The industrial world is increasingly under threat as it embraces waves of digitization and smart manufacturing trends. Operational Technology (OT) attacks are becoming more common, widespread, and frequent. Forecasts indicate that the OT cybersecurity market will grow from $12.75 billion in 2023 to around $21.6 billion by 2028.
This represents a Compound Annual Growth Rate (CAGR) of approximately 9.2%. Network security and segmentation technologies are projected to see the most growth. This will be followed by identity and access management and endpoint protection.
“Every industrial sector imaginable is embracing some digitization and the concept of Industry 4.0. As a result, the potential for cyber threats has also increased, prompting a growing demand for robust defensive measures. This market has lots of space for growth as there is considerable capacity to expand smart industries,” says Michael Amiri, Senior Industrial Cybersecurity Analyst at ABI Research. Cybersecurity professionals are discussing the possibility that OT and Internet of Things (IoT) spending could surpass Information Technology (IT) spending in the future.
Unlike the plateau in the number of laptops, tablets, and other IT-related devices, OT and IoT devices are just beginning to expand and are far more numerous.
OT cybersecurity market growth trends
An industrial plant could have tens of thousands of sensors, routers, and PLCs, all of which must be protected from malicious actors.
As more industries digitize, network security, which involves protecting industrial networks and data transmissions, is expected to experience robust growth. Technologies that secure OT networks now possess enhanced capabilities using AI and behavioral traffic analysis to detect and respond to OT-specific network threats. Consequently, the demand for these security products is seeing strong growth.
Segmentation technologies play a central role in securing OT traffic. They provide cost-effective partitioning and allow customization of security controls and data flows for each isolated segment. ABI Research expects segmentation to generate the most revenue in the OT cybersecurity market.
“Recent macroeconomic pressures do not seem to have impacted the OT cybersecurity market. On the contrary, rapid digitization and escalating geopolitical tensions have contributed to increased spending and market revenues, especially in sectors most prone to cyberattacks, such as oil and gas, utilities, mining, and manufacturing. These are sectors where OT cybersecurity providers might want to direct their marketing efforts,” Amiri concludes.
