US Automotive Cyber Security Market Research Report: By Security Type (Network Security, Endpoint Security, Application Security, Wireless Security, Cloud Security), By Vehicle Type (Passenger Cars, Commercial Vehicles) and By Application (Telematics, On Board Diagnostic (OBD), Infotainment, Communication Channels, Powertrain, Safety Systems, Others) - Forecast to 2035

US Automotive Cyber Security Market Overview:

As per MRFR analysis, the US Automotive Cyber Security Market Size was estimated at 390.6 (USD Million) in 2023. The US Automotive Cyber Security Market Industry is expected to grow from 463.4(USD Million) in 2024 to 4,200 (USD Million) by 2035. The US Automotive Cyber Security Market CAGR (growth rate) is expected to be around 22.187% during the forecast period (2025 - 2035).

Key US Automotive Cyber Security Market Trends Highlighted

The US Automotive Cyber Security Market is experiencing significant trends that reflect the increasing need for robust security solutions within the automotive sector. One of the key market drivers is the rising incidence of cyber threats targeting vehicle systems, which has prompted manufacturers to prioritize cybersecurity measures more than ever. This urgency is underscored by regulatory bodies and industry standards that demand stringent security protocols, pushing automotive companies to invest heavily in advanced technologies to protect connected and autonomous vehicles. There are ample opportunities to be explored in this market, particularly through partnerships between automotive manufacturers and cybersecurity firms.These collaborations can enhance the development of innovative solutions, such as real-time intrusion detection systems, to safeguard vehicles from unauthorized access. Moreover, as more cars become equipped with Internet of Things (IoT) technology, there is a growing demand for tailored cybersecurity solutions that address specific vulnerabilities in vehicle networks. In recent times, trends such as the incorporation of artificial intelligence and machine learning in cybersecurity protocols have gained traction. These technologies allow for proactive threat detection and faster response times, which are essential as vehicles become increasingly connected.Additionally, there is a noticeable shift toward developing security features that are integrated from the design phase of the vehicle, rather than as an afterthought. Overall, as the automotive landscape continues to evolve, the need for comprehensive cybersecurity strategies in the US automotive sector remains a top priority.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Automotive Cyber Security Market Drivers

Increasing Connected Vehicle Adoption

The influx of connected vehicles in the United States has significantly heightened the demand for automotive cyber security solutions. According to data from the U.S. Department of Transportation, the number of connected vehicles is projected to reach over 48 million units by 2025. This surge directly correlates with the growing number of cyber threats targeting these vehicles, prompting manufacturers like General Motors and Ford to invest heavily in robust cybersecurity measures.The US Automotive Cyber Security Market Industry is responding to this demand by developing advanced security frameworks to protect vehicle data and ensure secure communications. With alliances forming between major automotive and technology companies, the importance of securing connected vehicles has never been more paramount, indicating a strong growth trajectory for the market.

Regulatory Compliance and Standards

The increasing establishment of regulatory frameworks and security standards in the automotive sector is another key driver for the U.S. Automotive Cyber Security Market Industry. The National Highway Traffic Safety Administration (NHTSA) has introduced guidelines that mandate manufacturers to implement comprehensive cybersecurity measures in their vehicles. For instance, the recent push for adherence to the Automotive Cybersecurity Framework addressing risk management has led many automakers to enhance their cybersecurity practices.This regulatory pressure translates into a marked increase in market opportunities, as companies must allocate significant resources to align with these standards, thereby driving the growth of the automotive cybersecurity sector in the U.S.

Rising Incidence of Cyber Attacks

The alarming rate of cyber attacks targeting the automotive industry has emerged as a critical growth driver for the U.S. Automotive Cyber Security Market Industry. The FBI’s Internet Crime Complaint Center reported a surge in cyber-related crimes, with over 300,000 incidents filed in 2022, a substantial increase compared to the previous year. High-profile attacks on automotive companies have raised awareness and concern among manufacturers and consumers alike, compelling companies like Tesla and Honda to prioritize robust cybersecurity solutions.This heightened concern helps fuel a proactive approach to automotive cybersecurity investments and innovation in the sector, catalyzing rapid market growth.

US Automotive Cyber Security Market Segment Insights:

Automotive Cyber Security Market Security Type Insights

The US Automotive Cyber Security Market is evolving significantly with a strong emphasis on various Security Type categories, which are essential for protecting vehicles and their systems against cyber threats. Network Security plays a critical role in safeguarding the communication networks that connect vehicle components, ensuring the integrity and confidentiality of data exchanges. Given the increased connectedness of vehicles, this sector remains a priority, preventing unauthorized access and potential cyberattacks. Endpoint Security, focused on securing individual endpoints within a vehicle, has become crucial as personal devices often interface with automotive systems.Effective strategies in endpoint protection are necessary to counter vulnerabilities posed by mobile devices and other portable technology. Application Security addresses the need for robust defense mechanisms for in-vehicle applications, as these software components are potential entry points for cyber threats. By ensuring that applications are secure, manufacturers can build consumer trust and protect proprietary technology. Wireless Security, another integral aspect, is particularly significant in the context of connected vehicles employing technologies like Bluetooth and Wi-Fi.This segment is pivotal, as it safeguards against unauthorized wireless access which could lead to serious security breaches. Furthermore, with the rise of cloud computing in automotive systems, Cloud Security has emerged as a vital component of the overall cyber security framework. Protecting cloud infrastructures ensures safe data storage and access, preventing data breaches that could compromise user information or vehicle functionality. The intertwining of these security categories underlines a comprehensive approach to address the growing concerns of cyber threats in the automotive realm, fostering innovation, consumer safety, and enhancing overall industry confidence in the US market.As the automotive landscape continues to embrace advancements in technology, the focus on effective Security Type strategies becomes increasingly important to mitigate risk and ensure the safety and reliability of vehicles.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Cyber Security Market Vehicle Type Insights

The Vehicle Type segment within the US Automotive Cyber Security Market is increasingly critical as vehicles become more connected and technologically sophisticated. Passenger Cars represent a significant portion of this market, reflecting the growing incorporation of advanced technologies that enhance consumer experience and safety. As more features like autonomous driving and Internet of Things connectivity are integrated, the need for robust cyber security measures in this sector escalates. In parallel, the Commercial Vehicles segment is also gaining traction, driven by the rise in fleet management systems and connected truck technologies, which necessitate strong defenses against cyber threats.The importance of this segment is underscored by the fact that vulnerable systems can lead to substantial economic losses and safety risks. With the percentage of connected vehicles continually rising, both segments face critical challenges yet offer substantial growth opportunities, leading the industry to adopt evolving cyber security solutions that can protect against sophisticated cyber-attacks. Overall, the US Automotive Cyber Security Market data reveal a promising landscape fueled by innovation, consumer demand, and regulatory pressures.

Automotive Cyber Security Market Application Insights

The US Automotive Cyber Security Market demonstrates robust potential in the Application segment, reflecting the increasing demand for secure vehicle systems as connectivity and automation escalate. Major aspects within the Application segment include Telematics, On Board Diagnostic (OBD), Infotainment, Communication Channels, Powertrain, and Safety Systems, each playing a critical role in vehicle performance and safety. Telematics has gained prominence due to its role in data transfer and real-time monitoring, necessitating stringent cyber security measures to prevent unauthorized access and data breaches.On Board Diagnostics contribute greatly to vehicle maintenance and performance monitoring, thus reinforcing the need for secure software protocols. Infotainment systems are significant for consumer engagement and experience, as they enable seamless integration of mobile devices, making them primary targets for cyber threats. Communication Channels, essential for data exchange between various vehicle components, further necessitate effective security protocols to safeguard against vulnerabilities. The Powertrain segment demands rigorous protection due to the critical nature of control systems, while Safety Systems are paramount for ensuring passenger and driver safety, dictating the need for fortified cyber security solutions.The interplay among these applications highlights the intricate dynamics of the US Automotive Cyber Security Market and underlines the importance of advanced defensive measures against evolving cyber threats.

