PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1781997
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1781997
On-Board Diagnostics System Cyber Security Market size was valued at US$ 2,940.67 Million in 2024, expanding at a CAGR of 13.99% from 2025 to 2032.
The On-Board Diagnostics (OBD) System Cyber Security Market focuses on protecting vehicle diagnostic systems from cyber threats that can compromise safety and data integrity. With the rise in connected vehicles globally, cybersecurity for OBD systems has become critical, especially as reports from the U.S. Department of Transportation highlight that nearly 90% of new vehicles include some form of connectivity. Increasing vehicle software complexity and the growing risk of hacking incidents underscore the urgent need for robust security measures. However, challenges such as high implementation costs and evolving cyberattack techniques limit widespread adoption. Opportunities lie in integrating advanced encryption technologies, real-time threat detection, and collaboration between automotive manufacturers and cybersecurity firms. Furthermore, regulatory bodies worldwide are establishing stricter cybersecurity standards, encouraging innovation and investment in this vital sector to safeguard connected vehicles and ensure passenger safety.
On-Board Diagnostics System Cyber Security Market- Market Dynamics
Rising Connectivity and Security Concerns to Accelerate Market Growth
The surge in vehicle connectivity has heightened concerns over cybersecurity, driving the need for advanced protection of On-Board Diagnostics (OBD) systems. The National Highway Traffic Safety Administration (NHTSA) reports that modern vehicles are equipped with multiple electronic control units (ECUs) that communicate via OBD ports, making them vulnerable to cyberattacks if left unprotected. Incidents of vehicle hacking, including remote control breaches, have raised alarms among regulators and manufacturers alike. In response, governments worldwide are enforcing stringent cybersecurity regulations, such as the UNECE WP.29 regulation mandating cybersecurity management systems in vehicles. Additionally, collaborations between automotive OEMs and cybersecurity firms are growing to develop real-time threat detection and encryption technologies, aiming to safeguard vehicles against increasingly sophisticated cyber threats and ensure driver safety.
On-Board Diagnostics System Cyber Security Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 13.99% over the forecast period (2025-2032)
Based on product type segmentation, Hand-held Scan Tools Cybersecurity was predicted to show maximum market share in the year 2024
Based on Technology segmentation, Endpoint security was the leading Technology in 2024
Based on Vehicle Type segmentation, Passenger Cars were the leading Vehicle Type in 2024
Based on Deployment Model segmentation, Cloud-based Solutions were the leading Deployment Model in 2024
Based on Application segmentation, Diagnostics Systems was the leading Application in 2024
On the basis of region, North America was the leading revenue generator in 2024
The Global On-Board Diagnostics System Cyber Security Market is segmented on the basis of Product Type, Technology, Vehicle Type, Deployment Model, Application, and Region.
The market is divided into three categories based on product type: Hand-held Scan Tools Cybersecurity, Mobile Device-Based Tools Cybersecurity, and PC-Based Scan Tools Cybersecurity. Hand-held scan tools offer portability and ease of use for quick diagnostics. Mobile device-based tools provide remote access and real-time monitoring via apps. PC-based scan tools deliver advanced analysis and comprehensive cybersecurity features for in-depth vehicle diagnostics and threat detection.
The market is divided into three categories based on Technology: Endpoint Security, Network Security, and Application Security. Endpoint security protects individual vehicle components from cyber threats. Network security safeguards communication between vehicle systems and external networks. Application security focuses on securing software within OBD tools, ensuring safe data processing and preventing unauthorized access or manipulation of diagnostic functions.
On-Board Diagnostics System Cyber Security Market- Geographical Insights
The On-Board Diagnostics (OBD) System Cyber Security Market shows distinct regional dynamics shaped by automotive industry presence and regulatory frameworks. North America leads due to its advanced automotive technology infrastructure and strong regulatory emphasis on vehicle cybersecurity, supported by organizations like the National Highway Traffic Safety Administration (NHTSA). Europe follows closely, driven by strict policies under the UNECE WP.29 regulation, which requires automakers to implement cybersecurity management systems for connected vehicles. The Asia-Pacific region is rapidly expanding its market share, propelled by increasing vehicle production, adoption of connected cars, and rising government focus on cybersecurity standards, especially in countries like Japan, South Korea, and China. Meanwhile, regions like Latin America and the Middle East are gradually investing in cybersecurity solutions for automotive systems, with growing awareness about vehicle safety and emerging collaborations between local players and global technology providers. This geographic spread highlights the global urgency to address cybersecurity risks in increasingly connected vehicles.
The competitive landscape of the On-Board Diagnostics (OBD) System Cyber Security Market is marked by a mix of established automotive suppliers, cybersecurity firms, and innovative startups focused on protecting connected vehicles. Key players such as Bosch, Continental, and Harman are integrating advanced cybersecurity solutions within their OBD systems, leveraging years of automotive expertise. Simultaneously, cybersecurity specialists like Palo Alto Networks and Check Point Software Technologies contribute by developing sophisticated threat detection and prevention technologies tailored for vehicle networks. Collaborative partnerships and strategic acquisitions are common as companies aim to enhance their security offerings and expand market reach. Additionally, startups are pushing innovation by focusing on AI-driven anomaly detection and blockchain-based security frameworks. The increasing complexity of vehicle software and growing regulatory demands drive ongoing investments in research and development, emphasizing the importance of robust, real-time cybersecurity solutions to safeguard connected vehicles from evolving cyber threats.
In February 2023, Elektrobit launched EB tresos 9, an advanced ECU software integrating cybersecurity, on-board diagnostics, and OTA update capabilities. Featuring Argus Cyber Security's intrusion detection, it meets ISO/SAE 21434 standards, enhancing threat detection and compliance for next-generation automotive electronic control units.
In January 2024, Vicone and Primax have partnered to launch automotive cybersecurity services aimed at improving the protection of intelligent fleet management and applications platforms. Their collaboration enhances cybersecurity efficiencies, focusing on safeguarding on-board diagnostics and connected vehicle systems for modern fleets.