PUBLISHER: Orion Market Research | PRODUCT CODE: 1882932
PUBLISHER: Orion Market Research | PRODUCT CODE: 1882932
Global Automotive Cybersecurity Market Size, Share & Trends Analysis Report by Vehicle Type (Passenger, and Commercial), by Offering (Hardware, and Software), by Security Type (Network Security, Endpoint Security, Application Security, and Others), and by Deployment Type (In-Vehicle Cybersecurity, and External Cloud Cybersecurity) Forecast Period (2026-2035)
Industry Overview
Global automotive cybersecurity market was valued at $2.5 billion in 2025 and is projected to reach $10.5 billion by 2035, growing at a CAGR of 13.4% during the forecast period (2026-2035). Automotive cybersecurity has become a critical focus area for automakers globally, as the rapid adoption of connected vehicles continues to heighten potential security risks. The automotive sector is undergoing a major transformation driven by the rise of connected cars, electric vehicles (EVs), and autonomous driving technologies. While these advancements benefit greater efficiency and convenience, they also expose the industry to increasing cybersecurity threats. The emergence of centralized vehicle architectures and the consolidation of electronic control units (ECUs) require advanced and secure software integration. This growing connectivity has widened the cybersecurity gap across the automotive ecosystem, thereby driving the growth of the global automotive cybersecurity market.
Recent data from automotive cybersecurity market key players, including Upstream and VicOne Inc., highlights a surge in cyberattacks targeting automotive businesses.
Market Dynamics
Regulatory Mandates Driving Adoption of Automotive Cybersecurity
The United Nations Economic Commission for Europe (UNECE) WP.29 adopted UN R155 and UN R156 as official regulations for global vehicle cybersecurity. These regulations came into force in January 2021. UN R155 mandates a certified Cybersecurity Management System (CSMS), while UN R156 requires a Software Update Management System (SUMS) for type approval in the future. Both regulations have become mandatory for all new vehicles in production starting July 2024.
Complementing these, ISO/SAE 21434 is a non-mandatory automotive industry standard from ISO and SAE, focusing on cybersecurity from vehicle design to decommissioning. It aligns with UN R155, offering complementary guidelines.
Growing Adoption of Software-defined and Autonomous Vehicles Driving Demand for Advanced Cybersecurity
The shift toward Software-defined Vehicles (SDVs) and Autonomous Vehicles (AVs) is becoming a major factor shaping the Global Automotive Cybersecurity Market. These vehicles have introduced new cybersecurity challenges as these technologies enable remote access to critical vehicle functions, increasing the risk of large-scale cyberattacks. As the industry moves toward next-generation E/E architectures, the need for high-performance hardware and robust cybersecurity solutions is growing rapidly. To address these requirements, companies are forming partnerships and collaborations focused on securing software-driven vehicle systems.
Market Segmentation
Growing Focus on In-Vehicle Cybersecurity Solutions
In-vehicle cybersecurity accounts for a major share of the automotive cybersecurity market, driven by the need to protect internal vehicle networks and software from growing cyber threats. As modern vehicles adopt complex electronic architectures and software-defined systems, ensuring secure communication between electronic control units and embedded software has become critical. Players in the market are introducing new solutions to strengthen in-vehicle protection. For instance,
In October 2024, Panasonic Automotive Systems Co., Ltd. expanded its VERZEUSE series of automotive cybersecurity solutions to cover security needs in various phases of the vehicle lifecycle. The expansion introduces tools to automate security measures in the vehicle lifecycle, improving efficiency and standardization. The solution enhances in-vehicle system security through advanced virtualization and monitoring technologies.
The global automotive cybersecurity market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
Asia-Pacific Region Leads the Global Automotive Cybersecurity Market Growth
The Asia-Pacific region continues to lead the global automotive cybersecurity market, supported by government-backed regulations and the rapid expansion of the new energy vehicle (NEV) sector. For instance, in August 2024, China introduced a new vehicle cybersecurity standard, GB 44495-2024, to enhance protection against cyber threats. Aligned with international guidelines like UNECE R155 and ISO/SAE 21434, it also includes specific requirements for the Chinese market.
Globally, China remains the largest market for new energy vehicles (NEVs), which include battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and fuel cell electric vehicles. According to the Flanders-China Chamber of Commerce (FCCC), the number of newly registered NEVs in China jumped by nearly 40% year-on-year in the first half of 2024 to a record high. This rapid growth has also heightened cybersecurity risks, as threat actors increasingly target Chinese NEV manufacturers and suppliers through ransomware and data exfiltration attacks.
US Regulatory Actions Strengthening Demand for Automotive Cybersecurity
Growing concerns over national security and data protection are now shaping the Global Automotive Cybersecurity Market in North America. In September 2024, the US Department of Commerce proposed a rule to ban connected vehicles using certain hardware or software from China or Russia. The rule focuses on hardware and software integrated into the Vehicle Connectivity System (VCS) and software integrated into the Automated Driving System (ADS), which present undue risk to US critical infrastructure, national security, and the safety of drivers.
This move is expected to boost the demand for secure automotive technologies, particularly in North America. Automakers will be required to replace existing chips, sensors, and telematics systems sourced from restricted regions with trusted alternatives. This shift is driving new procurement and integration opportunities for cybersecurity and semiconductor providers such as NXP, Infineon, and BlackBerry.
The major companies operating in the global automotive cybersecurity market include Aptiv Global Operations Ltd., BlackBerry Ltd., Infineon Technologies AG, NXP Semiconductors N.V., and Renesas Electronics Corp., among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments