Industrial Cybersecurity Trends and Forecast
The future of the global industrial cybersecurity market looks promising with opportunities in the energy & utility, transportation system, and chemical & manufacturing sectors. The global industrial cybersecurity market is expected to reach an estimated $28.5 billion by 2030 with a CAGR of 7.5% from 2024 to 2030. The major drivers for this market are rising demand for AI based industrial robots, increasing industry demand for connected devices, and rising cases of cyberattacks on industrial control systems.
•Lucintel forecasts that, within the security category, network is expected to witness highest growth over the forecast period due to growing need to protect computer networks and networked resources from cyber threats.
•Within the end use industry category, Energy & utility is expected to witness highest growth over the forecast period due to rising use of cybersecurity in this sector to prevent cyberattacks including malicious malware taking control of energy infrastructure and significant data theft.
•In terms of regions, North America is expected to witness highest growth over the forecast period due to rapid adoption of cybersecurity among various industrial applications and presence of key players in the region.
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Emerging Trends in the Industrial Cybersecurity Market
A plethora of growing patterns caused by new technologies, regulations, and the development of new cyber threats prevents the staleness usually associated with the fixed policies of the industrial cybersecurity market. Such developments will improve assistance in the future in relation to industrial cybersecurity.
• Application of AI and Machine Learning: More AI and machine learning technologies are being embedded into industrial cybersecurity systems as a means of improving the detection and response to threats. These technologies assist in processing huge amounts of data in real time, thereby increasing the chances of discovering and eliminating potential hazards that could threaten operations.
• Zero Trust Architecture: There is a growing trend of adopting zero trust architecture in the industrial cybersecurity domain. This method assumes that every request is coming from a safe network and must be verified or authenticated, irrespective of where the request originates. It is possible to reduce the probability of both internal and external threats by using continuous access monitoring and denial mechanisms with zero trust architecture.
• Increased Focus on OT and IT Convergence: There is an increasing inclination to ensure safety in the integration of operational technology with information technology. This response addresses the need to defend the security of critical infrastructure from cyber attacks that exploit vulnerabilities created by integrated systems, necessitating a holistic approach to the security of both OT and IT systems.
• More Stress on Collaborative Cyber Defense: There is a growing emphasis on threat intelligence sharing between entities as well as sectors. Sharing and cooperating on information related to new threats and attack vectors elevates the cybersecurity effectiveness of organizations as a whole and enhances their capabilities to combat and curtail cyber threats.
• Growth of Security-as-a-Service: Organizations are increasingly seeking external resources, leading to a rise in managed security services (MSS). MSS providers assist in delivering security services such as monitoring and incident response. This allows organizations to operate their businesses while maintaining sufficient security.
• Increasing Attention towards Obligations: The focus has shifted towards meeting industry standards and compliance with regulations due to the need to satisfy strict security requirements and avoid sanctions. Organizations are adopting frameworks and standards such as ISO/IEC 27001 and NIST in a bid to comply with the law and adhere to recognized cybersecurity standards.
• Enhanced Allocation for Cybersecurity Technologies: The historical trend of allocating very little funding to cybersecurity research and technology development has changed. Such tendencies lead to the creation of better management systems and technologies to counter security issues, including those found in the development of industrial systems.
These changes are transforming industrial cybersecurity in terms of technology, threat detection and response abilities, and security levels.
Recent Developments in the Industrial Cybersecurity Market
The industrial cybersecurity market is constantly changing, as evidenced by key developments that highlight its importance in strict infrastructure security and the response to new types of threats.
• Growth of Cybersecurity Frameworks: One major development has been the growth of various frameworks, including the NIST Cybersecurity Framework. Due to the critical nature of infrastructure, these frameworks are supplemented with new guidelines and best practices on critical infrastructure protection, enabling organizations to devise holistic organizational information systems security policies.
• Introduction of More Comprehensive Legislation: Another key development has been the introduction of comprehensive legislation, such as the IT Security Act 2.0 enacted in Germany and the Cybersecurity Law of China. Such legal requirements mandate that essential service providers meet minimum security standards, encouraging the adoption of better security techniques and improving the overall cybersecurity posture.
• Growth of Threat Detection Technologies: Another important development is in the growth of detection technologies specifically capable of threat detection, like AI technologies and improved intrusion prevention technologies. These tools enable organizations to respond efficiently and effectively to emerging cyber-related threats, thereby managing what could otherwise be a successful attack or limiting damage to an acceptable level.
• Development of Zero Trust Architecture: With the increasing industrialization of cybersecurity, there has been a growing adoption and development of zero trust architecture. In this regard, identity verification is so thorough that access is limited or granted only when strict controls and security measures are in place, thereby improving the chances of neutralizing a threat, irrespective of its origin.
• Growth of Managed Security Services: Another significant development is the rise of managed security services (MSS), driven by the ever-increasing need for professional cybersecurity skills. MSS providers offer turn-key services that encompass monitoring, response, and intelligence, enabling organizations to effectively tackle complex cybersecurity issues.
• Focus on OT and IT Convergence: Increased efforts have been made toward securing OT-IT convergence. Such developments seek to fulfill the rising demand for point security systems that extend protection to both OT and IT environments from cyber threats, thereby enhancing the security posture.
• Increased Investment in Cybersecurity R&D: An increase in security technologies and cybersecurity research and development is a noteworthy development that facilitates economic growth. This investment supports the creation of new solutions to emerging threats and the organization of adequate safety measures for critical infrastructure.
These evolutions are defining the industrial cybersecurity industry by increasing compliance with security policies, promoting technological advancement, and enhancing resistance to cyber threats.
Strategic Growth Opportunities for Industrial Cybersecurity Market
Several strategic growth opportunities are apparent in the industrial cybersecurity space across core applications, driven by technological advancement and the increasing need for security measures.
• Securing Operational Technology (OT): There is significant growth potential in securing OT systems as various industries shift to combine OT and IT systems. The need for resilient methods of securing OT technology provides a means to ensure critical infrastructure security and uninterrupted operations.
• Industrial IoT (IIoT) Cybersecurity: The expansion of Industrial IoT creates opportunities for cybersecurity services related to connected devices and network protection. As multiple sectors adopt IIoT, developing secure IIoT solutions becomes a priority to address the risks associated with device proliferation.
• Managed Security Services (MSS): Organizations increasingly require the services of various experts in the field, leading to a growing demand for MSS. Some MSS providers offer only monitoring and threat intelligence services, while others provide additional services such as incident response, which is essential for industrial cybersecurity.
• Advanced Threat Detection Solutions: There is also a growth opportunity in investing in advanced threat detection technologies, such as systems driven by AI and machine learning. These solutions enhance the capability to respond to and recover from advanced cyber threats, thereby increasing overall security resilience.
• Regulatory Compliance Solutions: The emphasis on regulatory compliance creates growth opportunities for cybersecurity solutions that enable organizations to meet regulatory requirements. Technologies that assist in compliance by fulfilling specific regulations and industry standards should be developed.
These strategies create avenues for growth, innovation, and development within the industrial cybersecurity space, strengthening the security mechanisms of various industries and addressing new issues and threats.
Industrial Cybersecurity Market Driver and Challenges
The industrial cybersecurity market is affected by several drivers and challenges that play a part in the growth and development of the market. These factors comprise the technology development, authorities’ regulations, and cyber threats.
The factors responsible for driving the industrial cybersecurity market include:
• Technological Advancements: New technologies such as AI, machine learning, and Blockchain has instigated the innovation of promising cybersecurity solutions by growing at phase with time. The technologies make it possible to enhance detection, response and prevention of threats hence making the security of industrial systems better.
• Increasing Cyber Threats: The increasing number as well as sophistication of cyber-attacks is increasing the need for strong cybersecurity measures. Companies are deploying sophisticated protection mechanisms on vital infrastructure and information to avert possible bypass and disruption.
• Regulatory Compliance Requirements: The need to comply with stringent regulatory requirements is a major driver for the adoption of industrial cybersecurity solutions. Such regulations as the GDPR, NIST framework, and sector specific regulations, require a higher minimum security, which makes organizations to seek for broad cybersecurity cover.
• Integration of IT and OT Systems: The fusion of IT and OT systems is the major reason for the demand for combined cybersecurity solutions. Cyber security for interfacing networks encompasses measures to guard both IT and OT from attacks.
• Growing Industrial IoT (IIoT) Adoption: The advancement of dissimilar IIoT devices and systems leads to additional internet security threats, thus illustrating the need for certain measures that improve those security problems. It is also important to accomplish protection of IIoT devices and networks so they are not out of commission thus compromising industrial activity.
Challenges in the industrial cybersecurity market are:
• Complexity of Cybersecurity Solutions: The sophistication of the cyber security technologies should not compromise the operational ability and security posture of organizations. Specialized skills and attributes are required to guarantee seamless integration and effectiveness of these technologies which may pose challenges for implementation.
• Evolving Threat Landscape: The dynamic and ever changing nature of cyber threats is one of the major pains facing industrial cybersecurity. It is crucial for organizations to implement measures that will counter the new threats that emerge. This calls for continuous improvement of security measures which is costly and requires constant attention.
• Skills Shortage : Shortage of cybersecurity professionals is one of the biggest challenges in the industry. Organizations find it problematic to source for and keep qualified personnel that can proficiently handle the Cybersecurity controls imposed by the Organization hence capability in combating the cyber crimes is diminished.
These drivers and challenges are responsible for shaping the Industrial Cybersecurity market, with new technologies being created, regulatory compliance initiatives being developed and general security policies being made. The market is changing due to these reasons with the goal of tackling new ones and strengthening cybersecurity.
List of Industrial Cybersecurity Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies industrial cybersecurity companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the industrial cybersecurity companies profiled in this report include-
• IBM
• Honeywell International
• ABB
• Schneider Electric
• Cisco System
• McAfee
• Siemens
• Dell Technologies
• NortonLifeLock
• Rockwell Automation
Industrial Cybersecurity by Segment
The study includes a forecast for the global industrial cybersecurity by security type, deployment type, offering, end use industry, and region.
Industrial Cybersecurity Market by Security Type [Analysis by Value from 2018 to 2030]:
• Network Security
• Endpoint Security
• Application Security
• Cloud Security
• Wireless Security
• Others
Industrial Cybersecurity Market by Deployment Type [Analysis by Value from 2018 to 2030]:
• On-Premises
• Cloud
Industrial Cybersecurity Market by Offering [Analysis by Value from 2018 to 2030]:
• Products
• Solutions & Services
Industrial Cybersecurity Market by End Use Industry [Analysis by Value from 2018 to 2030]:
• Energy & Utilities
• Transportation Systems
• Chemicals and Manufacturing
• Others
Industrial Cybersecurity Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Industrial Cybersecurity Market
The industrial cybersecurity market is influenced by several emerging trends driven by technological advancements, regulatory changes, and evolving cyber threats. These trends are shaping the future of industrial cybersecurity and driving innovation in protective measures.
• United States: The United States has made significant progress in developing industrial cybersecurity, focusing on greater OT/IT alignment and integration. Recently, for instance, the NIST Cybersecurity Framework was modified to add guidelines for critical infrastructure protection, assisting organizations in securing their systems. The United States is also investing in next-generation cyber threat detection technologies and artificial intelligence (AI) to enhance operational capacity and improve multi-lateral threat assessment techniques.
• China: China is expanding its industrial cybersecurity capabilities as US-China relations deteriorate and concerns over cyberattacks and industrial espionage grow. Trends include adopting network security technologies and enhancing existing policies, such as the Cybersecurity Law. Cybersecurity infrastructure is a focus for China, which is enhancing it through various national security programs and initiatives to reduce dependence on critical technologies.
• Germany: Germany has been progressively improving its industrial cybersecurity efforts, particularly in safeguarding its manufacturing industry and critical infrastructure. Recent actions include the approved IT Security Act 2.0, which mandates increased security obligations for operators of critical infrastructures. Germany is also investing in next-generation security systems, including intrusion prevention and automated real-time response technologies to address new threats.
• India: India is steadily progressing in industrial cybersecurity by implementing measures aimed at securing and protecting its expanding industrial base and critical infrastructure. New initiatives include the establishment of the National Critical Information Infrastructure Protection Centre (NCIIPC), responsible for enhancing security in identified critical sectors. India is also working to improve awareness and training in cybersecurity across various industrial sectors to combat more advanced cyber threat techniques.
• Japan: Japan continues to fortify its industrial cybersecurity initiatives to protect the country’s competitive manufacturing and industrial technology sectors. Recent measures include adopting the Basic Act on Cybersecurity, which outlines how the country will implement strategies to increase its cybersecurity resilience. Japan plans to invest in high-level cybersecurity systems, including threat intelligence and secure communications, to protect its industrial infrastructure from cyber threats.
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FAQ
Q.1 What is the industrial cybersecurity market size?
Answer: The global industrial cybersecurity market is expected to reach an estimated $28.5 billion by 2030.
Q.2 What is the growth forecast for industrial cybersecurity market?
Answer: The global industrial cybersecurity market is expected to grow with a CAGR of 7.5% from 2024 to 2030.
Q.3 What are the major drivers influencing the growth of the industrial cybersecurity market?
Answer: The major drivers for this market are rising demand for ai based industrial robots, increasing industry demand for connected devices, and rising cases of cyberattacks on industrial control systems.
Q4. What are the major segments for industrial cybersecurity market?
Answer: The future of the industrial cybersecurity market looks promising with opportunities in the energy & utility, transportation system, and chemical & manufacturing sectors.
Q5. Who are the key industrial cybersecurity market companies?
Answer: Some of the key industrial cybersecurity companies are as follows:
• IBM
• Honeywell International
• ABB
• Schneider Electric
• Cisco System
• McAfee
• Siemens
• Dell Technologies
• NortonLifeLock
• Rockwell Automation
Q6. Which industrial cybersecurity market segment will be the largest in future?
Answer: Lucintel forecasts that network is expected to witness highest growth over the forecast period due to growing need to protect computer networks and networked resources from cyber threats.
Q7. In industrial cybersecurity market, which region is expected to be the largest in next 5 years?
Answer: North America is expected to witness highest growth over the forecast period due to rapid adoption of cybersecurity among various industrial applications and presence of key players in the region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the industrial cybersecurity market by security type (network security, endpoint security, application security, cloud security, wireless security, and others), deployment type (on-premises and cloud), offering (products and solutions & services), end use industry (energy & utilities, transportation systems, chemicals & manufacturing, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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