Automotive Cybersecurity Market Report 2025

This Automotive Cybersecurity market report covers market characteristics, size & growth, segmentation, regional & 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 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 Société Générale 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.

Major companies operating in the automotive cybersecurity market include Aptiv PLC, Argus Cyber Security, Arilou Technologies, Continental AG, ESCRYPT GmbH, GuardKnox Cyber Technologies Ltd., Harman International Industries Inc., Trillium Secure Inc., SafeRide Technologies Ltd., Lear Corporation, Karamba Security, Intel Corporation, Infineon Technologies AG, Cisco Systems Inc., Delphi Technologies PLC, Vector Informatik GmbH, Symantec Corporation, Regulus Cyber, C2A Security Ltd., XShield Ltd., Apriori Technologies Inc., AutoCrypt Co Ltd., Idaptive Automotive Cybersecurity, GuardSquare NV, Altimetrik Corp., Identiq Automotive Ltd., Guardtime AS, ForgeRock Automotive, AutomotiveCyber GmbH, Thales Group, NXP Semiconductors NV, Green Hills Software.

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 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.

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.

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