Visiongain has published a new report entitled Automotive Cybersecurity Market Report 2026-2036 (Including Impact of U.S. Trade Tariffs): Forecasts by Offering (Software, Hardware, Services), by Security Type (Network Security, Endpoint Security, Application Security, Cloud Security), by Vehicle Type (Passenger Cars, Commercial Cars), by Application Area (Telematics System Security, ADAS & Safety Systems Security, Infotainment System Security, Powertrain & Engine Control Security, V2X Communication Security), by Deployment Mode (On-Board (Embedded), Cloud-Based), Form of Security Integration (Built-in Security, Aftermarket Security) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global automotive cybersecurity market is estimated at US$4.38 billion in 2026 and is projected to grow at a CAGR of 20.4% during the forecast period 2026-2036.

Impact of US Trade Tariffs on the Global Automotive Cybersecurity Market   

U.S. tariff measures implemented during 2024–2025 are materially altering cost structures and supply-chain configurations across the global automotive cybersecurity market, with pronounced implications for OEMs and Tier-1 suppliers reliant on cross-border flows of electronics, semiconductors, and secure communication modules. Increased duties on imported chipsets, telematics hardware, and software-defined components are inflating manufacturing costs, compelling suppliers to re-evaluate sourcing models and accelerate domestic or near-shore development of cybersecurity modules.

For multinational vendors, these tariffs are exerting margin pressure on U.S.-destined security ECUs, gateway controllers, and V2X protection systems, while also lengthening lead times as firms diversify procurement to mitigate single-country exposure. Concurrently, the evolving policy landscape is stimulating greater U.S. investment in secure hardware engineering, zero-trust system architectures, and cybersecurity-certified supply chains. While this environment is fostering innovation and supply-chain resilience, it is also contributing to increased regionalization and fragmentation of global cybersecurity standards. Consequently, tariffs are functioning both as a near-term cost headwind and a longer-term catalyst for localized, resilience-oriented automotive cybersecurity ecosystems.

Global Type-Approval Cybersecurity Regulations Institutionalize In-Vehicle and Cloud Security as Core Design Requirements

Mandatory cybersecurity regulations are emerging as a primary structural driver reshaping connected-vehicle architecture, compelling automakers to embed cybersecurity as a non-negotiable engineering requirement rather than an optional enhancement. OEMs are now required to integrate security by design across telematics control units, ADAS computing platforms, infotainment systems, V2X interfaces, and powertrain ECUs as part of baseline vehicle development.

The enforcement of UNECE UN R155 (Cybersecurity Management Systems) and UN R156 (Software Update Management Systems) has formally elevated cybersecurity from a best-practice consideration to a compulsory condition for vehicle type approval across Europe, the Middle East, Asia, and selected Latin American markets. These regulations obligate manufacturers to demonstrate auditable, end-to-end governance frameworks covering secure OTA delivery, authenticated communication, intrusion detection, firmware integrity controls, vulnerability response processes, and continuous lifecycle monitoring at both vehicle and fleet levels.

Regulatory adoption is accelerating at the national level. The United Kingdom fully embedded UN R155/R156 into its domestic type-approval regime in January 2026, making compliance mandatory for the registration of new vehicle models with embedded and cloud-connected OTA capabilities. India’s AIS-189 and AIS-190 are rapidly converging with UNECE principles, establishing formal requirements around telematics hardening, OTA authentication workflows, ECU-level integrity validation, and secure software update governance. In parallel, China’s GB 44495-2024 and GB 44496-2024, effective from July 2024, impose comparable obligations on intelligent connected vehicles, mandating secure firmware lifecycle control and authenticated vehicle-to-cloud communication.

How will this Report Benefit you?

Visiongain’s 382-page report provides 128 tables and 204 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analysis for the automotive cybersecurity market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for automotive cybersecurity. Get financial analysis of the overall market and different segments including offering, Security Type, Vehicle Type, Application Area, Deployment Mode, Form of Security Integration, and capture higher market share. We believe that there are strong opportunities in this fast-growing automotive cybersecurity market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Software-Defined Vehicles and Cloud-Centric OTA Platforms Multiply Attack Surfaces Across Next-Generation Architectures

The rapid transition toward software-defined vehicles (SDVs), zonal and domain-based architectures, and cloud-centric OTA platforms is materially expanding cybersecurity attack surfaces across next-generation vehicle ecosystems, reinforcing the need for end-to-end security integration across embedded and cloud layers. SDVs consolidate multiple ECUs into centralized high-performance compute controllers with persistent cloud connectivity, increasing exposure across ADAS sensor-fusion modules, in-vehicle Ethernet networks, powertrain ECUs, infotainment systems, and telematics units. As a result, OTA pipelines must incorporate secure boot anchors, cryptographic firmware integrity validation, encrypted update delivery, and hardened execution environments to mitigate tampering risks.

As OEMs scale cloud-driven functions such as remote diagnostics, digital-twin analytics, fleet intelligence, and feature monetization, cybersecurity requirements extend to embedded compute nodes, identity-governed APIs, OTA servers, and backend orchestration frameworks. This shift is particularly evident in commercial vehicles, highlighted by the Daimler Truck–Volvo SDV platform partnership announced in March 2025, which is architected for continuous OTA operations. With constant cloud-to-vehicle communication, vulnerabilities across vehicle, cloud, or application layers introduce systemic risk, accelerating adoption of intrusion detection, secure network segmentation, encrypted telematics, hardened infotainment stacks, and cloud-native vehicle SOCs.

