As the industrial world embraces the wave of digitalization and smart manufacturing trends, industrial operations are increasingly under threat. Operational Technology (OT) attacks are common, widespread, and highly frequent. In a new report, ABI Research, a global technology intelligence company, predicts that the OT cybersecurity market will grow from $12.75 billion in 2023 to approximately $21.6 billion by 2028, at a compound annual growth rate (CAGR) of approximately 9.2%. Network security and segmentation technologies will see the highest growth, followed by identity and access management and endpoint protection.
“Every imaginable industrial sector is embracing some form of digitalization and Industry 4.0 concepts. As a result, the potential for cyber threats is also increasing, driving the demand for strong defenses. There is a lot of room for growth in this market, as there is considerable scope for smart industries to expand,” said Michael Amiri, senior industrial cybersecurity analyst at ABI Research. Said in a media statement.
There’s already talk among cybersecurity professionals that OT and Internet of Things (IoT) spending could one day surpass information technology (IT) spending, as the number of laptops, tablets, and other IT-related devices plateaus. Amiri explains, “In fact, OT and IoT devices are just starting to scale, and they far outnumber IT. A factory has tens of thousands of sensors, routers, and PLCs, all of which need to be protected from malicious actors. OT cybersecurity revenues are becoming integral to the overall cybersecurity market.”
As industries become increasingly digitalized, network security, which includes protecting industrial networks and data transmissions, is expected to experience strong growth. Technologies protecting OT networks are now increasingly capable of using AI and behavioral traffic analytics to detect and respond to OT-specific network threats. As a result, the demand for these security products is growing steadily.
Moreover, segmentation technology plays a central role in securing OT traffic, not only enabling cost-effective partitioning but also allowing for customized security controls and data flows for each isolated segment. ABI Research predicts that segmentation will generate the most revenue in the OT cybersecurity market.
“Recent macroeconomic pressures do not seem to have affected the OT cybersecurity market. On the contrary, rapid digitalization and rising geopolitical tensions are leading to increased spending and market revenue, especially in sectors that are prone to cyberattacks such as oil and gas, utilities, mining, and manufacturing. These are areas where OT cybersecurity providers should focus their marketing efforts,” Amiri concludes.