Automotive Cybersecurity Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Cars, Commercial Vehicles), By Security Type (Application, Network, Endpoint), By Application Type (ADAS & Safety System, Infotainment, Body Electronics, Powertrain, Telematics), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.64 Billion
CAGR (2026-2031)	5.47%
Fastest Growing Segment	Commercial Vehicles
Largest Market	North America
Market Size (2031)	USD 5.01 Billion

Market Overview

The Global Automotive Cybersecurity Market will grow from USD 3.64 Billion in 2025 to USD 5.01 Billion by 2031 at a 5.47% CAGR. Automotive cybersecurity is defined as the collective technologies and processes designed to protect vehicle electronic systems, communication networks, and software from unauthorized access, malicious manipulation, or data theft. The market is primarily supported by the rapid proliferation of connected vehicles and the enforcement of rigorous regulatory mandates that compel manufacturers to integrate certified security measures into vehicle architectures. These drivers are distinct from temporary market trends as they represent fundamental structural shifts necessary for vehicle safety and compliance. According to the Automotive Information Sharing Analysis Center, in 2024, the organization identified 13 ransomware groups specifically targeting the automotive sector, underscoring the severity of the evolving threat landscape.

However, a significant challenge impeding market expansion is the complexity of securing the multi-tiered automotive supply chain. The extensive reliance on diverse third-party vendors for hardware and software components introduces vulnerabilities that are difficult to detect and mitigate, creating security gaps that hamper the uniform adoption of comprehensive cybersecurity solutions.

Key Market Drivers

The rapid transition to software-defined vehicle (SDV) architectures and the proliferation of connected technologies are fundamentally reshaping the automotive cybersecurity landscape. As manufacturers integrate advanced functionalities such as autonomous driving and personalized in-cabin experiences, the vehicle's digital perimeter expands, creating new entry points for potential exploitation. This shift necessitates robust security frameworks to manage the continuous exchange of data between the vehicle, cloud infrastructure, and third-party applications, particularly as reliance on remote management grows. According to Sonatus, June 2025, in the '2025 SDV Survey', 67% of automotive professionals indicated that over-the-air (OTA) updates were already deployed in their vehicles, reflecting the industry's heavy dependence on connectivity features that require rigorous protection against interception and tampering.

Simultaneously, the escalating frequency and sophistication of automotive cyber threats are compelling stakeholders to bolster their defensive strategies. Threat actors are moving beyond experimental hacks to execute large-scale attacks that target fleet operations, backend servers, and critical infrastructure, outpacing traditional security measures. According to Upstream Security, February 2025, in the '2025 Global Automotive Cybersecurity Report', the total number of publicly reported automotive cybersecurity incidents surged to 409 in 2024, representing a significant increase from the previous year. This rise in malicious activity translates into severe economic consequences for the sector. According to VicOne, in 2025, the estimated financial impact of automotive cyberattacks reached $22.5 billion in 2024, driven by data breaches and ransomware incidents that disrupt supply chains and dealership operations.

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Key Market Challenges

The complexity of securing the multi-tiered automotive supply chain stands as a primary structural barrier impeding the growth of the global automotive cybersecurity market. As vehicles transition into software-defined platforms, original equipment manufacturers increasingly rely on a vast, fragmented network of third-party vendors for critical hardware and software components. This interdependence creates a significant security blind spot, where a vulnerability in a single lower-tier supplier can compromise an entire fleet. This lack of visibility forces automakers to divert substantial capital toward rigorous auditing and defensive containment strategies rather than innovation, causing delays in the commercial rollout of advanced connected features and autonomous technologies.

The market impact of these supply chain vulnerabilities is profound, as the inability to guarantee end-to-end security compels stakeholders to adopt a risk-averse stance regarding new product integration. The scale of this sector-wide exposure is highlighted by recent industry data. According to the European Union Agency for Cybersecurity (ENISA), in its 2024 Threat Landscape report, the transport sector accounted for approximately 11% of all reported cybersecurity incidents, ranking as the second most targeted industry in the region. This elevated threat level, driven by systemic supply chain weaknesses, directly hampers market expansion by eroding the trust necessary for the widespread adoption of next-generation vehicle architectures.

Key Market Trends

The integration of Artificial Intelligence (AI) and Machine Learning (ML) for real-time threat detection is emerging as a critical trend, fundamentally shifting the industry from reactive defense to proactive behavioral analysis. As vehicle architectures become increasingly complex, traditional rule-based security measures are insufficient against automated, high-volume attacks that exploit zero-day vulnerabilities. AI-driven algorithms are now being deployed to establish baseline operational patterns for electronic control units, enabling the immediate identification of anomalies that indicate a potential intrusion. The necessity of this automated scale is highlighted by the sheer volume of malicious activity targeting the sector's expanding digital footprint. According to BlackBerry, June 2024, in the 'Quarterly Global Threat Report', the company's AI-powered solutions stopped over 3,100,000 cyberattacks targeting its customers between January and March 2024 alone, demonstrating the massive operational load that machine learning models must now manage to ensure system integrity.

