Frameworks and Privacy Concerns to Hinder Market Growth

The absence of clear and standardized regulatory frameworks can slow down the adoption of V2X technology. Uncertainty about regulations and compliance requirements may delay investments and deployment initiatives across various developing countries. Moreover, V2X technology involves the exchange of real-time data, raising concerns about user privacy. Drivers and individuals may be reluctant to adopt V2X cybersecurity if they are not confident that their personal information is adequately protected. These factors are expected to hamper market growth.

V2X Cybersecurity Market Segmentation Analysis

By Connectivity Analysis

Growing Adoption of DSRC in Autonomous Vehicles Aids Segment Growth

Based on connectivity, the market is classified into DSRC and cellular.

The dedicated short range communication (DSRC) segment secured the maximum share of the market in 2023, as it enables vehicles to share information directly with each other without the need for intermediary networks. This direct communication enhances the efficiency and speed of information exchange in real-time scenarios. Moreover, DSRC plays a key role in collision avoidance systems by enabling vehicles to exchange data about their positions, speed, and trajectories. As a result of this, growing adoption of DSRC in autonomous vehicles fuels the V2X cybersecurity market growth.

The cellular segment is set to rise at the highest CAGR during the forecast period 2024-2032, as it extends communication beyond V2V to include V2I and V2C. This enables interaction with roadside infrastructure, traffic management systems, and connectivity with the broader network enhanced services. C-V2X leverages existing cellular networks, particularly 4G LTE and 5G, allowing seamless integration with cellular infrastructure. This integration provides extended communication range, network coverage, and the potential for more robust and scalable V2C services.

By Unit Type Analysis

Rising Demand for Secure Communication Fuels the Demand for the Adoption of On-board Units in Vehicles

Based on unit type, the market is divided into on-board unit (OBU) and roadside unit (RSU).

The on-board unit (OBU) held the largest share of the market in 2023, as the units are equipped with security mechanisms to enable secure communication. They use encryption and authentication protocols to safeguard the integrity and confidentiality of exchanged data, preventing unauthorized access or tampering. Moreover, the OBU implements measures to protect against spoofing attacks, where malicious entities attempt to mimic legitimate communication, which boosts the adoption of OBU in vehicles.

The roadside unit (RSU) segment is expected to grow at the highest CAGR during the forecast period. The units facilitate efficient data exchange between vehicles and infrastructure, enabling real-time communication for traffic management and safety applications. Furthermore, it assists in monitoring and managing traffic flow, providing valuable data for optimizing traffic signals and rerouting to reduce congestion.

By Communication Analysis

Growing Popularity of Driving Assistance System Boost the Demand for V2V Communication

Based on communication, the market is categorized into vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), and vehicle-to-cloud (V2C).

The vehicle-to-vehicle (V2V) segment held the maximum V2X cybersecurity market share in 2023, as V2V communication helps mitigate blind spot related accidents by alerting drivers when a vehicle is in their blind spot or approaching from behind. Further, V2V technology assists the driver in safe lane changes by providing information about the speed and proximity of nearby vehicles, reducing the risk of collision during maneuvers.

The vehicle-to-infrastructure (V2I) segment is predicted to rise at the highest CAGR over the projected period, as it enhances safety at intersections by providing vehicles with information about signal timings, potential conflicts, and pedestrians. This helps to reduce the risk of collisions and improves overall intersection safety. Furthermore, it enables infrastructure elements such as road signals and sensors to communicate with vehicles, providing important information about road conditions, construction zones, and other relevant updates.

By Vehicle Type Analysis

Increasing Demand for V2X Technology in Passenger Cars Propels Segment Growth

Based on vehicle type, the market is bifurcated into commercial vehicle and passenger car.

The passenger car segment secured the maximum share of the market in 2023, as major automakers are deploying V2X technology in passenger cars. According to automotive industry experts, it is estimated that around 0.7 million cars were equipped with V2X technology by 2020 and the number is predicted to grow to 35.1 million by 2025. Owing to this, passenger cars are expected to continue their dominance in this market.

