V2X Cybersecurity Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

V2X Cybersecurity Market Trends & Drivers

Increasing Use of C-V2X in Self-Driving Cars Is Key Market Driver

• Cellular vehicle-to-everything (C-V2X) is a technology that allow vehicles to communicate with each other and with many other elements of the surrounding environment. It enhances safety, improves traffic flow, and provides support for autonomous driving, which is why it is a key component of connected and .
• Vehicles with C-V2X can obtain a live traffic update and use the data to find the best routes with minimum traffic. This help move traffic more smoothly and improve the overall transportation efficiency
• This nature of C-V2X systems helps to introduce vulnerabilities like hacking, unauthorized access to data, and changing traffic signals due to which the demand for V2X cybersecurity solutions is increasing for safe C-V2X systems and connected vehicles.

Need for Higher Road Safety also Drives Market

• The V2X technology increases road safety by providing real-time communication between vehicles. This helps prevent accidents by making sure vehicles do not crash with each other. It alerts drivers about possible risks, and allows for coordinated actions to avoid accidents.
• The goal of cybersecurity requirements for connected cars is becoming more and more important to governments and regulatory organizations. By enforcing cybersecurity measures, these rules hope to reduce the dangers posed by cyberattacks and guarantee the loyalty and integrity of V2X communication networks. Demand for V2X cybersecurity solutions is driven by the adoption of regulatory mandates and standards, which generates a compelling need for such solutions.

High costs and Heterogeneous Nodes Are Main Challenges

• Heterogeneous nodes are diverse devices and systems involved in V2X communication, which creates a challenge because different nodes use different communication protocols and technologies. Ensuring consistency and compatibility among them is important for the efficient functioning of V2X communication networks.
• The high initial investment in cybersecurity solutions can stop smaller players from entering the market, which reduces competition and innovation potential. Additionally, vehicle manufacturers and infrastructure providers may think twice before investing in V2X cybersecurity due to these high costs.

V2X Cybersecurity Industry Outlook

Connectivity Type Analysis

• Dedicated short-range communication (DSRC) is the larger category, with a share of around 65% in 2023. This connectivity makes it possible for cars to communicate directly with one another, without the use of intermediary networks. This direct contact improves the speed and efficiency of information flow.
• Essentially, it offers quick communication, provides consistency during V2V and V2I communications, and works well even in bad weather conditions. With DSRC, vehicles can check if the messages they receive are genuine and warn the driver if anything seems suspicious.
• Cellular is expected to be the faster-growing category, at a CAGR of 52.3% during 2024–2030. This is due to the improvements in the automotive 5G technology and efforts of companies to protect vehicle systems against online risks. Additionally, cellular connections have many advantages, such long distances coverage and remote vehicle monitoring and control in real-time.

Below are the types of connectivity that were studied in this report

• Cellular (Faster-Growing Category)
• Dedicated Short-Range Communication (DSRC) (Larger Category)

Communication Type Insights

• V2V held the largest market share, of around 40%, in 2023, because more vehicles are using telematics systems. They provide helpful data and awareness about vehicle performance, location of a person, vehicle, or object; fuel efficiency, maintenance needs, and driver behavior. This information helps in optimizing the management and coordination between a group of vehicles, reducing fuel costs, and improving vehicle safety.
• Vehicle-to-vehicle communication makes driving safer by providing information nearby vehicles that are not immediately visible to the driver, such as those behind them. It also helps drivers change lanes safely by telling them how fast other cars are going and how close they are.
• However, hackers try to get into cars through systems such as telematics and on-board diagnostics. The increased risk of hacking raises the importance of strong cybersecurity solutions for user safety and vehicle efficiency.
• V2G will be the fastest-growing category, with a predicted CAGR of 52.7%, during 2024–2030. This is because This communication allows electric vehicles to send electricity back to the power grid when it is needed most, for example, when lots of people are using electricity or in emergencies, when the grid needs extra support.

Below are the types of communications that were studied in this report

• Vehicle-to-Vehicle (V2V) (Largest Category)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Pedestrian (V2P)
• Vehicle-to-Grid (V2G) (Fastest-Growing Category)

Vehicle Type Analysis

• The passenger cars category is the larger, holding a market share of around 70% in 2023. Passenger cars are the most-common means of transport, and the use of cybersecurity solutions in connected and autonomous cars is growing. Additionally, the rise in the incidence of channel denial of service (DoS) attacks, in which harmful bots disrupt the electromagnetic channels used for vehicle communication, propels the demand for cybersecurity solutions for passenger cars using V2X technologies.
• Commercial vehicles will witness the higher CAGR, of 52.4%, during 2024–2030. This government programs aimed at enhancing road safety through digital technologies, by deploying intelligent transportation system (ITS) technologies, like to increase the safety features government mandate the advanced safety features in commercial vehicle such as V2X technology.

