Global External Cloud Automotive Cyber Security Services Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In May 2023, Argus Cyber Security launched a new suite of cloud-based cybersecurity services aimed at detecting and mitigating automotive cyber threats in real time.

• In October 2022, Upstream Security expanded its AutoThreat Intelligence platform, integrating predictive analytics to address emerging cybersecurity risks in connected vehicles​

The global external cloud automotive cyber security services market operates within a multifaceted landscape, addressing a variety of security concerns across different segments and applications within the automotive industry. Key areas of focus include endpoint security, application security, and wireless network security. Endpoint security aims to protect individual devices such as sensors, controllers, and electronic control units (ECUs) from cyber threats. Application security focuses on securing software applications and platforms used in vehicles, including telematics systems, infotainment systems, powertrain systems, and body control & comfort systems. Wireless network security is essential for safeguarding communication channels and data transmission between vehicles and external cloud-based services.

The application of external cloud automotive cyber security services extends across various automotive applications, catering to both passenger cars and commercial vehicles. In passenger cars, these services are deployed across systems such as telematics, infotainment, powertrain, and body control & comfort, ensuring the security and integrity of connected features and functionalities. Similarly, in commercial vehicles, these services play a crucial role in protecting mission-critical systems and ensuring uninterrupted operations across diverse applications.

The emergence of electric vehicles (EVs) further amplifies the importance of external cloud automotive cyber security services. With the increasing adoption of battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs), cybersecurity becomes integral to safeguarding the interconnected systems and software platforms inherent in EVs. Cybersecurity measures are essential not only for protecting EVs from cyber threats but also for ensuring the safety and reliability of electric propulsion systems and onboard electronic components.

The demand for external cloud automotive cyber security services spans across key regions such as North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Each region presents unique opportunities and challenges driven by factors such as regulatory mandates, technological advancements, and market dynamics. As automotive connectivity and cloud-based services continue to proliferate globally, the need for robust cybersecurity solutions transcends geographical boundaries, presenting significant opportunities for market players to address evolving cybersecurity risks and ensure the safety and security of cloud-connected automotive systems on a global scale.

Global External Cloud Automotive Cyber Security Services Segment Analysis

In this report, the Global External Cloud Automotive Cyber Security Services Market has been segmented by Security, Application, Vehicle, Electrical Vehicle and Geography.

Global External Cloud Automotive Cyber Security Services Market, Segmentation by Security

The Global External Cloud Automotive Cyber Security Services Market has been segmented by Security into Endpoint Security, Application Security and Wireless Network Security.

Endpoint Security focuses on protecting individual devices, such as in-vehicle computers, sensors, and communication modules, from cyber attacks. It includes measures like antivirus software, firewalls, and intrusion detection systems to detect and prevent unauthorized access or malicious activities targeting these endpoints. Endpoint Security is essential for securing the diverse range of devices integrated into modern vehicles, ensuring their integrity and functionality within cloud-connected automotive ecosystems.

Application Security addresses vulnerabilities within software applications deployed in cloud-based automotive systems. This segment encompasses measures to secure applications, including code analysis, vulnerability assessments, and secure coding practices. By identifying and mitigating potential security flaws in automotive applications, such as infotainment systems, telematics platforms, and over-the-air update mechanisms, Application Security helps minimize the risk of exploitation by cyber attackers.

Wireless Network Security focuses on securing the communication channels and data transmissions between cloud-connected vehicles and external networks, such as cellular networks and Wi-Fi hotspots. This segment includes encryption protocols, authentication mechanisms, and intrusion detection/prevention systems to protect against eavesdropping, man-in-the-middle attacks, and unauthorized access to wireless networks. Wireless Network Security is critical for ensuring the confidentiality, integrity, and availability of data exchanged between vehicles and cloud-based services.

These segments collectively contribute to the comprehensive cybersecurity posture of cloud-connected automotive systems, addressing vulnerabilities at different layers of the technology stack. As the automotive industry continues to embrace connectivity and cloud-based services, the demand for robust external cloud automotive cyber security services, encompassing Endpoint Security, Application Security, and Wireless Network Security, is expected to grow, driven by the need to mitigate evolving cyber threats and ensure the safety, security, and reliability of connected vehicles and automotive services.

Global External Cloud Automotive Cyber Security Services Market, Segmentation by Application

The Global External Cloud Automotive Cyber Security Services Market has been segmented by Application into Telematics System, Infotainment System, Powertrain System and Body Control & Comfort System.

