The global automotive cybersecurity market is projected to grow from USD 2 billion in 2021 to USD 5.3 billion by 2026, at a CAGR of 21.3%.
Increasing demand for connected vehicles and safety features has increased the electronic content per vehicle. This raised the vulnerability of a vehicle against a cyber-attack, which resulted in recall of vehicles by the reputed automakers in the recent past. Thereby, the demand for automotive cybersecurity solutions are growing at a rapid pace all over the world. Moreover, launch UNECE WP.29 mandate and “Auto Data” regulation in China are also expected to bolster the growth of automotive cybersecurity market in the coming years globally.
The automotive cybersecurity market is expected to witness a significant boost in 2022 owing to the increase in vehicle production in different countries, launch of UNECE WP.29 regulation as well as various government regulations that have compelled automotive OEMs to install additional safety systems in vehicles for better safety.
Wireless network security are estimated to grow at a higher CAGR during the forecast period
The wireless network security segment is expected to be the fastest-growing security type segment of the automotive cybersecurity market. This segment is expected to witness significant growth in Asia Pacific, followed by Europe and North America. Transportation authorities in these regions are focusing on improving infrastructure. Startups are focusing on providing wireless network services in order to cater to the growing connectivity features in automotive.
Overall, the incorporation of wireless technologies in vehicles by respective automotive manufacturers, increasing focus towards connected vehicle technology, and rising security concerns to prevent remote access to vehicle electronics are key factors anticipated to augment projected revenues for the wireless network security solution during the forecast period.
ADAS & safety system are expected to dominate the automotive cybersecurity market during the forecast period
The ADAS & safety segment is expected to dominate the automotive cybersecurity market during the forecast period. ADAS comprises ECUs/DCUs utilized to control airbags, collision warning, and tire pressure systems. The market growth in this segment is largely driven by the growing incorporation of ECUs/DCUs that control ADAS and related functionality. Government mandates and increasing awareness about vehicle safety are also expected to fuel the demand for ADAS & safety systems across the globe. Europe and North America are estimated to witness significant demand for ADAS and safety systems. Regulatory bodies of the EU have mandated forward-collision warning systems and autonomous emergency braking systems in all new vehicles by 2022.
Regulatory bodies in the US are also encouraging OEMs to make forward-collision warning systems and autonomous emergency braking systems standard features in all their new vehicles by the end of 2022. The government of India also plans to make ADAS features such as Electronic Stability Control (ESC) and Autonomous Emergency Braking (AEB) mandatory for all passenger cars by 2022-23. Therefore, government mandates, along with the increasing awareness of vehicle safety, are expected to fuel the demand for ADAS & safety systems. Thereby, the demand for automotive cybersecurity solutions are also expected to grow at a rapid pace during the forecast period globally.