Below are the types of vehicles that were studied in this report

• Passenger Cars (Larger Category)
• Commercial Vehicles (Faster-Growing Category)

Form Insights

• The in-vehicle bifurcation held the larger share, of around 75%, in 2023. This is because cybersecurity solutions are directly integrated into the various electronic systems and components installed within a vehicle, such as the engine control unit (ECU).
• External cloud services Are expected to be the faster-growing category, advancing at a CAGR of 52.5% during 2024–2030. This is because this form uses a software as a service (SaaS) model, in which applications are hosted by a third party and made available to customers over the internet. This enables people to pay for the V2X cybersecurity software on a per-use basis.

Below are the forms that were studied in this report

• In-Vehicle (Larger Category)
• External Cloud Services (Faster-Growing Category)

Security Type Analysis

• Endpoint is the largest category, with a share of around 50% in 2023. This is because endpoint security involves setting rules for devices before they are allowed to connect to a network. These rules make sure that the in-vehicle electronic devices follow the set policies before they are able to access the network.
• Endpoint security provides a good defense mechanism against threats targeting devices connected to a network, such as computers and IoT devices.

Below are the types of security that were studied in this report

• Endpoint (Largest Category)
• Software (Fastest-Growing Category)
• Cloud

Unit Type Insights

• The on-board unit category dominated the market, with a share of around %, in 2023. This is because OBUs come with advanced security mechanisms, such as encryption and authentication protocols, which ensure secure communication channels and prevent the unauthorized access of data.
• The roadside unit bifurcation with witness the higher CAGR, of 52.2%, during 2024–2030. RSUs enable real-time data exchange between vehicles and the infrastructure, which is important for traffic management and overall road safety.

Below are the types of units that were studied in this report

• On-Board Unit (Larger Category)
• Roadside Unit (Faster-Growing Category)

Security Framework Analysis

• The public key infrastructure (PKI) category is the larger, holding a market share of around 80% in 2023. V2X PKI offers robust security measures, including encryption and authentication, through the use of certificates.

Below are the types of security framework that were studied in this report

• Public Key Infrastructure (PKI) (Larger and Faster-Growing Category)
• Embedded

Propulsion Insights

• Internal combustion engine is the larger category, with a share of 60% in 2023. This is because ICE is the primary trustable technology in the global vehicle market.
• Its widespread adoption and established infrastructure make it the default choice for V2X integration without requiring major modifications. This reduces implementation barriers and accelerates adoption among vehicle manufacturers and consumers.
• The electric vehicle category is expected to be the faster-growing, advancing at a CAGR of 52.9% during 2024–2030. This is because modern EVs are designed to connect with other devices and system via the V2X technology.
• Additionally, many governments around the world are implementing policies to promote the adoption of electric vehicles to reduce carbon emissions and combat climate change.

Below are the propulsions that were studied in this report:

• Internal Combustion Engines (Larger Category)
• Electric Vehicles (Faster-Growing Category)

Regional Overview

• Geographically, APAC held the largest share in the V2X cybersecurity market in 2023, due to the increasing sales of V2X-equipped vehicles.
• This creates an opportunity for automotive OEMs and software vendors to integrate V2X capabilities into their connected vehicles, the demand for which continues to burgeon in the region.
• The Asia-Pacific region is seeing an increasing use of electric vehicles, into which V2X technology is being increasingly integrated. This creates a high need for cybersecurity solutions to ensure the secure transmission of data between vehicles and their surroundings.
• North America is expected to be the fastest-growing market, with a CAGR of 53.0%, during 2024–2030. This is due to the high demand for automobiles and growing investments in automotive cybersecurity.
• Moreover, the region has an established IT infrastructure and numerous automotive software companies, which results in the easily availability and usability of these solutions.

The regions and countries analyzed for this report include:

• North America (Fastest-Growing Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany
  • U.K. (Largest and Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa (Largest Country Market)
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

V2X Cybersecurity Market Share

Companies such as ESCRYPT GmbH, Qualcomm Incorporated, Autotalks, AUTOCRYPT Co., Ltd., and Continental AG control the market for V2X cybersecurity solutions due to their large distribution networks worldwide. These companies use various strategies, including collaborations, partnerships, and mergers & acquisitions, to expand their presence and enhance their position in the market.

V2X Cybersecurity Industry News

• In January 2024, at CES 2024, AUTOCRYPT, a provider of automotive cybersecurity and mobility solutions; and Cohda Wireless, a worldwide provider of connected vehicle solutions; signed a memorandum of understanding to collaborate on security-integrated V2X solutions.
• In June, 2023, Autotalks and Infineon Technologies AG announced that the they are collaborating to deliver solutions for next-generation V2X applications. The partnership will integrate Autotalks' SECTON3 and TEKTON3 V2X reference designs with Infineon's automotive-grade HYPERRAMTM 3.0 memory.
• Qualcomm Technologies Inc. announced in May 2023, that it had finalized an agreement to acquire Autotalks.