Passenger Cars Cybersecurity Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Security Type, By Application Type, By Region & Competition, 2019-2029F

The Global Passenger Cars Cybersecurity Market was valued at USD 2.86 Billion in 2023 and is expected to reach USD 4.12 Billion by 2029 with a CAGR of 6.33% during the forecast period. The global passenger cars cybersecurity market is experiencing significant growth as automotive connectivity and the adoption of advanced technologies like autonomous driving, V2X communication, and IoT gain momentum. The rise of software-based services and the increasing integration of connected devices have elevated the risk of cyber-attacks, prompting automotive manufacturers to prioritize cybersecurity solutions. One of the primary growth drivers is the rapid shift toward connected and autonomous vehicles, which necessitates robust security frameworks to protect critical data and systems from potential threats. Regulations like UNECE WP.29 and ISO/SAE 21434 have further pushed manufacturers to comply with cybersecurity standards, leading to an increased demand for solutions that safeguard the in-vehicle network, communication interfaces, and personal data.

The trends shaping this market revolve around the growing sophistication of cyber threats and the emphasis on end-to-end security frameworks. Key trends include the incorporation of Artificial Intelligence (AI) and Machine Learning (ML) for threat detection, the development of advanced encryption techniques, and the increased use of cloud-based solutions to monitor vehicle networks in real time. Automotive original equipment manufacturers (OEMs) are partnering with cybersecurity firms to build more resilient systems capable of countering emerging threats. Software updates over-the-air (OTA) have become a standard feature, enabling manufacturers to patch vulnerabilities more swiftly, which not only enhances security but also ensures compliance with evolving regulations.

Key Market Drivers

Rapid Advancements in Vehicle Connectivity and Automation

The first and foremost driver of the Global Passenger Cars Cybersecurity Market is the rapid advancement in vehicle connectivity and automation technologies. Modern vehicles are becoming increasingly connected to the internet and other external networks, allowing for features like remote diagnostics, over-the-air updates, and advanced infotainment systems. While these advancements offer numerous benefits, they also create vulnerabilities that cybercriminals can exploit. The proliferation of IoT (Internet of Things) devices in vehicles, such as sensors, cameras, and communication modules, has expanded the attack surface. As vehicles become more automated and capable of autonomous driving, the need for cybersecurity becomes even more critical. Hackers could potentially take control of critical vehicle functions, endangering the lives of passengers and other road users.

In May 2024, LG Vehicle Component Solutions Company unveiled human-centered innovations for the automotive industry. Recognized as a dependable and innovative partner, the company provided intelligent and sustainable solutions, including in-vehicle infotainment, displays, connectivity, ADAS, and software for Software Defined Vehicles. To further strengthen its capabilities, LG expanded its portfolio with the acquisition of automotive lighting provider ZKW Group and vehicle cybersecurity firm Cybellum, in addition to its joint venture with LG Magna e-Powertrain.

Stringent Government Regulations and Industry Standards

Another driving force behind the growth of the Passenger Cars Cybersecurity Market is the imposition of stringent government regulations and industry standards. Governments and regulatory bodies around the world are increasingly recognizing the need for robust cybersecurity measures in vehicles. For instance, the European Union's General Data Protection Regulation (GDPR) and the United States' Cybersecurity and Privacy Regulations for Connected Vehicles require automakers to implement security measures to protect user data and ensure the integrity of vehicle systems. Non-compliance can result in hefty fines and damage to 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. As a result of these regulations and standards, automakers are compelled to invest in cybersecurity solutions to meet compliance requirements and ensure the safety and privacy of their customers. This has led to a surge in the demand for cybersecurity products and services.

Growing Awareness of Cyber Threats

The increasing awareness of cyber threats among automakers, consumers, and the general public is a significant driver of the Passenger Cars Cybersecurity Market. High-profile incidents of vehicle hacking and cyberattacks have garnered media attention and raised concerns about the safety of connected vehicles. Consumers are becoming more educated about the potential risks associated with vehicle cybersecurity. They expect automakers to take proactive measures to protect their vehicles and data. This heightened awareness is pushing automakers to prioritize cybersecurity as a key selling point and invest in technologies that safeguard their customers' trust. Furthermore, the automotive industry is collaborating with cybersecurity firms to conduct penetration testing and vulnerability assessments. By identifying and addressing vulnerabilities in their systems before cybercriminals can exploit them, automakers are enhancing the overall security of their vehicles.

