Fueled by the increasing demand for connected vehicles, the global automotive cybersecurity market is anticipated to grow at a CAGR of 18.5% till 2028.
According to a recent report by ResearchAndMarkets, the global automotive cybersecurity market is set to grow from $2.5 billion in 2023 to $ 6 billion by 2028.
The rising demand for connected vehicles has led to a higher electronic content per vehicle, making vehicles more susceptible to cyber-attacks.
This has resulted in a surge in the demand for automotive cybersecurity solutions worldwide. In addition, the emergence of software-defined vehicles and increasing sales of electric vehicles are expected to contribute to the revenue growth of the automotive cybersecurity market globally in the coming years.
Furthermore, the market is expected to receive significant impetus due to the rise in vehicle production in various countries, the launch of the UNECE WP.29 regulation, and various Government regulations that have compelled automotive OEMs to install additional safety systems for improved vehicle safety.
Wireless Network Security
The wireless network security segment is anticipated to be the fastest-growing security type segment of the global automotive cybersecurity market till 2028. This growth is expected to be substantial in the Asia Pacific region, followed by Europe and North America.
The incorporation of V2X technology in vehicles and the increasing demand for connected vehicles are driving the growth of this segment. Wireless network security solutions are crucial in protecting wireless networks from unauthorised access attempts. These solutions are typically delivered through wireless devices such as wireless switches and routers that encrypt and secure wireless communications.
The factors mentioned above are expected to bolster the revenue growth of the wireless network security segment in the automotive cybersecurity market during the forecast period.
ADAS & Safety System
According to the report, the ADAS & safety system segment is likely to dominate the automotive cybersecurity market during the forecast period. The demand for ADAS is rapidly increasing, especially in emerging economies like India and China, driven by improved road safety standards, supporting legislation, and growing consumer awareness.
Countries in Europe, North America, and Asia Pacific have introduced regulations that mandate incorporating various types of ADAS in passenger cars and commercial vehicles. For example, the European Commission introduced the new 'Vehicle General Safety Regulation' in July 2022, mandating a range of mandatory advanced driver assistant systems to improve road safety and enable fully driverless vehicles in the European Union.
As a result, Government mandates and increasing awareness of vehicle safety are expected to fuel the demand for ADAS & safety systems, further driving the need for automotive cybersecurity solutions worldwide during the forecast period, ResearchAndMarkets observed.
Asia Pacific Leads The Pack
Asia Pacific is projected to have the largest share in the global automotive cybersecurity market during the forecast period. Countries like China, Japan, and South Korea are expected to lead in autonomous driving technology in the coming years. Leading automotive manufacturers in the region, such as Toyota, Honda, and Hyundai, have made essential safety features standard across their models.
The anticipated rise in the penetration of autonomous vehicles and the increasing adoption of ADAS-equipped vehicles will further support the growth of the automotive cybersecurity market in the Asia Pacific region.
This presents opportunities for stakeholders in the automotive cybersecurity ecosystem, contributing to the revenue growth of the market in the region during the forecast period, the report added.
Courtesy: ResearchAndMarkets. Photo is representational.