The "Connected Car Security Market by Type, Solution, Application, Form, EV Type & Region - Global Forecast to 2032" has been added to ResearchAndMarkets.com's offering.

The report investigates the market across security types, applications, electric vehicle types, solutions, forms, and regions. It examines competitive landscapes via company profiles, strategies, and key observations related to offerings and innovation. The market is dominated by key players such as NXP Semiconductors, AUMOVIO SE, Harman International, and more, all expanding their portfolios to capture market share.

The connected car security market is anticipated to expand from USD 3.37 billion in 2025 to USD 6.99 billion by 2032, marking an 11% CAGR

This growth is fueled by the surge in software-defined vehicles (SDVs), OTA update capabilities, V2X communication, and escalating cybersecurity threats to vehicle ECUs, telematics units, and cloud platforms. Regulatory frameworks like UNECE WP.29 CSMS, ISO/SAE 21434, and the US NHTSA cybersecurity guidelines, along with China's data security regulations, compel automakers to integrate safeguards such as secure gateways, IDS/IPS, and encrypted communications.

The transition to electric vehicles and the integration of connected ADAS features compound cybersecurity challenges, necessitating intricate protection across infotainment, telematics, and autonomous driving systems. Notably, the Asia Pacific region, led by China, and increased European and North American investments are enhancing the global uptake of advanced connected car security frameworks.

In-Vehicle Solutions Dominate

By form, in-vehicle solutions are expected to surpass external cloud services in market share during the forecast period. The complexity of ECUs, domain controllers, and telematics systems necessitates embedded security to mitigate unauthorized access. Compliance with UNECE WP.29, ISO/SAE 21434, and China's Automotive Data Security Regulations is driving OEMs to implement in-vehicle security solutions, such as secure gateways and HSMs. With the widespread adoption of connected ADAS and digital cockpits, in-vehicle security is integral to protecting internal networks and OTA data, thus becoming the market's largest revenue segment.

Hardware-Based Solutions Surge

Hardware-based solutions are expected to grow more rapidly than software alternatives due to industry shifts towards tamper-resistant architectures. Essential components such as TPMs, HSMs, and cryptographic accelerators are pivotal for safeguarding critical systems like ADAS and autonomous platforms. With cybersecurity threats increasing, OEMs are embracing hardware-rooted trust models to fortify authentication and encryption, making this segment the fastest growing despite higher costs.

Asia Pacific Leads Growth

In the global market, Asia Pacific is projected to experience robust growth, driven by the rapid evolution of connected and autonomous vehicle ecosystems in countries like China, Japan, South Korea, and India. China is at the forefront, enforcing data security regulations that push OEMs, including BYD, NIO, and XPeng, to adopt advanced security solutions. Japan and South Korea are aligning with UNECE WP.29 CSMS frameworks, promoting deployments through extensive telematics networks. The region's strong 5G rollout and government-backed cybersecurity initiatives are generating considerable revenue opportunities, positioning Asia Pacific as the fastest-growing market.

Key Attributes

Market Dynamics

• Drivers
  • Increasing Vehicle Connectivity Through Telematic and V2X
  • Mandatory Compliance with Global Automotive Cybersecurity Regulations
  • Rising Cyberattacks on Connected and Autonomous Vehicles
• Restraints
  • Legacy ECU and Vehicle Architectures Complicating Security Upgrades
  • High Implementation and Integration Costs
• Opportunities
  • Growth of Managed Security Services and Vehicle SOCs
  • Rising Demand for Secure OTA and Lifecycle Management
  • V2X and 5G Networks Require Strong PKI-based Security
• Challenges
  • Evolving Cyber Threats Hindering Long-Term Protection
  • Minimizing False Positives Without Compromising Safety-Critical Functions

Case Studies

• Continental Developed In-Vehicle Cybersecurity Framework to Protect Connected ECUs and Secure Data Exchange
• Bosch Implemented Secure Gateway Module to Control External Access and Strengthen Vehicle Communication Security
• Harman Enabled Cloud-based Threat Detection to Monitor and Mitigate Cyber Risks in Connected Vehicle Fleets
• Aptiv Deployed End-To-End Cybersecurity Architecture to Safeguard Over-The-Air Updates and Data Transfer
• NXP Introduced Automotive Hardware Security Modules to Encrypt Data and Ensure Secure ECU Communication
• Upstream Secured Vehicle Fleet Operations Using Cloud Analytics for Threat Detection and Incident Response
• Argus Developed Network Intrusion Detection and Prevention Systems to Identify and Block Malicious Traffic
• Blackberry QNX Provided Secure Operating System Foundation to Support Safety-Critical Automotive Software

Industry Trends

• Transition Toward Software-Defined Vehicle Era
• Connectivity as Enabler of Autonomous Mobility
• Vehicle-To-Everything (V2X) to Build Foundation for Smart Mobility
• Evolution of Vehicle Architecture in Software-Driven Era
• Personalization and Connected Experiences in Modern Mobility
• Rapid But Uneven EV Adoption and Market Share Gains
• Battery Pack Cost Decline and Cell Supply Overcapacity Reshaping Economics
• Heavy-Duty and Commercial Electrification (Plus Selective Hydrogen Use) Accelerating Heterogeneously
• ADAS Proliferation and Measured Progress Toward High Autonomy and Rise of Pilot Robotaxi Deployment
• Semiconductor Cycles, Supply Resilience, and Industrial Policy Reshaping Auto Supply Chains

Companies Profiled

• Aumovio SE
• Blackberry Limited
• Vector Informatik GmbH
• NXP Semiconductors
• Harman International
• Upstream Security Ltd.
• Astemo, Ltd.
• Trustonic
• Kpit
• Thales
• T-Systems International GmbH
• Autocrypt Co. Ltd.
• Arm Limited
• Trend Micro Incorporated
• Etas
• Keysight Technologies
• Intertek Group PLC
• Device Authority
• Secunet Security Networks AG
• Trillium Secure
• Wirelesscar
• Karamba Security
• Intertrust Technologies Corporation
• Guardknox
• Tata Elxsi

For more information about this report visit https://www.researchandmarkets.com/r/idr120

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