V2X Cybersecurity Market Outlook and Growth Analysis

The global V2X cybersecurity market generated revenue of USD 47.6 million in 2023 and is projected to grow at a CAGR of 52.0% during 2024–2030, reaching **USD 890.2 million by 2030**. This rapid growth is driven by advancements in V2X technologies and enhanced automotive connectivity.

As vehicles increasingly adopt vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, exposure to cyber threats rises. This has intensified the need for robust V2X cybersecurity solutions to safeguard communication networks and ensure safe transportation systems.

The rising adoption of connected and autonomous vehicles has further increased awareness among automotive OEMs and industry stakeholders regarding cybersecurity risks. As a result, investments in V2X cybersecurity integration are accelerating, creating opportunities for solution providers to address emerging threats.

V2X Cybersecurity Market Trends and Drivers

Increasing Use of C-V2X in Self-Driving Cars

Cellular vehicle-to-everything (C-V2X) technology enables vehicles to communicate with surrounding vehicles and infrastructure. It supports safety improvements, traffic flow optimization, and autonomous driving capabilities.

C-V2X systems provide real-time traffic updates that help vehicles identify optimal routes and reduce congestion. However, their connectivity introduces vulnerabilities such as hacking, unauthorized data access, and manipulation of traffic systems. These risks are increasing demand for secure V2X cybersecurity solutions to protect connected and autonomous vehicles.

Rising Need for Road Safety

V2X technology improves road safety through real-time communication that helps prevent collisions, alerts drivers to potential hazards, and enables coordinated responses to traffic risks.

Governments and regulatory bodies are increasingly emphasizing cybersecurity requirements for connected vehicles. Regulatory mandates aimed at ensuring data integrity and network security are driving the adoption of V2X cybersecurity solutions across the automotive ecosystem.

Market Challenges

High Costs and Heterogeneous Nodes

V2X communication networks consist of heterogeneous nodes that use different communication protocols and technologies. Ensuring interoperability and consistency across these diverse systems is a significant challenge.

High initial investment costs for cybersecurity solutions may discourage smaller market participants and slow adoption among vehicle manufacturers and infrastructure providers, limiting competition and innovation.

V2X Cybersecurity Industry Outlook

Connectivity Type Analysis

Dedicated Short-Range Communication (DSRC) held the larger market share of around 65% in 2023. DSRC enables direct vehicle communication without intermediary networks, ensuring fast, reliable, and weather-resilient data exchange. It also supports message authentication to detect suspicious activity.

Cellular connectivity is expected to grow faster, at a CAGR of 52.3% during 2024–2030, driven by advancements in automotive 5G technology and the ability to support long-distance communication, real-time monitoring, and remote vehicle control.

Connectivity Types Studied:

• Cellular (Faster-Growing Category)
• Dedicated Short-Range Communication (DSRC) (Larger Category)

Communication Type Insights

Vehicle-to-Vehicle (V2V) communication accounted for around 40% market share in 2023, supported by widespread telematics adoption. V2V enhances vehicle safety by providing information on nearby vehicles, improving lane-changing decisions, and optimizing fleet coordination.

However, telematics and onboard diagnostics systems are frequent cyberattack targets, increasing the importance of strong cybersecurity defenses.

Vehicle-to-Grid (V2G) communication is expected to grow at a CAGR of 52.7% during 2024–2030, as it enables electric vehicles to supply electricity back to the grid during peak demand and emergencies.

Communication Types Studied:

• Vehicle-to-Vehicle (V2V) (Largest Category)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Pedestrian (V2P)
• Vehicle-to-Grid (V2G) (Fastest-Growing Category)

Vehicle Type Analysis

Passenger cars dominated the market with a share of around 70% in 2023, due to high adoption of connected and autonomous features. Rising channel denial-of-service (DoS) attacks are increasing cybersecurity demand in this segment.

Commercial vehicles are projected to grow at a CAGR of 52.4% during 2024–2030, supported by government mandates and intelligent transportation system (ITS) deployments aimed at improving road safety.

Vehicle Types Studied:

• Passenger Cars (Larger Category)
• Commercial Vehicles (Faster-Growing Category)

Form Insights

In-vehicle solutions held a market share of around 75% in 2023, as cybersecurity tools are embedded directly into vehicle systems such as electronic control units (ECUs).

External cloud services are expected to grow at a CAGR of 52.5% during 2024–2030, driven by SaaS-based cybersecurity solutions that offer flexible, usage-based pricing.

Forms Studied:

• In-Vehicle (Larger Category)
• External Cloud Services (Faster-Growing Category)

Security Type Analysis

Endpoint security accounted for around 50% market share in 2023, as it enforces device-level access policies and protects in-vehicle electronics from network threats.

Security Types Studied:

• Endpoint (Largest Category)
• Software (Fastest-Growing Category)
• Cloud

Unit Type Insights

On-board units (OBUs) dominated the market in 2023 due to advanced encryption and authentication capabilities.

Roadside units (RSUs) are expected to grow at a CAGR of 52.2% during 2024–2030, as they enable real-time data exchange for traffic management and safety.

Unit Types Studied:

• On-Board Unit (Larger Category)
• Roadside Unit (Faster-Growing Category)

Security Framework Analysis

Public Key Infrastructure (PKI) held around 80% market share in 2023, providing encryption and authentication through digital certificates.

Security Frameworks Studied:

• Public Key Infrastructure (PKI) (Larger and Faster-Growing Category)
• Embedded

Propulsion Insights

Internal combustion engine (ICE) vehicles accounted for 60% share in 2023, due to established infrastructure and easier V2X integration.

Electric vehicles (EVs) are projected to grow at a CAGR of 52.9% during 2024–2030, supported by government policies and advanced connectivity capabilities.

Propulsions Studied:

• Internal Combustion Engines (Larger Category)
• Electric Vehicles (Faster-Growing Category)

Regional Overview

Asia-Pacific (APAC) held the largest market share in 2023, driven by rising sales of V2X-equipped vehicles and increasing EV adoption.

North America is expected to grow at a CAGR of 53.0% during 2024–2030, supported by strong automotive demand, established IT infrastructure, and growing investments in cybersecurity.

Competitive Landscape

Key companies dominating the V2X cybersecurity market include ESCRYPT GmbH, Qualcomm Incorporated, Autotalks, AUTOCRYPT Corporation, and Continental AG. These players leverage collaborations, partnerships, and acquisitions to expand their global presence.

Major Market Players:

• Harman International Industries Inc.
• Qualcomm Incorporated
• Autotalks
• AUTOCRYPT Corporation
• Continental AG
• Green Hills Software LLC
• Karamba Security
• ID Quantique SA
• NXP Semiconductors N.V.
• Infineon Technologies AG
• Aptiv PLC

Industry Developments

• January 2024: AUTOCRYPT and Cohda Wireless signed an MoU at CES 2024 to collaborate on security-integrated V2X solutions.
• June 2023: Autotalks and Infineon Technologies AG partnered to integrate V2X reference designs with automotive-grade memory solutions.
• May 2023: Qualcomm Technologies Inc. finalized an agreement to acquire Autotalks.