Increased instances of cyberattacks in the industrial sector lead to a notable rise in expenditure on Operational Technology (OT) cybersecurity

Increased instances of cyberattacks in the industrial sector lead to a notable rise in expenditure on Operational Technology (OT) cybersecurity

Growth in Operational Technology (OT) Cybersecurity Market

The Operational Technology (OT) cybersecurity sector is poised for significant growth over the next five years, according to ABI Research. Michael Amiri, a senior analyst at the firm, predicts that OT will no longer be a small portion of the overall IT spending.

The market for cybersecurity in industrial automation is projected to rise from approximately $11.42 billion in 2024 to over $20 billion by 2029, corresponding to a compound annual growth rate (CAGR) of around 11.8% to 12.1% during this period. This growth is a subset of the broader cybersecurity market, which is experiencing even faster expansion with an overall CAGR of 14.3% projected globally from 2024 to 2032.

Several key factors are driving this growth. The increasing interconnectivity of industrial systems due to Industry 4.0 adoption and digital transformation initiatives integrating OT with information technology (IT) systems is one such factor. The rapid growth in the number of Industrial Internet of Things (IIoT) devices also expands the attack surface, requiring robust security solutions.

Additionally, the rising frequency and sophistication of cyberattacks targeting industrial control systems (ICS) and critical infrastructure are pushing demand for enhanced security measures. Upgrading and unification of legacy OT environments with modern security architectures, including the adoption of Zero Trust principles, is another factor contributing to this growth.

Moreover, the integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and cloud-based security services into OT cybersecurity solutions is improving threat detection and response.

The projected increase in OT cybersecurity spending follows a wave of escalating attacks targeting internet-exposed devices at industrial sites across various sectors such as drinking water, energy, agriculture, manufacturing, etc. In 2023, the OT cybersecurity sector generated $12.75 billion, as per ABI Research.

More than half of OT cybersecurity spending will be directed towards network security and segmentation. Network security and segmentation are expected to capture approximately 27% of overall OT cybersecurity spending throughout the five-year period, according to Michael Amiri.

Industrial operators that deploy remote-access control access mechanisms for their OT environments are among the top spenders on OT cybersecurity. Sectors fueling OT cybersecurity spending include mining, quarrying, oil and gas extraction, utilities, and manufacturing.

The OT cybersecurity industry is expected to grow more than 9% annually to reach $21.6 billion by 2028. Enterprise spending on OT cybersecurity is projected to grow by nearly 70% from 2023 to reach $21.6 billion globally by 2028.

Attackers find multiple incentives to target OT due to its critical operational continuity and historically weaker defenses. As digitalization continues in traditionally isolated OT environments, combined with more complex supply chains, regulatory pressures, and growing cyber risk awareness in industrial sectors, the specialized OT cybersecurity market is expected to continue its expansion.

1. The Operational Technology (OT) cybersecurity market, a crucial segment of the overall cybersecurity industry, is projected to grow by more than 9% annually, reaching $21.6 billion by 2028.
2. The market for cybersecurity in industrial automation, spanning sectors such as mining, utilities, manufacturing, and more, is expected to more than double from $11.42 billion in 2024 to over $20 billion by 2029.
3. Network security and segmentation, key components of OT cybersecurity solutions, are expected to capture approximately 27% of overall OT cybersecurity spending over the next five years.
4. The increasing digitalization of Operational Technology environments, combined with growing cyber risk awareness and regulatory pressures, is driving demand for enhanced cybersecurity measures, pushing the OT cybersecurity market to expand further.

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