The increasing incorporation of artificial intelligence (AI)-driven solutions in vehicles is one of the major factors fueling the demand for automotive cybersecurity technologies across the world. The adoption of AI has played a major role in the development of level 4 and level 5 autonomous cars. Moreover, the availability of various connected services and devices has made the collection and analysis of vehicular data easier. However, this data must be securely stored and used for operating in-vehicle systems. Owing to this reason, automakers are increasingly focusing on integrating security and safety solutions in their offerings.
Additionally, the rising requirement for greater vehicle safety and the increasing implementation of strict vehicle safety regulations by the governments of several countries are driving the demand for the integration of AI-powered solutions in automobiles. As these technologies are highly vulnerable to cyberattacks, their increasing adoption is fueling the requirement for cybersecurity solutions. Besides this factor, the growing popularity of in-vehicle connectivity is also propelling the advancement of the automotive cybersecurity market.
According to the estimates of the market research company, P&S Intelligence, the revenue of the market will rise from $1,152.7 million in 2019 to $7,280.2 million by 2030. The market is also predicted to advance at a CAGR of 18.5% from 2020 to 2030. Due to the rising requirement for connectivity with the outside world, even while travelling, among customers, automakers are increasingly adopting in-vehicle connectivity features, such as roadside assistance, smartphone connectivity, automobile diagnostics, and real-time traffic monitoring and collision warning systems in their products, via partnerships with various consumer electronics and information technology (IT) vendors.
Geographically, the demand for automotive cybersecurity solutions is expected to rise at the fastest pace in the Asia-Pacific (APAC) region in the coming years. This is attributed to the ballooning automobile manufacturing and the increasing disposable income of people in the developing nations of APAC, such as China and India. In addition, rapid technological advancements, growing public awareness about the importance of cybersecurity solutions, and the enactment of stringent government policies regarding data security and vehicle safety are also contributing toward the surge in the automotive cybersecurity market in the APAC region.
Hence, it is clear that the demand for automotive cybersecurity solutions will rise sharply in the coming years, mainly on account of the growing requirement for greater vehicle safety, increasing adoption of AI-driven solutions in automobiles, and surging enactment of strict government policies regarding data security and vehicle safety across the world.