Surge in High-Impact Automotive Cyber Incidents Is Forcing OEMs Toward Continuous Threat Monitoring and Response

A sharp rise in high-impact automotive cyber incidents is compelling OEMs, Tier-1 suppliers, and fleet operators to transition from periodic security assessments to continuous monitoring and coordinated incident response across vehicle and cloud ecosystems. Over the past 18 months, attack activity targeting telematics APIs, OTA update servers, dealership management systems, ADAS compute pipelines, and cloud-connected infotainment platforms has increased materially. A significant ransomware incident in June 2024 disrupted a major North American dealership software provider, halting dealer operations for several weeks and exposing systemic vulnerabilities across retail and service networks. In parallel, security researchers have repeatedly disclosed weaknesses enabling remote vehicle tracking, unlocking, and engine-start actions via poorly secured cloud portals and identity frameworks, underscoring that the attack surface now spans mobile apps, IAM layers, cloud orchestration interfaces, and vehicle-to-cloud links.

The scope of risk expanded further following Jaguar Land Rover’s production disruption in September 2025, caused by a cascading cyberattack affecting supply-chain and manufacturing systems. These events are accelerating adoption of cloud-based vehicle SOCs (vSOCs), in-vehicle intrusion detection, hardened telematics, secure gateways, authenticated firmware governance, and resilient OTA workflows, positioning real-time cybersecurity as a core operational requirement.

Where are the Market Opportunities?

Acceleration of ADAS and Autonomous Vehicle Deployment Is Creating Structural Demand for Sensor- and AI-Centric Cybersecurity Controls

The rapid scale-up of Level 2+, Level 3, and early Level 4 autonomous functionalities is emerging as a distinct growth catalyst within automotive cybersecurity, shifting protection requirements beyond traditional ECUs toward sensor endpoints and AI-driven perception systems. Autonomous and ADAS platforms rely on uninterrupted, high-fidelity data streams from cameras, LiDAR, radar, ultrasonic sensors, and V2X interfaces, transforming each sensing node into a potential cyber-physical attack surface. Because perception outputs directly inform steering, braking, and acceleration decisions, compromise at the sensor or inference layer poses immediate safety, compliance, and liability risks.

In response to rising exposure to adversarial techniques—including sensor spoofing, point-cloud distortion, false-frame injection, and model-level manipulation—OEMs and Tier-1 suppliers are embedding security throughout the perception-to-control chain. This includes cryptographic sensor authentication, secure sensor-to-ECU channels, AI-model integrity validation, hardware-isolated inference execution, resilient fusion gateways, and secured OTA deployment of autonomy software.

Industry activity reflects this shift. In March 2024, Cruise (General Motors) validated cryptographically signed camera and LiDAR frames to reject manipulated data. In December 2024, Mobileye introduced secure calibration-validation enhancements to its EyeQ platform. In March 2025, NVIDIA and Magna launched a hardened perception-security layer within the DRIVE platform. As regulatory scrutiny and deployment scale increase, sensor-grade and AI-model cybersecurity is becoming foundational to autonomous vehicle certification, functional assurance, and user trust.

Competitive Landscape

The major players operating in the automotive cybersecurity market are Argus Cyber Security, Bosch ETAS GmbH, Cisco Systems Inc., Continental AG, Dellfer Inc., DENSO Corporation, GuardKnox Cyber Technologies Ltd., HARMAN International Industries Inc., Infineon Technologies AG, Karamba Security Ltd., NXM Labs, NXP Semiconductors N.V., Upstream Security Ltd., and VicOne Inc.These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.

Recent Developments

• On 6 November 2025, Infineon led a consortium of industry and research partners to deliver a high-performance “central car server” supercomputer demonstrator under the “Mannheim-CeCaS” project. The platform supports real-time compute, multi-gigabit interfaces and AI-capable workloads, targeted at level-3-to-level-5 autonomous driving and representing a major step toward EU-based sovereign automotive compute.
• On 24 September 2025, VicOne announced a global partnership with Sasken Technologies Ltd. to jointly deliver end-to-end automotive cybersecurity solutions (including in-vehicle IDS/IPS and EVSE protection) for OEMs and Tier-1 suppliers. This collaboration aims to scale deployment across vehicles and fleets, combining security, integration and compliance capabilities to protect both ECUs and charging infrastructure in connected/electric mobility systems.
• On 20 June 2025, ETAS India signed a Memorandum of Understanding (MoU) with the Automotive Research Association of India (ARAI) to strengthen automotive-cybersecurity readiness. The goal is to equip Indian OEMs, suppliers and mobility players with tools, training and frameworks to address rising cyber threats as vehicles become more software-defined and connected.
• On 17 June 2025, NXP completed its acquisition of TTTech Auto, a specialist in safety-critical middleware for software-defined vehicles. The buy brings a mature safety-software stack and development capability into NXP’s roadmap, strengthening its offering beyond chips ,  enabling domain controllers and zonal architectures combining real-time safety, network management and embedded security under one roof.
• On 8 May 2025, DENSO and ROHM Co., Ltd. reached a basic agreement to strengthen cooperation on automotive semiconductors supporting electrification, ADAS and connectivity. This partnership aims to co-develop high-quality, high-efficiency analog and power-devices, reinforcing DENSO’s supply chain for EV, AD and smart-vehicle systems where hardware reliability supports cybersecurity and functional safety.

Notes for Editors

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