In November 2023, the Ministry of Road Transport and Highways (MoRTH) introduced a proposal to implement standardized Cyber Security and Management Systems (CSMS) for certain categories of four-wheelers. The objective of this plan was to protect the functions of passenger and commercial vehicles from possible cyber threats.

Growing Partnership between Automakers and Cybersecurity Firms

The final driver of the Passenger Cars Cybersecurity Market is the increasing collaboration and partnerships between automakers and cybersecurity firms. Recognizing the specialized nature of cybersecurity, many automakers are forming strategic alliances with cybersecurity experts to bolster their security measures. These partnerships take various forms, from joint ventures and acquisitions to licensing agreements and consulting services. For example, automakers are acquiring cybersecurity startups to gain access to cutting-edge technologies and expertise. This allows them to integrate cybersecurity features directly into their vehicle designs. Established cybersecurity companies are offering consulting services to automakers, helping them assess their cybersecurity posture, identify vulnerabilities, and develop comprehensive cybersecurity strategies. This collaborative approach ensures that automakers have access to the latest cybersecurity innovations and best 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

Evolving Cyber Threat Landscape

One of the foremost challenges facing the Passenger Cars Cybersecurity Market is the ever-evolving cyber threat landscape. Cybercriminals are becoming increasingly sophisticated and innovative, constantly developing new attack vectors and techniques to exploit vulnerabilities in vehicle systems. As vehicles become more connected and reliant on digital technologies, they become attractive targets for cyberattacks. Potential threats include remote hacking of vehicle control systems, data breaches, ransomware attacks, and unauthorized access to personal information. The consequences of successful cyberattacks can range from financial losses and damage to a company's reputation to endangering passenger safety and even loss of life. The challenge is compounded by the fact that cyber threats are not limited to vehicles themselves but can also target the broader connected ecosystem, including infrastructure, cloud services, and communication networks. Therefore, a holistic approach to cybersecurity is required to safeguard the entire automotive ecosystem.

Regulatory Compliance and Harmonization

Regulatory compliance and harmonization represent a significant challenge in the Passenger Cars Cybersecurity Market. As governments and regulatory bodies recognize the importance of cybersecurity in vehicles, they are introducing a myriad of cybersecurity regulations and standards. However, these regulations and standards vary from one region to another, leading to a lack of global consistency in cybersecurity requirements. Automakers and cybersecurity providers must navigate a complex landscape of regulations, each with its own compliance criteria and deadlines. For example, the European Union's General Data Protection Regulation (GDPR) includes provisions related to data privacy and cybersecurity, while the United States has introduced the Cybersecurity and Privacy Regulations for Connected Vehicles. Furthermore, industry organizations like the Automotive Cybersecurity Standards Committee (Auto-ISAC) and the International Organization for Standardization (ISO) have developed their own cybersecurity guidelines and standards. Achieving compliance with these regulations and standards is not only challenging but can also be costly and time-consuming. Lack of harmonization between regions can lead to duplication of efforts and increased compliance-related expenses for global automakers.

Consumer Education and Awareness

Consumer education and awareness represent a critical challenge in the Passenger Cars Cybersecurity Market. While cybersecurity is a growing concern, many vehicle owners may not fully understand the potential risks associated with cyber threats to their vehicles. Lack of awareness can lead to complacency, where consumers do not take cybersecurity precautions seriously. For example, they may neglect software updates or fail to recognize phishing attempts related to their vehicle. Consumers may not be aware of the cybersecurity features available in their vehicles or how to use them effectively. This can result in underutilization of security measures and increased vulnerability to cyberattacks. Automakers should design user-friendly interfaces and provide clear instructions for updating software and enabling security features. The goal is to empower consumers to take an active role in protecting their vehicles from cyber threats.

