Automotive Cybersecurity Market Size - By Vehicle, By Security, By Form, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Automotive Cybersecurity Market Size

The global automotive cybersecurity market size was valued at USD 3.5 billion in 2024 and is projected to grow at a CAGR of 11.6% between 2025 and 2034. The automotive industry faces a surge in cyber-attacks, including remote vehicle hijacking, data theft, and ransomware. These threats target various vehicle components, from infotainment systems to critical safety features.
 

For instance, according to Statista, from 2021 to mid-2023, ransomware damage costs in the automotive industry surged by over 180%, rising from USD 74.7 million to USD 209.6 million. Additionally, system downtime costs due to cyberattacks soared to USD 1.99 billion in the first half of 2023. The increasing sophistication of these attacks and their potentially catastrophic consequences compel automotive manufacturers to enhance cybersecurity measures and adopt multi-layered security strategies.
 

The exponential growth of connected vehicles has created an extensive network of IoT devices. These vehicles, equipped with advanced infotainment systems, telematics, and V2X communication capabilities, generate and process massive amounts of sensitive data. This connectivity introduces multiple entry points for cyber threats, driving the need for robust cybersecurity solutions. Automakers are investing heavily in comprehensive security measures to protect V2X communications and ensure data privacy.
 

Automotive Cybersecurity Market Trends

Automotive manufacturers are implementing zero-trust security frameworks, which mandate continuous verification of all devices and users, even within the vehicle's network. This approach addresses the rising complexity of connected vehicles and the need to defend against both external and internal threats. Zero-trust architecture prevents unauthorized access to critical vehicle systems, protects sensitive data, and ensures secure over-the-air updates.
 

For instance, in May 2024, SwRI engineers developed an advanced cybersecurity framework for vehicles. The Zero-Trust Architecture for Automotive Networks enhances the security of computerized vehicle systems by applying proven IT security principles. This zero-trust approach now protects vehicle electronics, software, and sensors from cyber threats.
 

The automotive industry's intricate supply chain, involving numerous suppliers and third-party components, presents several security vulnerabilities. Upholding uniform security standards and ensuring the integrity of all components and software is a significant challenge. Manufacturers must collaborate with various stakeholders to achieve comprehensive security.
 

Automotive Cybersecurity Market Analysis

Based on the security, the market is segmented into application, network, and endpoint security. The application segment accounted for over 45% of the market share in 2024 and is expected to exceed USD 4.5 billion by 2034. As vehicles increasingly depend on external APIs for various services, the focus on API security measures has intensified. Key measures include robust authentication protocols, rate limiting, and encryption for all API communications. Automotive companies are developing specialized API gateways to monitor and control access to vehicle systems, preventing unauthorized data exposure and protecting against API-based attacks.
 

For instance, in May 2024, VicOne announced a partnership with 42Crunch to enhance API security for software-defined vehicles (SDVs) and the connected-vehicle ecosystem. This collaboration enables automotive OEMs and suppliers to benefit from faster and more accurate detection of the latest OWASP Top 10 API security vulnerabilities during development, and quicker identification of potential threats at application runtime. This trend highlights the necessity of securing the growing number of third-party integrations in modern vehicles.  
 

Based on form, the automotive cybersecurity market is divided into in-vehicle cybersecurity and external cloud cybersecurity. The in-vehicle cybersecurity segment is expected to exceed USD 7 billion by 2034, due to several key factors. The integration of dedicated HSMs in vehicles is becoming standard practice. These modules provide a secure environment for cryptographic operations, key storage, and sensitive data processing.
 

HSMs act as trust anchors in vehicles, protecting critical functions from cyber-attacks and ensuring secure communication between various vehicle components. The trend is driven by the need for robust key management systems and the increasing complexity of in-vehicle networks. Manufacturers are developing more sophisticated HSMs with enhanced processing capabilities and stronger encryption algorithms.
 

Vehicle manufacturers are incorporating advanced AI-based intrusion detection systems to monitor and protect in-vehicle networks. These systems use machine learning algorithms to establish baseline vehicle behavior patterns and detect anomalies that might indicate cyber-attacks. The trend involves developing more sophisticated detection mechanisms that can identify both known and unknown threats while minimizing false positives.
 

The U.S. automotive cybersecurity market accounted for 80% of the revenue share in 2024. The U.S. automotive industry faces increasing regulatory pressure to enhance cybersecurity measures. The National Highway Traffic Safety Administration (NHTSA) and other regulatory bodies are introducing mandatory guidelines, driving the adoption of comprehensive automotive cybersecurity solutions. Compliance is crucial for manufacturers to avoid penalties and maintain market access.
 

In Europe, the growing adoption of electric vehicles (EVs) has heightened the focus on securing charging infrastructure and connected components. Automakers and charging network providers are investing in advanced cybersecurity measures to protect EV systems and the energy management ecosystem. The European Union's General Data Protection Regulation (GDPR) has raised data privacy and security standards, compelling automakers to ensure compliance and avoid hefty fines.
 

In the Asia Pacific region, the rapid expansion of autonomous driving technologies is increasing the demand for comprehensive automotive cybersecurity solutions. Automakers and technology companies are collaborating to develop secure autonomous vehicle systems that can withstand cyber threats and ensure passenger safety.
 

Automotive Cybersecurity Market Share

Harman, Continental, and Blackberry QNX collectively held a substantial market share of over 12% in the automotive cybersecurity industry in 2024. Harman employs a comprehensive cybersecurity strategy, integrating solutions such as secure over-the-air (OTA) updates and intrusion detection systems into its automotive platforms. The company prioritizes securing connected vehicle services, including telematics, in-vehicle infotainment, and vehicle-to-everything (V2X) communications.
 

Continental adopts a multi-layered security approach, utilizing hardware-based (TPM) and software-based measures to protect ECUs, sensors, and communication systems. The company collaborates with cybersecurity firms like Argus Cyber Security and OEMs to integrate cybersecurity solutions across automotive platforms.
 

BlackBerry QNX specializes in secure real-time operating systems (RTOS) for vehicles, providing a robust foundation for in-vehicle security. The company offers cloud-based, AI-powered threat detection and response solutions through Cylance, enabling real-time monitoring and mitigation of cyber threats in connected vehicles. BlackBerry ensures its cybersecurity solutions comply with regulatory standards such as WP.29 and ISO/SAE 21434, enhancing industry trust and adoption.
 

Automotive Cybersecurity Market Companies

Major players operating in the automotive cybersecurity industry are:

• Aptiv
• Blackberry
• Continental
• Denso
• Harman International
• Intertek
• Karamba Security
• Lear
• NXP
• Upstream Security
   

Automotive Cybersecurity Industry News

• In September 2024, BlackBerry Limited enhanced its QNX® OS for Safety by adding a POSIX-compliant, ISO 26262-certified integrity-checking filesystem. This update provides OEMs and embedded software suppliers with an additional validation layer for safety-critical systems. The QNX® Filesystem for Safety (QFS), certified to ISO 26262 ASIL B, verifies filesystem integrity at runtime, enabling developers to detect and address any corruption to maintain system safety.
   
• In August 2024, Option 3 announced that ENIGMA, its cybersecurity platform, acquired Onclave Networks. ENIGMA focuses on Zero Trust, a security paradigm gaining traction as traditional tools lose effectiveness. Onclave's Zero Trust principles, modeled after U.S. Department of Defense methods, significantly reduce security breaches, attack surfaces, network complexity, and operational costs. This acquisition enhances ENIGMA's capability to secure devices, services, and personnel across diverse environments.
   

The automotive cybersecurity market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

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Market, By Vehicle

• Passenger vehicles
  • Hatchback
  • Sedan
  • SUV
• Commercial vehicle
  • Light commercial vehicle
  • Heavy commercial vehicle

Market, By Security

• Application
• Network
• Endpoint

Market, By Form

• In-vehicle cybersecurity
• External cloud cybersecurity

Market, By Application

• ADAS & safety
• Body control & comfort
• Infotainment
• Telematics
• Powertrain systems
• Communication systems

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa