The global automotive cybersecurity industry was pegged at $7.23 billion in 2020, and is expected to reach $32.41 billion by 2030, growing at a CAGR of 16.6% from 2021 to 2030, according to Allied Market Research.
Drivers, restraints, and opportunities
Rise in need for automotive cybersecurity, mandatory cybersecurity standards, and government initiatives for implementing connected car technology have boosted the growth of the global automotive cybersecurity market. However, surge in development of common platforms leading to higher risks and challenges in making secure applications hamper the market growth.
On the contrary, surge in complexity of car’s electronic systems and improving vehicle security using adaptive security are expected to open new opportunities for the market players in the future.
The automotive cybersecurity industry COVID-19 scenario
The COVID-19 pandemic severely affected the automotive sector due to strict regulations regarding lockdown and ban on import-export of raw materials. This led to disruption of the supply chain and increased prices of raw materials.
The delays in activities and initiatives about development of modern automotive cybersecurity systems in connected cars hampered the market.
The software segment dominated the market
By offering, the software segment held the largest share in 2020, accounting for more than four-fifths of the global automotive cybersecurity market.
In addition, the segment is expected to register the highest CAGR of 16.7% during the forecast period, due to high demand for software solutions for enhancing safety of different vehicles components vulnerable to malware attacks. The report includes an analysis of the hardware segment.
The application security to manifest the highest CAGR through 2030
By security type, the application security segment would showcase the highest CAGR of 17.4% from 2021 to 2030. Moreover, the segment held the largest share in 2020, contributing to more than two-fifths of the global automotive cybersecurity market, due to rise in investments in making secure applications.
North America’s automotive cybersecurity industry held the largest share
By region, the market across North America held the lion’s share in 2020, accounting for more than one-third of the global automotive cybersecurity market, due to large-scale sales of connected cars in the region.
However, the market across Asia-Pacific would showcase the highest CAGR of 18.0% from 2021 to 2030, owing to the favorable government policies supporting the connected car technology and high security in automobiles against cyber-attacks.