The global industrial cybersecurity market size was valued at USD 20.88 billion in 2022. The market is projected to grow at a CAGR of 10.5% from USD 23.66 billion in 2023 to USD 58.77 billion by 2031. The adoption of IoT and the BYOD trend, as well as an increase in malware and phishing threats among businesses, are fueling the growth of the cybersecurity market. In addition, the market is expanding favorably due to the surge in demand for cloud-based cybersecurity solutions. The market's expansion is hampered by organizational budget restrictions and the complexity of device security. On the other hand, the rise in mobile platforms and applications, the demand for secure authentication methods, and the transformation of the traditional antivirus software industry are anticipated to provide lucrative opportunities for market growth during the forecast period.
Cybersecurity is the term used to protect internet-connected devices from various online threats. It protects hardware, software, and data while preventing fraudsters from accessing systems or networks. Businesses need cyber security to safeguard their data, money, and intellectual property. People need it for similar reasons, even though protecting intellectual property is less important, and the chance of losing important data, like family photos, is higher. Cybersecurity ensures that the general public can continue to rely on public services and governmental organizations. Increased threat attack surfaces have come from the high prevalence of Industrial Internet of Things (IIoT) technologies in critical infrastructure industries (power utilities, oil, gas, etc.) and the industrial sector. Industrial IoT is not limited to the IT world; it also plays a significant role in operational technology in the industrial world, raising security concerns.
| Report Metric | Details |
|---|---|
| Base Year | 2022 |
| Study Period | 2021-2031 |
| Forecast Period | 2023-2031 |
| CAGR | 10.5% |
| Market Size | USD 58.77 billion by 2031 |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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The industrial cybersecurity industry is growing due to increased government support and increased spending by enterprises worldwide to combat cyberattack risks. Digital technology now underpins the vital resources of a country's economy. Cyber threats can interrupt plant operations and IT systems with malware, spyware, and phishing. Governments worldwide are progressively allocating resources to combat security breaches and strengthen industrial cybersecurity. The US government has passed an Infrastructure Bill with USD 2 billion for cybersecurity funding to help tackle their various cyber issues. Organizations invest heavily in security software and equipment to protect critical infrastructures, data centers, and industrial control systems. Google and Microsoft announced plans to invest USD 30 billion in cybersecurity developments over the next five years as the US government collaborates with private sector businesses to combat national security risks.
Although industrial cybersecurity solutions have many benefits, most end users in developing nations in the Asia Pacific, Middle East, Africa, and South America are unaware of these services. The global industrial cybersecurity market development is also anticipated to be hampered by the shortage of professionals to create and manage industrial cybersecurity solutions in developing nations, where cyberattacks are rising. Security hackers have developed new threats as technology has developed. The model forces organizations' IT departments to review their network security strategies to transition from a network perimeter-based strategy to a user and application-based security model. Web and mobile application redesign and development could take some time and effort. Traditional cybersecurity solutions find it difficult to detect and counteract these new threats.
Industrial plants are increasingly adopting cloud-based ICS-as-a-service and industrial robots built on artificial intelligence platforms, which are the main factors driving the market for industrial cybersecurity. Industrial robots have cybersecurity systems installed to protect them from cyberattacks and ensure their smooth operation. According to the International Federation of Robotics, approximately 125.6 thousand industry robots were used in the automotive industry, 105.2 thousand in the electronic industry, and 43.6 thousand in the metal and mining industry worldwide. During the forecast period, it is anticipated that the market for industrial cybersecurity will expand due to the increase in the adoption of industrial robots.
The global industrial cybersecurity market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North American industrial cybersecurity market size is expected to grow at a CAGR of 9.8% during the forecast period. The U.S. and Canada are included in the analysis of the industrial cybersecurity market in North America. Growing cyber risks are the harsh truth of current situations, which cannot be disregarded, and North America owns the highest market share in the worldwide industrial cybersecurity industry. Due to expanding business fundamentals and the need for deploying Industrial Internet of Things (IIoT) technologies, various enterprises in North America are confronting issues in establishing industrial cybersecurity risk management programs. Furthermore, increased investment by critical companies to extend their global presence will likely drive market growth in North America. Significant players like CyberArk Software Ltd., Rockwell Automation, Inc., Cisco System, Inc., and others are primarily to blame for the region's growth. Further. The market for industrial cybersecurity is anticipated to grow more rapidly in North America due to increasing investments made by major players to increase their presence globally.
Asia Pacific is expected to grow fastest at a CAGR of 10.7% during the forecast period. China, India, Japan, Australia, and the rest of Asia-Pacific are all included in the analysis of the Asia-Pacific industrial cybersecurity market. China and India are examples of developing economies in APAC. These countries have many small and medium-sized enterprises (SMEs), employing more than 70% of the country's total population. The high cost of implementing an industrial control system security project prevents SMEs from implementing strong security practices within their businesses. However, factors such as increasing business complexity, rapid digitization and virtualization, and the growing trend of BYOD are expected to encourage SMEs to adopt various industrial control solutions and services. Vendors in the industrial cybersecurity industry who supply solutions and services to manufacturing, transportation, and energy customers might benefit from these SMEs.
The market is segmented by component, type, and application.
Based on components, the global industrial cybersecurity market is bifurcated into products, software, and service.
The software segment is the highest contributor to the market and is expected to grow fastest during the forecast period. The software will probably win the most significant market share for industrial cybersecurity. The primary cause of this growth is the rising demand for software solutions like DDoS, firewalls, SCADA encryption, virtualization security antivirus/malware, backup & recovery, and many others. Industry leaders are concentrating on creating and releasing cutting-edge industrial security software solutions for the automotive, oil & gas, energy, and other sectors. A unified cybersecurity platform for industrial applications, Check Point R81, was introduced by Check Point Software Technologies Ltd. in November. The platform helps to deliver pre-programmed threat prevention alerts, aiding the IT staff in effectively managing intricate network configurations.
Based on type, the global industrial cybersecurity market is bifurcated into network security, cloud security, application security, wireless security, endpoint security, and others.
The network security segment is the highest contributor to the market and is expected to grow tremendously during the forecast period. Network security, in general, refers to security products and services used to identify and prevent cyber threats in computer networks and networked resources. Firewalls, intrusion detection systems (IDS), intrusion prevention systems (IPS), encryption software, identity and access management (IAM), united threat management (UTM), web and e-mail security solutions, antivirus software, and antispyware software are all examples of network security solutions. These technologies assist in protecting data from risks such as SQL injection, cross-site scripting attacks, and DDoS attacks.
Based on application, the global industrial cybersecurity market is bifurcated into energy and power, manufacturing, transportation systems, chemicals, and others.
The energy and power segment is the highest contributor to the market. The energy and power industry is the most vulnerable to cyber-attacks, and as a result, it will account for the largest market share throughout the projection period. Increased digitalization in the energy and power sector has resulted in numerous economic benefits, including increased efficiency in energy usage reduction, faster processing, and so on. However, as malicious software takes control of energy equipment, massive data theft has increased the potential for cyber-attacks.
Industrial cybersecurity solutions and services have always been in high demand since they help firms worldwide secure their data and other confidential information by monitoring and managing various process inputs and outputs at the field site. COVID-19 has compelled company executives to adopt operational models more quickly than before to stay afloat. Due to the widespread adoption of work from home, the use of cloud services and connected devices has skyrocketed, allowing businesses to maintain operations. This move is putting a lot of strain on cybersecurity activities in the industrial sector.
Amid the pandemic, businesses are doing everything to protect their employees and satisfy their customers. The National Cyber Security Center (NCSC) announced in June 2020 that in April, 350 cases of cyberattacks (phishing, fraudulent websites, direct attacks on organizations, etc.) were registered in Switzerland, compared to the standard of 100–150. The increasing cyber-attacks during the pandemic have led to the expansion of the industrial cybersecurity market globally.
