Connected Car Security Market 2026-2035
Description
Connected Car Security Market Size, Share & Trends Analysis Report by Security Type (Network Security, Application Security, Endpoint Security, Wireless Security, and Others), by Electric Vehicle Type (BEV, PHEV, HEV, and FCEV), by Solution (Software-based Solution and Hardware-based Solution), by Form (In-Vehicle Solution and External Cloud Solution), and by Application (Telematics Control Unit, Infotainment System, ADAS & Autonomous Driving System, Communication Modules, and Others), Forecast Period (2026-2035)
Industry Overview
Connected car security market was valued at $5.20 billion in 2025 and is projected to reach $28.75 billion by 2035, growing at a CAGR of 18.7% during the forecast period (2026-2035). The market is expanding at a fast pace owing to the adoption of advanced vehicle features, the explosion of vehicle connectivity / software-defined vehicles, regulatory mandates and cybersecurity management systems, rapid electrification and connectivity expansion, and a surge in over-the-air (OTA) software updates. According to the National Highway Traffic Safety Administration (NHTSA), as more vehicles integrate wireless, telematics, and software updates, the potential for unauthorized access or control of vehicle computing resources increases.
Market Dynamics
Increased Connectivity in Vehicles and External Communications
As vehicles become highly networked systems integrating V2X (Vehicle-to-Everything), telematics, Wi-Fi, Bluetooth, cellular 5G/6G, and cloud connectivity, the attack surface expands exponentially. According to the European Commission’s Connected and Automated Mobility (CAM) in 2020, over 55% of new vehicles in the EU already have embedded connectivity. This rapid connectivity adoption has led to heightened demand for advanced cybersecurity solutions to safeguard communications between vehicles, infrastructure, and the cloud. For instance, the 5G Automotive Association (5GAA) emphasizes that 5G-V2X technology, crucial for autonomous driving and real-time safety alerts, requires robust encryption, intrusion detection, and secure key management to prevent hacking and spoofing attacks.
Regulatory and Standardization Pressure for Automotive Cybersecurity
Governments and regional bodies are increasingly mandating cybersecurity requirements for connected vehicles. For instance, in September 2024, the US Commerce Department’s proposed rule to ban connected vehicle software and equipment from certain countries due to national-security risks signals how seriously regulatory bodies view connected car security. These pressures create impetus for automakers and suppliers to adopt certified security platforms, which in turn boosts spending on connected car security solutions. Moreover, as legislation such as the European Commission’s planned vehicle-data law matures, stakeholders will shift from ad-hoc security to embedded, lifecycle security architectures, driving service and recurring-revenue models in the connected car security market. The combined effect of regulation and standardization is to increase baseline adoption and raise the bar for security, resulting in higher average spend per vehicle and accelerating connected car security market growth.
Market Segmentation
In the market, the Electric Vehicle (EV) segment is emerging as a key growth driver, supported by the rapid global adoption of electric mobility. According to the International Energy Agency in 2024, global electric car sales neared 14 million units in 2023, with China, Europe, and the US accounting for 95% of these sales. Notably, China registered 8.1 million new electric cars in 2023, marking a 35% year-over-year increase. This surge emphasizes the transition toward electrified and software-defined vehicles, which rely heavily on connected systems for navigation, charging management, diagnostics, and over-the-air updates. As EVs integrate more connected and autonomous functionalities, they expand the attack surface for potential cyber threats, driving higher demand for multi-layered cybersecurity solutions that secure battery management systems, telematics, infotainment, and V2X communication.
Advancements in Endpoint Vehicle Security Lead to Growth in the Market
Endpoint Vehicle (ECU) Security relates to securing the vehicle’s internal electronics, ECUs, gateways, embedded controllers, and sensor networks. Since vehicles are now software-defined and feature many ECUs handling safety and comfort systems, the security of those endpoints is critical. For instance, the AutoGuardX framework addresses ECU, CAN bus, and host protection vulnerabilities within connected vehicles. Recent innovations include hardware security modules (HSMs) embedded in the vehicle, secure gateways, and runtime protection for ECUs. As automakers move toward secure-by-design architectures, the endpoint vehicle security is a growth area within the Connected Car Security market.
Regional Outlook
The global connected car security market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
North America Leads the Global Connected Car Security Market Growth
The North American region contributes a significant share to the connected car security market, driven by advanced vehicle connectivity adoption, early regulatory initiatives, and cybersecurity concerns. The US federal measure on securing ICT in connected vehicles (January 2025) emphasizes the regional emphasis on connected car security. The maturity of the automotive industry, prevalence of connected vehicle fleets, and strong cyber-regulatory ecosystem make North America a leading region for the connected car security market growth and revenue contribution.
Moreover, leading the US and Canadian manufacturers, including General Motors, Ford, Stellantis, and Tesla, are embedding advanced digital ecosystems into their vehicles. For instance, infotainment systems like Jeep’s Uconnect, GM’s 11.3-inch infotainment interface, and Cadillac’s expansive 55-inch display cluster require multi-layered cybersecurity frameworks to protect real-time data transmission, driver profiles, and cloud-synced applications. As connected technologies proliferate, automakers are increasingly partnering with cybersecurity firms to secure vehicle-to-everything (V2X) communications, driver assistance modules, and AI-based infotainment personalization systems.
Market Players Outlook
The major companies operating in the global connected car security market include HARMAN International, Continental AG, BlackBerry Limited, Vector Informatik GmbH, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments
Industry Overview
Connected car security market was valued at $5.20 billion in 2025 and is projected to reach $28.75 billion by 2035, growing at a CAGR of 18.7% during the forecast period (2026-2035). The market is expanding at a fast pace owing to the adoption of advanced vehicle features, the explosion of vehicle connectivity / software-defined vehicles, regulatory mandates and cybersecurity management systems, rapid electrification and connectivity expansion, and a surge in over-the-air (OTA) software updates. According to the National Highway Traffic Safety Administration (NHTSA), as more vehicles integrate wireless, telematics, and software updates, the potential for unauthorized access or control of vehicle computing resources increases.
Market Dynamics
Increased Connectivity in Vehicles and External Communications
As vehicles become highly networked systems integrating V2X (Vehicle-to-Everything), telematics, Wi-Fi, Bluetooth, cellular 5G/6G, and cloud connectivity, the attack surface expands exponentially. According to the European Commission’s Connected and Automated Mobility (CAM) in 2020, over 55% of new vehicles in the EU already have embedded connectivity. This rapid connectivity adoption has led to heightened demand for advanced cybersecurity solutions to safeguard communications between vehicles, infrastructure, and the cloud. For instance, the 5G Automotive Association (5GAA) emphasizes that 5G-V2X technology, crucial for autonomous driving and real-time safety alerts, requires robust encryption, intrusion detection, and secure key management to prevent hacking and spoofing attacks.
Regulatory and Standardization Pressure for Automotive Cybersecurity
Governments and regional bodies are increasingly mandating cybersecurity requirements for connected vehicles. For instance, in September 2024, the US Commerce Department’s proposed rule to ban connected vehicle software and equipment from certain countries due to national-security risks signals how seriously regulatory bodies view connected car security. These pressures create impetus for automakers and suppliers to adopt certified security platforms, which in turn boosts spending on connected car security solutions. Moreover, as legislation such as the European Commission’s planned vehicle-data law matures, stakeholders will shift from ad-hoc security to embedded, lifecycle security architectures, driving service and recurring-revenue models in the connected car security market. The combined effect of regulation and standardization is to increase baseline adoption and raise the bar for security, resulting in higher average spend per vehicle and accelerating connected car security market growth.
Market Segmentation
- Based on the security type, the market is segmented into network security, application security, endpoint security, wireless security, and others.
- Based on the electric vehicle type, the market is segmented into BEV, PHEV, HEV, and FCEV.
- Based on the solution, the market is segmented into software-based solutions and hardware-based solutions.
- Based on the form, the market is segmented into in-vehicle solutions and external cloud solutions.
- Based on the application, the market is segmented into telematics control units, infotainment systems, ADAS & autonomous driving systems, communication modules, and others.
In the market, the Electric Vehicle (EV) segment is emerging as a key growth driver, supported by the rapid global adoption of electric mobility. According to the International Energy Agency in 2024, global electric car sales neared 14 million units in 2023, with China, Europe, and the US accounting for 95% of these sales. Notably, China registered 8.1 million new electric cars in 2023, marking a 35% year-over-year increase. This surge emphasizes the transition toward electrified and software-defined vehicles, which rely heavily on connected systems for navigation, charging management, diagnostics, and over-the-air updates. As EVs integrate more connected and autonomous functionalities, they expand the attack surface for potential cyber threats, driving higher demand for multi-layered cybersecurity solutions that secure battery management systems, telematics, infotainment, and V2X communication.
