The global automotive cybersecurity market revenue stood at $1,152.7 million in 2019, and it is predicted to rise to $7,280.2 million by 2030. According to the forecast of P&S Intelligence, a market research company based in India, the market will progress at a CAGR of 18.5% between 2020 and 2030. The factors driving the expansion of the market are the burgeoning requirement for improved safety features in automobiles, growing deployment of connected vehicles, and the implementation of government regulations for promoting the adoption of automotive cybersecurity solutions.
Additionally, the incorporation of artificial intelligence (AI)-powered solutions in automobiles is also fueling the growth of the market. This is because the emergence of these solutions is majorly responsible for the development of level 4 and 5 autonomous cars. Moreover, these solutions have heavily contributed to the development of connected services and devices, which have made the collection of automobile data easy. Therefore, it is safe to say that the integration of these solutions in autonomous cars is fueling the adoption of safety and security solutions in vehicles.
Another major factor driving the progress of the automotive cybersecurity market is the advent of in-vehicle connectivity. Nowadays, people want to stay connected with the outside world at all times, and this trend is predicted to rise massively in the coming years. As a result, automakers are increasingly incorporating various in-vehicle connectivity features such as roadside assistance, collision warnings, real-time traffic monitoring, automobile diagnostics, and smartphone connectivity, in their products.
The integration of these features makes the automobile highly vulnerable to cyberattacks, thereby making the installation of cybersecurity solutions highly necessary. Depending on vehicle type, the automotive cybersecurity market is divided into commercial vehicles and passenger cars. Between these, the commercial vehicles category is predicted to demonstrate the faster growth in the market in the coming years. This is credited to the enactment of strict government regulations and the rising incorporation of cloud-based solutions by fleet owners across the world.
Moreover, fleet cybersecurity solutions provide real-time information and data of connected cars to the central control unit, which, in turn, assists fleet owners to efficiently organize and safeguard driver data and various other confidential information. Geographically, the automotive cybersecurity market is predicted to exhibit the highest growth rate in Asia-Pacific (APAC) in the forthcoming year. This is attributed to the surging automobile manufacturing and the rising disposable income of people, especially in the developing countries such as China and India.
Furthermore, the growing public awareness about the benefits of the automotive cybersecurity solutions, increasing integration of these solutions in vehicles by several original equipment manufacturers (OEMs), and the enactment of government policies and regulations regarding data security and vehicle safety are also fueling the growth of the market in the APAC region. In addition to these, rapid infrastructure development in the developing countries is creating lucrative growth opportunities for the OEMs manufacturing connected vehicles in the region.
Thus, the market is set for rapid expansion in the coming years, primarily because of the increasing deployment of connected cars, implementation of stringent government regulations regarding vehicle safety and data security, and the growing consumer demand for in-vehicle connectivity across the world.
