Passenger Cars Cybersecurity Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented 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 2.27 Billion
CAGR (2026-2031)	6.54%
Fastest Growing Segment	ADAS & Safety System
Largest Market	North America
Market Size (2031)	USD 3.32 Billion

Market Overview

The Global Passenger Cars Cybersecurity Market will grow from USD 2.27 Billion in 2025 to USD 3.32 Billion by 2031 at a 6.54% CAGR. The Global Passenger Cars Cybersecurity Market encompasses the integrated hardware, software, and service solutions dedicated to safeguarding vehicle electronic systems, communication networks, and data from unauthorized digital access or malicious attacks. This market is primarily driven by the enforcement of stringent regulatory frameworks, such as UNECE Regulation No. 155, which mandates certified cybersecurity management systems for new vehicle types to ensure roadworthiness. Furthermore, the fundamental shift toward software-defined vehicles and the necessary integration of connectivity serve as critical catalysts, compelling manufacturers to embed resilient security architectures that maintain functional safety and data integrity.

Despite these advancements, the market faces a significant impediment regarding the rapid evolution of threat actors that target vulnerable points within the extended supply chain, often outpacing the implementation of defensive measures. This volatility requires continuous adaptation and substantial resource allocation from original equipment manufacturers. According to the Automotive Information Sharing Analysis Center (Auto-ISAC), in 2024, threat intelligence identified 13 distinct ransomware groups actively targeting the automotive sector, underscoring the severity of the external risks that threaten to disrupt market stability.

Key Market Drivers

Escalating frequency and sophistication of automotive cyberattacks is a primary catalyst propelling the market, as threat actors increasingly utilize advanced methods like artificial intelligence to breach vehicle systems. This trend forces manufacturers to deploy proactive threat detection and incident response mechanisms to protect passengers and proprietary data from unauthorized control or theft. The severity of this threat landscape is evident in the growing volume of malicious activity specifically targeting the mobility sector. According to Upstream Security, February 2025, in the '2025 Global Automotive and Smart Mobility Cybersecurity Report', the total number of reported automotive cybersecurity incidents surged to 409 in 2024, marking a substantial increase in threats aimed at vehicles and mobility assets. This intensification of external risks directly stimulates the demand for robust cybersecurity solutions capable of mitigating remote execution and ransomware attacks.

Simultaneously, the rising integration of connected car technologies and telematics services fundamentally expands the digital attack surface, creating new vulnerabilities within vehicle electronic control units and infotainment systems. As the industry transitions toward software-defined vehicles, the exponential growth in code complexity and connectivity features inevitably introduces security gaps that require continuous monitoring and patching. According to VicOne, March 2025, in the 'Shifting Gears: VicOne 2025 Automotive Cybersecurity Report', the industry identified 530 distinct automotive vulnerabilities in 2024, with 77% of these issues located directly within onboard or in-vehicle systems. The vulnerability of the broader ecosystem is further highlighted by risks in the retail network; according to CDK Global, in 2024, 35% of auto dealers experienced a cyberattack or incident, underscoring the critical need for comprehensive security measures across the entire automotive value chain.

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Key Market Challenges

The rapid evolution of threat actors targeting vulnerable points within the extended supply chain presents a formidable barrier to the growth of the Global Passenger Cars Cybersecurity Market. This volatility forces automotive manufacturers to constantly divert substantial capital and research resources toward retrofitting legacy systems and developing emergency patches rather than investing in innovation. As hackers increasingly exploit obscure entry points in third-party software and hardware components, original equipment manufacturers face heightened liability risks and potential production delays that erode investor confidence and consumer trust.

The inability to guarantee total security against these shifting threats hampers the widespread adoption of advanced software-defined vehicles, as safety concerns often outweigh feature benefits for stakeholders. The magnitude of this exposure is significant and creates a continuous environment of instability. According to the European Union Agency for Cybersecurity (ENISA), in 2024, the transport sector accounted for 11% of all reported cybersecurity incidents within the European Union, ranking as the second most targeted industry. This statistic highlights the pervasive nature of external attacks that directly undermine the operational consistency required for sustained market expansion.

Key Market Trends

The Widespread Establishment of Vehicle Security Operations Centers (VSOCs) signifies a pivot toward centralized defense strategies. As automakers face regulatory mandates like UNECE Regulation No. 155, they are transitioning from fragmented monitoring to integrated hubs that oversee vehicle health in real-time. This structural evolution enables continuous surveillance, ensuring that connectivity vulnerabilities are addressed immediately post-production. Highlighting this strategic shift, according to PlaxidityX, March 2025, the firm partnered with Deloitte Spain to launch an AI-driven Vehicle Security Operations Center designed to manage the complexities of software-defined fleets. This move illustrates the industry's focus on developing specialized infrastructure that guarantees ongoing resilience against dynamic threats.

Simultaneously, the Utilization of Digital Twin Technology for Cyber Risk Assessment is emerging as a vital method for simulating breaches without impacting physical assets. By constructing virtual replicas of vehicle architectures, manufacturers can safely model attack vectors and validate mitigation strategies before deploying over-the-air updates. This proactive capability is particularly crucial for addressing the magnitude of attacks targeting connected ecosystems. According to Upstream Security, February 2025, in the '2025 Global Automotive and Smart Mobility Cybersecurity Report', nearly 60% of reported incidents in 2024 had a high-scale impact, driving the demand for digital twin solutions to assess these extensive risks. Consequently, this technology allows stakeholders to preemptively identify security gaps within complex networks.

Segmental Insights

The ADAS and Safety System segment is currently emerging as the fastest-growing area within the Global Passenger Cars Cybersecurity Market due to the increasing integration of automated driving functions. As vehicle manufacturers implement advanced features such as automatic emergency braking and lane assist, the potential attack surface for malicious actors expands significantly. Regulatory frameworks established by organizations like the UNECE mandate strict cybersecurity management systems to protect these critical control units from unauthorized access. Consequently, automotive OEMs are prioritizing investment in security solutions specifically designed for safety-critical components to ensure compliance and maintain vehicle integrity.

Regional Insights

North America dominates the global passenger cars cybersecurity market, driven by the rapid expansion of connected vehicle infrastructure and proactive safety oversight. The National Highway Traffic Safety Administration (NHTSA) plays a pivotal role by issuing guidelines that necessitate the inclusion of durable security architectures in passenger vehicles. These regulatory expectations encourage original equipment manufacturers to prioritize data integrity and prevent unauthorized system access. Furthermore, the presence of established software technology providers in the United States facilitates the early adoption of integrated security solutions across the regional automotive sector.

Recent Developments

• In October 2024, BlackBerry Limited reported that its QNX embedded software was deployed in over 255 million vehicles globally, marking a significant increase in its market footprint. Concurrently, the company announced that it achieved accreditation for the ISO/SAE 21434 standard, a critical benchmark for automotive cybersecurity engineering. This certification validated the organization's processes for managing cybersecurity risks throughout the lifecycle of electrical and electronic systems in road vehicles. The development highlighted the growing importance of functional safety and security standards in the production of next-generation passenger cars and their increasingly complex operating systems.
• In October 2024, Upstream Security entered into a partnership with OTORIO, a provider of operational technology security, to enhance cyber resilience across the connected vehicle lifecycle. This collaboration aimed to deliver a unified security approach that spans from the manufacturing floor to vehicles on the road. By combining their respective technologies, the companies sought to protect automotive manufacturers from threats such as ransomware and supply chain attacks that could disrupt production or compromise vehicle safety. The joint solution offered original equipment manufacturers improved visibility and risk mitigation capabilities for their passenger car fleets and production infrastructure.
• In June 2024, Argus Cyber Security announced a strategic collaboration with Microsoft to develop a next-generation solution for securing software-defined vehicles. This partnership integrated the company's automotive security expertise with a major cloud computing and artificial intelligence platform to create a comprehensive vehicle security system. The initiative aimed to assist automakers in addressing the complexities of developing connected cars by incorporating security measures early in the software development lifecycle. By leveraging generative AI, the collaboration sought to enhance the detection and mitigation of cyber threats, ensuring robust protection for modern passenger vehicles against evolving digital risks.
• In January 2024, VicOne hosted an automotive-focused ethical hacking event in Tokyo to identify vulnerabilities in connected vehicle systems. During this initiative, security researchers and white-hat hackers discovered numerous zero-day vulnerabilities across various automotive technologies, including infotainment systems and electric vehicle chargers. The event served as a platform for uncovering security flaws before they could be exploited by malicious actors, thereby contributing to the safety of the global automotive ecosystem. The findings from this research provided critical insights for manufacturers to strengthen the cyber defenses of passenger cars against remote attacks and software exploitation.

Key Market Players

• Intel Corporation
• ETAS GmbH
• NNG Software Developing and Commercial Llc
• DENSO Corporation
• Continental AG
• HARMAN International Industries, Inc
• Robert Bosch GmbH
• Cisco Systems, Inc
• PlaxidityX Ltd
• Karamba Security Ltd

By Security Type	By Application Type	By Region
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 Passenger Cars Cybersecurity Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Passenger Cars Cybersecurity Market, By Security Type:

• Application
• Network
• Endpoint

• Passenger Cars Cybersecurity Market, By Application Type:

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

• Passenger Cars 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