Automotive Cybersecurity Market Size, Share, and COVID-19 Impact Analysis, By System (Software, Hardware), By Form (In Vehicle, Cloud Services), By Applications (ADAS, Telematics, Infotainment, Powertrain System, and Others), By Propulsion (Electric, Hybrid, and IC Engines), By Security (Application Security, Network Security, and Endpoint Security) and Regional Forecast, 2024-2032

Cybersecurity systems in road vehicles refer to the safety and protection of automotive electronic systems, communication networks, algorithms, software, users, and data from malicious attacks, damage, unauthorized access, or manipulation. Nowadays, all modern vehicles are connected and equipped with advanced features such as connectivity, autonomous driving, infotainment, and telematics, and they are very much vulnerable to cyberattacks.

In Jan 2022, HackersEra developed a suite of Services that helps car manufacturers and suppliers protect against cyber-attacks. Their flagship service, end-to-end vehicle Pentest is where they perform automotive security audits during the software development life cycle and penetration testing on real vehicles.

Automotive cybersecurity threats can range from simple theft and vandalism of the vehicle to more complex attacks on its electronic system, such as hacking into the vehicle's computer system and gaining control over its system. There are various ways in which cybersecurity can be implemented they can, from the basics of Risk Assessment, which identify the risk associated with the electronics of the systems, to more advanced IDPS (Intrusion Detection and Prevention System), which monitors vehicle networks and traffics for signs of malicious activity and can alert the drivers or take a corrective action to prevent an attack.

Impact of COVID-19 on the Automotive Cybersecurity Market

COVID-19 led to significant disruptions across the globe, especially in the automotive sector, and the cybersecurity market was also not immune to it. On top of that, global semiconductor chip shortage caused by increased demand for electronic devices, disruptions to the supply chain, and a manufacturing slowdown affected a wide range of the industry, including the automobile industry. It caused a shortage of components and materials needed for a vehicle-based cybersecurity system and increased prices for many automotive electronic devices and components.

Post COVID-19, a sharp rise in sales of EV and Hybrid vehicles, has rapidly increased the growth of cybersecurity. The demand for security of connected cars like Tesla equipped with telematics systems and able to communicate with other cars and devices has increased. As more vehicles become connected, the risk of cybersecurity increases, bringing out new opportunities for manufacturers to develop new solutions. The pandemic also shifted and underlined the major importance of remote monitoring and management. This has generated a significant drop in sales of cybersecurity features post COVID-19.

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships.


• Porter's Five Forces Analysis.


• Technological Developments.


• Impact of COVID-19 on the Global Automotive Relay Market.

Analysis by System 

The Software-based cybersecurity system is anticipated to have the highest growth because they contain a set of programs and technology specifically designed to protect the connected vehicle from attacks. As the production of vehicles with telematics systems is increasing, The demand for cybersecurity measures is increasing. The hardware system has software and services like encryption technology, authentication, and firewall that will help monitor network traffic and suspicious activity and reduce the chances of access to the vehicle system. Also, they are cost-effective, flexible, and easy to maintain. The future of software-based systems is growing rapidly, owing to the wide range of service providers. This is expected to boost the market growth positively. .

Analysis by Form

The cybersecurity system is on the growth path and will drive future mobility in vehicles. There are various factor on which cloud-based cybersecurity works i.e. Location, function and scope of protection. Vehicle current status and location on cloud-based security system are on external servers and they help in protecting the data from data theft. Moreover, Cloud-based cybersecurity systems are designed in such a way that they interact with hardware-based system on data breaches and tempering with encryption technology. While scope of protection for cloud-based system extend broadly like having communication channels with remote location servers so that data can’t be hacked. These are cloud-based security systems that are in powertrains that can be implemented so that vehicle can’t be started remotely and provide additional security measures.

Analysis by Security

There can be different aspect of security that work together and provide a comprehensive all round protection of the vehicle. Network security refers to prevention from unauthorized access to the vehicle networks such as Wi-Fi and Bluetooth by implementing network firewalls. They also protect of vehicle on-board Hardware like infotainment system and Vehicle IC controls. Application based cybersecurity measure in Secure patches and updates.

Another aspect of security is End to End Protection which refers to entire vehicle connected to an ecosystem ranging from vehicle onboard to cloud based system. It ensures secure data transmission between the two mediums and they have high response capabilities. There is high growth anticipated in coming years of end to end security.

Analysis by Application

The ADAS system are the largest and most produced application be it Digital or analogue. There are various software cybersecurity company in the market who customize and produce ADAS cybersecurity software’s for manufacturers which includes safety from vehicle auto start, blocking the access to autonomous cars and data imaging securities. These customization capabilities of ADAS security system has led to increased production of them and software are relatively easygoing on these. So sales of these application in digital era are going to be very high.

Analysis by Propulsion

By propulsion the electric and hybrid vehicle Cybersecurity market will grow rapidly as they are becoming more and more popular and the Network technology is evolving to meet the unique needs of users of electric as well as Hybrid vehicle. The security of EV and hybrids can have many functions like Engine Safety, lock theft protection, location of the Vehicle etc. All of this developments will increase profits for the Security measures manufacturers.

Analysis by Region

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The highest growth rate is to be expected in Asia Pacific market especially India and other south East Asian countries due to having major manufacturing units. High automation and the presence of major manufacturers of EV and hybrids will have a positive impact on sales of cybersecurity systems in Asia pacific. Rapid adoption of electric vehicles and their affordability of them will bode well for regional growth.

Key Players Covered

Argus Cybersecurity (Israel), Harman International (US), Continental AG (Germany), Aptiv (Ireland), GuardKnox (Israel), Karamba Security (Israel), Symantec (U.S.), Cisco System (U.S.), Intel Corporation (U.S.), BlackBerry Ltd (U.S.).

Segmentation

Key Industry Developments

• Dec 2022: Karamba Security, a global leader in product security, presented its state-of-the-art automotive product cybersecurity portfolio during the Consumer Electronics Show taking place in Las Vegas. Karamba’s prestigious list of customers and partners includes Volvo.


• Jan 2023: Sweden opened an advanced automotive cyber security Centre. Sweden’s state-owned research institute RISE is launching what it claims to be Europe's most advanced cyber security initiative for vehicles.

• Apr 2023: SecureThings.ai Launches Cyber Assurance Platform to Ensure Safer Automobiles and Modern Mobility Solutions.