Telematics System forms a crucial aspect of modern vehicles, facilitating communication between vehicles and external networks for functions like GPS navigation, remote diagnostics, and vehicle tracking. Given its connectivity to external cloud platforms, telematics systems are vulnerable to cyber attacks targeting sensitive vehicle data and communication channels. Hence, the demand for external cloud automotive cyber security services in this segment is driven by the need to ensure the integrity and security of telematics data and communications.

Infotainment System, another prominent application segment, encompasses in-car entertainment, communication, and connectivity features that leverage cloud-based services. With the integration of features like internet browsing, streaming media, and smartphone integration, infotainment systems present potential avenues for cyber threats such as unauthorized access, data breaches, and malware infiltration. Consequently, there is a growing demand for cybersecurity solutions tailored to protect infotainment systems and ensure the privacy and security of user data.

Powertrain System constitutes the core mechanical components responsible for vehicle propulsion and energy management, increasingly incorporating cloud connectivity for functions like remote diagnostics and software updates. The integration of cloud-connected components into powertrain systems introduces cybersecurity vulnerabilities, necessitating the implementation of external cloud automotive cyber security services to safeguard against potential cyber attacks targeting critical vehicle functions and operations.

Body Control & Comfort System encompasses a range of features related to vehicle control, comfort, and convenience, including lighting, climate control, and access control systems. As these systems become increasingly connected to external cloud platforms for remote access and control, they become potential targets for cyber attacks aimed at disrupting vehicle operations or compromising user safety and comfort. Thus, there is a growing demand for cybersecurity solutions tailored to protect body control and comfort systems from cyber threats, ensuring the reliability and security of these critical vehicle functions.

Global External Cloud Automotive Cyber Security Services Market, Segmentation by Vehicle

The Global External Cloud Automotive Cyber Security Services Market has been segmented by Vehicle into Passenger Car and Commercial Vehicle.

As consumers demand more advanced infotainment systems, navigation services, and remote connectivity options in their vehicles, the need for robust cybersecurity solutions to protect against cyber threats becomes paramount. Thus, the passenger car segment represents a significant portion of the market for external cloud automotive cyber security services, driven by the growing adoption of connected technologies in modern vehicles.

On the other hand, the Commercial Vehicle segment includes a diverse range of vehicles used for commercial purposes, such as trucks, buses, vans, and fleet vehicles. These vehicles often rely on cloud-based platforms for functions like fleet management, logistics, telematics, and remote diagnostics. As the commercial transportation sector embraces digitalization and connectivity to optimize operations and improve efficiency, ensuring the cybersecurity of cloud-connected systems becomes crucial. Hence, the commercial vehicle segment presents substantial opportunities for external cloud automotive cyber security services providers to cater to the unique cybersecurity needs of fleet operators and commercial vehicle manufacturers.

Both segments of the market face challenges related to the complexity of automotive systems, cost constraints, and the lack of standardized cybersecurity frameworks. The intricacies involved in securing cloud-connected automotive systems, combined with the high costs associated with implementing cybersecurity solutions, may hinder market growth. The absence of standardized cybersecurity frameworks and interoperability challenges between different automotive systems and cloud platforms pose additional obstacles to adoption. Overcoming these challenges will require collaboration among stakeholders and innovative approaches to cybersecurity technology development.

The Global External Cloud Automotive Cyber Security Services Market presents significant opportunities for innovation, collaboration, and market expansion. Advancements in cybersecurity technologies, strategic partnerships between automotive manufacturers and cybersecurity companies, and the growing adoption of connected vehicles in emerging regions offer avenues for growth. By addressing evolving cybersecurity threats, developing comprehensive cybersecurity frameworks, and fostering collaboration across the automotive ecosystem, stakeholders can capitalize on the opportunities presented by the growing demand for external cloud automotive cyber security services in both passenger cars and commercial vehicles.

Global External Cloud Automotive Cyber Security Services Market, Segmentation by Electrical Vehicle

The Global External Cloud Automotive Cyber Security Services Market has been segmented by Electrical Vehicle into Battery Electric Vehicle, Hybrid Electric Vehicle and Plug-In Hybrid Electric Vehicle.

The Global External Cloud Automotive Cyber Security Services Market is segmented by Electric Vehicle (EV) type into Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), and Plug-In Hybrid Electric Vehicle (PHEV). Each segment represents a distinct category of electric vehicles with unique characteristics and requirements concerning cybersecurity in external cloud-based automotive systems. Battery Electric Vehicles (BEVs) are fully electric vehicles powered solely by rechargeable batteries, which necessitates robust cybersecurity measures to protect against cyber threats targeting cloud-connected systems such as battery management, charging infrastructure, and over-the-air updates.

