Carmakers Double Down on Cyber Defense

New reports forecast global automotive cybersecurity spending will hit up to $25.74B by 2034, driven by connected vehicles and tighter regulations

25 Jun 2026

The automotive industry's cybersecurity bill is climbing fast. New reports from Grand View Research and The Insight Partners forecast the global market will expand from roughly $7.23 to $7.66 billion in 2025 to as much as $25.74 billion by 2034, reflecting sustained double-digit annual growth. Cybersecurity is no longer a specialist concern. It is becoming a core part of vehicle engineering.

Much of that momentum comes from connected vehicles. The connected car security segment alone is expected to grow from $3.37 billion in 2025 to $6.99 billion by 2032 as internet-enabled features, over-the-air software updates, and vehicle-to-everything communications create new avenues for cyberattacks. Every added digital capability brings fresh security demands.

Regulation is adding even more urgency. Standards such as UNECE R155 and ISO/SAE 21434 require manufacturers to build cybersecurity into the entire vehicle lifecycle instead of treating it as an afterthought. As software-defined vehicles become the industry norm, protecting fleets after they leave the factory has become just as important as securing them on the production line.

The Insight Partners based its outlook on interviews with C-suite executives, OEM engineers, procurement leaders, and policy specialists across more than 15 countries. Their findings point to cybersecurity becoming a permanent budget priority, creating expanding opportunities for suppliers of intrusion detection systems, secure communication platforms, and other defensive technologies.

Drivers may never notice most of these investments, yet they will shape every journey. As vehicles become rolling computers, digital security is rapidly joining brakes and seatbelts as a fundamental expectation rather than an optional extra.