Automotive Cybersecurity Market Demand Soars in 2025 with Electric Vehicles and Cloud-Based Solutions at Forefront

Automotive Cybersecurity Market Size, Demand and Trends Analysis

The automotive cyber security market is set to grow from USD 4.91 billion in 2025 to USD 17.51 billion by 2034, with an expected CAGR of 15.14% over the forecast period from 2025 to 2034. The rising cases of phishing attacks in modern cars coupled with technological advancements in the automotive sector is playing a vital role in shaping the industrial landscape.

Moreover, the increasing adoption of cloud-based cyber security solutions by automotive companies along with ongoing trend of connected vehicles has contributed to the market expansion. The integration of AI and IoT in cyber security solutions as well as rising complexities in vehicle infrastructure is expected to create ample growth opportunities for the market players in the future.

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Introduction

The automotive cyber security market is a crucial branch of the automotive industry. This industry deals in developing and distributing cyber security solutions for the automotive sector. There are different types of cybersecurity solutions delivered by this sector comprising of in-vehicle cybersecurity and external cloud security. These solutions are designed for numerous types of vehicles including passenger vehicles and commercial vehicles. It finds application in various automotive systems consisting of ADAS & safety, body control & comfort, infotainment, telematics, powertrain systems, communication systems and some others. The growing number of hackers in western nations has boosted the market expansion. This market is expected to rise significantly with the rise of the software industry in different parts of the world.

Highlights of the Automotive Cyber Security Market

• Asia Pacific held the highest share of the automotive cyber security market.
• North America is expected to grow with a significant CAGR during the forecast period.
• By application, the infotainment segment held a dominant share of the market.
• By application, the ADAS & safety system segment is expected to rise with a notable CAGR during the forecast period.
• By vehicle type, the electric vehicle segment led the market.
• By vehicle type, the passenger car segment is expected to rise with a considerable CAGR during the forecast period.

What are the Trends of the Automotive Cyber Security Market in 2025?

• The trends in this industry comprises of partnerships, government initiatives and rising sales of EVs.

Partnerships

• Several market players are partnering with automotive companies to develop advanced cyber security solutions for the automotive sector.

Government Initiatives

• Government of several countries are mandating advanced security solutions in modern vehicles to provide protection against cyber threats.

Rising Sales of EVs

• With the increasing sales of EVs, the demand for advanced security solutions has increased rapidly in recent times.

Application Insights

How did the Infotainment SegmentLed the Automotive Cyber SecurityMarket in 2025?

The infotainment segment dominated the market. The growing demand for affordable infotainment systems in developing nations has boosted the market growth. Additionally, the integration of AI and blockchain in advanced infotainment systems coupled with rising cases of infotainment-based cyber attacks is playing a crucial role in shaping the industrial landscape. Moreover, the increasing demand for advanced infotainment systems in luxury cars is expected to boost the growth of the automotive cyber security market.

The ADAS & safety system segment is expected to grow with a notable CAGR during the forecast period. The rising cases of cyber attacks related to ADAS systems coupled with rapid adoption of autonomous vehicles in the U.S. and China has boosted the market expansion. Also, numerous government initiatives for mandating ADAS in vehicles along with integration of advanced cybersecurity solutions in ADAS systems is playing a vital role in shaping the industry. Moreover, the integration of AI-based cybersecurity solutions in ADAS-enabled cars is expected to propel the growth of the automotive cyber security market.

Vehicle Type Insights

What Made the Electric Vehicle to be the Most dominant Segment of the Automotive Cyber Security Market in 2025?

The electric vehicle segment held the highest share of the market. The growing demand for eco-friendly vehicles in the European region to curb emission has boosted the market expansion. Additionally, the rising adoption of EVs in China, India, the U.S. and some others along with technological advancements in the EV sector is playing a vital role in shaping the industrial landscape. Moreover, partnerships among EV brands and cybersecurity providers to develop advanced solutions for the automotive sector is expected to propel the growth of the automotive cyber security market.

The passenger car segment is expected to grow with a considerable CAGR during the forecast period. The growing use of advanced security systems in passenger vehicles to provide additional protection against cyber attacks has boosted the market growth. Also, the increasing sales of luxury vehicles in the developed nations coupled with integration of cybersecurity solutions in modern vehicles is positively contributing to the industry. Moreover, collaboration among market players and automotive companies to design new cybersecurity solutions is expected to boost the growth of the automotive cyber security market.

Geographical Insights

Why Asia Pacific Dominated the Automotive Cyber Security Market in 2025?

Asia Pacific led the automotive cyber security market. The growing sales of low-range hatchbacks in several countries such as India, China, Japan, South Korea and some others has boosted the market expansion. Additionally, the increasing consumer preference to purchase affordable infotainment systems coupled with rising cases of cybercrime issues is playing a vital role in shaping the industry in a positive direction. Moreover, the presence of numerous market players such as Denso, SecureKloud Technologies, Beijing Jingwei HiRain Technologies and some others is expected to drive the growth of the automotive cyber security market in this region.

• In March 2025, Beijing Jingwei HiRain Technologies launched PeneTrix Penetration Testing Platform in China. This new platform is designed to enhance cybersecurity in the automotive sector.(Source: Hirain)

North America is expected to rise with a significant CAGR during the forecast period. The rising adoption of electric vehicles in the U.S. and Canada has driven the market growth. Also, numerous government initiatives aimed at strengthening the automotive cyber security along with growing sales of autonomous vehicles is playing a crucial role in shaping the industrial landscape. Moreover, the presence of several market players such as Harman International, Trillium Secure, Dellfer and some others is expected to boost the growth of the automotive cyber security market in this region.

• In March 2024, Dellfer joined hands with Dana Incorporated. This joint venture is done for enhancing automotive cyber security in the U.S.(Source: Automotiveisac)

Industry Leader Announcement

• In February 2024, Daniel E S Kim., the CEO at AutoCrypt made an announcement stating that, “We developed AutoCrypt CSTP to give automotive OEMs the freedom to customize their test cases and select only the licenses they need for their environment while obtaining testing results ready for vehicle type approval, furthermore, the platform enables multi-ECU testing grouped by projects, requiring less manual intervention. The goal of making this platform is to help manufacturers allocate their resources efficiently and reduce unnecessary spending.”

Competitive Landscape

The automotive cyber security market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Harman International (U.S.), Continental AG (Germany), Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), Argus Cyber Security (Israel), Karamba Security (Israel), GuardKnox (Israel), Trillium Secure (U.S.), ETAS (Germany), SafeRide Technologies (Israel), Autotalks (Israel), Intertek, Vector Informatik GmbH (Germany), Enigma and some others. These companies are constantly engaged in developing cyber security solutions for the automotive sector and adopting numerous strategies such as product launches, business expansion, acquisition, partnerships, collaborations, joint ventures and some others to maintain their dominant position in this industry.

• In November 2024, ETAS launched a new range of cyber security solutions for the automotive sector. This new range consists of ESCRYPT Vehicle Computer Security Suite and ESCRYPT Vulnerability Management Solutions that helps in enhancing security of software-defined vehicles.(Source: Eeworld)
• According to the annual report of Intertek, the revenue of the company in 2023 was around 3329 million euros that increased to 3393 million euros in 2024.(Source: Intertek)

Recent Developments

• In June 2025, FPT partnered with Cymotive. This partnership is aimed at launching a new range of cybersecurity solutions for SDVs.(Source: FPT Software)
• In March 2025, PlaxidityX joined hands with Deloitte Spain. This joint venture is done for delivering automotive cyber security solutions in the European region.(Source: PR Newswire)

• In January 2025, Option3 acquired Dellfer Inc. This acquisition is done for developing an advanced cyber security platform(Source: PR Newswire)

Automotive Cybersecurity Market Key Players

• Sheelds
• Honeywell International, Inc.
• Guard Knox Cyber-Technologies Ltd.
• Vector Informatik GmbH
• NXP Semiconductors N.V.
• Harman International
• Broadcom Inc.
• Denso Corporation

Automotive Cybersecurity Market Segments

By Security Type

• Endpoint
• Application
• Wireless Network

By Vehicle Type

• Passenger Car
• Commercial Vehicle
• Electrical Vehicle

By Application

• ADAS & Safety System
• Infotainment
• Body Electronics
• Powertrain
• Telematics

By Service

• In-Vehicle Services
• External Cloud Services

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa