Automotive Cybersecurity Market Trends, Size, Share, Growth and Forecasts, 2025 - 2032

Automotive Cybersecurity Market by Component(Hardware, Software, Services), by Application(Telematics, Infotainment Systems, Powertrain Systems, ADAS & Safety Systems, Body Control Systems), by Vehicle Type(Fuel-based Vehicles, Electric Vehicles) , and Regional Analysis

Comprehensive Snapshot of Automotive Cybersecurity Market Research Report, Including Regional and Country Analysis in Brief.

Industry: IT and Telecommunication

Delivery Timelines: Please Contact Sales

Published Date: June-2025

Format: PPT*, PDF, EXCEL

Number of Pages: 200

ID: PMRREP22591

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Automotive Cybersecurity Market Share and Trends Analysis

The global automotive cybersecurity market size is expected to grow 3X from the current market size of US$ 3,455.9 Mn in 2025 to US$ 10,496.7 Mn with a staggering CAGR of 17.2% by 2032. Persistence Market Research anticipates that the increasing government regulations and technological advancements in vehicle safety is driving the industry growth. The demand for advanced cybersecurity solutions is rising as automakers integrate features like automatic braking, lane departure warnings, and vehicle-to-everything (V2X) communication, boosting investments in secure connected vehicle systems and software.

automotive-cybersecurity-market-outlook,-2019-2032

Key Industry Highlights:

  • Hardware cybersecurity solutions dominate with a 59.4% market share in 2025, mainly driven by Hardware Security Modules (HSMs) embedded in ECUs.
  • ADAS & Safety Systems form the largest application segment due to critical safety features vulnerable to cyberattacks, holding over 30% market share.
  • Complex automotive supply chains and inconsistent cybersecurity standards across tiers create vulnerabilities and hinder effective end-to-end security enforcement.
  • The transition to Software-Defined Vehicles (SDVs) offers cybersecurity vendors new opportunities through lifecycle security and secure over-the-air (OTA) software management.
  • Digital transformation in EV manufacturing introduces new attack surfaces, driving demand for cybersecurity across operational and information technology layers.
  • Adoption of Zero Trust Architecture (ZTA) is increasing, ensuring strict access controls and continuous verification in connected and autonomous vehicle ecosystems.
  • Strategic acquisitions, like Option 3’s purchase of Onclave Networks, strengthen Zero Trust cybersecurity solutions tailored to automotive industry needs.
  • BlackBerry’s QNX OS for Safety now includes a certified integrity-checking filesystem, enhancing runtime safety-critical system validation per ISO 26262 standards.
  • Supply chain vulnerabilities remain a major restraint, as lower-tier suppliers may lack compliance, complicating real-time threat response and security management.

Global Market Attribute

Key Insights

Automotive Cybersecurity Market Size (2025E)

US$ 3,455.9 Mn

Market Value Forecast (2032F)

US$ 10,496.7 Mn

Projected Growth (CAGR 2025 to 2032)

17.2%

Historical Market Growth (CAGR 2019 to 2024)

14.8%

Market Dynamics

Driver - Regulatory Mandates such as UNECE WP.29 and ISO/SAE 21434 Surge the demand for Automotive Cybersecurity

International regulations are one of the most significant drivers shaping the automotive cybersecurity market. The UNECE WP.29 mandates regulations R155 and R156, which focus on Cybersecurity Management Systems (CSMS) and Software Update Management Systems (SUMS), respectively. These are now mandatory for vehicle type approval in the EU and are influencing global markets.

The ISO/SAE 21434 standard supports R155 by defining engineering requirements for managing cybersecurity risks during vehicle development and operations.

  • For instance, manufacturers such as BMW, Mercedes-Benz, and Toyota are investing heavily to align with these standards, as non-compliance could lead to sales restrictions in regulated markets. R155 mandates risk assessment, vulnerability management, and post-sale threat response mechanisms. R156 emphasizes secure Over-the-Air (OTA) updates.
  • BlackBerry QNX, a key software supplier, announced in 2024 that its QNX OS was fully compliant with ISO 21434 and ISO 26262 standards, showcasing industry adaptation. These mandates push OEMs to restructure their software development and validation practices, leading to increased demand for cybersecurity tools, consulting, and testing.