Advancements in Endpoint Vehicle Security Lead to Growth in the Market
Endpoint Vehicle (ECU) Security relates to securing the vehicle’s internal electronics, ECUs, gateways, embedded controllers, and sensor networks. Since vehicles are now software-defined and feature many ECUs handling safety and comfort systems, the security of those endpoints is critical. For instance, the AutoGuardX framework addresses ECU, CAN bus, and host protection vulnerabilities within connected vehicles. Recent innovations include hardware security modules (HSMs) embedded in the vehicle, secure gateways, and runtime protection for ECUs. As automakers move toward secure-by-design architectures, the endpoint vehicle security is a growth area within the Connected Car Security market.
Regional Outlook
The global connected car security market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
North America Leads the Global Connected Car Security Market Growth
The North American region contributes a significant share to the connected car security market, driven by advanced vehicle connectivity adoption, early regulatory initiatives, and cybersecurity concerns. The US federal measure on securing ICT in connected vehicles (January 2025) emphasizes the regional emphasis on connected car security. The maturity of the automotive industry, prevalence of connected vehicle fleets, and strong cyber-regulatory ecosystem make North America a leading region for the connected car security market growth and revenue contribution.
Moreover, leading the US and Canadian manufacturers, including General Motors, Ford, Stellantis, and Tesla, are embedding advanced digital ecosystems into their vehicles. For instance, infotainment systems like Jeep’s Uconnect, GM’s 11.3-inch infotainment interface, and Cadillac’s expansive 55-inch display cluster require multi-layered cybersecurity frameworks to protect real-time data transmission, driver profiles, and cloud-synced applications. As connected technologies proliferate, automakers are increasingly partnering with cybersecurity firms to secure vehicle-to-everything (V2X) communications, driver assistance modules, and AI-based infotainment personalization systems.
Market Players Outlook
The major companies operating in the global connected car security market include HARMAN International, Continental AG, BlackBerry Limited, Vector Informatik GmbH, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments
- In April 2024, Cisco Investments partnered with Upstream Security to enhance cybersecurity for connected vehicles and IoT ecosystems. The platform uses AI-driven threat detection, Extended Detection and Response (XDR), and Software Bill of Materials (SBOM) analysis to identify and mitigate risks across the vehicle, cloud, and connected applications.
- In December 2023, BlackBerry Limited showcased its BlackBerry IVY connected vehicle data platform through in-vehicle and virtualized demos with a range of ecosystem partners. The BlackBerry IVY platform enables developers across industries to design and deploy insights-enabled automotive services more quickly, leveraging in-vehicle AI-enabled processing and a developer-friendly platform. This ease of development has led to a growing diversity of solutions developed on the BlackBerry IVY platform, giving automakers new opportunities to quickly enable additional services to differentiate and potentially monetize the connected car.
- In October 2021, Trend Micro Incorporated and Fujitsu Limited agreed to collaborate with automotive-related manufacturers to strengthen connected car security measures.
- Market value data analysis of 2025 and forecast to 2035.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global connected car security market. Based on the availability of data, information related to new products and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
Table of Contents
280 Pages
- 1. Report Summary
- Current Industry Analysis and Growth Potential Outlook
- Global Connected Car Security Market Sales Analysis – Security Type | Electric Vehicle Type | Solution| Form |Application ($ Million)
- Connected Car Security Market Sales Performance of Top Countries
- 1.1. Research Methodology
- Primary Research Approach
- Secondary Research Approach
- 1.2. Market Snapshot
- 2. Market Overview and Insights
- 2.1. Scope of the Study
- 2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Connected Car Security Industry Trends
- 2.2.2. Market Recommendations
- 2.3. Porter's Five Forces Analysis for the Connected Car Security Market
- 2.3.1. Competitive Rivalry
- 2.3.2. Threat of New Entrants
- 2.3.3. Bargaining Power of Suppliers
- 2.3.4. Bargaining Power of Buyers
- 2.3.5. Threat of Substitutes
- 3. Market Determinants
- 3.1. Market Drivers
- 3.1.1. Drivers For the Global Connected Car Security Market: Impact Analysis
- 3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For Global Connected Car Security Market: Impact Analysis
- 3.3. Market Opportunities
- 3.3.1. Opportunities For Global Connected Car Security Market: Impact Analysis
- 4. Competitive Landscape
- 4.1. Competitive Dashboard – Connected Car Security Market Revenue and Share by Manufacturers
- Connected Car Security Product Comparison Analysis
- Top Market Player Ranking Matrix
- 4.2. Key Company Analysis
- 4.2.1. BlackBerry Limited
- 4.2.1.1. Overview
- 4.2.1.2. Product Portfolio
- 4.2.1.3. Financial Analysis (Subject to Data Availability)
- 4.2.1.4. SWOT Analysis
- 4.2.1.5. Business Strategy
- 4.2.2. Continental AG
- 4.2.2.1. Overview
- 4.2.2.2. Product Portfolio
- 4.2.2.3. Financial Analysis (Subject to Data Availability)
- 4.2.2.4. SWOT Analysis
- 4.2.2.5. Business Strategy
- 4.2.3. HARMAN International
- 4.2.3.1. Overview
- 4.2.3.2. Product Portfolio
- 4.2.3.3. Financial Analysis (Subject to Data Availability)
- 4.2.3.4. SWOT Analysis
- 4.2.3.5. Business Strategy
- 4.2.4. Vector Informatik GmbH
- 4.2.4.1. Overview
- 4.2.4.2. Product Portfolio
- 4.2.4.3. Financial Analysis (Subject to Data Availability)
- 4.2.4.4. SWOT Analysis
- 4.2.4.5. Business Strategy
- 4.3. Top Winning Strategies by Market Players
- 4.3.1. Merger and Acquisition
- 4.3.2. Product Launch
- 4.3.3. Partnership And Collaboration
- 5. Global Connected Car Security Market Sales Analysis by Security Type ($ Million)
- 5.1. Network Security
- 5.2. Application Security
- 5.3. Endpoint Security
- 5.4. Wireless Security
- 5.5. Others
- 6. Global Connected Car Security Market Sales Analysis by Electric Vehicle ($ Million)
- 6.1. BEV
- 6.2. PHEV
- 6.3. HEV
- 6.4. FCEV
- 7. Global Connected Car Security Market Sales Analysis by Solution ($ Million)
- 7.1. Software
- 7.2. Hardware
- 8. Global Connected Car Security Market Sales Analysis by Form ($ Million)
- 8.1. In-Vehicle Solution
- 8.2. External Cloud Solution
- 9. Global Connected Car Security Market Sales Analysis by Application ($ Million)
- 9.1. Telematics Control Unit
- 9.2. Infotainment System
- 9.3. ADAS & Autonomous Driving System
- 9.4. Communication Modules
- 9.5. Others
- 10. Regional Analysis
- 10.1. North American Connected Car Security Market Sales Analysis – Security Type | Electric Vehicle Type | Solution| Form |Application | Country ($ Million)
- Macroeconomic Factors for North America
- 10.1.1. United States
- 10.1.2. Canada
- 10.2. European Connected Car Security Market Sales Analysis – Security Type | Electric Vehicle Type | Solution| Form |Application | Country ($ Million)
- Macroeconomic Factors for Europe
- 10.2.1. UK
- 10.2.2. Germany
- 10.2.3. Italy
- 10.2.4. Spain
- 10.2.5. France
- 10.2.6. Russia
- 10.2.7. Rest of Europe
- 10.3. Asia-Pacific Connected Car Security Market Sales Analysis – Security Type | Electric Vehicle Type | Solution| Form |Application | Country ($ Million)
- Macroeconomic Factors for Asia-Pacific
- 10.3.1. China
- 10.3.2. Japan
- 10.3.3. South Korea
- 10.3.4. India
- 10.3.5. Australia & New Zealand
- 10.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And Other)
- 10.3.7. Rest of Asia-Pacific
- 10.4. Rest of the World Connected Car Security Market Sales Analysis – Security Type | Electric Vehicle Type | Solution| Form |Application | Country ($ Million)
- Macroeconomic Factors for the Rest of the World
- 10.4.1. Latin America
- 10.4.2. Middle East and Africa
- 11. Company Profiles
- 11.1. Astemo, Ltd.
- 11.1.1. Quick Facts
- 11.1.2. Company Overview
- 11.1.3. Product Portfolio
- 11.1.4. Business Strategies
- 11.2. AT&T Intellectual Property
- 11.2.1. Quick Facts
- 11.2.2. Company Overview
- 11.2.3. Product Portfolio
- 11.2.4. Business Strategies
- 11.3. AUTOCRYPT Co., Ltd.
