2 weeks ago
Software-Defined Vehicles Reshape Auto Industry Amid Surging Cyber Risks
Imagine your car becoming like a smartphone on wheels.
Instead of being just metal and engines, cars today have software that can be updated over the internet.
This means carmakers can improve a car without changing its physical parts.
Experts say the software and electronics market for cars could grow to $519 billion by 2035.
Soon, almost 7 out of 10 new cars might drive themselves at least a little bit.
But there is a problem: when cars connect to the internet, they can be hacked.
Bad people can use ransomware, a kind of computer virus, to lock up car systems.
More than half of those attacks could affect thousands or even millions of cars at once.
That is why keeping cars safe from cyberattacks is now very important for carmakers.
McKinsey projects the global market for automotive software and electronics to reach $519 billion by 2035, growing at a 4.5% compound annual rate.
Vehicles with Level 2 or higher automation could account for nearly 70% of global sales by 2035.
Ransomware now drives 44% of documented automotive cyberattacks, more than doubling since 2024.
More than 61% of these ransomware breaches threaten to disrupt thousands or millions of connected vehicles simultaneously.
Upstream Security's 2026 Global Automotive Cybersecurity Report analyzed 494 publicly reported automotive and smart mobility cyber incidents in 2025.
- Who
- Automakers, technology providers, and cybersecurity researchers, including reports from McKinsey, the World Economic Forum, and Upstream Security.
- What
- The automotive industry's shift to software-defined vehicles and the accompanying rise in connected-car cybersecurity threats.
- Where
- Global automotive markets worldwide.
- When
- The report analyzes incidents from 2025 and projects market trends to 2035.
- Why
- Centralized software, AI, over-the-air updates, and connectivity are transforming cars into digital platforms, expanding both value creation and attack surfaces.
Key facts
- Projected software/electronics market
- $519 billion by 2035
- Market growth rate
- 4.5% compound annual rate, more than four times faster than the broader automotive market
- Level 2+ automated vehicle share
- Nearly 70% of global sales by 2035
- Level 2 automation share
- 52%
- Level 3 automation share
- 16%
- Ransomware share of automotive cyberattacks
- 44%, more than doubled since 2024
- Breaches threatening mass disruption
- More than 61%
- Incidents analyzed in 2025
- 494 publicly reported automotive and smart mobility cyber incidents
Quotes
World Economic Forum report
Representative of the World Economic Forum
“The automotive industry is undergoing its most challenging transformation in over a century.”
rediff.com









