According to the Global Automotive Cybersecurity Market Assessment report, published by Markets & Data, the global automotive cybersecurity market is expected to grow due to increased demand for autonomous mid-tier cars, luxury and electric vehicles, stringent government regulations regarding cyber-attacks, and increasing investments by companies in cybersecurity hardware and software.
Let's look in more detail at the data contained in the report.
1. Industry growth forecast
According to Markets & Data, the global automotive cybersecurity market is expected to grow at a compound annual growth rate (CAGR) of 18.93% during the period 2024-2031, increasing from $7.83 billion in 2023 to $31.34 billion by 2031.
In recent years, the industry has undergone significant growth and is expected to maintain a sustained pace of expansion. This development is fuelled by three main factors:
- increasing production and sales of connected and automated vehicles;
- implementation of advanced driver assistance technologies (ADAS);
- increasing demand for semi-autonomous and autonomous vehicles.
The growing popularity of electric vehicles and the trend towards rapid customisation are also contributing to the growth of the automotive cybersecurity market.
2. Consumer demands
Vehicle owners increasingly demand cybersecurity solutions to protect their vehicles from cyber threats, as modern cars store personal data and record driving patterns.
Cybersecurity is essential to safeguard this information, preventing security and privacy risks, thus increasing the demand for cybersecurity solutions in the global automotive industry.
3. Increased investment
Increased investment in research and development to improve the functioning of connected cars is another key factor driving market growth.
Governments in several emerging countries are introducing regulations to protect vehicle owners' data and raise awareness of cybersecurity risks.
Companies in the industry are collaborating to address the growing demand and solve cybersecurity challenges.
4. Increasing demand for connected cars
In the automotive industry, the demand for connected cars is increasing rapidly due to the integration of advanced technologies such as artificial intelligence, 5G and the Internet of Things (IoT).
These innovations are opening up new opportunities for manufacturers, enabling them to gain a significant share of the global automotive cybersecurity market.
Connected cars, which improve mobility and driver safety through cutting-edge technologies, are driving demand for cybersecurity solutions in the automotive industry. Companies are launching connected vehicles equipped with features such as connectivity to emergency services, Wi-Fi hotspots, and cloud-based telematics for improved navigation and timely alerts, which are expected to drive significant market growth over the forecast period.
The rapid adoption and production of connected cars, coupled with the emergence of software-defined vehicles (SDVs), are contributing significantly to the expansion of the automotive cybersecurity market. In response to the growing demand for cybersecurity for connected vehicles, several companies are launching dedicated platforms.
5. Growing investment in automotive cybersecurity
Demand for electric and hybrid vehicles is growing in both developed and developing countries, contributing to the expansion of the global automotive cybersecurity market.
Electric vehicle manufacturers are investing heavily to improve the features of their vehicles, offering customers an increasingly smooth and safe driving experience.
These investments are also increasing the need for Internet of Things (IoT)-specific cybersecurity solutions that can effectively protect mobility. Such investments also offer opportunities to improve vehicle applications and functionality, accelerating the development of automotive security products and aiding companies' expansion plans.
6. Favourable government regulations
Governments around the world are introducing emission standards, laws and regulations to address growing environmental concerns, which has led to an increase in the cost of producing electric drivetrain components over the forecast period. Furthermore, in some countries, it has become mandatory to integrate safety features such as smart rear-view mirrors, emergency braking, lane departure warning systems and stability control into vehicles.
In parallel, government regulations are evolving to develop cybersecurity standards and best practices to guide automotive manufacturers and stakeholders. Increasing investment in research and development by legal authorities to improve cybersecurity standards is further fuelling the growth of the global automotive cybersecurity market.
These efforts aim to ensure greater security in modern vehicles, responding to the challenges posed by increasing connectivity and advanced technologies in vehicles.
Cybersecurity maturity in the automotive sector
We have seen that the issue of cybersecurity is becoming increasingly central and critical in the automotive sector, especially in the self-driving car segment, where the software component is essential.
