Automotive cybersecurity market to reach $5.1 billion by 2027
The global automotive cybersecurity market size is projected to grow from $2.1 billion in 2021 to $5.1 billion by 2027, at a CAGR of 20.3%, according to ResearchAndMarkets.
The cybersecurity protocols used to protect vehicles from malicious actors are becoming more sophisticated as the automotive industry becomes smarter. Automotive cybersecurity protects communication networks, electronic systems, software, and data collected by the new generation of intelligent vehicles.
Automotive cybersecurity market drivers
Increased use of electronics per vehicle and an increase in the number of connected vehicles
Electrification has recently helped to reduce the overall weight of a vehicle. As a result, the demand for electronics in the automotive industry has increased at a rapid pace. Vehicles are becoming more vulnerable to cyber-attacks due to the increased use of electronics. Cyber-attacks are common on electronic components used in telematics, infotainment, powertrain electronics, body electronics, communication electronics, and ADAS systems.
The electronic system in a vehicle is becoming more complex.
There is a growing demand for electronic driver assistance systems due to increased demand for vehicle safety in terms of accident prevention, driver safety, and advanced communication & data safety (parking, speed regulation, lane assist, blind spot detection, pre-collision warning, etc.).
Impact of COVID-19
The initial outbreak of COVID-19 had disrupted the entire ecosystem, halting the production and sale of new vehicles around the world. OEMs had to wait until lockdowns were lifted before they could resume production, which had an impact on their businesses. As a result, vehicle manufacturers had to adjust production volume.
Component manufacturing was also halted, and small Tier II and Tier III manufacturers were experiencing liquidity issues. The automotive industry is highly capital-intensive and requires frequent financing to stay in business. Thus, the suspension of production during the first months of the outbreak, combined with lower demand, had an unprecedented impact on vehicle and component manufacturers during the first months of the pandemic.