The global V2X cybersecurity market was valued at USD 2.12 billion in 2022 and is estimated to reach approximately USD 11.52 billion by 2031, at a CAGR of 20.6% from 2023 to 2031.

The continuously changing automobile sector now includes the V2X (Vehicle-to-Everything) cybersecurity market as a crucial element. Through the use of V2X technology, cars can communicate with other vehicles, pedestrians, infrastructure, and other connected devices, improving traffic control, safety, and the effectiveness of transportation as a whole. But there are also greater cybersecurity threats associated with this expanded connectedness. Vehicles are becoming more and more dependent on software and data interchange, which makes them more susceptible to cyberthreats including hacking, data breaches, and system failures. As a result, a growing industry centered on protecting V2X systems has emerged. V2X cybersecurity solutions are a collection of defenses against cyberattacks for both vehicles and the larger transportation ecosystem. These defenses include encryption, intrusion detection, secure communication protocols, and threat assessment tools. The V2X cybersecurity market is expected to grow rapidly as long as automakers and governments keep pushing for the widespread adoption of V2X technology. This is because there is a growing need for reliable, dependable, and strong cybersecurity infrastructure in the automotive industry, and the market is drawing investments and creative solutions. Since V2X will be used in transportation more and more in the future, this market will be crucial to guaranteeing the security and safety of linked cars and intelligent transportation systems.

V2X CYBERSECURITY MARKET: REPORT SCOPE & SEGMENTATION

Global V2X Cybersecurity Market Dynamics

An important factor is the automotive industry's growing use of V2X technology. Robust cybersecurity solutions are becoming more and more necessary as more vehicles are outfitted with V2X communication capabilities to enhance traffic management, autonomous driving, and road safety. Industry standards, legal requirements, and consumer desire for more intelligent and safe transportation are the main forces behind this adoption. There is an increase in cybersecurity threats within the automotive industry. Autonomous vehicles are more vulnerable to cyberattacks because to their increased connectivity and dependence on software and data sharing. The need to secure V2X systems urgently has been brought to light by high-profile occurrences, which has prompted stakeholders to spend money on cybersecurity measures. Furthermore, the dynamics of the business are greatly influenced by technology breakthroughs. Advances in intrusion detection, encryption, and AI-powered threat assessment are constantly reshaping the V2X cybersecurity environment. There is an increasing trend of partnerships and collaborations between cybersecurity businesses, technology suppliers, and automobile manufacturers. The objective of these partnerships is to create all-encompassing solutions and exchange knowledge, promoting a dynamic and inventive marketplace. The rise in funding and investments in V2X cybersecurity firms is indicative of a robust market opportunity. In general, the market for V2X cybersecurity is anticipated to increase significantly as it responds to the urgent need for robust and secure V2X systems in the dynamic automotive sector.

Global V2X Cybersecurity Market Drivers

• Rapid Adoption of V2X Technology

Through the use of V2X technology, vehicles can communicate with other vehicles, people, infrastructure, and other connected equipment. This opens up a wide range of possibilities for improving traffic control, road safety, and the effectiveness of transportation as a whole. One of the main forces behind this quick acceptance is the pressing need to solve issues with road safety. Advanced safety features like collision avoidance and blind spot alerts are made possible by V2X technology, which enables real-time data transmission between vehicles concerning their position, speed, and status. The promise of V2X to lower accident rates and save lives has sparked its introduction, despite the fact that millions of traffic accidents occur each year. V2X usage is also being aided by the growing number of autonomous and semi-autonomous cars.In order to make split-second choices, maneuver through challenging traffic situations, and guarantee the safety of both passengers and pedestrians, these vehicles mostly rely on V2X communication. In order to stay competitive in the changing automotive market, manufacturers and IT firms are incorporating V2X capabilities into their cars.