Key Market Trends

Increasing Connectivity and Digitalization in Vehicles

One of the most significant trends in the Global Passenger Cars Cybersecurity Market is the increasing connectivity and digitalization of vehicles. Modern cars are equipped with numerous sensors, communication modules, and embedded software systems that enable features like infotainment systems, navigation, remote diagnostics, and over-the-air software updates. While these technologies enhance the driving experience and provide convenience to consumers, they also create an expanded attack surface for cyber threats. Hackers can potentially exploit vulnerabilities in these digital systems to gain unauthorized access to the vehicle, compromising passenger safety and data privacy. To address this trend, automakers are investing heavily in cybersecurity solutions. These solutions include advanced firewalls, intrusion detection systems, and secure communication protocols. Secure over-the-air update mechanisms are being implemented to ensure that software vulnerabilities can be patched promptly and efficiently. The increasing connectivity trend is not limited to personal vehicles. Commercial and fleet vehicles are also becoming more connected, driven by the need for remote fleet management, telematics, and efficient logistics. Consequently, the demand for cybersecurity solutions in these segments is also on the rise.

Rise in Remote Vehicle Services and OTA Updates

The rise of remote vehicle services and over-the-air (OTA) software updates is a notable trend in the Passenger Cars Cybersecurity Market. Automakers are increasingly offering remote services that allow vehicle owners to control various functions of their cars through mobile apps or web portals. These services include locking/unlocking doors, starting the engine, and monitoring vehicle health. While remote services provide convenience and efficiency, they also introduce cybersecurity challenges. Hackers could potentially gain unauthorized access to a vehicle through these remote services, leading to theft or other malicious activities. To address this trend, automakers are implementing robust authentication and encryption protocols for remote services. They are also investing in secure backend infrastructure to protect user data and ensure that only authorized users can access remote vehicle functions. Adoption of OTA software updates is becoming more prevalent. OTA updates allow automakers to deliver software patches and updates to vehicles without requiring physical visits to service centers. This enhances cybersecurity by ensuring that vehicles are running the latest, most secure software. OTA updates also present cybersecurity risks, as hackers may attempt to intercept or manipulate update packages. As a result, automakers are implementing secure update mechanisms, including code signing and encryption, to protect the integrity of OTA updates.

Shift Toward Autonomous and Semi-Autonomous Vehicles

The shift toward autonomous and semi-autonomous vehicles is another significant trend in the Passenger Cars Cybersecurity Market. Autonomous vehicles rely heavily on complex software systems and sensor arrays to perceive their environment, make driving decisions, and navigate safely. While autonomous vehicles hold the promise of improved road safety and mobility, they also introduce new cybersecurity challenges. A cyberattack on an autonomous vehicle's control systems could have catastrophic consequences, potentially leading to accidents or unauthorized vehicle access. To address this trend, automakers and technology companies are investing heavily in cybersecurity research and development for autonomous vehicles. They are developing advanced intrusion detection systems, secure communication protocols, and redundant control systems to ensure the safety and security of autonomous vehicles. Regulatory bodies are beginning to recognize the unique cybersecurity challenges posed by autonomous vehicles and are working to establish specific cybersecurity standards and regulations for these vehicles.

Collaboration and Partnerships in the Automotive Ecosystem

Collaboration and partnerships within the automotive ecosystem are becoming increasingly prevalent in the Passenger Cars Cybersecurity Market. Automakers are recognizing that addressing cybersecurity challenges requires expertise beyond their core competencies. As a result, automakers are forming strategic alliances with cybersecurity firms, technology companies, and research institutions. These partnerships take various forms, from joint ventures and acquisitions to licensing agreements and consulting services. Cybersecurity firms bring specialized knowledge and technologies to the table, helping automakers identify vulnerabilities, conduct penetration testing, and develop comprehensive cybersecurity strategies. Technology companies contribute innovations in secure hardware and software solutions, while research institutions provide valuable insights into emerging cyber threats and mitigation strategies. Collaboration extends to information sharing and threat intelligence sharing among automakers, suppliers, and industry organizations. This collective approach allows the automotive industry to stay ahead of evolving cyber threats and vulnerabilities.