As vehicles become increasingly autonomous and connected, such regulations will be critical in ensuring vehicle safety and consumer trust globally.

Automotive Cybersecurity Market Drivers

Restraint - Supply chain complexity and vulnerability

The automotive supply chain is complex, involving numerous global players, software vendors, hardware providers, and third-party logistics. This interconnected nature creates multiple entry points for cyber threats, making it difficult for manufacturers to maintain a consistent and secure cybersecurity perimeter.

A striking example is the 2024 cyberattack that affected multiple vehicle platforms globally due to a breach in a Tier-1 software supplier's infrastructure. The attack resulted in significant operational disruptions, including delayed vehicle deliveries and exposed customer data. Even though OEMs such as Stellantis and Hyundai had hardened their own networks, vulnerabilities in suppliers’ systems exposed them to indirect risks.

This complexity is worsened by the lack of standardized cybersecurity protocols across supply tiers. OEMs may require R155 compliance, but lower-tier suppliers might not be ready, creating weak links. Additionally, continuous monitoring and compliance audits across multiple geographies and vendors are logistically and financially challenging.

This fragmented ecosystem hinders real-time incident response and makes it difficult to maintain end-to-end visibility across vehicle lifecycles. Without greater collaboration, standardized protocols, and shared threat intelligence platforms, this systemic weakness will continue to be a critical restraint on cybersecurity progress.

Opportunity - Rise of Software-Defined Vehicles (SDVs)

The automotive sector is transitioning towards Software-Defined Vehicles (SDVs), where vehicle features and functionalities are driven by software rather than hardware. This shift creates vast opportunities for cybersecurity vendors and embedded software providers to embed robust defenses from the ground up.

In 2024, BlackBerry introduced the QNX® Filesystem for Safety (QFS), a POSIX-compliant, ISO 26262 ASIL B-certified system that validates data integrity in real time. This advancement is critical for SDVs, where corrupted files can compromise safety features such as braking or steering.

SDVs require constant connectivity for updates, diagnostics, and enhancements. OEMs such as Mercedes-Benz and General Motors are creating dedicated software divisions to manage OTA updates, app ecosystems, and security patches. This transformation aligns with R156, which mandates secure and traceable software updates throughout the vehicle's lifecycle.

Startups and cybersecurity firms are capitalizing on this trend by offering intrusion detection systems (IDS), digital twin simulations for cyber-risk modeling, and secure boot technologies. As vehicles become more such as computers on wheels, the SDV movement offers a growing market for proactive, lifecycle-focused cybersecurity solutions that can ensure both functional safety and data privacy.

Digital Transformation in EV and Smart Manufacturing

As electric vehicle (EV) adoption accelerates, manufacturers are digitizing production lines and adopting smart manufacturing to meet demand. This transformation presents a valuable opportunity for implementing cybersecurity across operational technology (OT) and information technology (IT) layers.

Companies such as Rockwell Automation are providing comprehensive industrial cybersecurity solutions. These include vulnerability assessments, network segmentation, firewall-protected micro perimeters, and secure remote access. In a 2024 case, one global EV manufacturer using Rockwell’s Connected Enterprise® approach saw a 70% reduction in safety downtime through better data integration and real-time threat detection.

EVs are inherently more software-intensive, requiring secure charging infrastructure, battery management systems, and cloud analytics. The convergence of IT and OT in these environments creates new attack vectors. Cybersecurity providers are responding with 24/7 threat monitoring, inventory assessments, and incident response capabilities tailored for the smart factory ecosystem.

This shift is driving demand for industrial cybersecurity talent, scalable platforms, and managed security services. The move toward e-mobility and Industry 4.0 ensures long-term opportunity for vendors able to protect both factory networks and the digitally integrated EVs they produce.

