Global External Cloud Automotive Cyber Security Services Market - Industry Trends and Forecast to 2031

External Cloud Automotive Cyber Security Services Market Analysis and Size

The external cloud automotive cybersecurity services market is witnessing rapid growth and is poised for significant expansion in the foreseeable future. This growth is fueled by the increasing adoption of connected vehicles and the escalating number of cyber threats targeting automotive systems. The proliferation of cloud-based services in the automotive industry has underscored the critical need for robust cybersecurity solutions to safeguard vehicles' data and systems. For example, the 2023 Global Automotive Cybersecurity Report from Upstream Security Ltd., a U.S.-based provider of cloud-based automotive cybersecurity solutions, highlighted a 380% surge in automotive API attacks, accounting for 12% of total incidents in 2022, despite OEMs employing advanced IT security measures. This trend underscores the growing importance of cybersecurity in the automotive sector and is a key driver propelling the external cloud automotive cybersecurity services market.

Global external cloud automotive cyber security services market size was valued at USD 2.91 billion in 2023 and is projected to reach USD 10.29 billion by 2031, with a CAGR of 17.1% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation

Market Definition

External cloud automotive cybersecurity services encompass a range of security solutions and protocols. These are designed to protect connected vehicles from cyber threats, especially those linked to cloud-based systems and services. These services focus on safeguarding the communication networks, data, and software systems of vehicles from unauthorized access, data breaches, and cyberattacks. They provide robust defense mechanisms to prevent cybercriminals from exploiting vulnerabilities in the vehicle's systems, thereby enhancing the overall safety and reliability of connected automotive technologies.

External Cloud Automotive Cyber Security Services Market Dynamics

Drivers

• Increasing Connectivity in Vehicles

The automotive industry is witnessing a significant increase in the integration of connected technologies within vehicles. These technologies include IoT devices, infotainment systems, and advanced driver assistance systems (ADAS), among others. While these advancements enhance the driving experience and offer numerous benefits, they also introduce new cybersecurity challenges. As vehicles become more connected to external networks and cloud services, they become potential targets for cyberattacks. This trend is driving the demand for external cloud automotive cybersecurity services to protect against a range of threats. These threats include unauthorized access, data breaches, and remote manipulation of vehicle systems.

• Stringent Government Regulations

The government around the world are increasingly recognizing the importance of cybersecurity in vehicles and are implementing stringent regulations to ensure the safety and security of connected vehicles. For instance, UN Regulation No. 155 sets forth cybersecurity requirements for automotive systems, including the protection of vehicle data, software, and communication channels. Compliance with these regulations is crucial for automakers to avoid penalties and maintain consumer trust. As a result, there is a growing adoption of external cloud automotive cybersecurity services that help automakers comply with these regulations and protect their vehicles from cyber threats.

• Rising Cybersecurity Concerns

The automotive industry is facing a growing number of cybersecurity concerns due to the increasing frequency and sophistication of cyberattacks targeting vehicles. These attacks can range from simple theft of personal data to more complex attacks that can compromise the safety and functionality of the vehicle. As a result, there is a growing awareness among automakers and consumers about the importance of cybersecurity in vehicles. This awareness is fueling the demand for external cloud automotive cybersecurity services that can provide advanced protection against cyber threats.

Opportunities

• Growing Demand for Electric Vehicles

With electric vehicles (EVs) gaining mainstream popularity, the need to secure their connected systems and data will become increasingly critical. Electric vehicles rely heavily on advanced software and communication systems to operate efficiently, making them susceptible to cyber threats. The rise in popularity of electric vehicles (EVs) presents a significant opportunity for the external cloud automotive cybersecurity services market.        

• Cloud Services Integration with Smart Cities

As vehicles become more connected to smart city systems, such as traffic lights, road sensors, and other vehicles, the need for robust cybersecurity measures becomes paramount. External cloud cybersecurity services can play a crucial role in securing these connections, ensuring the integrity and security of vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communications. Additionally, cybersecurity services can help protect sensitive data exchanged between vehicles and smart city systems, contributing to the overall security and efficiency of smart city operations. The integration of vehicles with smart city infrastructure presents a promising opportunity for external cloud automotive cybersecurity services.

Restraints/Challenges

• Legacy Systems Challenge Cybersecurity Integration

The integration of external cloud automotive cybersecurity services with existing automotive systems can be complex, especially for vehicles with legacy systems. Legacy systems often lack compatibility with modern cybersecurity solutions, making integration time-consuming and challenging. Automakers may struggle to integrate these solutions seamlessly without disrupting vehicle functionality. This complexity can discourage automakers from adopting external cloud automotive cybersecurity services, particularly if they perceive the integration process as costly or resource-intensive.

• Data Privacy Concerns 

Concerns over data privacy and security have escalated with the increased collection and sharing of vehicle data. Consumers and automakers are increasingly aware of the risks posed by data breaches and unauthorized access to sensitive vehicle information. This heightened awareness has led some consumers and automakers to hesitate in adopting external cloud automotive cybersecurity services. They may fear that these services could compromise the privacy of their data or expose them to cyber threats.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In April 2024, Argus Cyber Security, a global leader in automotive cybersecurity, successfully conducted vehicle-level penetration testing on the new Ford Trucks F-MAX heavy-duty truck. This testing, which adhered to the UNR 155 cybersecurity regulation, marked a significant milestone for Ford Trucks in attaining type approval certification for the F-MAX model
• In April 2023, Upstream Security, an Israeli startup specializing in automotive cybersecurity, secured an undisclosed investment from Cisco Investments. This investment comes as the demand for internet-connected vehicles and other devices continues to grow. Cisco Investments, the corporate venture capital arm of Cisco Systems, made this strategic investment in Upstream Security to support its growth and development in the automotive cybersecurity sector

External Cloud Automotive Cyber Security Services Market Scope

The market is segmented into nine notable segments based on security, application, vehicle, and electric vehicle. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Security

• Endpoint Security
• Application Security
• Wireless Network Security

Application

• Telematics System
• Infotainment System
• Powertrain System
• Body Control and Comfort System
• Communication System
• ADAS and Safety System

Vehicle

• Passenger Car
• Commercial Vehicle

Electric Vehicle

• Battery Electric Vehicle
• Hybrid Electric Vehicle
• Plug-In Hybrid Electric Vehicle

External Cloud Automotive Cyber Security Services Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, security, application, vehicle, and electric vehicle as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, rest of Middle East and Africa, Brazil, Argentina, and rest of South America.

North America is expected to be the dominating region due to the growing demand for smart automotive solutions in the region. Furthermore, increased government support and investment to counter cyberattacks in the automotive industry are also significant factors fueling market growth in North America.   

Europe is expected to show the fastest growth in the market due to shifting consumer lifestyles and the rising disposable income of individuals, enabling them to purchase vehicles equipped with more advanced features. The increasing adoption of connected and autonomous vehicles in countries like China, Japan, and South Korea is also propelling market growth in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and External Cloud Automotive Cyber Security Services Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• HARMAN International (U.S.)
• Continental AG (Germany)
• DENSO CORPORATION (Japan)
• Aptiv (Ireland)
• NXP Semiconductors (Netherlands)
• Honeywell International Inc. (U.S.)
• Trillium Secure, Inc. (U.S.)
• ETAS (Germany)
• Vector Informatik GmbH (Germany)
• Karamba Security (Israel)
• GUARDKNOX (Israel)
• Upstream Security Ltd. (Israel)
• Lear (U.S.)
• Capricode Oy (Finland)
• Fujitsu (Japan)
• Telefonaktiebolaget LM Ericsson (Sweden)

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