• Automated and Autonomous Vehicles

The adoption of autonomous cars has the potential to significantly lower the number of traffic fatalities that result from human error-related road accidents. Governments, automakers, and consumers all have a growing interest in the potential of self-driving technology to improve road safety. Other important factors include convenience and efficiency. The potential for more effective transportation networks, less traffic, and increased energy economy is presented by autonomous cars. The ease of stress-free, hands-free transportation is very enticing to customers. Environmental factors also come into play quite a bit. It is possible to program autonomous cars to use less fuel and emit fewer pollution. This driver is growing more and more significant as the globe looks for environmentally friendly transportation options

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Restraints:

• Interoperability Challenges

Interoperability problems can lead to complications and barriers in the context of technology and data interchange, which reduces the efficacy and efficiency of linked systems. The absence of common protocols and communication interfaces among various devices and technologies is a significant limitation. It is more challenging to link systems and guarantee data sharing when they employ proprietary or non-standard communication techniques. Fragmentation, higher development costs, and a slower rate of innovation follow from this. Preserving backward and forward compatibility presents another difficulty. It's critical that more recent and older versions of systems continue to function seamlessly together as technology advances. Getting there can be difficult and expensive, especially when old systems are involved. Security concerns are also a critical restraint in interoperability. Ensuring that data remains secure when moving between different systems is a challenging task. The potential for vulnerabilities or data breaches arises when interoperability is not implemented with strong security measures, causing hesitation and resistance to interconnected systems.

• Cybersecurity Skills Gap

It alludes to the lack of skilled cybersecurity experts to fulfill the expanding need for protecting digital systems and data in a globalized society. A critical limitation linked to the skills gap is the increased susceptibility to cyberattacks. The lack of qualified professionals who can fight against these threats might leave firms unprepared to safeguard their systems and sensitive data as the quantity and sophistication of cyberattacks increase. Moreover, this skills gap can result in higher expenses. Businesses frequently have to spend money on either educating current employees or outsourcing cybersecurity services, both of which can be costly. Additionally, firms are under increased financial hardship as a result of rising salaries and recruitment expenses due to the lack of cybersecurity talent. Additionally, the skills mismatch can hinder cybersecurity innovation. A pool of subject matter specialists with the training and expertise to spur creativity is necessary for the creation of cutting-edge security solutions and tactics. The lack of these specialists can impede this field's advancement.

Opportunities:

• Innovation in Encryption and Authentication

Technologies for authentication and encryption are essential for protecting sensitive data and guaranteeing safe access to digital systems, and continued advancement in these fields could yield many advantages. Better authentication and encryption techniques present a chance to improve cybersecurity. Novel encryption solutions can offer more robust defense against data breaches and illegal access as cyber threats get more complex. This is especially important in industries where data security is critical, such as finance, healthcare, and government. Increased confidence and trust in digital interactions can also be fueled by innovations in authentication and encryption. Systems that are both user-friendly and safe are advantageous to both users and companies. Technological innovations like post-quantum encryption, which can withstand quantum computing attacks, and biometric authentication, which uses facial recognition or fingerprint scanning, can give strong security with a smooth and easy-to-use user interface. In addition, the growing field of the internet of things (IoT) opens up new avenues for innovation. Ensuring the security and integrity of data transferred amongst billions of linked devices is essential.

• Technological Advancements

These developments are the sparks that ignite revolutionary shifts, bringing about a dynamic environment brimming with prospects for people, enterprises, and society at large.  Technological developments offer prospects for increased production and efficiency. Technological advancements such as automation, machine learning, and artificial intelligence simplify procedures, cutting down on manual labor and minimizing mistakes. This results in more output, lower expenses, and the capacity to take on increasingly difficult tasks. Technology also creates new avenues for business ventures. Emerging technology can be leveraged by both startup and established businesses to develop cutting-edge goods and services. Blockchain, 5G, and quantum computing are examples of disruptive technologies that present chances to create ground-breaking products and obtain a competitive advantage in the marketplace. Moreover, technological progress propels enhancements in healthcare, education, and accessibility. Leveling the playing field for individuals with different requirements, telemedicine, remote learning, and assistive technologies offer chances for greater access to high-quality healthcare and education.