Automotive Cybersecurity Market Insights and Trends

Manufacturers are Adopting Zero Trust Cybersecurity Architectures

  • Zero Trust architecture (ZTA) is gaining momentum as the automotive industry recognizes the limitations of traditional perimeter-based security. ZTA assumes no user, device, or system should be trusted by default, regardless of location an essential philosophy for modern connected and autonomous vehicles.
  • In August 2024, Option 3's acquisition of Onclave Networks showcased this shift. Onclave’s cybersecurity solutions, inspired by U.S. Department of Defense frameworks, introduced strict access controls, microsegmentation, and identity-based authentication. These measures help reduce attack surfaces, mitigate lateral movement in networks, and simplify security monitoring.
  • The increasing number of ransomware attacks on automotive IT systems including suppliers and retailers has prompted OEMs to adopt ZTA in both manufacturing and vehicle platforms. With telematics systems, cloud-connected infotainment, and V2X communications being vulnerable, ZTA ensures that every component is continuously verified before granting access.
  • OEMs such as Ford and Stellantis are experimenting with Zero Trust within their smart manufacturing environments to secure critical infrastructure. ZTA is expected to become the default cybersecurity architecture in automotive development over the next few years, influencing product design, supplier onboarding, and customer data privacy protocols.

Category-Wise Analysis

Component Insights

The hardware segment is expected to dominate in 2025, holding a substantial share of 59.4%, primarily driven by its foundational role in securing vehicle systems.  According to Persistence Market Research analysis, this segment is projected to experience significant growth throughout the forecast period.

The hardware segment is further categorized into Hardware Security Modules (HSMs), Secure Vehicle Network Gateways, Trusted Platform Modules (TPMs), and others. Among these, HSMs are the most widely adopted due to their high level of security and reliability. An HSM is a physical security component embedded into Electronic Control Units (ECUs), designed to safeguard vehicle communications and control systems through advanced cryptographic operations.

Each HSM contains its own processor, secure memory, and cryptographic engine, enabling it to independently perform tasks such as storing cryptographic keys, encrypting and decrypting messages, and verifying digital signatures. This ensures that internal and external communications are authenticated and secure, protecting against unauthorized access or data tampering. However, despite their advantages, HSMs face challenges related to scalability and flexibility.

They require physical integration into every ECU, which increases complexity and cost, especially in vehicles with numerous interconnected systems. Furthermore, as modern vehicles increasingly rely on over-the-air (OTA) updates and evolving software platforms, hardware-only solutions such as HSMs may struggle to keep pace. This has led to growing interest in more adaptable software-based or hybrid cybersecurity architectures that align better with dynamic automotive software environments.

Application Insights

Based on application market is fragmented into telematics, infotainment systems, powertrain systems, adas & safety systems, body control systems and Others. Among these segments, Persistence Market Research anticipates that the ADAS & Safety Systems hold a dominant position in the automotive cybersecurity market due to their critical role in vehicle control and passenger safety with a more than 30% share in 2025.

ADAS & Safety Systems hold a dominant position in the automotive cybersecurity market due to their critical role in vehicle control and passenger safety. Features such as Adaptive Cruise Control, Lane Keep Assist, and Automatic Emergency Braking depend on sensors, radar, cameras, and software that are vulnerable to cyber threats. Protecting internal communication protocols (CAN, LIN, Ethernet) and external links like V2X is essential to prevent attacks such as spoofing or jamming. Cybersecurity in ADAS also involves securing sensor data, ensuring software integrity through secure coding and updates, and implementing robust access control. Intrusion detection systems and secure over-the-air (OTA) updates further enhance protection.

Since ADAS systems handle sensitive data and can directly influence braking, steering, and acceleration, any breach can pose life-threatening risks. As vehicles grow increasingly autonomous, automakers prioritize cybersecurity in ADAS to meet regulatory requirements, maintain system reliability, and ensure user trust making it the leading application within the automotive cybersecurity landscape.

automotive-cybersecurity-market-insights-and-key-trends

Regional Insights

Asia Pacific Automotive Cybersecurity Market Trends

Persistence Market Research analysis suggests that the Asia Pacific region will lead the Automotive Cybersecurity market due to the huge production of connected vehicles. Asia Pacific, with a 37.4% market share in 2025, and expected to grow positively by 2032. It is driven by key players in China, India, Japan, and South Korea, where rapid digital transformation and increasing EV adoption further accelerate growth.

China leads the region with comprehensive regulatory efforts. In 2024, it introduced the GB 44495-2024 cybersecurity standard for intelligent vehicles, aligned with global frameworks but customized for domestic needs. With over 97 regulations expected by 2025, China focuses on securing OTA updates, protecting data, and shaping international standards. Despite geopolitical challenges such as U.S. restrictions on Chinese vehicle components, China’s dominance in EV production and regulation positions it as a global influencer.

India is accelerating its cybersecurity initiatives alongside its expanding EV and connected vehicle market. Aligning with ISO/SAE 21434 and WP.29, India emphasizes indigenous innovation and infrastructure security through government programs like Digital India. Its growing telematics adoption makes robust cybersecurity policies vital for safeguarding data and infrastructure.

Japan builds on its advanced automotive technology and global collaboration. Japanese automakers integrate cybersecurity into the vehicle lifecycle, following UNECE R155 and ISO/SAE 21434 standards. Japan’s focus on risk management, supply chain security, and incident response ensures strong consumer trust and global competitiveness. Together, these Asia Pacific leaders are shaping the region’s automotive cybersecurity landscape, balancing innovation with robust protection measures for a connected future.

North America Automotive Cybersecurity Market Trends

According to the Persistence Market Research estimates, the North America region ranks second in the global Automotive Cybersecurity market and is anticipated to grow at a 17.4% CAGR from 2025 to 2032. The region accounts for a 27.1% market share, propelled by strict regulations, rapid adoption of connected vehicles and EVs, and rising cyber threats. U.S. initiatives like the NHTSA's 2023 guidelines and the Department of Commerce's 2024 proposed rule banning certain foreign tech in connected vehicles highlight the regulatory focus. Canada aligns with ISO/SAE 21434 and is developing its cybersecurity framework for connected and autonomous vehicles.

Technological advancements are propelling growth, with AI-based threat detection from firms like Argus and secure microcontrollers by NXP enhancing vehicle safety. Automakers like Ford and GM are integrating Trusted Platform Modules (TPMs), while Tesla leads in secure OTA updates. Companies such as Harman are providing secure OTA frameworks for North American OEMs.

Strategic collaborations, including BlackBerry’s partnership with Upstream Security and GuardKnox’s US$75 million funding, are strengthening cybersecurity infrastructure. Rising threats over 50 cyberattacks in the U.S. in 2024 alone have led to increased adoption of vehicle Security Operations Centers (vSOCs).

V2X security efforts by Tesla and Canadian smart city trials, along with cloud-based solutions like Panasonic’s VERZEUSE platform, further boost market growth. The region’s 35% infotainment share and dominance in wireless network security reflect its strong demand for robust cybersecurity solutions.

Competitive Landscape

The global automotive cybersecurity market features a dynamic competitive landscape driven by collaborations, innovations, and strategic acquisitions. Key players are joining forces to advance cybersecurity technologies and meet industry-specific and regional demands. ETAS Korea partnered with Suresoft Tech to enhance in-vehicle cybersecurity testing, while NXP Semiconductors collaborated with Moter Technologies to combine automotive chipsets with machine learning software.

BlackBerry upgraded its QNX OS for Safety with a certified integrity-checking filesystem, boosting runtime validation for safety-critical systems. Additionally, Option 3’s cybersecurity platform ENIGMA acquired Onclave Networks, integrating advanced Zero Trust architecture modeled after U.S. defense standards. These initiatives highlight the industry's focus on robust, scalable, and compliant cybersecurity solutions.

Key Industry Developments

  • In September 2024, BlackBerry Limited advanced its QNX® OS for Safety by integrating a POSIX-compliant, ISO 26262-certified integrity-checking filesystem. This enhancement introduces an additional layer of validation for safety-critical systems, benefiting OEMs and embedded software providers. The newly introduced QNX® Filesystem for Safety (QFS), certified to ISO 26262 ASIL B, actively verifies filesystem integrity during runtime, allowing developers to detect and mitigate corruption to uphold system safety.
  • In August 2024, Option 3 revealed that its cybersecurity platform, ENIGMA, had acquired Onclave Networks. ENIGMA emphasizes Zero Trust architecture, a rapidly emerging cybersecurity model as traditional approaches face diminishing returns. Onclave brings with it a robust implementation of Zero Trust principles, inspired by methodologies from the U.S. Department of Defense. These practices substantially minimize security breaches, reduce attack surfaces and network complexity, and lower operational costs. The acquisition strengthens ENIGMA's ability to safeguard devices, services, and personnel across varied operational environments.