As stated in the introduction to the ‘Automotive Cyber Maturity Report 2024' prepared by ETAS - Empowering Tomorrow's Automotive Software,
“at the heart of the technological revolution in the automotive industry is a critical element: cyber security. As vehicles become more connected, they also become more exposed to cyber threats.”
Let's delve a little deeper into what the report says, and try to understand the challenges the automotive industry faces when it comes to cybersecurity.
1. Cybersecurity and competitiveness
Companies that invest in cybersecurity prove to be more competitive in the automotive market. This is according to the ETAS report and surveys conducted, according to which there is a clear correlation between an organisation's level of cybersecurity maturity and its ability to stand out from the competition.
Over 90% of companies with a high degree of cybersecurity maturity perceive their competitiveness as strong or very strong.
These companies integrate cybersecurity into their business strategies, making key decisions based on data protection assessments.
Cybersecurity is not just a technical issue, but a central element in gaining the trust of customers and consolidating their loyalty. Moreover, collaboration between development, security and DevOps teams provides an additional competitive advantage, helping to make these companies more resilient.
Rather than turning to low-cost solutions, organisations with strong cyber maturity focus on strategies that ensure long-term security and proactive risk mitigation.
2. A new cybersecurity culture
As explained, the automotive industry has reached a global level of cyber maturity, shifting the focus from obtaining certifications to adopting a true cybersecurity culture.
Today, the goal is not just to become certified, but to actively manage cybersecurity in the field and anticipate future threats and trends.
Most companies now have certifications, such as UN R 155 or ISO/SAE 21434, as well as incident response plans, but they still fall short in areas such as testing these plans and implementing backup and recovery strategies.
The most marked differences between companies with basic and more advanced cyber maturity concern the ability to detect and respond to threats, and employee awareness.
Security today is primarily a people and corporate mindset challenge, with a continuous focus on developing internal skills and capabilities.
3. The importance of threat and vulnerability management
Today, automotive companies are focusing their efforts on security operations, with a particular emphasis on threat monitoring and software supply chain security.
Organisations with greater cybersecurity maturity consider these areas to be major challenges, more frequently adopting tools such as SIEM (Security Information and Event Management) and SOC (Security Operations Centre).
Vulnerability management has become a central issue, with an increasingly proactive approach that leverages multiple sources for security monitoring and implements active measures to protect the entire ecosystem.
There is an evolution from the traditional documentation-based approach to a more integrated and automated model within the software development workflow.
This change reflects what was emphasised in the first point: cybersecurity and advanced Dev(Sec)Ops practices are closely intertwined, representing a winning strategy to meet future challenges.
4. The adoption of artificial intelligence
The adoption of generative artificial intelligence (GenAI) in the automotive industry is raising both high expectations and concerns.
According to the report, there is a discrepancy in opinions on GenAI-related cybersecurity: industry experts tend to be more pessimistic, while management, especially at higher levels, shows more optimism.
Although the industry recognises the importance of GenAI for cybersecurity innovations and the competitiveness of the industry, the fear persists that this technology will introduce more vulnerabilities than solutions.
Industry players in China expressed the highest expectations, but are also very aware of the potential risks.
Companies with more advanced cyber maturity experienced higher response rates to GenAI-based queries, demonstrating that they have more experience - both positive and negative - with this technology and have a deeper understanding of cybersecurity risks.
Conclusions
In short, the automotive cybersecurity market is experiencing accelerated growth due to the increasing adoption of advanced technologies such as connected cars and electric and hybrid vehicles.
Companies are investing heavily to improve vehicle features and develop specialised security solutions, responding to the growing demand for protection against cyber threats.
Government regulations further support this trend by introducing increasingly stringent environmental and security standards.
As technologies continue to advance and new regulations are implemented, automotive cybersecurity is emerging as a crucial area for ensuring security and privacy in the modern mobility landscape.
