Automotive Cybersecurity Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Automotive Cybersecurity Market is projected to rise from USD 3.64 Billion in 2025 to USD 5.01 Billion by 2031, registering a CAGR of 5.47%. This market comprises the technologies and protocols established to defend vehicle software, networks, and electronic systems against data theft, unauthorized access, and malicious manipulation. Growth is fundamentally driven by the rapid expansion of connected vehicle technologies and the enforcement of strict regulations requiring certified security measures. These drivers indicate a necessary structural shift for safety rather than temporary trends. Highlighting the severity of the landscape, the Automotive Information Sharing Analysis Center identified 13 ransomware groups explicitly targeting the automotive sector in 2024.

However, the market faces a significant hurdle due to the complexity of securing the multi-tiered automotive supply chain. The extensive reliance on a wide variety of third-party vendors for software and hardware components introduces obscure vulnerabilities that are challenging to identify and manage. These security gaps hinder the consistent application of comprehensive cybersecurity solutions, as defects in the supply chain impede the uniform adoption of necessary protective measures.

Market Drivers

The shift toward software-defined vehicle (SDV) architectures and the increase in connected technologies are reshaping the automotive cybersecurity environment. As automakers introduce advanced features such as autonomous driving and personalized in-cabin experiences, the digital perimeter of vehicles expands, creating new vulnerabilities. This evolution requires robust security frameworks to protect the continuous data exchange between vehicles, clouds, and third-party applications, especially as remote management becomes standard. A June 2025 survey by Sonatus revealed that 67% of automotive professionals have already deployed over-the-air (OTA) updates, underscoring the critical need to protect these connectivity features from interception and tampering.

Concurrently, the increasing frequency and sophistication of cyber threats are driving stakeholders to strengthen their defenses. Threat actors have escalated from experimental hacks to large-scale attacks targeting fleet operations and critical infrastructure, often outpacing traditional security methods. Upstream Security reported that publicly disclosed automotive cybersecurity incidents rose to 409 in 2024, marking a significant increase in malicious activity. This surge has severe economic implications; VicOne estimated the financial impact of automotive cyberattacks, including ransomware and supply chain breaches, at $22.5 billion in 2024.

Market Challenges

The difficulty of securing the multi-tiered automotive supply chain acts as a primary structural barrier to the growth of the global cybersecurity market. As the industry transitions to software-defined platforms, manufacturers depend heavily on a fragmented network of third-party vendors for essential hardware and software. This interdependence creates security blind spots, where a vulnerability in a single lower-tier supplier can compromise an entire fleet. Consequently, automakers are forced to divert significant capital toward auditing and containment strategies instead of innovation, which delays the rollout of advanced connected and autonomous technologies.

The impact of these supply chain vulnerabilities is profound, causing stakeholders to adopt a risk-averse approach to new product integration due to the inability to guarantee end-to-end security. The extent of this exposure is illustrated by the European Union Agency for Cybersecurity (ENISA), which noted in its 2024 report that the transport sector accounted for approximately 11% of all reported cybersecurity incidents, making it the second most targeted industry in the region. This high threat level, driven by systemic weaknesses, undermines the trust needed for the widespread adoption of next-generation vehicles, thereby hampering market expansion.

Market Trends

The adoption of Artificial Intelligence (AI) and Machine Learning (ML) for real-time threat detection is becoming a dominant trend, shifting the industry from reactive defense to proactive behavioral analysis. With vehicle architectures increasing in complexity, traditional rule-based security is no longer sufficient to stop automated, zero-day attacks. AI algorithms are now employed to define baseline operational patterns for electronic control units, allowing for the immediate detection of anomalies that suggest intrusion. The scale of this necessity is evident in BlackBerry's June 2024 report, which noted that their AI-powered solutions blocked over 3.1 million cyberattacks between January and March 2024 alone.

Simultaneously, there is a heightened focus on Software Bill of Materials (SBOM) implementations to improve supply chain transparency and manage risks related to open-source and third-party code. As automakers incorporate millions of lines of code from various suppliers, the ability to rapidly identify and fix vulnerable components has become an essential operational requirement. This structural shift is a direct response to the rising number of software flaws; VicOne reported a record 530 automotive-related Common Vulnerabilities and Exposures (CVEs) in 2024, highlighting the urgent need for standardized component tracking to mitigate fleet risks.

Key Players Profiled in the Automotive Cybersecurity Market

• 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.

Report Scope

In this report, the Global Automotive Cybersecurity Market has been segmented into the following categories:

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
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Cybersecurity Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.