Industrial Cyber Security Solutions and Services Market - Trend, Growth, Forecast 2024–2032

Industrial Cyber Security Solutions and Services Market Synopsis:

Industrial Cyber Security Solutions and Services Market Size Was Valued at USD 16.18 Billion in 2023 and is Projected to Reach USD 43.07 Billion by 2032, Growing at a CAGR of 11.5% From 2024-2032.

Industrial Cyber Security Solutions and Services refer to technologies, practices, and services designed to protect industrial control systems (ICS), operational technology (OT), and critical infrastructure from cyber threats, unauthorized access, and operational disruptions.

In today’s digital age, cybersecurity solutions and services are more important than ever. From protecting the data to ensuring the safety of financial transactions, cybersecurity has become an essential aspect of the industry. As the industry relies increasingly on technology, the need to safeguard digital interactions against threats such as hacking, identity theft, and data breaches becomes critical.

According to the SonicWall Cyber Threat Report 2024 there was an approximate 107% surge in IoT malware attacks during the year. According to the "The State of Ransomware 2024" report by Sophos, ransomware impacted 59% of respondents. Phishing attacks skyrocketed by 4,151% since the public release of ChatGPT in late 2022, as reported by SlashNext in "The State of Phishing 2024." Netscout recorded around 8 million DDoS attacks in the first half of 2024. The IBM/Ponemon Institute report stated that the average total cost of data breaches in 2024 was $4.88 million.

Rising cyber threats force industrial enterprises to boost their cybersecurity funding and this market expansion becomes possible due to these developments. The market demand for advanced cybersecurity solutions strengthens due to evolved of regulatory rules and the Industry security shift making this sector crucial for expansion.

Industrial Cyber Security Solutions and Services Market Growth and Trend Analysis:

AI-Driven Cybersecurity is Crucial as Industry 4.0 Expands, Increasing Cyber Threats and Security Demands.

• Generative AI is expanding capabilities for both attackers and defenders with myriad applications. The organizations in 2024 to explore their transformative impact for compliance, data analysis, and accelerated means of defending against the evolving nature of cyber threats.
• The convergence of IT, operational technology (OT), and Internet of Things (IoT) security. This is expected to standardize IP security and place higher demands on production and product security. As organizations embrace Industry 4.0, there’s a growing emphasis on securing manufacturing processes and IoT devices throughout their lifecycle, and we can expect AI and machine learning to play a crucial role in analyzing the vast amounts of data generated by these interconnected systems.?
• According to the Cyber Crime Statistics, the cost of cybercrimes is projected to reach USD10.5 trillion by 2025. It is said that 80% of reported Cyber Crimes are generally attributed to phishing attacks. At 16% phishing was the 2nd common reason for data breaches and the costliest averaging USD 4.91 million in breach costs.
• The current statistics underscore how crucial it has become for industries to implement sophisticated security protocols. Industrial practices following the Industry 4.0 methodology have transformed production facilities which creates additional opportunities for cyberattacks to occur. Organization leaders now understand that basic security controls are no longer adequate to stop emerging threats which has prompted rapid growth in the cybersecurity solution and services market.

Shortage of Cybersecurity Professionals

• Organizations face an escalating challenge due to the shortage of cybersecurity professionals as modern cyber threats continue to adapt. The rising need for qualified cybersecurity experts intensifies due to economic instability coupled with fast-growing technological advancements. The number of available skilled cybersecurity experts remains too low while education programs fail to produce new talent at a sufficient rate. Organizations continue to suffer from staff shortages which prevents them from achieving their cybersecurity targets.

Convergence of IT, OT, and IoT Security

• Artificial Intelligence and Machine Learning transform cybersecurity by enabling faster and more accurate threat detection. These technologies analyze massive amounts of data to identify unusual patterns and behaviors that might indicate a security threat. For CMS, implementing AI and ML can significantly enhance our ability to detect and respond to threats in real-time, reducing the window of opportunity for attackers or even automating redundant tasks associated with the NIST Risk Management Framework.

Industrial Cyber Security Solutions and Services Market Segment Analysis:

Industrial Cyber Security Solutions and Services Market is segmented based on type, application, end-users, and region

By Type, Network Security segment is expected to dominate the market during the forecast period

• The state of network security is witnessing a remarkable transformation as organizations grapple with the complexities of modern, interconnected environments. The significant trends that are redefining how businesses approach network security, emphasize the critical need for robust, integrated solutions to protect against evolving threats.
• Network security complexity grows mainly due to organizations using various cloud infrastructure combinations including private and public together with their existing on-premises operations. Businesses encounter major challenges while managing security across diverse platforms due to they deal with difficulties in maintaining consistent control and visibility.

• According to the AlgoSec State of Network Security Report 2024, the above graph represents that the increase in network security investment has seen substantial YoY growth which stands at USD 110 Billion in 2024. In summary, Network Security is escalating in investments due to cybersecurity threats resulting in segment domination in the market during the forecast period.

By Application, the Process Industries segment held the largest share in Projected Period

• In the Process industries segment Manufacturing is a key contributor due to the widespread implementation of connected machinery and automation, which raises cybersecurity risks. The energy and utilities sector is also a significant adopter of cybersecurity solutions, given its critical infrastructure status and susceptibility to sophisticated cyberattacks. Increased digitalization in the transportation and oil and gas sectors further contributes to the demand for specialized industrial cyber protection.
• Manufacturers worldwide are being targeted by cybercriminals at an astonishing and increasing rate. The rise in Cyber Attacks is particularly concerning given that it’s occurring during a period of entrenched supply chain bottlenecks. According to the Global Threat Intelligence report Last year, the number of cyberattacks on manufacturers spiked by more than 300%, accounting for 22% of all attacks across all sectors, up from 7% the previous year. The escalating cyber risks pose significant challenges to its operations, security, and overall market stability. Addressing cybersecurity threats in the Process Industries results in the segment's largest share in the Projected Period.

Industrial Cyber Security Solutions and Services Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• North America occupies a noteworthy portion of the Industrial Cyber Security Solutions and Services Market due to it prioritizes critical infrastructure protection using advanced technologies within a framework of strict regulations. The market region holds a substantial share due to industrial sectors including manufacturing and energy facilities along with utilities demanding substantial cybersecurity solutions within their operations.
• US companies alone recorded a record 3,205 data breaches in 2023 (78% more than in 2022), affecting USD 353 million known victims, according to the Identity Theft Resource Center (ITRC). The trend continued into 2024: The number of data breaches increased 14% in the first half, while the number of data breach victims increased 490% to over one billion.
• Even the average cost of a data breach reached an all-time high 2024 of USD 4.9 Million in 2024, up 10% year-on-year, and the highest increase since the pandemic according to IBM. The US had the highest average cost USD 9.36 Million. Rounding out the top five regions and countries were the Middle East, Germany, and Italy.
• Data breaches alongside increasing costs throughout the United States have propelled North America toward higher Industrial Cyber Security Solutions and Services requirement levels. worldwide breaches and financial losses in the U.S. remain at their peak which has made industries commit to implementing advanced cybersecurity protection and artificial intelligence threat detection and compliance protocols to safeguard critical infrastructure Security concerns have made North America into a central market that leads the way for industrial cybersecurity innovation across the region.

Industrial Cyber Security Solutions and Services Market Active Players:

• ABB (Switzerland)
• Armis (USA)
• Claroty (USA)
• Darktrace (UK)
• Dragos (USA)
• Exein (Italy)
• Forescout (USA)
• Fortinet, Inc. (USA)
• Honeywell International Inc. (USA)
• IBM (USA)
• Microsoft (USA)
• Nozomi Networks (USA)
• Other Active Players
• Palo Alto Networks (USA)
• Rockwell Automation (USA)
• SCADAfence (Israel)
• Schneider Electric (France)
• Siemens (Germany)
• Staex (Germany)
• Tenable.io (USA)
• Xage Security (USA)
• Other Active Key Players

Key Industry Developments in the Industrial Cyber Security Solutions and Services Market:

• In September 2024, TCS expanded its partnership with Google Cloud to offer two solutions the TCS Managed Detection and Response solution and the TCS Secure Cloud Foundation solution

These solutions will enhance the threat detection and response capabilities of businesses, even in non-cloud environments, and will help TCS customers create forward-looking and secure businesses

• In November 2024, Accenture (NYSE: ACN) announced new services and capabilities designed to reinvent business and cyber resilience through the power of gen AI, deepfake protection, and quantum-safe data security solutions to help clients across industries become cyber-resilient organizations.