US Automotive Cyber Security Market Key Players and Competitive Insights:

The US Automotive Cyber Security Market has garnered significant interest due to the rapid evolution of connected vehicles and the increasing reliance on advanced technologies in the automotive sector. With the proliferation of in-vehicle systems and the rise of autonomous driving, the need for robust security measures has become paramount. The competitive landscape is characterized by a diverse array of players, including established technology firms, cybersecurity specialists, and automotive manufacturers that are focused on safeguarding vehicles against cyber threats. As regulatory pressures increase and safety standards become more stringent, companies are striving to innovate and offer comprehensive solutions that address vulnerabilities in automotive systems, creating a dynamic and competitive environment.Walker Digital Table is a key player in the US Automotive Cyber Security Market with a strong presence founded on its innovative approach to data security and risk management. The company has developed a comprehensive suite of security solutions tailored to automotive needs, integrating advanced encryption technologies and real-time threat detection capabilities. Its strength lies in its ability to collaborate closely with automotive manufacturers and technology providers, enabling effective integration of security measures into existing systems. This collaborative approach fosters trust and reliability among clients, positioning Walker Digital Table as a crucial partner in enhancing the cybersecurity framework of modern vehicles. The company's commitment to R&D and continuous improvement allows it to stay ahead of emerging threats and adapt to new challenges in the automotive realm.Argus Cyber Security is another influential entity in the US Automotive Cyber Security Market, specializing in providing end-to-end cybersecurity solutions for vehicles and transportation systems. The company’s key products and services include software solutions for intrusion detection, risk assessment, and vulnerability management, specifically designed to protect connected and autonomous vehicles. Argus has established a considerable market presence through strategic partnerships and collaborations with leading automotive manufacturers and suppliers, enhancing its reputation as a trusted cybersecurity advisor. The company has experienced substantial growth through mergers and acquisitions, expanding its capabilities and service offerings within the automotive sector. Argus Cyber Security’s strengths lie in its technological expertise, comprehensive risk assessment methodologies, and a strong emphasis on compliance with industry standards, making it a formidable competitor in the evolving landscape of automotive cybersecurity in the US.

Key Companies in the US Automotive Cyber Security Market Include:

Walker Digital Table

Argus Cyber Security

BlackBerry

Karamba Security

GuardKnox

IBM

Tuv Rheinland

White Ops

Cylance

Upstream Security

Palo Alto Networks

Cisco Systems

Mandiant

NXP Semiconductors

US Automotive Cyber Security Market Industry Developments

In the US Automotive Cyber Security Market, recent developments have focused on the increasing threat of cyber-attacks and the corresponding demand for robust security measures within connected and autonomous vehicles. Companies like IBM and Palo Alto Networks are enhancing their offerings to address vulnerabilities, as vehicle connectivity heightens exposure to cyber threats. In October 2023, Walker Digital Table launched new cyber protection services aimed at optimizing vehicle software security, while Argus Cyber Security announced a partnership with NXP Semiconductors to bolster embedded security in automotive systems. Additionally, BlackBerry is seeing growth driven by its focus on secure software for automotive applications. The market has also witnessed major investments, with Upstream Security raising additional funding to enhance its cloud-native platform to protect against over-the-air threats. Significant mergers and acquisitions include Tuv Rheinland’s acquisition of a stake in a cybersecurity firm to expand its automotive defense capabilities, reported in August 2023. Overall growth is impacting the US Automotive Cyber Security Market valuation, reflecting the urgency for comprehensive strategies to mitigate cyber risks. Enhanced regulatory focus from the US government on automotive cybersecurity will likely further influence this sector in the coming years.

US Automotive Cyber Security Market Segmentation Insights

Automotive Cyber Security Market Security Type Outlook

Network Security

Endpoint Security

Application Security

Wireless Security

Cloud Security

Automotive Cyber Security Market Vehicle Type Outlook

Passenger Cars

Commercial Vehicles

Automotive Cyber Security Market Application Outlook

Telematics

On Board Diagnostic (OBD)

Infotainment

Communication Channels

Powertrain

Safety Systems

Others

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	390.6(USD Million)
MARKET SIZE 2024	463.4(USD Million)
MARKET SIZE 2035	4200.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	22.187% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Walker Digital Table, Argus Cyber Security, BlackBerry, Karamba Security, GuardKnox, IBM, Tuv Rheinland, White Ops, Cylance, Upstream Security, Palo Alto Networks, Cisco Systems, Mandiant, NXP Semiconductors
SEGMENTS COVERED	Security Type, Vehicle Type, Application
KEY MARKET OPPORTUNITIES	Increased EV penetration security needs, Growing IoT integration vulnerabilities, Proliferation of connected vehicles, Regulatory compliance and standards emergence, Demand for threat intelligence services
KEY MARKET DYNAMICS	increasing vehicle connectivity, stringent regulatory requirements, rising cyber threats, advancements in automotive technology, growing awareness among consumers
COUNTRIES COVERED	US