V2X Cybersecurity Market to Reach $5.7 Billion by 2031 Amid Rising Cyber Threats
San Francisco, Monday, 7 July 2025.
The V2X cybersecurity market, crucial for connected vehicles, is expected to grow rapidly to USD 5.7 billion by 2031, driven by a 21.6% CAGR as automakers enhance safety features.
Understanding the V2X Cybersecurity Market Dynamics
Vehicle-to-Everything (V2X) technology represents the future of connected transportation. It encompasses a range of communication systems designed for interaction between vehicles, infrastructure, and other road users. The V2X cybersecurity market is expected to balloon to USD 5.7 billion by 2031, growing at a formidable 21.6% compound annual growth rate (CAGR) from its 2021 valuation of USD 0.72 billion [1]. This growth underscores an intensified focus on cybersecurity as vehicular communication systems become more ingrained in daily transportation operations.
Driving Factors: Innovations and Challenges
Several key drivers contribute to the growth of the V2X cybersecurity market. The integration of cellular technology within V2X systems has propelled development, encouraging manufacturers to adopt stringent cybersecurity measures to shield against escalating cyber threats [1]. Furthermore, advanced technologies such as 5G connectivity and artificial intelligence enhance V2X functionalities, yet they also impose new challenges related to data privacy and potential hacking [3]. As vehicles increasingly rely on real-time data, maintaining the security and integrity of information becomes paramount.
Market Segmentation and Regional Insights
The V2X cybersecurity market is segmented by unit types, such as on-board units, which held a majority market share in 2021, and are projected to experience the fastest growth at a CAGR of 21.9% until 2031 [1]. Geographically, Europe led the V2X market in 2021, claiming approximately one-third of the total market share and is anticipated to grow at a CAGR of 23.0% over the next decade [1][3]. The focus in European markets reflects strong regional support for digital infrastructure and cybersecurity standards.
Implications for Stakeholders and Future Prospects
For stakeholders in the automotive industry, the growth of the V2X cybersecurity market necessitates strategic investments and partnerships to harness and advance connected vehicle technologies. Companies such as Altran, ESCRYPT GmbH, and Karamba Security are already pivotal players in this domain, leveraging opportunities presented by increasing mandates for vehicle cybersecurity [1]. As the automotive industry pivots toward integrated digital ecosystems, organizations must adapt to evolving technologies and regulatory landscapes to remain competitive in this rapidly transforming sector.