The global industrial control systems (ICS) security market size was valued at USD 14.5 billion in 2021. It is projected to reach USD 26.43 billion by 2030, growing at a CAGR of 6.9% during the forecast period (2022-2030). An industrial control system (ICS) comprises various control elements, including electrical, mechanical, hydraulic, and pneumatic components (e.g., manufacturing, transportation of matter, or energy). The system's control component includes the expected output or performance specification. Control may be entirely automated or involve a human in the process. The systems support manual operation as well as closed-loop and open-loop configurations.
Industrial automation systems are becoming more and more necessary due to large-scale, continuous, and highly parameterized industrial equipment. In addition, modern industrial control systems have developed from physical systems already in place and added IT capabilities, frequently replacing or enhancing physical control methods.
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Rising Incidents of Cyberattacks
The attack targets on OT and ICS assets have grown by over 2000% during 2018, according to IBM's X-Force Threat Intelligence Index 2020. There were more instances of OT asset targeting in 2019 than there were during the previous three years put together. Most of these targets combined brute-force login techniques, including password-spraying attacks with known vulnerabilities in ICS hardware components and supervisory control and data acquisition (SCADA). A ransomware assault (LockerGoga, which encrypts files on Windows devices) forced Norsk Hydro, a metallurgical business, to shut down production for a week as the attack encrypted all the data on their Windows computers.
According to a 2019 ARC Advisory Group survey on the security of industrial control systems (ICS), almost 70% of businesses believe an assault on their OT/ICS infrastructure is very likely. Research by Siemens and Ponemon Institute produced similar findings. In the upcoming year, at least one cyberattack on critical infrastructure is anticipated by 54% of respondents. The growing incidents of cyberattacks are expected to drive the global industrial control systems (ICS) security market over the forecast period.
Complexity in Implementing the Security Systems
The bulk of industrial networks involve a convoluted, heterogeneous mix of specialized OT protocols, making building security measures for industrial control systems challenging. ICS and IT have never been integrated traditionally. One of the most frequent issues that enterprises encounter is the integration of their ICS with their IT departments. The necessity of integrating these two has grown dramatically with the advancement of industrial automation technology. However, the security of ICS critical infrastructure is vulnerable to industrial espionage and sabotage in most firms because of the absence of collaboration between IT teams and process or operations departments. Furthermore, the difficulty in implementing security solutions is caused by a lack of employees to bridge the gap between operations and IT.
Another aspect contributing to growing complexity is the ICS's aging hardware or software, which is present in many enterprises. Due to their significance for plant operation, most organizations continue to employ legacy ICS. The ICS's advancing age provides several opportunities for intrusions and adds complexity. Another obstacle to implementing ICS security services in enterprises is the expense of a security system or platform. It can be challenging to justify the cost of security solutions for several reasons.
Convergence of IT and OT Networks
The integration of OT systems, which are typically associated with manufacturing and industrial environments and are used to monitor processes, events, and devices and make adjustments in business and industrial operations using ICS, such as supervisory control and data acquisition (SCADA), and IT systems for data-centric computing constitutes the convergence of information technology and operational technology. More and more industrial organizations are integrating their IT and OT networks to stay competitive and make better business decisions. More precise control and thorough monitoring are made possible by the confluence of IT and OT. The data analysis from these complex systems can be easily carried out anywhere in the world.
Integrating these two technologies requires careful attention to security at every step. The majority of OT systems were not designed to be accessed remotely, and connectivity risks were not taken into account and might not be updated frequently. As a result, they were creating security holes. Industrial espionage and sabotage could affect vital infrastructure and organizations. Organizations are more susceptible to cyberattacks and security risks due to the rising number of industrial control systems, sensors, and other controllers operating as industrial internet of things (IIoT) endpoints due to the converged IT/OT network.
The global industrial control systems (ICS) security market is segmented by end-user.
Based on the end-user industry, the global industrial control systems (ICS) security market is bifurcated into automotive, chemical and petrochemical, power and utilities, pharmaceuticals, food and beverage, and others.
The power and utility segment is the highest contributor to the market and is expected to grow at a CAGR of 6.5% during the forecast period. One of the main sectors where ICS security products and systems are being adopted most quickly is the power and utility sectors. The increasing number of cyberattacks on the utilities and power sector is mainly due to international political strife. For instance, the recent military and political unrest in the Gulf region has increased interest in hacking groups that target American power grids, businesses, and other vital infrastructure. A report detailing fresh hostile operations by Iranian hackers against crucial US national infrastructure was recently published by US-based Dragos Inc. The report cited numerous occasions when Iranian APTs attempted to hack the US power system.
