Operational Technology (OT) Security Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 19.63 Billion |
| Market Size (2029) | USD 41.53 Billion |
| CAGR (2024 - 2029) | 16.17 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players.webp "Operational Technology (OT) Security Market Major Players")
*Disclaimer: Major Players sorted in no particular order |
Operational Technology (OT) Security Market Analysis
The Operational Technology Security Market size is estimated at USD 19.63 billion in 2024, and is expected to reach USD 41.53 billion by 2029, growing at a CAGR of 16.17% during the forecast period (2024-2029).
Operational technology encompasses the tools and practices designed to safeguard assets and information, oversee the workforce, and monitor or control physical devices and processes. These technologies can also trigger changes in enterprise OT systems. Solutions for OT security span a diverse array of technologies, including next-generation firewalls, security information and event management systems, and identity access management.
- Given the significance of maintaining industrial process continuity, the value of trade secrets, and the public safety implications of compromising critical infrastructure, both organized crime and state-sponsored entities are increasingly targeting industrial organizations and critical infrastructure. These actors see them as profitable avenues for financial gain, espionage, or cyberwarfare. Consequently, it is imperative for industrial enterprises to embrace innovative strategies and technologies to protect their business secrets, assets, and digital infrastructure.
- Modern industrial control systems have transitioned from traditional physical setups to incorporating IT capabilities, sometimes replacing or enhancing physical controls. Many of these systems, now internet-connected, face vulnerabilities akin to those of any other online system. Consequently, safeguarding these industrial products and manufacturing systems has become imperative to ensure safe start-stop procedures, stable operations, and optimal performance in industrial production.
- With large-scale, continuous, and highly parameterized industrial devices, the need for industrial automation systems continually increases, leading to notable investments in advanced industrial automation and robotics solutions. According to the International Federation of Robotics (IFR), the annual installation of industrial robots is anticipated to reach 718,000 units globally by 2026, from 400,000 units in 2017. As control systems are widely used to support automated and robotic infrastructure, such trends create a favorable ecosystem for the market's growth.
- The surge in connected sensors, IoT devices, and controllers within industrial network infrastructures has heightened security challenges in recent years. This trend has compelled industrial enterprises to channel investments into advanced security solutions. In response to these escalating security concerns, market vendors are rolling out innovative solutions to safeguard industrial infrastructures from cyberattacks. This proactive approach fosters an environment conducive to market expansion. For example, in April 2024, Industrial Defender, known for its operational technology (OT) asset data and cybersecurity solutions tailored for industrial entities, unveiled 'Phoenix,' a cutting-edge OT security solution specifically crafted to cater to the needs of small-to-medium-sized businesses (SMBs).
- However, factors such as the complexity of implementing OT security systems and the high initial cost involved are among the major challenges for the market’s growth. For instance, a support infrastructure such as high-speed connectivity, information and communication networks, and a skilled workforce are required to adopt advanced security solutions, which requires significant investment. This slows down the adoption of OT security solutions, especially in the small and medium business segments.
- Macroeconomic factors significantly influence the evolution of the examined market. For example, the ongoing geopolitical tensions, particularly in Europe and the United States—stemming from disputes like the US-China trade war and the Russia-Ukraine conflict—heighten the risk of cyberattacks. This escalation compels businesses to channel investments into sophisticated security solutions.
Operational Technology (OT) Security Market Trends
Cloud Segment to Hold a Significant Market Share
- Industries and businesses are increasingly adopting technologies like artificial intelligence, cloud computing, edge computing, machine learning, and IoT. Many industry leaders are integrating IIoT into their operations to drive business expansion. Government initiatives, including 'Make in India' and 'Industry 4.0', are raising awareness about the advantages of these advanced technologies, fostering a conducive environment for the uptake of cloud-based services.
- Cloud-based OT solutions offer numerous advantages, such as enabling real-time monitoring and analyzing security events within the OT environment. Such timely insights are vital for identifying and addressing threats before they become significant security incidents. Implementing a cloud-based security solution is more straightforward and demands less time and resources than conventional methods. Teams can concentrate on essential security responsibilities with the cloud service provider managing maintenance, updates, and patches.
- Strategies such as Zero Trust, the shared-responsibility model of cloud security, and platform-based cloud security have significantly bolstered security across all tiers—data, application, device, and platform. Additionally, APIs (application programming interfaces) empower manufacturers to swiftly scale their strategies, rendering cloud systems perpetually adaptable to their evolving needs and accelerating adoption.
- As the number of cyberattacks on critical industrial and commercial infrastructure continues to increase, unique features of cloud-based solutions, especially their flexibility and scalability, are anticipated to drive their adoption during the forecast period. For instance, according to IBM, in 2023, the manufacturing sector witnessed the highest number of cyberattacks (25%).