Hybrid Electric Vehicles (HEVs) combine an internal combustion engine with an electric propulsion system, relying on both gasoline and electricity for propulsion. As hybrid vehicles increasingly incorporate cloud-based functionalities for hybrid system optimization, energy management, and remote diagnostics, the need for external cloud automotive cyber security services becomes essential to safeguard against cyber attacks that may compromise vehicle performance, safety, and data privacy.

Plug-In Hybrid Electric Vehicles (PHEVs) offer a combination of electric propulsion and internal combustion engine capabilities, with the added flexibility of being able to recharge the battery through external power sources. PHEVs rely on cloud-based services for features such as charging station location, energy management, and remote monitoring, making them susceptible to cybersecurity risks associated with cloud connectivity. External cloud automotive cyber security services play a critical role in ensuring the integrity, confidentiality, and availability of data transmitted between PHEVs and external cloud platforms.

The segmentation of the Global External Cloud Automotive Cyber Security Services Market by Electric Vehicle type reflects the diverse landscape of electric mobility and the unique cybersecurity challenges associated with each vehicle category. By tailoring cybersecurity solutions to the specific needs and requirements of Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and Plug-In Hybrid Electric Vehicles (PHEVs), stakeholders can effectively mitigate cybersecurity risks and ensure the secure and reliable operation of cloud-connected automotive systems across the electric vehicle ecosystem.

Global External Cloud Automotive Cyber Security Services Market, Segmentation by Geography

In this report, the Global External Cloud Automotive Cyber Security Services Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global External Cloud Automotive Cyber Security Services Market Share (%), by Geographical Region, 2024

The global distribution of market share in the External Cloud Automotive Cyber Security Services sector varies across distinct geographical regions, reflecting diverse trends, regulatory landscapes, and technological adoption rates. North America stands as a prominent hub for these services, commanding a significant portion of the market share. This dominance is propelled by the region's advanced automotive industry, high adoption of cloud technologies in vehicles, and stringent regulatory frameworks emphasizing cybersecurity standards. With key players and innovative startups driving advancements in cybersecurity solutions, North America remains a major contributor to the global market share.

Europe holds another substantial share in the global External Cloud Automotive Cyber Security Services market, characterized by its robust automotive ecosystem and stringent data privacy regulations. The region's emphasis on vehicle safety and consumer protection fosters a strong demand for sophisticated cybersecurity services tailored to cloud-connected automotive systems. Collaborative initiatives between industry stakeholders and research institutions further enhance Europe's market position, driving innovation and ensuring compliance with evolving cybersecurity standards.

Asia Pacific emerges as a rapidly growing market for External Cloud Automotive Cyber Security Services, fueled by the region's expanding automotive industry and increasing adoption of connected vehicles. Countries like China, Japan, and South Korea are witnessing significant investments in cybersecurity infrastructure to address growing cyber threats in automotive ecosystems.Government initiatives promoting smart mobility and digital transformation contribute to the rising demand for cloud-based cybersecurity solutions, positioning Asia Pacific as a key growth region in the global market share landscape.

Latin America and the Middle East & Africa region exhibit promising potential in the global External Cloud Automotive Cyber Security Services market, albeit with relatively smaller market shares compared to North America, Europe, and Asia Pacific. As these regions experience economic growth and infrastructure development, there is a growing awareness of cybersecurity risks in automotive systems, driving demand for external cloud security services. Market players are increasingly expanding their presence in these regions, leveraging partnerships and strategic alliances to capitalize on emerging opportunities and address the evolving cybersecurity needs of automotive stakeholders.

This report provides an in depth analysis of various factors that impact the dynamics of Global External Cloud Automotive Cyber Security Services Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Increasing Connectivity in Vehicles
• Regulatory Mandates and Standards

• Growing Awareness of Cybersecurity Risks: The awareness of cybersecurity risks in the automotive industry is rising among manufacturers, suppliers, and consumers, primarily due to the proliferation of connected vehicles. This growing understanding has led to increased demand for external cloud automotive cybersecurity services. Notably, high-profile cyber attacks targeting automotive systems and the escalating frequency of cybersecurity breaches highlight the critical need for robust cybersecurity measures. As a result, stakeholders are investing more in external cloud security services to mitigate risks and protect cloud-based systems and services within vehicles.