Segmental Insights

Application Type Insights

Advanced Driver Assistance Systems (ADAS) and safety systems is the fastest-growing segment in the passenger car cybersecurity market due to their increasing adoption and integration into modern vehicles. As automotive technology advances, ADAS features such as adaptive cruise control, lane-keeping assistance, automatic emergency braking, and parking assistance are becoming more prevalent. These systems rely heavily on sensors, cameras, radar, and real-time data processing to enhance vehicle safety and improve the driving experience. With the rise of connected vehicles, ADAS systems are also increasingly vulnerable to cyber threats. As vehicles become more autonomous, they rely on a network of interconnected electronic control units (ECUs) that communicate with one another, as well as with external infrastructure. This growing network of connected devices opens up new avenues for cyberattacks, making cybersecurity essential for protecting both vehicle functionality and driver safety.

Governments and regulatory bodies around the world have been implementing stringent regulations and standards for vehicle safety and cybersecurity. For instance, the UNECE WP.29 regulations mandate cybersecurity measures for connected vehicles, including ADAS and safety systems. Compliance with these regulations is driving automakers and suppliers to prioritize cybersecurity in their ADAS offerings. The potential consequences of a cyberattack on ADAS systems are severe, as they directly impact critical safety functions. A breach could lead to system malfunctions, putting drivers, passengers, and pedestrians at risk. To address these concerns, automakers and cybersecurity providers are investing heavily in securing ADAS systems, leading to rapid growth in this segment. This focus on safeguarding critical vehicle functions is positioning ADAS and safety systems as a central area of growth in the passenger car cybersecurity market.

Regional Insights

North America has emerged as the dominant region in the passenger car cybersecurity sector, driven by several key factors that contribute to its leadership in this space. The region is home to a robust automotive industry, with a significant presence of major automakers and technology companies. The U.S. and Canada are hubs for automotive innovation, where manufacturers are increasingly integrating advanced technologies such as connected vehicles, autonomous driving systems, and electric vehicles. These advancements make vehicles more reliant on software and data connectivity, which in turn raises the demand for strong cybersecurity measures to protect against potential cyber threats. North America has a well-established regulatory framework that emphasizes vehicle safety and cybersecurity. Government bodies such as the National Highway Traffic Safety Administration (NHTSA) in the U.S. have been proactive in developing cybersecurity guidelines and standards for connected and autonomous vehicles. These regulations push automakers and their suppliers to prioritize cybersecurity, driving market growth. The high rate of adoption of connected car technologies among consumers in North America also fuels the demand for cybersecurity solutions. With a large number of vehicles equipped with features like in-vehicle infotainment systems, GPS navigation, and advanced driver assistance systems (ADAS), the need to safeguard these systems from cyberattacks has become critical. Consumers in this region are also more aware of privacy and security concerns, further pushing the market forward. North America is a key market for cybersecurity innovations, with numerous cybersecurity firms specializing in automotive security headquartered in the region. Companies like BlackBerry, Symantec, and Argus Cyber Security are actively developing advanced solutions to protect connected and autonomous vehicles, further strengthening the region's dominance in the passenger car cybersecurity market. These factors combined make North America a leader in this sector, setting the pace for global trends in automotive cybersecurity.

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

Report Scope:

In this report, the Global Passenger Cars Cybersecurity Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Passenger Cars Cybersecurity Market, By Security Type:

• Application
• Network
• Endpoint

Passenger Cars Cybersecurity Market, By Application Type:

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

Passenger Cars Cybersecurity Market, By Region:

• Asia-Pacific
  • China
  • India
  • Japan
  • Indonesia
  • Thailand
  • South Korea
  • Australia
• Europe & CIS
  • Germany
  • Spain
  • France
  • Russia
  • Italy
  • United Kingdom
  • Belgium
• North America
  • United States
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Turkey
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Passenger Cars Cybersecurity Market.

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Global Passenger Cars Cybersecurity market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).