V2X Cybersecurity Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 3.51 Bn

Forecast Year, 2035

USD 20.55 Bn

CAGR, 2026 - 2035

19.33%

Report Coverage

Global

What is the V2X Cybersecurity Market Size?

The global V2X cybersecurity market size was estimated at USD 3.51 billion in 2025 and is predicted to increase from USD 4.19 billion in 2026 to approximately USD 20.55 billion by 2035, expanding at a CAGR of 19.33% from 2026 to 2035. The market is rapidly expanding due to the growing focus on securing connected vehicles from cyberattacks. Moreover, rising demand for advanced safety features in modern vehicles is likely to contribute to the market.

Market Highlights

• North America held the largest market share of 35% in 2025.
• The Asia Pacific is expected to grow at the fastest CAGR during the foreseeable period.
• By unit, the on-board units segment contributed the biggest market share of 60% in 2025.
• By unit, the roadside units segment is expected to witness the fastest growth between 2026 and 2035.
• By connectivity, the DSRC segment generated the biggest market share of 65% in 2025.
• By connectivity, the cellular segment is expected to grow at the fastest CAGR during the forecast period.
• By communication, the vehicle-to-vehicle segment contributed the highest market share of 35% in 2025.
• By communication, the vehicle-to-grid segment is expected to grow at the fastest CAGR during the foreseeable period.
• By propulsion, the internal combustion engine segment accounted for the biggest market share of 61% in 2025.
• By propulsion, the electric & hybrid segment is expected to grow at the fastest CAGR during the foreseeable period.
• By vehicle type, the passenger cars segment captured the highest market share of 70% in 2025.
• By vehicle type, the commercial vehicles segment is expected to grow at the fastest CAGR during the foreseeable period.

Market Overview

The V2X cybersecurity market focuses on specialized technologies, protection measures, and protocols that secure data exchange and communication between vehicles, infrastructure, pedestrians, and cloud systems. As autonomous and connected vehicles become increasingly integrated and data-driven, robust V2X cybersecurity solutions are essential to ensure data confidentiality, integrity, and protection against unauthorized access and cyber threats.

The market is rapidly expanding due to several key factors, such as rapid adoption of connected vehicles, stringent regulations over data safety, growth of autonomous vehicles, and increased vulnerability to data breaches. The growing development of 5G-enabled, quantum-proof, and AI-powered safety solutions is also expected to drive the growth of the market.

V2X Cybersecurity Market Trends

• There is a rapid shift toward cellular V2X and 5G connectivity, enabling faster and more reliable communication. However, this also increases the need for specialized security measures such as secure Over-the-Air (OTA) updates to manage higher data rates and vulnerabilities.
• Enhanced authentication protocols are becoming critical, with certificate management and advanced public key infrastructure (PKI) ensuring that only authorized and secure messages are exchanged in V2V communication, preventing data manipulation and cyber threats.
• The trend toward “never trust, always verify” (Zero Trust) security models, where security is embedded into vehicle architecture from the design phase, driving global market growth.
• As V2X capabilities expand, security efforts are increasingly focused on protecting safety-critical data, such as collision avoidance systems and traffic signal prioritization, to prevent potentially fatal outcomes.

Key Technological Shifts in the V2X Cybersecurity Market

The V2X cybersecurity market is witnessing significant technological shifts with the integration of edge AI, enabling real-time decision-making, optimized bandwidth usage, and enhanced security. By processing data directly within vehicle systems or nearby edge nodes, edge AI eliminates the latency associated with cloud-based computation. This capability is critical for safety applications such as collision avoidance and emergency braking.

Autonomous vehicles can generate approximately 1.4 to 19 terabytes of sensor data per hour from LiDAR, cameras, radar, and other critical systems, which can overwhelm networks and cause delayed responses. Edge AI addresses this challenge by filtering and processing data closer to the source, reducing network load and latency. Only relevant insights are transmitted, ensuring faster decision-making and smoother, more reliable communication.

Market Scope

Segment Insights

Unit Insights

Why Did the On-Board Units Segment Lead the V2X Cybersecurity Market?

The on-board units segment led the market with the largest share in 2025 due to their critical role in processing vehicle kinematics, such as speed and direction, and serving as the central edge device where essential vehicle data is collected and exchanged. They form the core of real-time communication between vehicles and other connected devices, making them a prime target for cyberattacks. Consequently, regulatory bodies have introduced strict cybersecurity compliance requirements, emphasizing the need for robust protection of on-board units.