  The surge in awareness has prompted automotive stakeholders to prioritize cybersecurity measures, recognizing the potential vulnerabilities associated with connected vehicles. This shift in focus underscores the importance of implementing comprehensive cybersecurity solutions to safeguard against cyber threats. With the automotive industry increasingly reliant on cloud-based technologies for enhanced functionalities, the necessity for robust cybersecurity measures has become paramount, driving investment in external cloud security services.

  The evolving threat landscape and the complexity of modern automotive systems necessitate proactive measures to address cybersecurity challenges. As cyber attacks become more sophisticated, stakeholders are compelled to invest in external cloud automotive cybersecurity services to stay ahead of emerging threats. By bolstering cybersecurity measures, including threat monitoring, risk assessment, and intrusion detection, stakeholders aim to fortify vehicles' defenses against cyber threats and ensure the integrity and safety of cloud-based automotive systems and services.

Restraints:

• Complexity of Automotive Systems
• Cost Constraints

• Lack of Standardization and Interoperability: The absence of standardized cybersecurity frameworks and interoperability challenges within the automotive industry hinder the widespread adoption of external cloud automotive cyber security services. The lack of uniform guidelines makes it difficult for cybersecurity providers to develop solutions that seamlessly integrate with various automotive systems and cloud platforms. This diversity in proprietary technologies, communication protocols, and cloud architectures used by different manufacturers and service providers complicates efforts to establish comprehensive and interoperable cybersecurity measures.

  The complexity introduced by the multitude of proprietary technologies and communication protocols poses significant obstacles to the development of effective cybersecurity solutions. With each automotive manufacturer and service provider employing its own set of technologies and protocols, ensuring compatibility and seamless integration becomes a daunting task for cybersecurity providers. This fragmentation within the industry inhibits the standardization of cybersecurity practices and exacerbates interoperability challenges, impeding the growth of the external cloud automotive cyber security services market.

  Addressing these challenges requires collaborative efforts among automotive stakeholders to establish common standards and protocols for cybersecurity in cloud-connected automotive systems. By fostering greater alignment and cooperation, the industry can streamline the development and deployment of interoperable cybersecurity solutions. Establishing standardized frameworks will not only enhance the security posture of connected vehicles but also unlock new opportunities for market growth by facilitating the adoption of external cloud automotive cyber security services across diverse automotive ecosystems.

Opportunities:

• Innovation in Cybersecurity Technologies
• Collaboration and Partnerships

• Market Expansion in Emerging Regions: The escalating uptake of connected vehicles and cloud-based automotive services across emerging regions like Asia Pacific, Latin America, and the Middle East offers a fertile ground for the expansion of the global external cloud automotive cyber security services market. With a burgeoning consumer appetite for advanced vehicle functionalities and enhanced connectivity, coupled with government-backed initiatives to bolster smart transportation and digital infrastructure development, the landscape becomes ripe for the integration of cybersecurity solutions tailored to cloud-connected automotive systems. This convergence of factors not only underscores the increasing significance of cybersecurity in automotive ecosystems but also presents novel avenues for market players to tap into burgeoning opportunities.

  As consumer preferences gravitate towards vehicles equipped with sophisticated features and seamless connectivity, the demand for robust cybersecurity solutions becomes paramount. Government mandates and policies geared towards advancing smart transportation initiatives further amplify the need for cybersecurity measures to safeguard cloud-connected automotive systems from potential cyber threats. This symbiotic relationship between escalating consumer demand and supportive regulatory frameworks fosters an environment conducive to the widespread adoption of cybersecurity solutions, thereby catalyzing the growth trajectory of the external cloud automotive cyber security services market in emerging regions.

  The collaborative efforts among automotive manufacturers, cybersecurity firms, and government bodies play a pivotal role in driving market expansion and fostering innovation. Strategic partnerships facilitate knowledge exchange, resource pooling, and the development of interoperable cybersecurity frameworks tailored to the unique requirements of cloud-connected automotive systems. By capitalizing on these collaborative opportunities and leveraging the growing momentum towards connected and secure mobility solutions, market players can seize upon the untapped potential presented by emerging regions, thereby unlocking new avenues for growth and advancement in the global external cloud automotive cyber security services market.

Key players in Global External Cloud Automotive Cyber Security Services Market include.

• DENSO CORPORATION
• Aptiv
• NXP Semiconductors
• Symantec Corporation
• Honeywell International Inc

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis