Automotive Cybersecurity Market size is set to expand at over 14% CAGR from 2023 to 2032 propelled by the rapid evolution of technology. The rising complexity of vehicle networks, including telematics and infotainment systems has heightened the demand for robust protective measures to safeguard critical data and ensure the integrity of vehicle operations.

Moreover, public and private organizations are investing and placing targeted efforts to address the rising cyber-attacks involving connected cars with the greatest range of expertise possible to ensure benefits, further promoting the industry growth. For instance, in November 2022, RISE, the state-owned Research Institutes of Sweden, developed Europe’s most sophisticated cyber security program, ’RISE Cyber Test Lab’ for automobiles, to allow automakers to test cars by utilizing modern cyber technology and the stringent testing techniques.

The automotive cybersecurity industry is categorized into security type, vehicle type, form, application, and region.

In terms of vehicle type, the market size from the commercial vehicle segment is estimated to record considerable growth between 2023 and 2032. The increasing integration of advanced technologies and connectivity features in commercial vehicles has amplified the vulnerability to cyber threats, thereby necessitating robust cybersecurity solutions to safeguard critical vehicle systems. The growing usage of trucks and buses along with the rising transportation of goods and passengers is requiring stringent cybersecurity measures to protect valuable assets and sensitive data, surging the market demand.

Automotive cybersecurity industry is projected to witness significant growth from the ADAS & safety application segment through 2032. This is attributed to the ongoing proliferation of connected vehicles and the rising adoption of ADAS features. The growing demand for autonomous vehicles is also accentuating the need for sophisticated cybersecurity measures to protect critical safety functions.

Furthermore, industry participants are developing innovative technologies to enable automobile OEMs to integrate cutting-edge driver assistance and autonomous driving functionalities into their vehicles, further promoting the segment growth. For instance, in October 2023, TTTech Auto, a provider of safe software solutions, teamed up with autonomous driving company Mobileye to push innovations, raise safety standards, shorten development times, and broaden the variety of options accessible to clients.

Regionally, Asia Pacific accounted for sizable share of the automotive cybersecurity industry in 2022 and is set to gain momentum from 2023 to 2032 driven by the expanding automotive sector and the increasing adoption of connected vehicles across China, Japan, and South Korea. Additionally, the influx of stringent government regulations for mandating the implementation of cybersecurity measures in automobiles will further accelerate the regional market expansion.