Industrial cybersecurity market to reach $22.3 billion by 2026
The global market for industrial cybersecurity estimated at $15.2 billion in the year 2020, is projected to reach a revised size of $22.3 billion by 2026, growing at a CAGR of 6.6% over the analysis period, according to ResearchAndMarkets.
Services, one of the segments analyzed in the report, is projected to grow at a 7.3% CAGR to reach $10 billion by the end of the analysis period.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Software segment is readjusted to a revised 6.3% CAGR for the next 7-year period. This segment currently accounts for a 36.1% share of the global industrial cybersecurity market.
The COVID-19 pandemic has boosted the need for remote operations of industrial facilities and production floors across the globe. The major economic impact of this pandemic has compelled businesses to reset their budgets. The `Work from Home` trend required establishment of an array of procedures and security tools for ensuring that industrial facilities can perform remote operations.
The importance of cybersecurity for manufacturers
For manufacturers, the importance of cybersecurity has grown considerably with industrial companies connecting plant-level devices and software to internet-connected enterprise systems. The Industrial Internet of Things (IIoT) has greatly strengthened operations on the plant floor. However, it has also introduced many novel vectors for possible cyberattacks. Increasing movement of data from plants could boost the vulnerability of localized networks.
Such new loopholes are being exploited by criminals for stealing sensitive information such as intellectual property for extortion purposes. The COVID-19 pandemic has exacerbated such kinds of attacks owing to the adoption of `work from home` approach. Home offices lack robust cybersecurity protections. Remote access also provided hackers a wider surface to attack.
Additionally, attackers have also exploited the sense of uncertainty and fear of this pandemic to carry out phishing attacks as well as other kinds of social engineering for tricking users to provide access to various proprietary information and systems. Supply chains, healthcare sector and manufacturing facilities are becoming vulnerable to cyberattacks.
At present, the biggest risk faced by the healthcare sector is phishing attacks wherein attackers employ an array of techniques and tactics for gaining access to private information of people involved.
Amidst heightened cyber threat levels, industries are investing increasingly on deploying a wide range of security solutions like firewalls, antivirus, and intrusion detection systems (IDS) for securing assets, and to prevent any operational disruption due to cyber breaches. Spending is also on the rise on security appliances and software solutions to ensure security of industrial control system networks, critical infrastructure facilities and data centers.
What is pushing industrial cybersecurity market growth?
Rise in government funding and increased spending by organizations to tackle rise in cyber threats will continue to present favorable growth opportunities for the industrial cybersecurity market. The growing adoption of big data, 5G network technology and artificial intelligence in industrial settings will influence market growth in the coming years.
The market will also be impacted by the rising demand for advanced solutions like firewalls, intrusion detection systems and antivirus, as industrial facilities focus on boosting cybersecurity in their units. Routers and Ethernet switches are widely used in industrial cybersecurity market, due to the growing number of security breaches targeting sensitive data in industrial processes and manufacturing operations.
Growing penetration of internet connectivity, trend towards IIoT, continuous advances in connected systems are all driving use of various components for cybersecurity. With incidents of cyberattacks continuing to grow, vendors are focusing efforts on the development of advanced hardware with enhanced security features. Demand for various components will also benefit from the rising number of connected devices and remotely managed industrial systems.