Automotive cybersecurity encompasses a set of activities aimed at maintaining the functionality of vehicles by safeguarding electronic systems, communication networks, control algorithms, and various types of software from malicious attacks, unauthorized access, or manipulation. It plays a crucial role in reducing the risk of cyber-attacks and potential accidents in vehicles.
The main categories of automotive cybersecurity include network security, application security, endpoint security, wireless security, and cloud security. Network security involves configurations or rules designed to protect the accessibility of networks in connected cars. These measures are implemented both within the vehicle and in external cloud services. Automotive cybersecurity is applicable to various vehicle types, including passenger cars and commercial vehicles, and is utilized in diverse applications such as telematics systems, body control and comfort systems, infotainment systems, and powertrain systems.
The automotive cybersecurity market research report is one of a series of new reports from The Business Research Company that provides automotive cybersecurity market statistics, including automotive cybersecurity industry global market size, regional shares, competitors with an automotive cybersecurity market share, detailed automotive cybersecurity market segments, market trends and opportunities, and any further data you may need to thrive in the automotive cybersecurity industry. This automotive cybersecurity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The automotive cybersecurity market size has grown rapidly in recent years. It will grow from $2.77 billion in 2024 to $3.26 billion in 2025 at a compound annual growth rate (CAGR) of 17.9%. The growth in the historic period can be attributed to increased adoption of connected and autonomous vehicles, stringent government regulations and industry standards, growing demand for advanced driver assistance systems (ADAS), increasing demand for luxury vehicles, rise inThe number of cyber threats targeting automotive systems.
The automotive cybersecurity market size is expected to see exponential growth in the next few years. It will grow to $6.81 billion in 2029 at a compound annual growth rate (CAGR) of 20.2%. The growth in the forecast period can be attributed to growth in the adoption of electric vehicles, integration of 5g technology in connected vehicles, expanding the attack surface, increasing reliance on over-the-air (ota) software updates, expansion of the automotive industry in emerging markets, rise in awareness and investments in proactive cybersecurity measure. Major trends in the forecast period include development of integrated cybersecurity solutions, emphasis on secure vehicle-to-everything (v2x) communication, use of blockchain technology for secure data sharing, collaboration between automakers and cybersecurity firms for threat intelligence, implementation of behavior-based anomaly detection for real-time threat identification.
The exponential rise in connected cars stands as a significant catalyst driving the future growth of the automotive cybersecurity market. Connected cars, vehicles equipped with built-in connectivity systems enabling internet access, require robust cybersecurity measures to ensure protection against potential threats. These security features encompass sophisticated threat intelligence to mitigate common security vulnerabilities. For instance, as reported by Express Drive, an India-based automobile news provider, India is projected to witness over 350 million connected cars on the roads by 2023, accounting for nearly 24% of the global car population. This surge in connected cars is a driving force behind the burgeoning automotive cybersecurity market.
The growth trajectory of the automotive cybersecurity market is expected to be influenced by increased government subsidies and policies. Government initiatives, in the form of financial support and regulations, play a crucial role in fostering robust cybersecurity measures within the automotive industry. Notably, initiatives such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, as outlined in the Government of India's Budget 2022-23, allocates substantial subsidies, with an earmarked subsidy of up to INR 2908 crores ($0. 34 million). Similarly, the Uttar Pradesh government's Manufacturing and Mobility policy 2022 offers subsidies of up to Rs 1 lakh for electric cars for three years, extending support to three and four-wheeled electric vehicles for commercial and fleet applications. These governmental policies and subsidies are poised to propel the growth of the automotive cybersecurity market.
Technological innovations are a significant trend gaining traction in the automotive cybersecurity market. Leading companies within the automotive cybersecurity sector are concentrating on technological advancements to maintain their market positions. For example, in June 2024, SGS Societe Generale de Surveillance SA., a Switzerland-based company specializing in testing, inspection, and certification, introduced a cybersecurity audit. This initiative aims to ensure cybersecurity across the automotive supply chain. As vehicle systems become more digitized, robust cybersecurity measures are crucial for preserving product quality and customer trust. UN Regulation No. 155 (UN R-155) requires vehicle manufacturers to address supplier-related risks within their Vehicle Cybersecurity Management System (V-CSMS) to protect vehicles and their components. Performing V-CSMS audits of suppliers allows manufacturers to effectively manage these dependencies.