Automotive Cybersecurity Market Landscape

Automotive Cybersecurity Market Report Scope

Report Attribute

Details

Historical Data/Actuals

2019 - 2024

Forecast Period

2025 - 2032

Market Analysis Units

Value: US$ Mn

Geographical Coverage

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Segmental Coverage

  • Product Type
  • Application
  • Vehicle Type
  • Region

Competitive Analysis

  • Continental (Argus Cyber Security)
  • Arm Limited
  • Guardknox Cyber Technologies Ltd.
  • Vector Informatik GmbH
  • Karamba Security
  • Synopsys
  • Upstream Security
  • Sectigo Limited
  • ESCRYPT
  • RunSafe Security, Inc.
  • Trend Micro
  • Harman International
  • Trillium Secure Inc.
  • STMicroelectronics
  • Infineon Technologies AG
  • NXP Semiconductors
  • Bosch Mobility Solutions
  • Microchip Technology
  • Aptiv
  • Irdeto
  • Other Market Players

Report Highlights

  • Market Forecast and Trends
  • Competitive Intelligence & Share Analysis
  • Growth Factors and Challenges
  • Strategic Growth Initiatives
  • Pricing Analysis & Technology Roadmap
  • Future Opportunities and Revenue Pockets
  • Market Analysis Tools   

Customization and Pricing

Available upon request

Automotive Cybersecurity Market Segmentation

By Component

  • Hardware
    • Hardware Security Modules (HSMs)
    • Secure Vehicle Network Gateways
    • Trusted Platform Modules (TPM)
    • Others
  • Software
    • Embedded Firewalls
    • Encryption & Cryptography
    • Biometrics & Authentication
    • Others
  • Services
    • Professional Services
      • Security Consulting & Risk Assessment
      • Integration & Deployment
      • Support & Maintenance
      • Others
    • Managed Security Services

By Application

  • Telematics
  • Infotainment Systems
  • Powertrain Systems
  • ADAS & Safety Systems
  • Body Control Systems
  • Others

By Vehicle Type

  • Fuel-based Vehicles
    • Passenger Cars
    • Commercial Vehicles
  • Electric Vehicles
    • Passenger Cars
    • Commercial Vehicles

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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About Author

Sayali Mali

Sayali Mali

Senior Associate Consultant

Sayali is a Senior Associate Consultant in the information technology and semiconductor divisions at Persistence Market Research. With over three years of specialized experience in technology mapping, software, and AI applications in the agriculture sector, she provides in-depth market insights that propel strategic decision-making. Her analytical expertise and industry knowledge support clients in navigating complex technological developments and the latest market trends.

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Companies Covered in This Report

  • Williams-Sonoma Inc.
  • Crystal Furnitech Pvt Ltd
  • RH
  •  Inter IKEA Systems B.V. 
  • American Signature, Inc. 
  • Jasons Furniture Outlet
  • La-Z-Boy Incorporated
  • Oppein Home Group Inc. 
  • Raymour & Flanigan Furniture and Mattresses
  • Ashley Global Retail, LLC

Frequently Asked Questions

The Automotive Cybersecurity market is estimated to be valued at US$ 3,455.9 Mn in 2025.

Rapid increase in connected and autonomous vehicles is the key demand driver for Automotive Cybersecurity market.

In 2025, Asia Pacific dominates the market with 37% share in the global Automotive Cybersecurity market.

Among Applications, preference for Telematics segment is expected to grow rapidly at 17.4% CAGR from 2025 to 2032.

Continental (Argus Cyber Security), Arm Limited, Guardknox Cyber Technologies Ltd., Vector Informatik GmbH, Karamba Security, and Synopsys are the leading players in the Automotive Cybersecurity market.

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