The roadside units segment is expected to grow at the fastest CAGR during the foreseeable period, owing to their crucial role in vehicle-to-infrastructure communication that offers enhanced safety and traffic management. The expansion of smart city infrastructure that necessitates secure data exchange also drives the segment. Moreover, roadside units (RSUs), which support advanced applications such as collision avoidance and real-time hazardous area warnings, require robust security measures to prevent hacking and protect these critical components of automated vehicle systems.

Connectivity Insights

What Made DSRC the Dominant Segment in the V2X Cybersecurity Market?

The DSRC segment dominated the market with a major revenue share in 2025 due to its unmatched offerings, such as short-range communication with low latency and highly reliable direct vehicle-to-everything communication, which is highly crucial for real-time safety applications. DSRC eliminates the need for intermediary networks, which minimizes network hacking risks and ensures direct, secure data exchange. DSRC operates in the 5.9 GHz band, offering strong resistance to external interference and enabling seamless, reliable data transfer even under extreme weather conditions.

The cellular segment is expected to witness the fastest growth in the foreseeable period, driven by benefits such as real-time data transmission, enhanced security, reliable authentication, and wide coverage. Cellular networks are cost-effective due to their reusability, enabling efficient deployment of connected vehicle services. Cellular V2X leverages existing infrastructure to provide long-range vehicle-to-network communication, supporting advanced ADAS features while ensuring data integrity.

Communication Insights

Why Did the V2V Segment Lead the V2X Cybersecurity Market?

The vehicle-to-vehicle (V2V) segment led the market while capturing the largest share in 2025. This is mainly due to the increased demand for improved road safety, collision prevention, and enhanced security protocols amid an increased surge of vehicle-to-vehicle communication. V2V further enables vehicles to share data about speed, direction, and braking, which prominently reduces blind spots that are majorly responsible for accidents and collisions.

Governments worldwide are mandating V2V technology for new vehicles with certified communication systems. Since hackers can target electronic control units and telematic systems, securing V2V communication has become critically important. This emphasis on cybersecurity is driving significant growth in the V2V security segment.

The vehicle-to-grid (V2G) segment is expected to grow at the fastest CAGR because it relies on constant, secure communication between electric vehicles and the power grid to manage energy flow. This two-way data exchange involves sensitive information about vehicle status, battery levels, and grid operations, making it a prime target for cyberattacks. Ensuring robust cybersecurity in V2G systems is critical to prevent unauthorized access, protect energy infrastructure, and maintain safe and reliable grid-vehicle interactions.

Propulsion Insights

Why Does the Internal Combustion Engine Segment Dominate the V2X Cybersecurity Market?

The internal combustion engine segment dominated the market with the largest share in 2025, as ICE vehicle manufacturers heavily invest in integrating V2V and V2I systems, aiming to enhance safety features like blind spot warnings, possible collision warnings, and traffic optimization. All these features require secure communication protocols that are a major key driver of cybersecurity needs for high-level data security. Also, many commercial fleets and heavy vehicles that are ICE-based are leveraging V2X for fleet management and asset tracking, fueling the segment's expansion.

The electric & hybrid segment is expected to witness the fastest growth during the foreseeable period because these vehicles are highly connected and rely heavily on data exchange for battery management, energy efficiency, and advanced driver-assistance systems (ADAS). Their integration with smart infrastructure, charging networks, and V2G systems increases the risk of cyberattacks, making robust cybersecurity essential. As EV and hybrid adoption rise, demand for secure communication and protection against unauthorized access and data breaches drives growth in this segment.

Vehicle Type Insights

Why Did the Passenger Cars Segment Lead the V2X Cybersecurity Market?

The passenger cars segment led the market, holding the largest share in 2025. This is due to the increased volume of connected vehicles on the road and the rapid adoption of V2X cybersecurity solutions for passenger cars. High adoption of connected and autonomous features in passenger cars increases their exposure to cyber threats, driving demand for robust cybersecurity solutions. Additionally, stringent safety regulations and growing consumer awareness about data privacy further reinforce the need for secure V2X systems in passenger vehicles.

