Market Overview
The global industrial cybersecurity market size was valued at USD 23.66 billion in 2023. It is estimated to reach USD 56.63 billion by 2032, growing at a CAGR of 10.5% during the forecast period (2024–2032). In recent years, with the rapid proliferation of the internet, there has been a rapid surge in cyber threats targeting industrial control systems (ICS), which is estimated to drive the global industrial cybersecurity market. Additionally, the integration of AI and ML in cybersecurity solutions enables real-time threat detection, predictive analysis, and automated response, thereby enhancing industrial cybersecurity and creating opportunities for its market growth.
Industrial cybersecurity is the protection of industrial control systems (ICS) and operational technology (OT) networks from cyber threats. These systems are critical for managing and operating essential infrastructure such as power plants, manufacturing facilities, water treatment plants, and transportation networks. Industrial cybersecurity encompasses a range of practices and technologies designed to safeguard these systems from cyberattacks, unauthorized access, and other digital threats.
Key elements include securing network architecture, implementing robust access controls, monitoring for anomalies, and deploying threat detection and response mechanisms. The goal is to ensure the integrity, availability, and confidentiality of industrial processes, minimizing risks to operational continuity, safety, and economic stability. As cyber threats become more sophisticated, the importance of industrial cybersecurity continues to grow, necessitating ongoing investment and innovation in protective measures.
Highlights
- Software dominates the component segment.
- Network Security dominates the type segment.
- Energy & power dominate the application segment.
- North America is the highest shareholder in the global market.
Market Dynamics
Global Industrial Cybersecurity Market Drivers
Increasing Cyber Threats in Industrial Control Systems
The rise in cyber threats targeting industrial control systems (ICS) is a significant driver for the global industrial cybersecurity market. Industrial sectors, including energy, manufacturing, and utilities, are increasingly digitizing their operations, making them vulnerable to sophisticated cyber-attacks. According to a report by Cybersecurity Ventures, the global cost of cybercrime is anticipated to reach $10.5 trillion annually by 2025, up from $3 trillion in 2015. The high-profile attack on Colonial Pipeline in 2021, which led to significant fuel supply disruptions in the U.S., underscores the critical need for robust cybersecurity measures in industrial sectors.
Furthermore, the surging adoption of Internet of Things (IoT) devices in industrial operations has expanded the attack surface for cybercriminals. The interconnected nature of IoT devices, while enhancing operational efficiency, also introduces vulnerabilities that can be exploited. According to a study by McKinsey, IoT connections are expected to reach 30.9 billion by 2025, up from 11.3 billion in 2019, highlighting the growing need for comprehensive cybersecurity solutions to protect industrial infrastructure. Thus, the escalating cyber threats and the proliferation of IoT devices are augmenting the demand for industrial cybersecurity solutions.
Global Industrial Cybersecurity Market Restraint
High Implementation Costs
One of the primary restraints in the global industrial cybersecurity market is the high cost associated with implementing comprehensive cybersecurity solutions. Industrial cybersecurity requires a multi-layered approach, including hardware, software, and continuous monitoring, which can be expensive. For small and medium-sized enterprises (SMEs), the financial burden of investing in advanced cybersecurity infrastructure can be particularly challenging. According to a survey by Deloitte, 47% of SMEs consider the cost of cybersecurity as a significant barrier to adopting necessary measures. Additionally, industrial sectors often require specialized cybersecurity solutions tailored to their specific operational needs, further escalating costs.
For instance, the energy sector, with its complex and critical infrastructure, may require bespoke solutions to ensure adequate protection. The high costs can deter some organizations from adopting comprehensive cybersecurity measures, leaving them vulnerable to potential cyber threats. Moreover, the lack of skilled cybersecurity professionals can exacerbate the financial strain, as companies may need to invest in training or hiring experts to manage their cybersecurity infrastructure. Consequently, the high implementation and maintenance costs pose a significant restraint on the growth of the industrial cybersecurity market.
Global Industrial Cybersecurity Market Opportunities
Adoption of Artificial Intelligence and Machine Learning
The adoption of artificial intelligence (AI) and machine learning (ML) technologies presents a significant opportunity for the global industrial cybersecurity market. AI and ML can enhance the efficiency and effectiveness of cybersecurity measures by enabling real-time threat detection, predictive analysis, and automated response. According to a report by Capgemini, organizations deploying AI in cybersecurity can improve response times by up to 12%, reduce costs by 15%, and enhance detection accuracy by 10%. AI-driven cybersecurity systems have the capability to evaluate large volumes of data in order to detect patterns and abnormalities that could potentially suggest cyber threats, enabling preventative measures to mitigate these threats.
For instance, predictive analytics can forecast potential attack vectors, enabling industrial operators to bolster their defenses in advance. Additionally, AI and ML can automate routine cybersecurity tasks, such as monitoring and patch management, freeing up human resources to focus on more complex issues. The integration of AI in cybersecurity can also facilitate adaptive learning, where systems continuously evolve based on new threat information. This dynamic approach is crucial in the industrial sector, where cyber threats are constantly evolving. The increasing recognition of AI and ML’s potential in enhancing industrial cybersecurity is driving investment in these technologies, creating significant growth opportunities in the market.
Regional Analysis
North America Dominates the Global Market
Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America stands as the most significant shareholder in the global Industrial Cybersecurity Market and is anticipated to expand substantially during the forecast period. This dominance stems from several critical factors. Firstly, North America hosts a large number of critical infrastructure facilities and manufacturing hubs, making them prime targets for cyber threats. This necessitates the implementation of robust industrial cybersecurity measures to safeguard these essential assets. Secondly, the region benefits from a well-established regulatory framework featuring standards and guidelines set by prominent organizations like the National Institute of Standards and Technology (NIST) and the North American Electric Reliability Corporation (NERC). These standards mandate stringent cybersecurity measures for industrial control systems (ICS) and operational technology (OT) environments.
Additionally, North American organizations exhibit a heightened awareness of cyber threats, prompting significant investments in industrial cybersecurity solutions and services. In 2021, the United States alone accounted for over 45% of global spending on industrial cybersecurity, as reported by the International Society of Automation (ISA). This substantial investment underscores the region’s proactive stance in fortifying its cybersecurity infrastructure. As a result, North America's strategic initiatives and regulatory rigor are pivotal in maintaining its leading position in the global Industrial Cybersecurity Market, driving continuous growth and innovation in this sector.
Europe is emerging as a sub-dominant region in the global Industrial Cybersecurity Market due to strict regulations, rising cyber threats, and its significant industrial and manufacturing sectors. The European Union has implemented several key regulations and directives, like the Network and Information Security (NIS) Directive and the General Data Protection Regulation (GDPR), which drive the adoption of robust cybersecurity measures. Major industrial hubs in Germany, France, and Italy are increasingly recognizing the importance of protecting their operational technology (OT) environments from cyber threats, thus boosting demand for industrial cybersecurity solutions.
Additionally, Europe has experienced a notable increase in cyber attacks targeting industrial control systems (ICS) and critical infrastructure. In 2022, the number of cyber incidents reported in the EU rose by 37% compared to the previous year, highlighting the urgent need for effective cybersecurity measures. This heightened awareness and regulatory pressure are propelling the growth of the region's industrial cybersecurity market.
Segmental Analysis
The market is segmented by component, type, and application.
Based on components, the global industrial cybersecurity market is bifurcated into software and services.
The software segment dominates the Global Industrial Cybersecurity Market and is expected to experience the fastest growth during the forecast period. This surge is driven by the increasing demand for solutions such as DDoS protection, firewalls, SCADA encryption, virtualization security, antivirus/malware, and backup & recovery. Industry leaders are focusing on developing and launching advanced security software tailored for sectors like automotive, oil & gas, and energy. For instance, in November, Check Point Software Technologies Ltd. introduced Check Point R81, a unified cybersecurity platform for industrial applications. This platform enhances threat prevention by delivering pre-programmed alerts, enabling IT staff to manage complex network configurations efficiently. The continuous innovation and adoption of sophisticated software solutions are propelling the growth of this market segment.
Service segment refers to various services that help boost the security of industrial systems and associated infrastructure. This includes another set of services aimed at protecting key industrial assets from cyber-attacks. These may include essential services such as risk assessment and management, security consulting, incident response, vulnerability assessment, and managed security services. These are services associated with vulnerability testing, compliance, continuous monitoring, and support to industrial control systems and supervisory control and data acquisition systems.
Based on type, the global industrial cybersecurity market is bifurcated into Network Security, Application Security, Endpoint Security, Wireless Security, Cloud Security, Others
The network security segment is the highest contributor to the global industrial cybersecurity market and is projected to experience substantial growth during the forecast period. Network security encompasses products and services designed to detect and prevent cyber threats in industrial networks and connected resources. Key solutions include firewalls, intrusion detection systems (IDS), intrusion prevention systems (IPS), encryption software, identity and access management (IAM), unified threat management (UTM), web and email security solutions, antivirus software, and antispyware software. These technologies safeguard critical industrial data from threats like SQL injection, cross-site scripting attacks, and distributed denial-of-service (DDoS) attacks. As industrial environments become more interconnected, the need for robust network security to protect sensitive operational data and ensure the integrity of industrial processes is driving significant growth in this segment.
Application Security is defined to account for the measures and technologies put in place to protect software applications from various attacks that can be launched to exploit software application server web faults, databases, and industrial control systems. This subsegment includes many solution types, such as application firewalls, intrusion detection systems, and secure coding practices. This should be targeted at those applications that are running critical infrastructure applications like SCADA systems, industrial IoT devices, and enterprise resource planning (ERP) systems to safeguard them against malware, ransomware, data breaches, and other vulnerabilities.
This includes endpoints such as workstations, servers, and specialized industrial equipment like programmable logic controllers and SCADA systems. Endpoint security solutions are meant to safeguard such devices from cyber threats like malware, ransomware, and unauthorized access. Since endpoints are the industrial operation faces towards the network, their security is therefore very paramount. These solutions mostly include antivirus software, endpoint detection and response systems, and advanced threat protection mechanisms.
Industries are quickly adopting wireless technologies for operational efficiency and flexibility; hence, the requirement of robust wireless security solutions is imminent. This segment consists of a collection of technologies and practices developed to safeguard wireless networks from unauthorized access, data breaches, and other cyber-attacks. Key solutions in this domain manifest themselves in very advanced methods of encryption, intrusion detection systems, and access controls designed to work within an industrial environment. Given the increase of IoT devices and wireless communications within industrial settings, the focus shifts to wireless security.
Cloud Security includes solutions and technologies targeted toward the protection of data, applications, and infrastructures hosted in the cloud environment from cyber-attacks. These include CASB services, cloud-native security solutions, integrated security platforms delivering real-time threat detection and data encryption, and compliance management. As such, the increasing adoption of cloud services in the industrial environment fuels demand for robust measures of cloud security to protect sensitive information and guarantee operational continuity against evolving cyber threats.
Based on application, the global industrial cybersecurity market is bifurcated into Energy and Utilities, Manufacturing, Oil and Gas, Chemicals, Aerospace and Defense, Healthcare, Transportation and Logistics, Others
The energy and power segment is the highest contributor to the global industrial cybersecurity market, primarily due to its susceptibility to cyberattacks. This industry is expected to maintain the largest market share throughout the projection period. The increasing digitalization in the energy and power sector has brought numerous economic benefits, including enhanced efficiency in reducing energy consumption and faster processing. However, this digital transformation has also escalated the risk of cyberattacks, leading to significant data theft and malicious software gaining control over energy equipment. Consequently, the need for robust cybersecurity measures has intensified, driving market growth. The focus on protecting critical infrastructure from cyber threats underscores the sector's pivotal role in the industrial cybersecurity landscape.
Manufacturing corresponds to solutions developed for the protection of industrial operations from cyber-attacks within a manufacturing environment. This strategically very important sector involves manufacturing facilities that are becoming increasingly equipped with the latest technologies in smart devices, automation systems, and data analytics. Cybersecurity solutions in this segment protect ICS, SCADA, and other critical infrastructure from cyber-attacks. These solutions patch vulnerabilities, and ensure the availability of processes related to manufacturing. Increasingly, strong cybersecurity is being integrated into the systems of manufacturers to get control over their exposure to data breaches, ransomware attacks, unauthorized access, intellectual property theft, and other problems on the production line.
This segment serves protection against cyber-attacks on aerospace and defence systems that can result in the compromise of sensitive information, operational integrity, or national security. The advanced nature of cyber-attacks and the critical nature of operations undertaken in this segment necessitate robust cybersecurity measures. Advanced threat detection systems, encryption protocols, and real-time monitoring solutions are implemented to prevent any possible breaches. Moreover, stringent regulatory requirements in the aerospace and defence industries, secure communication channels, and protection of proprietary technologies drive the needs for cybersecurity.
The segment deals with issues in healthcare facilities concerning protection of critical infrastructures such as medical devices, electronic health records, and connected systems. These cyber threats are, therefore, ever more worrying with the increasing integration of IoT and smart technologies in healthcare and underline the dire need for robust cybersecurity measures. Some of the solutions in that segment are advanced threat detection, prevention systems for detecting intrusion, and protocols for secure data management efforts to protect sensitive patient information and the integrity of healthcare operations. As more and more healthcare organizations digitize and optimize operations, the need for specialized cybersecurity solutions in this sector is rising.
This segment addresses the need to safeguard complex systems that manage and control transportation networks, logistics operations, and supply chains. With the increasing reliance on digital technologies and automation in these sectors, such as fleet management systems, automated warehouses, and smart traffic control systems, the risk of cyber threats has significantly risen. Cybersecurity solutions in this segment include advanced monitoring and threat detection systems, secure communication protocols, and incident response strategies designed to protect against cyber-attacks that could disrupt operations, compromise safety, or lead to significant financial losses.
