Rising Cyber Threats Drive Automotive Cyber Security Market to 29.6% CAGR by 2031


 Global Automotive Cyber Security Market Analysis (2025–2031)

The global Automotive Cyber Security market was valued at US$ 955 million in 2024 and is expected to reach approximately US$ 5,733 million by 2031, registering a strong CAGR of 29.6% during the forecast period from 2025 to 2031.

As connected and autonomous vehicle technologies advance, ensuring protection against cyber threats has become a critical concern for OEMs, Tier-1 suppliers, and software vendors.

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Key Trends Include:

  • Rapid adoption of Vehicle-to-Everything (V2X) and ADAS systems, increasing the vehicle's vulnerability to cyberattacks.

  • Integration of cloud-based security solutions and AI-driven threat detection tools.

  • Growing demand for in-vehicle network protection, including CAN, LIN, and Ethernet systems.

  • Expansion of regulatory frameworks (like UNECE WP.29) mandating cybersecurity risk management.

Market Segments Analysis:

  • By Security Type: Endpoint Security, Application Security, Wireless Network Security.

  • By Vehicle Type: Passenger Cars, Commercial Vehicles, Electric Vehicles (EVs).

  • By Application: Telematics, Infotainment, Powertrain, ADAS & Safety, Communication Systems.

  • By Deployment: On-board and Off-board (Cloud-Based).

Market Opportunity:

  • The rise of autonomous and connected vehicles provides massive opportunities for embedded and cloud-based cybersecurity solutions.

  • Growing investment in smart mobility infrastructure in Asia-Pacific and Europe fuels regional demand.

  • Strategic collaborations between automakers and cybersecurity startups to develop real-time threat response platforms.

Growth Drivers and Challenges:

Drivers:

  • Rising incidents of vehicle hacking and data breaches.

  • Surge in connected vehicles and software-defined vehicles (SDVs).

  • Growing consumer demand for privacy and data protection in smart mobility.

Challenges:

  • High complexity in securing multi-layered automotive systems.

  • Cost pressures on OEMs and Tier-1 suppliers.

  • Lack of cybersecurity talent and standardization in the automotive sector.

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