Industrial Cybersecurity Market

Market Perspective

The global Industrial Cybersecurity Market was valued at USD 22.91 billion in 2022 and is projected to reach USD 44.65 billion by 2030, growing at a CAGR of 8.54% from 2023 to 2030.

The industrial cybersecurity market growth is driven by an increasing number of ​​investments and ongoing development of a strong cybersecurity network including implementing policies and procedures that promote superior cybersecurity platforms. The growing need for cloud-based security solutions among SMEs further propels market growth. The introduction of new technologies such as the Internet of Things (IoT) and cloud computing has also accelerated the need for increased cyber security across several industrial verticals which are designed to protect against cyber-attacks and data breaches. However, the shortage of trained professionals limits the market's expansion. The misconceptions about cybersecurity services and susceptibility issues with IoT devices represent significant barriers to the market's growth.

Analyst’s Review on Industrial Cybersecurity Market

The rising awareness of the need of securing connected devices and the need for better coordination between information technology (IT) and operational technology (OT) teams to improve security across industrial systems and networks accelerates the industrial cybersecurity market growth. Concerns have also been raised regarding vehicle hacking, mobile device security, and the possible use of Artificial Intelligence (AI) for cyber-attacks, which accelerates the need for industrial cybersecurity platforms.

Market Definition

Industrial cyber security has become an increasingly important concern in recent years, due to the increasing reliance on cyber technology and the growing risks of cyber-attacks. These attacks on industrial systems can have serious consequences, such as disruption of critical infrastructure, loss of sensitive data, and compromise of equipment and systems. With cloud-based security solutions, organizations can quickly scale their security resources as needed, adapt to changing threats or requirements, and reduce the time and effort required to deploy and manage security systems. Concerns about the security of cloud-based industrial systems have arisen due to the vulnerability of cloud-based systems to cyber-attacks and the need for strong encryption and access control mechanisms to protect sensitive data and prevent unauthorized access.

Market Dynamics

The emergence of artificial intelligence (AI) powered industrial robots has increased the need for effective industrial cyber security measures to protect against cyber-attacks and data breaches. The integration of artificial intelligence and industrial robots made it possible to automate complex and repetitive tasks, which increased productivity and efficiency in industrial operations.

However, this integration has also created new cyber security risks, as these robots can be vulnerable to cyber-attacks that compromise their performance, data, and control systems. These cyber-attacks can cause various negative consequences, such as system downtime, malfunctions, and threats to data confidentiality and integrity. As the integration and adoption of industrial robots and artificial intelligence increase, the risk landscape is likely to become more complex, requiring more sophisticated cybersecurity solutions.

Industrial cyber security issues related to high costs and limited availability of experienced professionals are a major concern for industrial organizations. These issues require a holistic approach, including the development of specific training programs, the adoption of best practices for system security, and the implementation of a zero-trust architectural model. These actions enable organizations to improve their cybersecurity and protect themselves from the potentially devastating consequences of cybersecurity breaches.

Segmentation Analysis

The global industrial cybersecurity market is segmented based on type, component, end-user, and geography.

Based on type, the market is classified into network security, endpoint security, cloud security, application security, and others. The network security segment was the dominating segment with a market value of USD 6.28 billion in 2022. The large market value of the segment is attributed to the rise in the number of network security devices and the rising demand to secure various enterprise networks.

Based on component, the industrial cybersecurity market is divided into hardware, software, and services. The software segment is expected to dominate owing to the growing demand for software solutions such as firewalls, SCADA encryption, virtualization security anti-virus/malware, backup and recovery, and many others.

Based on end-user, the market is categorized into energy & utilities, transportation systems, chemicals & manufacturing, and others. The energy & utilities segment was the dominating segment with a market value of USD 8.63 billion in 2022. The segment growth is driven by the growing need for industrial cybersecurity solutions to protect industrial control systems from cyber-attacks. The energy and utility solutions are helping security across the industry by delivering integrated, automated protection across industrial environments.

Geographical Analysis

Based on regional analysis, the global industrial cybersecurity market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

The industrial cybersecurity industry in North America has maintained a dominating position with a market share of 42% in 2022. The market growth is driven by the growing concerns reacted to cyber security across U.S. and Canada, especially on critical infrastructure, including energy, water, transportation, and manufacturing systems. The U.S. government is taking steps to address industrial cybersecurity by developing policies, regulations, and best practices.

In addition, the Cyber ​​Security and Infrastructure Agency (CISA) was launched to protect the country's critical infrastructure from cyber threats. Additionally, organizations across the region are scrutinizing the efforts to use preeminent practices to secure their systems, such as implementing secure coding practices, regular software updates, intrusion detection and prevention systems, and employee training.

The federal government is continuing its efforts to provide resources and guidance to organizations to improve their cybersecurity and provide incentives to encourage organizations to adopt best practices to secure their systems which propel market growth across the region.

Asia Pacific was the fastest growing region with a market share of 20% in 2022 driven by the increased focus of government towards a proactive approach to cyber security that includes risk assessments, vulnerability assessments, regular security audits, and incident response planning. The government across the region is providing initiatives that stimulate the focus on improving the security of the region's critical infrastructure.

For instance, the government of Australia recently launched its Cyber ​​​​Security Strategy 2020, which includes initiatives to improve cyber security in critical infrastructure sectors. Similarly, the Singapore government developed a Cyber ​​Security Act to strengthen the resilience of the country's critical infrastructure against cyber threats. Market vendors across the region are launching innovative cyber capabilities, expanding the footprint of security data centers, and continuing to establish a dedicated engineering team to assist organizations in fortifying their defenses and catalyzing their digital transformation which fosters the market share over the estimated timeframe.

Competitive Landscape

The global industrial cybersecurity industry study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization. The major players in the industrial cybersecurity market are

• ABS Group of Companies, Inc.
• Bechtel Corporation
• Cisco Systems, Inc.
• Fortinet, Inc.
• Honeywell International Inc.
• Microsoft
• Rockwell Automation
• Schneider Electric
• Siemens
• Thales
• IBM

Key Developments

• April 2023 (Product Launch): Thales developed a new National Digital Excellence Centre in the Cyber Centre in Canada which strengthens its cybersecurity skills across the industrial systems and allows SMEs and micro-enterprises to test and develop digital transformation ideas alongside large organizations.
• February 2023 (Funding): Opscura Inc., secured USD 9.4 million in Series A funding as it expands to include more U.S. partners and customers looking to secure and connect their mission-critical operations through multifaceted cybersecurity innovation.
• September 2022 (Product Launch): ABB launched the ABB Ability Cyber Security Workplace combines security tools into a single-view digital platform that streamlines the display of several critical pieces of information which can reduce the risks and protects the industrial attacks.

The global Industrial Cybersecurity Market is segmented as:

By Type

• Network Security
• Endpoint Security
• Cloud Security
• Application Security
• Others

By Component

• Hardware
• Software
• Services

By End User

• Energy & Utilities
• Transportation Systems
• Chemicals and Manufacturing
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America