Segment Overview

By Unit Type

Based on unit type, the global V2X cybersecurity market is divided into on-board Unit, roadside unit. The on-board unit category dominates the market with the largest revenue share in 2022.OBUs are installed in individual vehicles and serve as the in-vehicle communication hubs. They enable vehicles to transmit and receive critical information, such as location, speed, and status, to other vehicles, infrastructure, and connected devices. OBUs are essential for V2X safety applications, including collision avoidance and intersection assistance. In the V2X cybersecurity market, ensuring the security of OBUs is paramount. This involves protecting the onboard communication hardware, software, and data from cyber threats, ensuring that unauthorized access or malicious interference is prevented.  RSUs are fixed installations located along roadways or at intersections. They serve as a key component of the V2X infrastructure, relaying data between vehicles and the broader transportation network. RSUs are responsible for transmitting traffic management information, road condition updates, and other critical data to vehicles. Securing RSUs is essential to prevent attacks that could disrupt traffic flow or transmit false information to vehicles, potentially causing accidents.

By Vehicle Type

Based on the vehicle type, the global V2X cybersecurity market is categorized into passenger car, light commercial vehicle, heavy commercial vehicle. The passenger car category leads the global V2X cybersecurity market with the largest revenue share in 2022. Passenger cars represent the largest segment in the V2X cybersecurity market. These vehicles are the most common on the road and are integral to the widespread adoption of V2X technology. Ensuring the cybersecurity of passenger cars is of paramount importance as they carry individuals and families. Cybersecurity measures in this segment focus on protecting the personal data of passengers, ensuring the safety of occupants, and preventing unauthorized access to the vehicle's control systems. In the event of a cyberattack, the consequences can be severe, making robust encryption, secure communication protocols, and intrusion detection systems critical to safeguarding these vehicles. Light commercial vehicles include delivery vans, small trucks, and other vehicles used for commercial purposes. They often operate in urban and suburban areas, making them key participants in smart city initiatives. The cybersecurity requirements for these vehicles are similar to those for passenger cars but can also include secure data exchange for delivery logistics and fleet management, contributing to efficient urban transportation. Heavy commercial vehicles, such as trucks and buses, play a crucial role in the V2X ecosystem, particularly in freight and public transportation. These vehicles transport goods and passengers over long distances and are vital for the global supply chain. Cybersecurity in this segment focuses on data protection, fleet management, and ensuring the safety of both drivers and other road users. As heavy commercial vehicles often operate on highways and carry substantial loads, their cybersecurity measures must guarantee the integrity and reliability of V2X communications.

By Propulsion Type

Based on propulsion type, the global V2X cybersecurity market is segmented into ICE, electric and hybrid, others. The ICE segment dominates the V2X cybersecurity market. ICE vehicles are traditional automobiles powered by internal combustion engines, running on gasoline or diesel. Cybersecurity for ICE vehicles involves protecting the electronic control units (ECUs), in-vehicle networks, and communication interfaces against potential cyber threats. While ICE vehicles are the most established segment, they are increasingly incorporating electronic systems and connectivity features, making them susceptible to cyberattacks. Electric vehicles are powered by electric motors and rely on advanced battery and charging systems. Cybersecurity for EVs is critical for safeguarding not only the vehicle's operation but also its charging infrastructure. This includes protecting battery management systems, EV supply equipment, and the data exchanged during charging processes. Ensuring the cybersecurity of EVs is essential to maintaining the trust and safety of these eco-friendly vehicles, as they become more prevalent on the roads. Hybrid vehicles combine elements of both ICE and electric powertrains. They often have complex systems that require protection against cyber threats, especially in the integration of the two power sources and the communication between them. V2X cybersecurity for hybrid vehicles must consider the unique challenges of coordinating and securing the operation of both ICE and electric components.