- 11.3.1. Quick Facts
- 11.3.2. Company Overview
- 11.3.3. Product Portfolio
- 11.3.4. Business Strategies
- 11.4. BlackBerry Limited
- 11.4.1. Quick Facts
- 11.4.2. Company Overview
- 11.4.3. Product Portfolio
- 11.4.4. Business Strategies
- 11.5. Cisco Systems, Inc.
- 11.5.1. Quick Facts
- 11.5.2. Company Overview
- 11.5.3. Product Portfolio
- 11.5.4. Business Strategies
- 11.6. Continental AG
- 11.6.1. Quick Facts
- 11.6.2. Company Overview
- 11.6.3. Product Portfolio
- 11.6.4. Business Strategies
- 11.7. eInfochips (Arrow Electronics Company)
- 11.7.1. Quick Facts
- 11.7.2. Company Overview
- 11.7.3. Product Portfolio
- 11.7.4. Business Strategies
- 11.8. Elektrobit Automotive GmbH
- 11.8.1. Quick Facts
- 11.8.2. Company Overview
- 11.8.3. Product Portfolio
- 11.8.4. Business Strategies
- 11.9. ETAS
- 11.9.1. Quick Facts
- 11.9.2. Company Overview
- 11.9.3. Product Portfolio
- 11.9.4. Business Strategies
- 11.10. Fujitsu Ltd.
- 11.10.1. Quick Facts
- 11.10.2. Company Overview
- 11.10.3. Product Portfolio
- 11.10.4. Business Strategies
- 11.11. Green Hills Software LLC
- 11.11.1. Quick Facts
- 11.11.2. Company Overview
- 11.11.3. Product Portfolio
- 11.11.4. Business Strategies
- 11.12. GuardKnox Cyber Technologies Ltd.
- 11.12.1. Quick Facts
- 11.12.2. Company Overview
- 11.12.3. Product Portfolio
- 11.12.4. Business Strategies
- 11.13. HARMAN International
- 11.13.1. Quick Facts
- 11.13.2. Company Overview
- 11.13.3. Product Portfolio
- 11.13.4. Business Strategies
- 11.14. KPIT Technologies Ltd
- 11.14.1. Quick Facts
- 11.14.2. Company Overview
- 11.14.3. Product Portfolio
- 11.14.4. Business Strategies
- 11.15. Mitsubishi Electric Corporation
- 11.15.1. Quick Facts
- 11.15.2. Company Overview
- 11.15.3. Product Portfolio
- 11.15.4. Business Strategies
- 11.16. PlaxidityX Ltd
- 11.16.1. Quick Facts
- 11.16.2. Company Overview
- 11.16.3. Product Portfolio
- 11.16.4. Business Strategies
- 11.17. Sasken Technologies Ltd
- 11.17.1. Quick Facts
- 11.17.2. Company Overview
- 11.17.3. Product Portfolio
- 11.17.4. Business Strategies
- 11.18. Sibros Technologies Inc.
- 11.18.1. Quick Facts
- 11.18.2. Company Overview
- 11.18.3. Product Portfolio
- 11.18.4. Business Strategies
- 11.19. Tata Elxsi Ltd
- 11.19.1. Quick Facts
- 11.19.2. Company Overview
- 11.19.3. Product Portfolio
- 11.19.4. Business Strategies
- 11.20. Thales Group
- 11.20.1. Quick Facts
- 11.20.2. Company Overview
- 11.20.3. Product Portfolio
- 11.20.4. Business Strategies
- 11.21. TOKAIRIKA, CO, LTD.
- 11.21.1. Quick Facts
- 11.21.2. Company Overview
- 11.21.3. Product Portfolio
- 11.21.4. Business Strategies
- 11.22. Trustonic
- 11.22.1. Quick Facts
- 11.22.2. Company Overview
- 11.22.3. Product Portfolio
- 11.22.4. Business Strategies
- 11.23. T-Systems International GmbH
- 11.23.1. Quick Facts
- 11.23.2. Company Overview
- 11.23.3. Product Portfolio
- 11.23.4. Business Strategies
- 11.24. Upstream Security Ltd.
- 11.24.1. Quick Facts
- 11.24.2. Company Overview
- 11.24.3. Product Portfolio
- 11.24.4. Business Strategies
- 11.25. Vector Informatik GmbH
- 11.25.1. Quick Facts
- 11.25.2. Company Overview
- 11.25.3. Product Portfolio
- 11.25.4. Business Strategies
- 11.26. Verizon
- 11.26.1. Quick Facts
- 11.26.2. Company Overview
- 11.26.3. Product Portfolio
- 11.26.4. Business Strategies
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