Growing Cyber Threats in Smart Vehicles Drive Automotive Cyber Security Market Expansion Through 2035

VynZ Research has published a new in-depth blog analysis highlighting the strong growth trajectory of the global automotivecyber security market, which was valued at USD 2.4 billion in 2025 and is projected to reach USD 7.5 billion by 2035, expanding at a robust CAGR of 15.2% during the forecast period (2026–2035).

According to the latest insights, the automotive industry is undergoing a major digital transformation driven by the rapid adoption of connected cars, autonomous driving technologies, and electric vehicles (EVs). While these innovations are enhancing vehicle performance, safety, and user experience, they are also increasing exposure to cybersecurity risks, thereby accelerating demand for advanced automotive cybersecurity solutions.

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Connected Vehicles and IoT Driving Market Growth

Modern vehicles are increasingly equipped with advanced communication capabilities, enabling real-time data exchange between internal vehicle systems, other vehicles, cloud platforms, and external infrastructure through the Internet of Things (IoT). This interconnected ecosystem significantly increases vulnerability to cyber threats, making automotive cybersecurity a critical priority for OEMs, suppliers, and fleet operators worldwide.

The growing penetration of e-mobility in emerging regions such as Asia-Pacific, Africa, and Latin America further intensifies cybersecurity risks, particularly for electric vehicles that rely heavily on electronic control units (ECUs) and software-defined architectures.

Endpoint Security Leads Market Segmentation

Based on security type, the market is segmented into endpoint security, application security, and wireless network security. Among these, endpoint security accounted for the largest market share in 2025 and is expected to witness the fastest growth, supported by the increasing number of connected endpoints such as smartphones, Wi-Fi modules, and embedded vehicle systems.

In terms of fitting type, in-vehicle cybersecurity solutions dominated the market in 2025, driven by rising investments from OEMs to integrate built-in security features. Meanwhile, external cloud-based security solutions are gaining strong traction and are expected to capture a significant market share over the coming years.

Powertrain and Passenger Vehicles Remain Key Focus Areas

By application, the powertrain systems segment held the largest share in 2025 due to the growing integration of electric and electronic components that are highly susceptible to cyberattacks. Additionally, passenger vehicles continue to dominate the market by vehicle type, supported by increased production volumes and significant investments by Tier 1 and Tier 2 OEMs in cybersecurity innovation.

Asia-Pacific Emerges as the Fastest-Growing Market

Geographically, Asia-Pacific (APAC) leads the global automotive cybersecurity market, driven by high vehicle production volumes, rapidly advancing in-vehicle electronic architectures, and a strong presence of automotive OEMs and component suppliers—particularly in China, Japan, and India. North America and Europe follow, supported by growing EV adoption and the increasing deployment of connected vehicle technologies.

Competitive Landscape and Industry Developments

The automotive cybersecurity market is highly competitive, with key players including HARMAN International, Continental AG, Robert Bosch GmbH, Denso Corporation, Aptiv PLC, Symantec Corporation, NXP Semiconductors, Honeywell International Inc., Trillium Secure Inc., and ESCRYPT GmbH. Strategic partnerships, mergers, and acquisitions remain central to strengthening market presence and technological capabilities.

Expert-Driven Market Intelligence

VynZ Research’s analysis is supported by extensive primary research, including interviews with CEOs, CTOs, product managers, and regional heads, along with end-user surveys to assess evolving cybersecurity requirements and adoption trends across the automotive ecosystem.