The commercial vehicle segment is anticipated to grow at the maximum CAGR during the forecast period. V2X communication plays an important role to support communication between commercial vehicles and infrastructure, contributing to optimized traffic flow. This is particularly beneficial for logistics and freight transport, reducing congestion, and improving delivery times.

REGIONAL INSIGHTS

By region, the market for V2X cybersecurity has been analyzed across North America, Europe, Asia Pacific, and the rest of the world.

Asia Pacific held the largest share of the market in 2023, as several pilot projects and deployments of V2X technologies have taken place in China and Japan. These initiatives often serve as testbeds for evaluating the effectiveness of V2X communication and associated cybersecurity measures. The rollout of 5G networks in Asia Pacific enhances the potential for V2X cybersecurity. The high-speed and low-latency capabilities of 5G networks can contribute to more efficient and reliable V2X communication, with a need for corresponding cybersecurity measures.

North America is expected to grow at a moderate CAGR in coming years. The automotive industry in the U.S., including manufacturers and technology providers, has been working on developing and adopting best practices for V2X cybersecurity. For instance, National Highway Traffic Safety Administration (NHTSA) under the U.S. Department of Transportation (DoT), has been actively involved in shaping policies and regulations related to V2X communication. The agency has published guidelines and initiatives aimed at improving the cybersecurity of connected vehicles.

The European Union (EU) has been deploying and promoting Cooperative Intelligent Transport Systems (C-ITS), which involve V2X communication. These systems aim to enhance road safety, traffic efficiency, and sustainability while ensuring the cybersecurity of the communication channels. Moreover, the EU collaborates with the automotive industry, research institutions, and cybersecurity experts to ensure that V2X systems adhere to high-security standards. Public-private partnerships are encouraged to address cybersecurity challenges collectively. All these factors are expected to fuel the cybersecurity market growth in the region at a highest CAGR during the forecast period.

List of Key Companies in V2X Cybersecurity Market

Market Players are Focusing on Partnership and Acquisition Strategies to Expand their Global Service Reach

Key players in the V2X cybersecurity sector are focusing on the expansion of their global geographical presence by providing industry-specific services. Major companies are emphasizing on strategic collaborations with regional key players and acquisitions to maintain their dominance across various regions. Top market players are bringing novel products to the market to increase their consumer base. Furthermore, a rise in constant R&D investments for product innovations is driving market expansion. Major companies are focused on the rapid implementation of these strategic initiatives for maintaining their competitiveness in the market for V2X cybersecurity.

List of Key Companies Profiled:

• Infineon Technologies AG (Germany)


• Qualcomm Technologies, Inc. (U.S.)


• NXP Semiconductors (Netherlands)


• AUTOCRYPT Co., Ltd. (South Korea)


• Lear Corporation (U.S.)


• Continental AG (Germany)


• Autotalks Ltd. (Israel)


• Yunex Traffic (Germany)


• Commsignia Ltd. (U.S.)


• Karamba Security (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023: AUTOCRYPT Co., Ltd. entered a partnership with Hitachi Solutions, Ltd., an IT services provider company. With this collaboration, both companies agreed to provide their V2X security solution to Japanese automotive OEMs and tier suppliers.


• September 2023: Commsignia Ltd. closed funding of USD 15 million Series B round raised by Inventure, Inference Partners, PortfoLion Capital Partners, and Day One Capital. With this investment, the company aimed to expand its geographic reach for the automotive sector.


• January 2023: INTEGRITY Security Services (ISS) engaged in a partnership with SaeSol Tech (SST) to provide V2X technology to automotive manufacturers. With this partnership, the company aimed to strengthen its business in Asia.


• July 2022: Yunex Traffic was selected by Colorado Department of Transportation (CDOT) to provide 150 RSU2X roadside units (RSUs). During this one year contract, the company would assist the department in configuring, deploying, and maintaining 150 RSU2X roadside units.


• July 2022: Commsignia engaged in a partnership with Perrone Robotics, an autonomous vehicle (AV) company. Through this partnership, the company aimed to provide V2X communication systems for smart city applications.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and key applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation