Passenger Cars Cybersecurity Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Security Type (Application, Network, Endpoint), By Application Type (ADAS & Safety System, Infotainment, Body Electronics, Powertrain, Telematics), By Region, By Competition 2019-2029F
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 2.86 Billion |
| CAGR (2024-2029) | 6.33% |
| Fastest Growing Segment | ADAS & Safety System |
| Largest Market | North America |
| Market Size (2029) | USD 4.12 Billion |
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Market Overview
Global Passenger Cars Cybersecurity Market was valued at USD 2.86 Billion in 2023 and is projected to reach USD 4.12 Billion by 2029 with a CAGR of 6.33% over the forecast period
The market trends centered around it are the increasing complexity of cyber threats and the focus on end-to-end security architecture. Notable trends involve integrating Artificial Intelligence (AI) and Machine Learning (ML) into threat detection, the evolution of sophisticated encryption methodologies, and higher reliance on cloud-based technology for real-time observation of vehicle networks. Automative original equipment makers (OEMs) are collaborating with cyber security companies in developing more hardened systems with a capacity to deal with future threats. Software over-the-air (OTA) updates are now a common feature, allowing manufacturers to fix vulnerabilities faster, which not only improves security but also keeps up with changing regulations.
There are also some challenges in the industry. Vehicle system complexity is a major challenge in the effective implementation of cybersecurity across different electronic control units (ECUs). Cybersecurity solution fragmentation, where several pieces from separate suppliers cause interoperability problems, makes it more difficult to achieve a unified security architecture. Even cost is an issue, given that OEMs must walk a fine line between adding advanced cybersecurity features and retaining profitability. Overcoming these impediments, opportunities exist for cybersecurity companies to engineer end-to-end, scalable solutions that cover all phases of networked vehicles' lifecycle from development and production through operation and recycling. Along with increased awareness regarding passenger car cybersecurity threats, growing demand for fresh solutions will always drive the growth of the market.
Key Market Drivers
Swift Advances in Automobile Connectivity and Automation
The principal and primary trend that drives the Global Passenger Cars Cybersecurity Market is the swift progress in vehicle automation and connectivity technologies. Current automobiles are progressively being connected to the internet as well as to other outside networks, making way for features such as remote diagnosis, over-the-air software update, and advanced entertainment systems. As beneficial as these developments may be, however, they pose weaknesses that could be used by cybercriminals. The growth in IoT (Internet of Things) devices in automobiles, including sensors, cameras, and communication modules, has opened up the attack surface. As cars become increasingly autonomous and enable autonomous driving, the importance of cybersecurity increases manifold. Hackers may gain access to and manipulate critical vehicle functionality, putting passengers' and other road users' lives at risk.
In May 2024, LG Vehicle Component Solutions Company introduced human-centric innovations for the auto industry. As a reliable and innovative partner, the company delivered smart and sustainable solutions, such as in-vehicle infotainment, displays, connectivity, ADAS, and software for Software Defined Vehicles. To further enhance its capabilities, LG extended its portfolio through the acquisition of automotive lighting supplier ZKW Group and vehicle cybersecurity company Cybellum, in addition to its joint venture with LG Magna e-Powertrain.
Strict Government Laws and Industry Standards
Yet another key driving factor for the expansion of the Passenger Cars Cybersecurity Market is the enactment of strict government laws and industry standards. Governments and regulatory agencies across the globe are increasingly realizing the necessity of enhanced cybersecurity in automobiles. For example, the European Union's General Data Protection Regulation (GDPR) and the United States' Cybersecurity and Privacy Regulations for Connected Vehicles mandate that automakers install security measures to safeguard user data and the integrity of vehicle systems. Failure to comply can lead to substantial fines and loss of a company's reputation. Furthermore, industry organizations like the Automotive Cybersecurity Standards Committee (Auto-ISAC) and the International Organization for Standardization (ISO) have developed cybersecurity guidelines and standards specific to the automotive sector. These standards provide a framework for automakers and suppliers to follow, ensuring consistent cybersecurity practices across the industry. Due to these standards and regulations, car manufacturers are forced to spend money on cybersecurity solutions in order to become compliant and secure the safety and privacy of their customers. This has created a high demand for cybersecurity products and services.
Rising Awareness of Cyber Threats
The growing awareness of cyber threats among automakers, consumers, and society as a whole is a key driver of the Passenger Cars Cybersecurity Market. High-profile hacks of cars and cyberattacks have made headlines and raised questions regarding the safety of connected cars. Consumers are growing more aware of the risks related to vehicle cybersecurity. They look to automakers to take initiative in securing their vehicles and information. This increasing awareness is making automakers go out of their way to prioritize cybersecurity as a selling point and invest in security technologies that keep their customers' trust intact. In addition, the auto sector is partnering with cybersecurity companies to carry out penetration testing and vulnerability assessments. Through discovering and correcting vulnerabilities in their systems prior to the occurrence of such exploits by cybercriminals, automakers are making their cars more secure overall.
In November 2023, the Ministry of Road Transport and Highways (MoRTH) initiated a proposal for introducing standardized Cyber Security and Management Systems (CSMS) for specific types of four-wheelers. The aim of the plan was to safeguard the operations of passenger as well as commercial vehicles from potential cyber attacks.
Growing Interfacing of AI and Machine Learning
The convergence of artificial intelligence (AI) and machine learning (ML) technologies is propelling innovation in the Passenger Cars Cybersecurity Market. AI and ML are being used to create advanced and adaptive cybersecurity solutions that can recognize and neutralize emerging threats in real-time. AI-based intrusion detection systems can analyze network traffic and behavior patterns to detect anomalies characteristic of cyberattacks. Machine learning programs are capable of scanning large volumes of data to detect vulnerabilities and forecast probable attack paths. Such predictive functions enable automakers to preemptively compensate for security flaws before they are taken advantage of. AI and ML play a crucial role in making autonomous cars secure. Autonomous cars depend on sophisticated AI systems for perception, decision-making, and control. Maintaining the integrity of such AI systems is important to avoid cyberattacks that may result in accidents or unauthorized access to vehicles. The use of AI and ML in cybersecurity solutions is a major competitive edge for firms in this industry. It allows them to provide more resilient and dynamic security solutions, reflecting the dynamic nature of cyber threats.
Increasing Collaboration between Automakers and Cybersecurity Companies
The last of the drivers for the Passenger Cars Cybersecurity Market is the rising partnership and cooperation among automakers and cybersecurity companies. The awareness of the expertise-based nature of cybersecurity has seen numerous automakers making strategic partnerships with cybersecurity professionals in order to strengthen their security processes. Such cooperation comes in diverse forms ranging from joint ventures and acquisitions to licensing agreements and consultancy services. For instance, carmakers are buying up cybersecurity startups so that they have access to emerging technologies and skills. This enables them to infuse cybersecurity functions directly into the designs of their vehicles. Traditional cybersecurity firms are providing consulting to carmakers to help them measure their cybersecurity posture, detect weaknesses, and establish overall cybersecurity plans. This working relationship guarantees carmakers access to the newest cybersecurity technologies and most effective practices. The partnership between automakers and cybersecurity firms is not limited to technology alone. It also includes knowledge sharing and information exchange, which is crucial for staying ahead of emerging threats and vulnerabilities.
Key Market Challenges
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Evolving Cyber Threat Landscape
Perhaps the biggest challenge for the Passenger Cars Cybersecurity Market is the constantly evolving cyber threat landscape. Cybercriminals are getting smarter and more resourceful by the day, creating new attack avenues and methods of exploiting weaknesses in vehicle systems continuously. With the increasing connectivity and dependence on digital technologies in cars, they also become more inviting targets for cyberattacks. Such risks may involve hacking into vehicle control systems remotely, data breaches, ransomware and unauthorized access to personal data. The impact of successful cyber attacks may vary from monetary losses and reputation damage for a company to compromising passenger safety and even fatality. The challenge is further aggravated by the fact that cyber threats are not only targeting cars but can go on to affect the entire connected ecosystem, encompassing infrastructure, cloud services, and communication networks. Hence, a comprehensive approach to security is needed to protect the entire automotive ecosystem.
Complexity of Vehicle Architecture
Growth in the complexity of contemporary vehicle architecture is a huge challenge for the Passenger Cars Cybersecurity Market. Cars have many electronic control units (ECUs), sensors, communication modules, and software components, all of which have to interact perfectly with each other to provide safe and reliable performance. This complexity also provides a greater attack surface for possible cyber attacks. Each software component and ECU can be exploited by hackers if they are not properly secured. Interconnectivity of such components raises the threat of lateral movement for cyber attacks in a vehicle's network. Even with these measures, the intrinsic complexity of vehicle architecture is still an issue, and the industry will need to keep innovating and creating more resilient cybersecurity solutions to counter more sophisticated attacks.
Regulatory Compliance and Harmonization
Regulatory compliance and harmonization are a key challenge in the Passenger Cars Cybersecurity Market. As governments and regulators realize the criticality of vehicle cybersecurity, they are establishing a plethora of cybersecurity regulations and standards. But these regulations and standards differ from region to region, creating a global lack of consistency in cybersecurity standards. Automakers and cybersecurity suppliers have to contend with a thicket of regulations, each having its own compliance requirements and deadlines. For instance, the European Union's General Data Protection Regulation (GDPR) contains provisions for data privacy and cybersecurity, while the United States has introduced the Cybersecurity and Privacy Regulations for Connected Vehicles. In addition, industry bodies such as the Automotive Cybersecurity Standards Committee (Auto-ISAC) and the International Organization for Standardization (ISO) have created their own cybersecurity standards and guidelines. Compliance with such regulations and standards is not just difficult but expensive and time-consuming as well. Non-harmonization of regions may create duplication of effort and added costs of compliance for global manufacturers.
Integration of Legacy Systems
The incorporation of legacy systems is a major challenge in the Passenger Cars Cybersecurity Market. Most cars currently in use were not built with strong cybersecurity features from the outset. While automakers work to make new cars more secure, they are required to retrofit earlier models with cybersecurity features. Retrofitting legacy cars with new cybersecurity technologies can be time-consuming and expensive. These cars can be equipped with older hardware and software that do not have the required security features and protocols. In addition, these cars will have restricted computational capabilities and memory, which will make it difficult to install sophisticated cybersecurity. Automakers need to take into account the varying number of vehicles in the fleet, such as cars with different model years and technology integration levels. This heterogeneity complicates a high degree of standardization of cybersecurity solutions across all vehicles. Nevertheless, attaining a high level of cybersecurity in legacy vehicles is a complex and continuous process, entailing constant maintenance and innovation to evolve and respond to new threats.
Consumer Education and Awareness
Consumer awareness and education are a key challenge in the Passenger Cars Cybersecurity Market. Although cybersecurity is an emerging issue, some car owners might not realize the possible dangers posed by cyber threats to their cars. Unawareness may cause consumers to become complacent and not take cybersecurity measures seriously. For instance, they might skip software updates or not identify phishing attempts for their car. Customers could be ignorant of the cybersecurity features available in their cars or how to utilize them optimally. This can lead to suboptimal usage of security systems and greater exposure to cyber threats. Manufacturers must make user interfaces intuitive and simplify instructions for software updates and security feature activation. The objective is to give customers control over protecting their cars from cyber threats.
Key Market Trends
Growing Connectivity and Digitalization in Vehicles
Perhaps the most prominent trend in the Global Passenger Cars Cybersecurity Market is growing connectivity and digitalization of vehicles. New cars feature a large number of sensors, communication modules, and embedded software systems that provide capabilities such as infotainment systems, navigation, remote diagnostics, and over-the-air software updates. Though these technologies improve the drive and make it more convenient for consumers, they also provide a broader attack surface for cyber attacks. Cyber-attackers can compromise vulnerabilities in these digital systems to take unauthorized control of the vehicle and threaten passenger safety and data privacy. Automakers are responding to this trend by heavily investing in cybersecurity solutions. These solutions range from sophisticated firewalls, intrusion detection tools, to secure communication protocols. Secure over-the-air updating mechanisms are being put into place to make sure that software weaknesses can be fixed quickly and effectively. The trend for increased connectivity is not confined to personal cars. Commercial and fleet cars are also seeing increased connectivity owing to remote fleet management requirements, telematics, and optimal logistics. Therefore, demand for cybersecurity solutions for these segments is also growing.
Increased Concerns Regarding Data Privacy
Data privacy is becoming a major issue in the Global Passenger Cars Cybersecurity Market. With cars getting increasingly connected, they are collecting and sending huge amounts of data, such as data on driving behavior, location, and even biometric information from in-car sensors. Customers are becoming more conscious of the possible threats from their personal data being gathered and transmitted without their knowledge. This increasing concern has prompted demands for stricter data privacy laws in the automotive sector. To address this, automakers are introducing encryption and data anonymization methods to secure user information. They are also embracing open data usage policies, enabling consumers to gain greater control over how their data is being collected and utilized. General Data Protection Regulation (GDPR) in Europe and equivalent regulations elsewhere are compelling the automobile manufacturers to adopt more stringent data protection methods. Noncompliance with the regulations can have severe penalties, including heavy fines and loss of business reputation.
Increase in Remote Vehicle Services and OTA Updates
Increased remote vehicle services and over-the-air (OTA) updates are a major trend in the Passenger Cars Cybersecurity Market. Auto makers are now offering remote services by which vehicle owners can access a number of features of their vehicle via web portal or mobile application. Services involve locking and unlocking doors, starting the engine, and checking the health of a vehicle. While remote services save time and add convenience, they also create a cybersecurity risk. Remote services offer the potential to provide hackers unauthorized access to a vehicle, causing theft or other nefarious use. To counter this trend, automakers are putting in place strong authentication and encryption measures for remote services. They are also making investments in secure backend infrastructure to safeguard user data and ensure that only legitimate users can access remote vehicle functions. Adoption of OTA software updates is increasingly common. OTA updates enable automakers to push software patches and updates to vehicles without physical visits to service centers. This improves cybersecurity by ensuring vehicles are operating the latest, most secure software. OTA updates also introduce cybersecurity threats since hackers can try to intercept or manipulate update packages. To counter this, automakers are introducing secure update procedures, such as code signing and encryption, to safeguard the integrity of OTA updates.
Shift Toward Autonomous and Semi-Autonomous Vehicles
The transition to autonomous and semi-autonomous cars is another key trend in the Passenger Cars Cybersecurity Market. Autonomous cars are dependent on sophisticated software systems and sensor suites to sense their surroundings, make driving decisions, and drive safely. Autonomous cars have the potential to enhance road safety and mobility but also pose new cybersecurity threats. A cyberattack on autonomous vehicles' control systems could have disastrous results, leading to accidents or unauthorized vehicle entry. The automakers and tech firms are attempting to counter this trend with significant investment in cybersecurity innovation and development for autonomous vehicles. They are creating sophisticated intrusion detection systems, secure communication protocols, and duplicate control systems to provide safety and security to autonomous vehicles. Regulatory organizations are now becoming aware of the peculiar cybersecurity issues raised by autonomous vehicles and are moving to develop particular cybersecurity standards and regulations for these vehicles.
Partnerships and Collaboration in the Automotive Ecosystem
Partnership and collaboration in the automotive ecosystem is becoming ever more common in the Passenger Cars Cybersecurity Market. Automakers are becoming aware that they need specialized skills beyond their conventional areas of expertise to tackle cybersecurity issues. Consequently, car manufacturers are establishing strategic partnerships with cybersecurity companies, tech firms, and research centers. These collaborations exist in many forms, ranging from joint ventures and acquisitions to licensing deals and consulting services. Cybersecurity companies provide specialized expertise and technologies, assisting car manufacturers in detecting vulnerabilities, performing penetration testing, and creating end-to-end cybersecurity plans. Technology firms offer innovations in secure software and hardware solutions, while research centers offer important insights into future cyber threats and mitigation techniques. Collaboration includes information sharing and threat intelligence sharing between automakers, suppliers, and industry associations. This collaborative effort enables the automotive sector to be ahead of changing cyber threats and vulnerabilities.
Segmental Insights
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Application Type Insights
Advanced Driver Assistance Systems (ADAS) and safety systems are the quickest-growing segment in the passenger car cybersecurity market because they are increasingly being adopted and integrated into new vehicles. With the advancement of automobile technology, features of ADAS like adaptive cruise control, lane-keeping assistance, automatic emergency braking, and parking assistance are increasingly common. These systems are dependent to a large extent on sensors, cameras, radar, and real-time processing of data to make vehicles safer and enhance the driving experience. As connected vehicles become more prevalent, ADAS systems are also more susceptible to cyber attacks.
A major reason for the explosive demand for cybersecurity for ADAS and safety systems is the growing complexity and connectivity of these systems. With vehicles becoming increasingly autonomous, they increasingly depend on an interconnected network of electronic control units (ECUs) that speak to each other, as well as to infrastructure outside the vehicle. This increasingly interconnected network of devices provides more opportunities for cyberattacks, meaning cybersecurity is becoming critical to protect both vehicle operations and driver safety.
Governments and regulatory agencies worldwide have been instituting strict rules and regulations regarding vehicle safety and cybersecurity. As an example, the UNECE WP.29 regulations call for cybersecurity on connected vehicles such as ADAS and safety features. Adherence to these rules is compelling manufacturers and suppliers to place greater importance on cybersecurity within their ADAS solutions.
The repercussions of a cyberattack on ADAS systems are serious because they directly relate to vital safety functions. A breach may result in system failures, endangering drivers, passengers, and pedestrians. To mitigate these risks, automakers and cybersecurity vendors are spending heavily on protecting ADAS systems, resulting in explosive growth in this area. This emphasis on protecting key vehicle functions is making ADAS and safety systems a key area of growth in the passenger car cybersecurity market.
Regional Insights
North America has become the leading market in the passenger car cybersecurity market due to a number of factors that support its position in this market.
North America boasts a mature regulatory environment that prioritizes vehicle safety and cybersecurity. Government agencies like the National Highway Traffic Safety Administration (NHTSA) in the U.S. have been at the forefront of creating cybersecurity standards and guidelines for connected and autonomous vehicles. These regulations compel automakers and their suppliers to focus on cybersecurity, fueling market growth.
The strong adoption rate of connected car technologies among North American consumers also drives the demand for cybersecurity solutions. With the majority of vehicles in this region having features such as infotainment systems, GPS navigation, and ADAS, the need to secure these systems against cyber threats has become paramount. Consumers in this region are also privacy- and security-conscious, which also drives the market further.
North America is the prime market for cybersecurity solutions, with many cybersecurity companies with expertise in automotive security having their headquarters there. BlackBerry, Symantec, and Argus Cyber Security are some of the companies actively working on sophisticated solutions to secure connected and autonomous vehicles, further cementing the region's leadership in the passenger car cybersecurity space.
Recent Developments
- In June 2023, BlackBerry Limited partnered with Upstream Security, a cybersecurity platform for passenger cars, to help automakers enhance the security of their vehicles. By integrating Upstream's V-XDR platform with BlackBerry IVY, OEMs were able to process data at the vehicle's edge, providing real-time insights, ensuring cybersecurity compliance, and reducing cloud connectivity costs.
- In February 2023, ETAS, a subsidiary of Robert Bosch GmbH, launched ESCRYPT C_ycurRISK, a software designed for threat analysis and risk assessment. This solution allowed passenger car OEMs and suppliers to identify security vulnerabilities during vehicle development and effectively address cyber threats.
- HL Mando Corporation joined forces with Argus Cyber Security in January 2023. Beginning in January 2023, the Argus CAN Intrusion Detection Systems (IDS) solution was deployed to HL Mandbo's electrification system products, such as brakes and steering, as part of this agreement.
Key Market Players
- Intel Corporation
- ETAS GmbH
- NNG Software Developing and Commercial Llc
- DENSO Corporation
- Continental AG
- HARMAN International Industries, Inc
- Robert Bosch GmbH
- Cisco Systems, Inc
- PlaxidityX Ltd
- Karamba Security Ltd
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