Asia-Pacific to Witness Significant Growth
- As advanced digital technologies gain traction in Asia-Pacific, the adoption of operational technology (OT) security solutions is anticipated to surge. The region's expanding commercial and industrial infrastructure further bolsters this growth. With numerous multinational companies operating online and on-premises, the risk of cyber-attacks escalates. Consequently, this heightened risk presents lucrative opportunities for cybersecurity and OT security firms to cater to the diverse needs of these businesses.
- In China, initiatives like digitization and Industry 4.0 are driving a surge in automation across various sectors. These initiatives emphasize the need for innovative solutions, such as robots and advanced control systems, to refine production processes. Bolstered by state investments in factories, infrastructure, and machinery, China's robust manufacturing capabilities have fueled its impressive economic growth.
- The Chinese government is ramping up its focus on cybersecurity and data protection in response to the evolving manufacturing landscape. A notable move came in January 2024 when the Ministry of Industry and Information Technology rolled out guidelines for Cybersecurity Protection in Industrial Control Systems. These guidelines tackle key security vulnerabilities, bolster technical response strategies, and enhance the industry's defenses against network security threats. They also boost threat detection and response capabilities, ensuring a safer operational environment for the industry.
- India is witnessing rapid digitization and industrialization. Recognizing the importance of safeguarding critical infrastructure, the Indian government has ramped up efforts to bolster cybersecurity in the industrial sector. The government aims to fortify the nation's cybersecurity stance through initiatives like the National Cyber Security Policy and the formation of Computer Emergency Response Teams (CERTs). Regulatory frameworks and standards, including the Indian Electricity Grid Code and the Industrial Automation System Security Guidelines, enforce security measures in industrial control systems.
- Given the promising growth prospects, market vendors are intensifying efforts to bolster their presence. For instance, Fortinet, a global frontrunner in cybersecurity, is at the forefront of merging networking with security. Recently, the company underscored its dedication to enhancing security in the operational technology (OT) and critical infrastructure (CI) sectors. This commitment was highlighted by their announcement of new leadership, which is expected to steer OT and CI cybersecurity initiatives across Asia-Pacific.
Operational Technology (OT) Security Industry Overview
The operational technology (OT) market is fragmented, featuring a mix of small, medium, and large enterprises. As OT solutions gain traction, they are drawing in new players, intensifying competition among vendors. In response to this heightened competition, vendors are employing diverse strategies, such as developing new products, expanding their reach, and pursuing mergers and acquisitions. Notable players in the market include IBM Corporation, Honeywell International Inc., Cisco, and Rockwell Automation.
- August 2024: Fortinet, a global leader in cybersecurity, is at the forefront of merging networking with security. The company recently unveiled updates to its OT security platform. These enhancements bolster secure networking and security operations (SecOps) for customers and deepen Fortinet's collaborations with top OT vendors.
- April 2024: Critical Start, a leading provider of Managed Detection and Response (MDR) cybersecurity solutions and Managed Cyber Risk Reduction (MCRR), announced the imminent launch of its Critical Start Managed Detection and Response (MDR) services tailored for Operational Technology. The Critical Start MDR for OT offers a robust and adaptable service, merging specialized OT threat detection with the capability to utilize a client's current infrastructure and tools. By ingesting security-relevant logs, the service aims to tackle the distinct challenges encountered by industrial organizations.
Operational Technology (OT) Security Market Leaders
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IBM Corporation
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Cisco Systems Inc.
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Honeywell International Inc.
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Fortinet Inc.
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Rockwell Automation
*Disclaimer: Major Players sorted in no particular order
Operational Technology (OT) Security Market News
- April 2024: Darktrace, a global frontrunner in cybersecurity AI, unveiled its latest offering: the Darktrace ActiveAI Security Platform. This platform integrates Darktrace's established security solutions and introduces a suite of groundbreaking innovations, particularly tailored for email and operational technology. Leveraging the power of AI, the platform aims to shift security operations from a reactive stance to a proactive one, thereby bolstering cyber resilience.
- March 2024: Mitsubishi Electric Corporation signed a deal with Nozomi Networks Inc., a key player in operational technology (OT) security solutions. The collaboration aims to advance OT security initiatives, encompassing marketing and technical development. Under this agreement, Mitsubishi Electric acquired an equity stake in Nozomi Networks. The integration will see Mitsubishi Electric's factory automation equipment and OT security solutions melded with Nozomi Networks' advanced OT network visualization and intrusion detection technologies. The goal is to forge OT security solutions that bolster security and ensure uninterrupted system operations.
