How Has The External Cloud Automotive Cyber Security ServicesMarket Size Evolved In Recent Years?
The external cloud automotive cyber security services market has seen considerable growth due to a variety of factors.
• The market size for external automotive cyber security services in the cloud has seen substantial growth in recent years. Projections estimate this market will increase from $2.44 billion in 2024 to $2.71 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 10.9%.
The historical growth in this sector can be linked to a rise in connected vehicles and in-vehicle connectivity, escalating complexities and sophistication of cyber threats aimed at the automotive industry, regulatory measures focusing on cyber security within the automotive industry, increasing awareness of the risks of cybersecurity within the automotive sector, and the surge in cyber attacks targeting automotive systems.
What Is The Projected Growth Of The External Cloud Automotive Cyber Security Services Market?
The external cloud automotive cyber security services market is expected to maintain its strong growth trajectory in upcoming years.
• In the following years, the market size for external cloud automotive cybersecurity services is projected to expand rapidly, reaching $4.72 billion in 2029, with a compound annual growth rate (CAGR) of 14.9%.
This anticipated growth during the forecast period could be a result of factors such as the growth of the electric and autonomous vehicle market, the ongoing advancement of over-the-air (OTA) software updates, utilisation of cloud platforms for car data storage and processing, and an increase in collaborations between automotive manufacturers and cybersecurity service providers due to rising cyber threats aimed at modern vehicles. Upcoming trends throughout the forecast period are expected to include the application of AI and machine learning in automotive cybersecurity, escalating demand for real-time threat detection and surveillance, emphasis on comprehensive encryption for in-vehicle and cloud communication, advancement of blockchain-based security solutions for vehicle data, and the inclusion of cybersecurity as a crucial element in the comprehensive design and development of vehicles.
What Are The Key Drivers Fueling Growth In The External Cloud Automotive Cyber Security Services Market?
The growth of the external cloud automotive cyber security services market is anticipated to be fuelled by the escalating tally of connected cars. These are vehicles capable of establishing internet access and connecting with other cars via an embedded connectivity scheme. The newly emerging trend involves more smart connectivity features in cars. Despite their advantage of being able to connect to the internet, these vehicles are also prone to cyber threats, necessitating cyber security services. For example, a study on connected cars by UK-based technology news source, the Internet of Business, predicts a 270% surge in the number of connected vehicles, estimating it will reach 125 million by 2022. As such, the expanding pool of connected cars is influencing the external cloud automotive cyber security services market growth.
What Are The Principal Market Segments In The Global External Cloud Automotive Cyber Security Services Industry?
The external cloud automotive cyber security services market covered in this report is segmented –
1) By Security: Endpoint Security, Application Security, Wireless Network Security
2) By Electric Vehicle Type: Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-In Hybrid Electric Vehicle
3) By Vehicle Type: Passenger Car, Commercial Vehicle
4) By Application: Telematics System, Infotainment System, Powertrain System, Body Control And Comfort System, Communication System, ADAS And Safety System
Subsegments:
1) By Endpoint Security: Antivirus And Anti-Malware Solutions, Endpoint Detection And Response (EDR), Device Control Solutions
2) By Application Security: Web Application Firewalls (WAF), Application Security Testing (AST), Secure Software Development Lifecycle (SDLC) Tools
3) By Wireless Network Security: Intrusion Detection Systems (IDS), Virtual Private Networks (VPN), Secure Access Service Edge (SASE)
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Which Emerging Market Trends Are Altering The External Cloud Automotive Cyber Security Services Sector?
One significant trend capturing attention in the external cloud automotive cyber security services market is technological innovation. Market participants are consistently innovating and adopting progressive technologies to remain market leaders. To cite an example, Wipro, an IT company based in India, unveiled a Cloud Car platform in March 2022. This platform comes with a comprehensive cybersecurity system, allowing car manufacturers to deal with software glitches through over-the-air updates. It separates previously combined hardware and software, thereby facilitating manufacturers with large-scale software upgrade capabilities.
Who Are the Key Players in the External Cloud Automotive Cyber Security Services Market?
Major companies operating in the external cloud automotive cyber security services market include:
• Continental AG
• Denso Corporation
• Aptiv PLC
• NXP Semiconductors N. V.
• Honeywell International Inc.
• Trillium Secure Inc.
• Escrypt GmbH
• Vector Informatik GmbH
• Karamba Security
• Guardknox Cyber Technologies Ltd.
• Upstream Security Ltd.
• Capgemini SE
• Robert Bosch GmbH
• SafeRide Technologies
• Arilou Automotive Cybersecurity
• Argus Cyber Security
• BlackBerry
• Cybellum Technologies LTD
• MIRA Ltd.
• BT Security
• Cisco Systems Inc.
• Dell Technologies Inc.
• Fortinet Inc.
• International Business Machines Corporation
• Microsoft Corporation
• Palo Alto Networks Inc.
• Trend Micro Inc.
• Check Point Software Technologies Ltd.
What are the Regional Insights into the External Cloud Automotive Cyber Security Services Market?
North America was the largest region in the external cloud automotive cyber security services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the external cloud automotive cyber security services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
