The global automotive cybersecurity market is expected to grow from $1.65 billion in 2021 to $2.04 billion in 2022 at a compound annual growth rate (CAGR) of 23.3%. The automotive cybersecurity market is expected to reach $4.16 billion in 2026 at a CAGR of 19.5%.
Major players in the automotive cybersecurity market are Aptiv, Argus Cyber Security, Arilou Technologies, Continental AG, ESCRYPT GmbH, GuardKnox, Harman International, Trillium, Saferide Technologies Ltd, Lear Corporation., Karamba Security, Intel Corporation, Infineon Technologies AG, Cisco systems, Delphi Automotive PLC, Vector Informatik GmbH, and Symantec Corporation.
The automotive cybersecurity market consists of sales of automotive cyber security services by entities (organizations, sole traders, and partnerships) that help to reduce vehicle cyber-attacks and accidents. Automotive cybersecurity refers to a set of activities conducted to keep cars in working condition. Automotive cybersecurity refers to the safeguarding of all electronic systems, various communication networks, control algorithms, and many types of software from malicious attacks, unauthorized access, or manipulation.
The main types of automotive cybersecurity are network security, application security, endpoint security, wireless security, and cloud security. Network security refers to a set of activities conducted to keep vehicles in working condition. These are a set of configurations or rules that are specifically designed to protect the accessibility of the networks in connected cars. The various forms include in-vehicle and external cloud services. The vehicle type includes passenger cars and commercial vehicles, which are used in numerous applications such as telematics systems, body control and comfort systems, infotainment systems, powertrain systems, and others.
The increase in the number of connected cars is significantly contributing to the growth of the automotive cybersecurity market going forward. A connected car refers to a vehicle that can access the internet through an inbuilt connectivity system. Cyber security in connected cars includes features such as the call for sophisticated threat intelligence, which helps to prevent cars from common security problems.
For instance, in June 2021, according to Express Drive, an India-based automobile news provider, in India, more than 350 million connected cars are expected to hit the road by the year 2023 which is almost 24% of all cars worldwide. Therefore, the increase in the number of connected cars is driving the growth of the automotive cybersecurity market.
Technological innovations are the key trend gaining popularity in the automotive cybersecurity market. Major companies operating in the automotive cybersecurity sector are focused on technological innovations to sustain their position in the market. For instance, in October 2021, Tesla, a US-based car manufacturing company, launched a new technology for connecting cars known as Vehicle-to-everything based on 5G technology.
V2X is a net automotive cybersecurity technology that provides authenticated data transmission between vehicles and infrastructure. The technology is launched in innovative V2X services, which contain many features such as RAT, transmission profile, communication mode, and signaling protection mode.
In 2021, LG Electronics, a South Korea-based company that manufactures consumer goods and cyber security devices, acquired Cybellum for a deal amount of $240 million. This acquisition helps LG Electronics enhance its cyber security capabilities, and would also enable LG Electronics to enter into new markets and expand its business in new markets. Cybellum is an Israeli-based company that detects and provides assessments on connected vehicles’ cybersecurity.