Operational Technology (OT) Security Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Force Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Analysis of COVID-19 Aftereffects and Other Macroeconomic Trends on the Market
- 4.5 Analysis of Cybersecurity Strategies and Regulations Influencing the OT Security Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growing Proliferation of Digital Technologies are Driving the Requirement for Operational Technology Security
- 5.1.2 Increasing Instances of Cyberattacks
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5.2 Market Restraints
- 5.2.1 High Cost Involved
- 5.2.2 Lack of Skilled Workforce
6. MARKET SEGMENTATION
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6.1 By Component
- 6.1.1 Operational Technology (OT) Solutions
- 6.1.2 Operational Technology (OT) Services
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6.2 By Deployment
- 6.2.1 On-premise
- 6.2.2 Cloud
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6.3 By End-user Vertical
- 6.3.1 Automotive
- 6.3.2 Chemical and Petrochemical
- 6.3.3 Power and Utilities
- 6.3.4 Pharmaceuticals
- 6.3.5 Food and Beverage
- 6.3.6 Oil and Gas
- 6.3.7 Other End-user Verticals
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6.4 By Geography
- 6.4.1 North America
- 6.4.1.1 United States
- 6.4.1.2 Canada
- 6.4.2 Europe
- 6.4.2.1 United Kingdom
- 6.4.2.2 Germany
- 6.4.2.3 France
- 6.4.3 Asia-Pacific
- 6.4.3.1 China
- 6.4.3.2 India
- 6.4.3.3 Japan
- 6.4.4 Latin America
- 6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 IBM Corporation
- 7.1.2 Cisco Systems Inc.
- 7.1.3 Fortinet Inc.
- 7.1.4 Honeywell International Inc.
- 7.1.5 Broadcom Inc.
- 7.1.6 Darktrace Holding Limited
- 7.1.7 Check Point Software Technologies Ltd
- 7.1.8 Microsoft
- 7.1.9 AO Kaspersky Lab
- 7.1.10 Palo Alto Networks
- 7.1.11 Nazomi Networks
- 7.1.12 Rockwell Automation
- 7.1.13 Thales Group
- 7.1.14 Siemens
- 7.1.15 General Electric
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
** Subject To AvailablityOperational Technology (OT) Security Industry Segmentation
Operational technology (OT) security addresses the distinct security requirements of OT settings, which encompass safeguarding system availability, comprehending OT-specific protocols, and thwarting attacks aimed at the legacy systems prevalent in OT environments.
The study thoroughly analyzes the trends and dynamics surrounding industrial operational technology solutions. Market estimations are based on the revenue generated by vendors in this sector. The study examines how macroeconomic factors influence the market, allowing for more accurate estimates.
The operational technology (OT) security market is segmented by component (operational technology solutions, operational technology services), deployment (on-premise, cloud), end-user vertical (automotive, chemical and petrochemical, power and utilities, pharmaceuticals, food and beverage, oil and gas, and other end-user verticals), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Component | Operational Technology (OT) Solutions | |
| Operational Technology (OT) Services | ||
| By Deployment | On-premise | |
| Cloud | ||
| By End-user Vertical | Automotive | |
| Chemical and Petrochemical | ||
| Power and Utilities | ||
| Pharmaceuticals | ||
| Food and Beverage | ||
| Oil and Gas | ||
| Other End-user Verticals | ||
| By Geography | North America | United States |
| Canada | ||
| By Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| By Geography | Latin America | |
| Middle East and Africa |
Operational Technology (OT) Security Market Research FAQs
How big is the Operational Technology Security Market?
The Operational Technology Security Market size is expected to reach USD 19.63 billion in 2024 and grow at a CAGR of 16.17% to reach USD 41.53 billion by 2029.
What is the current Operational Technology Security Market size?
In 2024, the Operational Technology Security Market size is expected to reach USD 19.63 billion.
Who are the key players in Operational Technology Security Market?
IBM Corporation, Cisco Systems Inc., Honeywell International Inc., Fortinet Inc. and Rockwell Automation are the major companies operating in the Operational Technology Security Market.
Which is the fastest growing region in Operational Technology Security Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Operational Technology Security Market?
In 2024, the North America accounts for the largest market share in Operational Technology Security Market.
What years does this Operational Technology Security Market cover, and what was the market size in 2023?
In 2023, the Operational Technology Security Market size was estimated at USD 16.46 billion. The report covers the Operational Technology Security Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Operational Technology Security Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Operational Technology (OT) Security Industry Report
Statistics for the 2024 Operational Technology (OT) Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Operational Technology (OT) Security analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
