OT Cybersecurity Market to Hit US$21.6 Billion by 2028 as Industrial Sector Boosts Defense Against Rising Cyberattacks

Summary

June 27, 2024 - Industrial operations are increasingly under threat as the industrial world embraces waves of digitization and smart manufacturing trends. Operational Technology (OT) attacks are common, widespread and extremely frequent. In a new report, global technology intelligence firm ABI Research forecasts that the OT cybersecurity market will grow from US$12.75 billion in 2023 to around US$21.6 billion by 2028, with an approximate Compound Annual Growth Rate (CAGR) of 9.2%. Network security and segmentation technologies will grow the most, followed by identity and access management and end-point protection.

“Every industrial sector imaginable is embracing some digitization and 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,” said Michael Amiri, senior industrial cybersecurity analyst at ABI Research.    

Already, there is talk among cybersecurity professionals that OT and Internet of Things (IoT) spending could surpass Information Technology (IT) spending in the future, as the number of laptops, tablets and other IT-related devices has hit a plateau. Amiri explained, “The fact is that OT and IoT devices are just beginning to expand and are far more numerous. An industrial plant could have tens of thousands of sensors, routers and PLCs, all of which must be protected from malicious actors. OT cybersecurity revenues are becoming integral to the overall cybersecurity market.”

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. As a result, demand for these security products is seeing strong growth. 

Furthermore, segmentation technologies play a central role in securing OT traffic. They not only provide cost-effective partitioning but also 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 concluded.

These findings are from ABI Research’s Operational Technology Security Markets market data report. This report is part of the company’s Industrial Cybersecurity research service, which includes research, data and analyst insights.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.