Simultaneously, there is an intensified market focus on Software Bill of Materials (SBOM) implementations to enforce supply chain transparency and manage the escalating risks associated with open-source and third-party code. As automakers integrate millions of lines of code from diverse suppliers, the ability to rapidly identify and remediate specific vulnerable components has become a non-negotiable operational requirement. This structural pivot is directly responsive to the sharp rise in discovered flaws within the automotive software ecosystem, which demands granular visibility for effective lifecycle management. According to VicOne, January 2025, in the '2025 Automotive Cybersecurity Report', the total count of automotive-related Common Vulnerabilities and Exposures (CVEs) published in 2024 reached 530, a record high that underscores the urgent need for standardized component tracking to mitigate widespread fleet exposure.

Segmental Insights

The Commercial Vehicles segment is currently emerging as the fastest-growing category within the Global Automotive Cybersecurity Market, driven by the rapid digitization of logistics and fleet operations. As fleet operators increasingly integrate telematics and cloud-based management systems to optimize route efficiency and maintenance, the attack surface for potential cyber threats has expanded significantly. Manufacturers are consequently prioritizing security measures to protect high-value cargo data and prevent ransomware attacks that could disrupt supply chains. This demand is further accelerated by the enforcement of UNECE Regulation No. 155, which mandates that heavy-duty vehicle manufacturers implement certified cybersecurity management systems to ensure vehicle type approval and market access.

Regional Insights

North America maintains a dominant position in the global automotive cybersecurity market due to the widespread implementation of connected vehicle infrastructure and the presence of established technology providers. This regional leadership is reinforced by stringent safety guidelines from the National Highway Traffic Safety Administration, which prioritizes the integration of secure software systems in modern transport. Furthermore, major automotive manufacturers in the United States actively collaborate with software vendors to address potential vulnerabilities. These factors collectively create a strong environment for market development and ensure adherence to evolving industry protocols.

Recent Developments

• In June 2024, Argus Cyber Security announced a collaboration with Microsoft to develop a comprehensive vehicle security platform for the automotive industry. The initiative combined the automotive cybersecurity expertise of Argus with Microsoft’s cloud and artificial intelligence technologies, specifically utilizing Azure OpenAI Service. This partnership aimed to deliver a set of integrated solutions for software development and security operations, including tools for threat modeling and lifecycle management. The resulting platform was designed to help automakers streamline their security compliance efforts and protect software-defined vehicles against evolving cyber threats throughout their operational lifespan.
• In May 2024, Keysight Technologies and ETAS formed a strategic partnership to enhance cybersecurity testing for automotive manufacturers and suppliers. As part of this collaboration, the companies integrated the ETAS ESCRYPT CycurFUZZ tool into Keysight’s automotive cybersecurity test platform. This technical integration enabled users to automate the detection of unknown vulnerabilities in controller area network (CAN) bus interfaces through intelligent fuzz testing. The joint solution allowed development teams to rapidly identify and mitigate software weaknesses early in the design process, ensuring compliance with international regulations such as UN R155 and ISO/SAE 21434 before vehicles entered the market.
• In March 2024, Upstream Security introduced Ocean AI, a generative artificial intelligence capability integrated into its automotive cybersecurity platform. This new tool was designed to assist security analysts in managing the growing volume of cyber alerts associated with connected vehicles and mobility services. By leveraging large language models, the solution enabled faster remediation of risks by providing context and actionable insights for detected threats. The launch addressed the industry's need for efficient data analysis as the scale of attacks and the complexity of vehicle software continued to expand, allowing security operations centers to respond more effectively to potential incidents.
• In January 2024, BlackBerry Limited launched the QNX Software Development Platform (SDP) 8.0, a new architecture explicitly designed to support the increasing compute requirements of modern vehicles. This release provided automakers with a scalable, high-performance real-time operating system optimized for multi-core processors, enabling them to maximize the potential of their hardware. The platform was engineered to deliver significant performance improvements while maintaining the strict safety and security standards required for automotive applications. By offering a robust foundation for software-defined vehicles, the company aimed to help manufacturers reduce development costs and accelerate the deployment of complex systems such as autonomous driving capabilities.

Key Market Players

• Intel Corporation
• ETAS GmbH
• NXP Semiconductors N.V.
• DENSO Corporation
• Continental AG
• Harman International Industries, Inc.
• Robert Bosch GmbH
• Cisco Systems Inc.
• Argus Cyber Security Ltd.
• Karamba Security Ltd.

By Vehicle Type	By Security Type	By Application Type	By Region
Passenger Cars Commercial Vehicles	Application Network Endpoint	ADAS & Safety System Infotainment Body Electronics Powertrain Telematics	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Cybersecurity Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Cybersecurity Market, By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

• Automotive Cybersecurity Market, By Security Type:

• Application
• Network
• Endpoint

• Automotive Cybersecurity Market, By Application Type:

• ADAS & Safety System
• Infotainment
• Body Electronics
• Powertrain
• Telematics

• Automotive Cybersecurity Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE