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The growing incidence of malicious cyber-attacks owing to the rising adoption of connected cars will propel the growth of the global automotive cybersecurity market. The global automotive cybersecurity market size was accounted for USD 1.44 billion in 2018 and projected to grow at a CAGR of 21.4% over the forecast period, from 2019 to 2025, expected to USD 5.56 billion by 2025.
According to a market research report by Million Insights, the rising focus of OEMs on developing connected cars and autonomous driving systems has generated the risk of data theft in this sector. The increasing application of e-mobility globally is anticipated to drive the automotive cybersecurity market growth as well.
Substantial developments in the automotive industry are driving the demand for sensors and battery management systems which are expected to enable more reliable cybersecurity solutions.
Therefore, technological advancement in semi-autonomous and autonomous vehicles is expected to generate the need for automotive cybersecurity due to the increasing volume of data and the development of network capacities.
The advent of cloud computing technology has opened new avenues for market growth. The development of automotive data taxonomy, cloud software infrastructure, etc. will create new opportunities for market growth across the globe. The industry is constantly striving to enable smartphone connectivity with car systems for automated vehicles. This initiative will help to implement intelligent transport systems.
However, financial impacts, commonly accepted standards, and safety issues will hamper the market growth to some extent.
Application-wise, the market is segmented into ADAS & safety systems, body electronics, infotainment, telematics, and powertrain. The infotainment application segment is projected to dominate the automotive cybersecurity market over the forecast period. The segment is expected to have healthy growth due to the advent of autonomous driving technologies and the increasing demand for seamless connectivity from the vehicle’s ECU to several cloud services in order to enhance the subsequent vehicle maneuvering and sensor processing.
By security, the market is bifurcated into wireless network, application, and endpoint security. In 2018, wireless network security held the largest market share. Due to the increasing number of connected cars, the risk of cyber-attacks in the automotive sector is also increased, thereby the need for network security is expected to gain traction in the next few years.