ICS gives the automotive sector a chance to increase productivity, decrease factory downtime, improve supply chain efficiency, and respond more quickly to market demands. One of the well-known industries that accounts for a sizeable portion of automated production facilities worldwide is the automotive sector. To ensure efficiency, numerous manufacturers have automated their production plants. The automotive industry's growing preference for electric cars (EVs) over conventional automobiles is anticipated to boost demand even further. Additionally, as new computer and network technologies like the Internet of Things, cloud computing, and mobile computing are introduced alongside ICS systems, there is a high need for ICS solutions that can interact with these cutting-edge solutions.
ICS is being used more and more in chemical and petrochemical as a result of the need to reduce risks, boost productivity, and lower overall costs. Market players across the industry are upgrading their control systems to take advantage of cutting-edge IIoT technology. With the help of the integrator TechKnowsion and Rockwell Automation, DuPont's small-batch production facility in California announced intentions to modernize its control system. The update is anticipated to replace the batch system's PLC and HMI with a distributed control system called PlantPAx (DCS). Compared to numerous other process sectors, the average size of a chemical or petrochemical plant is substantially larger, more expensive, and more complex, making it difficult to keep track of changes in the plant.
The global industrial control systems (ICS) security market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
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North America is the most significant shareholder in the global industrial control systems (ICS) security market and is expected to grow at a CAGR of 6.7% during the forecast period. Due to the region's extensive manufacturing, significant data has been produced while integrating a wide range of production systems throughout the supply chain. It was demonstrated by the Department of Homeland Security's report from February 2020, which identified 16 infrastructure sectors—including the energy, nuclear, and transportation sectors—as vital. This was carried out in response to a warning about a hack that targeted a pipeline operator last year. The recent advancements have put an even greater emphasis on how critical it is to protect ICS systems. This has been of tremendous assistance to the country in gaining a competitive edge in the world's economy.
Asia-Pacific is expected to grow at a CAGR of 6.8%, generating USD 7,200.62 million during the forecast period. The largest region in the world for both car production and consumption is Asia-Pacific. According to CAAM, China produced approximately 21 million passenger cars and 4.3 million commercial vehicles in 2019. The rapid development of industrial infrastructure, the increasing investment in industrial security infrastructure, and the widespread adoption of cutting-edge technologies like IoT and cloud computing all point to Asia-Pacific as the region with the highest CAGR over the forecast period.
Europe is expected to grow significantly over the forecast period. The ever-increasing frequency of cyberattacks and rising anxieties regarding the integrity of computer networks are the primary forces driving the expansion of this industry. Additionally, substantial investments in cutting-edge technology and growing government support for heightened safety will contribute to increased sales. The UK manufacturing industry has made insufficient investments in robots and other forms of automation compared to other affluent nations. It devotes only 1.7% of its GDP to manufacturing innovation, which is far less than the 2.4% average of the OECD.
However, the manufacturing sector's increased use of automation, the desire to reduce manufacturing costs, and the uptake of machine-to-machine (M2M) technologies are supporting this trend in the nation, which is anticipated to accelerate the uptake of industrial control systems. Companies Sentinel One monitored, and Dragos was the first to uncover this vulnerability and them to their databases. In addition, the EKANS ransomware that targets ICS was discovered in 2019, and the manufacturing facilities operating in the United States were among the worst hit by this virus.
The oil and gas, iron and steel, and automotive industries all thrive in Brazil, one of the region's leading economies. According to OICA, the nation manufactured more than 2.87 million motor cars in 2018, and the numbers continue to rise. The Middle Eastern region is home to countries that produce and export a significant portion of the world's crude oil. As a result, there is a pressing need for ICS and critical infrastructure in the area, driving up the price of security measures. In addition, according to Baker Hughes, the Middle East had the most oil and gas rigs in the world as of August 2019, with a total of 347. Also, many conflicts are raging in the region. One such industrial control systems example is the drone strike on the Saudi oil facilities, which is predicted to impact the nation's economic performance.
The global industrial control systems (ICS) security market’s major key players are