Leading companies in the automotive cybersecurity industry are adopting a strategic partnership approach to deliver essential cybersecurity services to individuals, businesses, and governments. Strategic partnerships involve leveraging each other's strengths and resources for mutual benefits and success. For example, in February 2024, Autocrypt, a Korea-based provider focused on the safety of connected, autonomous, and software-defined mobility, formed a partnership with MicroNova, a Germany-based software company. This collaboration allows them to fully utilize their expertise in developing innovative security solutions for the automotive sector. By combining their strengths, they will be able to create customized solutions that address both current and future safety requirements for connected vehicles.
In July 2024, Bureau Veritas, a France-based provider of laboratory testing, inspection, and certification services, acquired Security Innovation Inc. for an undisclosed amount. This acquisition is aimed at accelerating growth in the rapidly expanding cybersecurity sector and establishing a new stronghold. It enhances capabilities and will create synergies for customers. Security Innovation Inc. is a US-based provider of automotive cybersecurity solutions.
North America was the largest region in the automotive cybersecurity market in 2024. The regions covered in the automotive cybersecurity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the automotive cybersecurity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
The automotive cybersecurity market includes revenues earned by entities by protecting the automotive systems and components from harmful attacks, unauthorized access, and damage. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automotive Cybersecurity Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive cybersecurity market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Where is the largest and fastest growing market for automotive cybersecurity ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automotive cybersecurity market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The market characteristics section of the report defines and explains the market.
The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
The forecasts are made after considering the major factors currently impacting the market. These include:
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
Market segmentations break down the market into sub markets.
The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
3. Automotive Cybersecurity Market Trends And Strategies
4. Automotive Cybersecurity Market - Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics And Covid And Recovery On The Market
5. Global Automotive Cybersecurity Growth Analysis And Strategic Analysis Framework
5.1. Global Automotive Cybersecurity PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
5.2. Analysis Of End Use Industries
5.3. Global Automotive Cybersecurity Market Growth Rate Analysis
5.4. Global Automotive Cybersecurity Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
5.5. Global Automotive Cybersecurity Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
5.6. Global Automotive Cybersecurity Total Addressable Market (TAM)
6. Automotive Cybersecurity Market Segmentation
6.1. Global Automotive Cybersecurity Market, Segmentation By Security Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Network Security
Application Security
Endpoint Security
Wireless Security
Cloud Security
6.2. Global Automotive Cybersecurity Market, Segmentation By Form, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
In-Vehicle
External Cloud Service
6.3. Global Automotive Cybersecurity Market, Segmentation By Vehicle, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Passenger Car
Commercial Vehicle
6.4. Global Automotive Cybersecurity Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Telematics System
Body Control and Comfort System
Infotainment System
Powertrain System
Other Applications
6.5. Global Automotive Cybersecurity Market, Sub-Segmentation Of Network Security, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Intrusion Detection Systems (IDS)
Firewalls
Secure Network Protocols
6.6. Global Automotive Cybersecurity Market, Sub-Segmentation Of Application Security, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Secure Coding Practices
Application Vulnerability Testing
Software Updates And Patching
6.7. Global Automotive Cybersecurity Market, Sub-Segmentation Of Endpoint Security, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Anti-Malware Solutions
Endpoint Detection And Response (EDR)
Device Authentication
6.8. Global Automotive Cybersecurity Market, Sub-Segmentation Of Wireless Security, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Secure Communication Protocols
Encryption Solutions
Wireless Intrusion Prevention Systems (WIPS)
6.9. Global Automotive Cybersecurity Market, Sub-Segmentation Of Cloud Security, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Data Encryption And Protection
Identity And Access Management (IAM)
Cloud Security Posture Management (CSPM)
7. Automotive Cybersecurity Market Regional And Country Analysis
7.1. Global Automotive Cybersecurity Market, Split By Region, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
7.2. Global Automotive Cybersecurity Market, Split By Country, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion