Operational technology (OT) refers to hardware and software that detects or causes a change through the direct monitoring and/or control of industrial equipment, assets, processes and events. OT security helps in protecting industrial control systems, distributed control systems, supervisory control and data acquisition systems from cyber threats.
The global Operational Technology Security Market is estimated to be valued at US$ 18492.8 Mn or Bn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the operational technology security market is the increasing cyber threats targeting industrial control systems. Attackers are developing sophisticated techniques to exploit vulnerabilities in unpatched and outdated OT systems. For instance, recent ransomware attacks on Colonial Pipeline in the US and JBS Foods in Australia disrupted their operations. Growing digitization of OT infrastructure is also making them more exposed to cyberattacks. Furthermore, implementation of Internet of Things (IoT) devices in industrial environments without proper security measures has increased risks. To address these challenges, companies are increasingly adopting OT security solutions such as firewalls, antivirus/malware solutions, identity and access management, security information and event management, and more.
SWOT Analysis
Strength: Operational technology systems serve critical functions and securing them properly helps ensure uninterrupted operations. Wide adoption of cloud and IoT creates opportunities to monitor OT systems remotely.
Weakness: Legacy OT systems that were designed without strong security were difficult to retrofit with protection. Lack of awareness about evolving OT threats among some organizations hampers urgent security upgrades.
Opportunity: Growing regulations like NERC CIP for the utility sector mandate assessment and remediation of OT vulnerabilities, driving security investments. Expanding connectivity of plants and infrastructure to business networks increases addressable market for specialized OT monitoring tools.
Threats: Sophisticated nation-state actors and cybercriminals actively target OT environments for disruption and espionage. Insider threats also emerge from unintentional human errors or disgruntled employees with system access. Natural disasters can potentially compromise OT security due to infrastructure damage.
Key Takeaways
The Global Operational Technology Security Market Demand is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing cyberattacks targeting critical infrastructure systems. North America dominated the market with highest market share in 2023 due to strict regulatory compliances for utility and manufacturing sectors in the region to strengthen security of OT systems.
Europe is expected to exhibit high growth in the coming years backed by growing investments stabilizing the energy sector networks across major countries like U.K, Germany and France. Presence of manufacturing companies automating plants and growing focus on Industry 4.0 also drives regional market.
Asia Pacific region is projected to showcase fastest growth driven by increasing digitization of services and infrastructure in areas of smart energy, transportation among others in major countries like China and India. Rising foreign investments coupled with initiatives to modernize industrial sectors further supports regional market.
Key players operating in the Operational Technology Security market are Accenture plc, Belden Inc., Cisco Systems, Inc., Claroty Ltd., CyberX, Cyberbit, Darktrace, Deloitte Touche Tohmatsu Limited, Bayshore Networks, Hitachi Systems Security Inc., Fortinet, Inc., OTORIO Ltd., IBM Corporation, Dragos, Inc., Indegy, IOActive Inc., Kaspersky Lab, Leidos, Thales Group, TÃœV SÃœD, Wurldtech Security Technologies Inc., Honeywell International Inc. (NextNine Ltd.), Nozomi Networks Inc., and NCC Group.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.