The commercial vehicles segment is expected to expand at the fastest CAGR during the foreseeable period, as modern commercial vehicles are heavily dependent on telematics, IoT devices, and real-time data exchange for route optimization. V2X technology enables safer driving by directing the right path, collision possibility warnings to reduce accidents. Many governments are also imposing strict regulations on vehicle cybersecurity that compel manufacturers to adopt strict security measures.

Regional Insights

How Big is the North America V2X Cybersecurity Market Size?

The North America V2X cybersecurity market size is estimated at USD 1.23 billion in 2025 and is projected to reach approximately USD 7.30 billion by 2035, with a 19.49% CAGR from 2026 to 2035.

What Made North America a Leader in the V2X Cybersecurity Market?

North America registered dominance in the V2X cybersecurity market by holding the largest share in 2025. The region's dominance in the market is driven by increasing consumer demand for high-tech vehicles, rapid digitalization, technological advancements in vehicle security and communication systems, and supportive regulatory frameworks. Key players in the region are shaping the market by offering innovative solutions, deploying technically advanced systems, and forming strategic partnerships to leverage capital and expertise, enabling the delivery of cutting-edge V2X cybersecurity products.

• For instance, in August 2025, Michigan-based DENSO showcased innovations such as MobiQ keyless access, V2X roadside and on-board units, LAMP, and the Dynamic Wireless Power Transfer system at the ITS World Congress 2025.

What is the Size of the U.S. V2X Cybersecurity Market?

The U.S. V2X cybersecurity market size is calculated at USD 921.38 million in 2025 and is expected to reach nearly USD 5,507.91 million in 2035, accelerating at a strong CAGR of 19.58% between 2026 and 2035.

U.S. V2X Cybersecurity Market Trends

The U.S. government is investing heavily to develop V2X infrastructure, aiming to strengthen the connected vehicle network by 2030. Strategic collaborations between government agencies and technology providers are driving the deployment of robust communication systems such as DSRC and cellular V2X. Additionally, U.S. automotive OEMs are increasing corporate spending to ensure secure V2X communication through advanced modules and cybersecurity frameworks.

How is the Opportunistic Rise of Asia Pacific in the V2X Cybersecurity Market?

Asia Pacific is expected to grow at the fastest CAGR during the foreseeable period due to the combination of factors like rising automotive cyber threats, increasing adoption of connected vehicles, and supportive government regulations promoting V2X cybersecurity for smart city initiatives. Leading countries like Japan and South Korea are focusing on developing V2X solutions to enable seamless communication between vehicles, infrastructure, pedestrians, and other devices. Additionally, government initiatives in China, such as “Internet Plus,” are accelerating the adoption of connected vehicles with enhanced cybersecurity across the Asia Pacific region.

Japan V2X Cybersecurity Market Analysis

The market in Japan is expanding due to significant government investments in R&D aimed at developing innovative solutions for connected and automotive vehicle security. For instance, Japan's METI has allocated USD 300 million to support automotive cybersecurity research. The growing adoption of electric vehicles, along with increasing acquisitions and collaborations among key players, is creating substantial opportunities and driving market growth in Japan.

For instance, in January 2026, Foresight Autonomous announced that its subsidiary Eye-Net Mobile has strategically collaborated in Japan with SoftBank Corp, aiming to validate and customize V2X collision prediction and prevention technology.

Who are the Major Players in the Global V2X Cybersecurity Market?

The major players in the V2X cybersecurity market includeAptiv, AUTOCRYPT Co., Ltd., Autotalks, Continental AG, DENSO CORPORATION, ETAS (ESCRYPT), Green Hills Software, HARMAN International, ID Quantique, Infineon Technologies AG, Karamba Security, Lear Corporation, NXP Semiconductors, Qualcomm Technologies, Inc., and Vector Informatik GmbH

Segments Covered in the Report

By Unit

• On-board Units (OSUs)
• Roadside Units (RSUs)

By Connectivity

• Dedicated Short Range Communications (DSRC)
• Cellular

By Communication

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Grid (V2G)
• Vehicle-to-Pedestrian (V2P)
• Vehicle-to-Cloud (V2C)

By Propulsion

• Internal Combustion Engine (ICE)
• Electric & Hybrid

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Region

• North America
• Latin America
• Europe
• Asia-pacific
• Middle and East Africa