Growth in the automotive cybersecurity market is “expected to be driven by the increasing use of electronics per vehicle, the growing number of connected vehicles, rising cyber threats owing to the increase in data and connectivity of vehicles, and rising sales of electric vehicles,” according to a recent report from Research and Markets.
The industry was valued at $2.76 billion in 2022, and it is expected to grow at a CAGR of 22.97% and reach $17.73 billion by 2031.
“The automotive cybersecurity market is still in a nascent phase,” said the report. Rapid advancements in connected and autonomous vehicles, and the growing number of electronic control units (ECUs) in electric vehicles are majorly responsible for the rapid growth of this market.
This growth is expected to be driven by the fact that solution providers are increasingly partnering with other key stakeholders in the automotive cybersecurity ecosystem to expand their global footprint. Moreover, the rising number of cyber-attacks is increasingly impacting automotive original equipment manufacturers (OEMs), resulting in significant financial losses, leading OEMs to work on automotive cybersecurity solutions in-house to provide an extra or added layer of vehicle security for their offerings.
With increased adoption of connected vehicles being anticipated during the forecast period, the competition among established and emerging companies in the automotive cybersecurity solutions market is likely to continue growing to maintain leading market positions in the automotive cybersecurity industry.