By Communication

Based on communication, the global V2X cybersecurity market is divided into vehicle-to-vehicle, vehicle-to-infrastructure, vehicle-to-grid, others. The vehicle-to-vehicle category dominates the market with the largest revenue share in 2022. V2V communication involves direct interactions and data exchange between vehicles on the road. This segment focuses on ensuring the cybersecurity of information shared between vehicles for applications like collision avoidance, cooperative adaptive cruise control, and lane change warnings. Cybersecurity measures in V2V communications aim to protect the integrity of the data exchanged, prevent unauthorized access, and mitigate the risk of cyberattacks that could impact road safety. V2I communication encompasses interactions between vehicles and roadside infrastructure, such as traffic signals, road signs, and sensors. This segment focuses on securing the data shared between vehicles and infrastructure for applications like traffic management, signal prioritization, and traffic flow optimization. V2I cybersecurity measures are designed to ensure the authenticity and reliability of information received from infrastructure and protect against data manipulation. V2G communication involves electric vehicles (EVs) and plug-in hybrids interacting with the electrical grid. This segment is essential for managing energy resources efficiently, supporting smart charging, and enabling grid stabilization. Cybersecurity in V2G systems is crucial to safeguard the energy transfer process, protect against unauthorized access, and ensure data privacy in interactions between vehicles and the grid.

Global V2X Cybersecurity Market Overview by Region

The global V2X cybersecurity market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific emerged as the leading region, capturing the largest market share in 2022. For many years, the area has led the way in terms of global economic expansion. The industrialization, urbanization, and development of major economies like China, Japan, India, and South Korea have contributed significantly to the region's economic significance. Due to their status as hubs for research and production, these countries have drawn large investments from both domestic and foreign sources. A demographic dividend is provided by Asia-Pacific's sizable and youthful population. This labor force has been a key contributor to entrepreneurship, innovation, and economic progress. The growing middle class in the area is also generating more economic development by building a solid consumer base and increasing demand for goods and services. Asia-Pacific has embraced technology at a quick pace, taking the lead in fields like artificial intelligence, telecommunications, and electronics. China is a global leader in 5G technology and e-commerce, while South Korea and Japan have been innovators in consumer electronics. The region is now at the forefront of innovation and economic competitiveness because to these technical developments. With some of the busiest ports and airports in the world found in nations like China and Singapore, the Asia-Pacific region plays a crucial role as a global commercial hub. Due to this, the area is now an essential participant in the global supply chain, which facilitates the trade of goods and services with other countries. The region's many nations have made significant investments in the creation of energy systems, smart cities, and transportation networks.

Global V2X Cybersecurity Market Competitive Landscape

In the global V2X cybersecurity market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global V2X cybersecurity market include Altran, APTIV, AUTOCRYPT Co., Ltd., Autotalks Ltd., Continental AG, ESCRYPT, Green Hills Software LLC, HARMAN International, ID Quantique SA, Infineon Technologies AG, Karamba Security, NXP Semiconductors, Qualcomm Technologies, Inc., SafeRide Technologies, and various other key players.

Global V2X Cybersecurity Market Recent Developments

In June 2022, Secure and effective V2X PKI integration using an internationally standardized system.  Although automakers are striving to implement V2X features in order to improve road user safety, there are still issues in obtaining effective and internationally standardized V2X PKI services.

In June 2020, A new coalition was established to improve V2X cybersecurity. A strategic alliance to support and advance economic security and prosperity for next-generation smart infrastructure has been announced by cybersecurity company Accedian, digital infrastructure security authorities New Context, and V2X pioneers Savari.

Scope of the Global V2X Cybersecurity Market Report

V2X Cybersecurity Market Report Segmentation

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

• Global V2X Cybersecurity Market Size and Forecast:

To identify and estimate the market size for the global V2X cybersecurity market segmented by unit type, by vehicle type, by propulsion type, by communication, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of V2X cybersecurity between 2019 and 2031.

• Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global V2X cybersecurity market

• Market Influencing Factors:

To find out the factors which are affecting the sales of V2X cybersecurity among consumers

• Impact of COVID-19:

To identify and understand the various factors involved in the global V2X cybersecurity market affected by the pandemic

• Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

• Marketing and Advertising
• Product Development
• Social Media and Online Content
• Governments, Associations, and Industrial Bodies
• Investors and Trade Experts