The integration of artificial intelligence (AI) has made possible the development of level 4 and 5 autonomous cars, which is currently driving the automobile industry. Moreover, customers are increasingly preferring advanced safety features in vehicles, and this, coupled with the stringent government mandates for the installation of such features, is expected to help in the growth of the global automotive cybersecurity market. Due to these factors, the market is expected to grow from $1,152.7 million in 2019 to $7,280.2 million in 2030, at a CAGR of 18.5% during the forecast period (2020–2030).
Commercial Vehicles Bifurcation To Grow at Higher Rate throughout Forecast Period
The automotive cybersecurity market, on the basis of vehicle type, is bifurcated into passenger cars and commercial vehicles, of which the commercial vehicles category is expected to witness faster growth during the forecast period. This can be attributed to the stringent government regulations and rise in the adoption of cloud-based solutions by fleet owners, globally. Fleet cybersecurity solutions provide real-time information of connected vehicles to the central control unit, which helps in efficiently organizing and safeguarding driver data and other confidential information.
Further, the automotive cybersecurity market is classified into advanced driver-assistance system (ADAS) & safety system, infotainment, body electronics, powertrain, and telematics, on the basis of application. Among these, the infotainment classification accounted for the major share in the market in 2019. Infotainment delivers information and entertainment content via software and hardware, which is in-built or installed separately, thus improving the driver or passenger experience. As consumers can pair their smartphone with the infotainment system and access features of the phone through it, in-vehicle cybersecurity solutions are required for infotainment applications, to safeguard consumers’ data.
Globally, the Asia-Pacific (APAC) automotive cybersecurity market is expected to witness the fastest growth during the forecast period. The market in the region is primarily driven by the increasing automotive production, coupled with the rise in the disposable income of the people of emerging economies, such as India and China. Furthermore, technological advancements, the rising awareness about and adoption of cybersecurity solutions by various original equipment manufacturers (OEMs), and government policies related to vehicle safety and data security are expected to boost the demand for automotive cybersecurity solutions in the region.
During the COVID-19 pandemic, factors such as the shortage of raw material, disruption in the value chain and exports and imports of goods, slackening demand for vehicles, reduced output, and OEM shutdowns have negatively impacted the automotive industry, and thus the automotive cybersecurity market. However, the increasing digital transformation rate in the automotive industry and rising research and development activities are expected to have a positive impact in the mid and long terms.
Business Partnerships Are Strongest Strategic Measure Taken by Players in Industry
Players in the automotive cybersecurity market are consistently focusing on strategic partnerships and business mergers to increase their technical know-how and resources available, to offer better products and services. For example, in November 2019, Karamba Security Ltd. and SYSGO GmbH entered into a partnership to enhance embedded security within connected vehicles. Karamba Security Ltd. and SYSGO GmbH are investing in a state-of-the-art security layer, to enhance the resilience of the next-generation car architecture, leveraging Karamba’s Host intrusion detection and prevention systems (IDPS) and runtime software integrity for connected electronic control units (ECUs).
Browse report overview with detailed TOC on "Automotive Cybersecurity Market Research Report: By Application (ADAS & Safety System, Infotainment, Body Electronics, Powertrain, Telematics), Vehicle Type (Passenger Cars, Commercial Vehicles), Form (In-Vehicle Services, External Cloud Services)- Global Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/automotive-cybersecurity-market
Similarly, in April 2019, Argus Cyber Security (a subsidiary of Continental AG) signed a strategic cooperation agreement with Deutsche Telekom subsidiary T-Systems. Under the agreement, the two companies are developing cybersecurity solutions for the auto industry, to secure the transmission of information between vehicles and the cloud.
Some of the major players operating in the global automotive cybersecurity market are Continental AG, DENSO CORPORATION, Honeywell International Inc., Harman International Industries Inc., NXP Semiconductors N.V., Aptiv Plc, Robert Bosch GmbH, Visteon Corporation, Vector Informatik GmbH, and Trillium Secure Inc.