Operational Technology OT Security Market Size, Share, Opportunities, And Trends By System Type (Industrial Control System (ICS), Supervisory Control And Data Acquisition (SCADA), Industrial Internet Of Things (IIOT), Others), By Technology (Next-Generation Firewall (NGFW), Security Information And Event Management System (SIEM), Others), By Component (Hardware (Networking Equipment, Embedded Control Devices, Others), Software), By End User (Manufacturing, Oil & Gas, Utilities, Aviation, Others), And By Geography - Forecasts From 2023 To 2028

The operational technology (OT) security market is predicted to grow at a constant rate during the forecast period.

Operational Technology (OT) security aims to identify and manage security threats in industrial and critical infrastructure environments. It safeguards operational technology systems from cyber-attacks, data breaches, and other threats. Key drivers of this market include the growing integration of OT systems with IT networks and escalating cybersecurity concerns which are targeting various industrial sectors namely energy, manufacturing, and science and engineering.

Advancement in the energy and power sector bolsters the operational technology (OT) market growth.

The energy and power vertical within OT security is expected to exhibit the highest growth rate, driven by regulatory demands, and increased cyber threats. The Colonial Pipeline cyberattack in May 2021 highlighted vulnerabilities in critical infrastructure, emphasizing the need for improved cybersecurity measures. The attack disrupted the delivery of petroleum products across the southeastern United States. Vulnerabilities include both physical attacks and cyberattacks, such as ransomware, which were used in the Colonial Pipeline attack. To address these challenges, it is crucial to strengthen federal oversight, enhance cybersecurity strategies, and implement recommendations to safeguard critical infrastructure.

Favorable government initiatives drive the operational technology market expansion.

Governments worldwide are increasingly recognizing the significance of operational technology (OT) security and are taking various initiatives to encourage the adoption of OT security solutions. These efforts include regulations, funding, public-private partnerships, and awareness campaigns. For instance, in April 2023, the European Union adopted a proposal for its EU Cyber Solidarity Act, which aimed to bolster cybersecurity abilities in the region. Likewise, various initiatives undertaken by the Indian government namely “Cyber Surakshit Bharat”, “Cyber Swachhta Kendra”, and “Cyber Jakrukta Divas” has enabled the country to counter growing cyber threats.

Increasing cyber-attacks fuel the operational technology (OT) security market growth.

The operational technology (OT) security industry is experiencing substantial growth due to a surge in cyberattacks, particularly targeting critical infrastructure like power plants and transportation systems. These attacks pose significant risks, including power outages and transportation disruptions. Consequently, organizations are putting more emphasis on OT security solutions to safeguard these vital assets. For instance, in July 2022, the Dubai Electronic Security Center (DESC) conducted a cybersecurity training exercise involving 18 government and private sector entities. This initiative, part of the Cyber Node program, aims to bolster cybersecurity readiness by simulating real-world cyberattack scenarios, involving key players like Dubai Police and Dubai Electricity and Water Authority (DEWA).

North America is projected to dominate the operational technology security market.

North America is projected to be the leader in the operational technology security market. Major economies in the region particularly the United States are increasing investment in critical infrastructure and emerging automation which is acting as a major driving factor for the market growth. The Federal Budget provides $245 million in discretionary budget authority for 2024 to enhance the security of clean energy technologies and the energy supply chain. The Budget also includes increased assistance to States, local governments, Tribes, and Territories for emergency planning and preparation, including for events caused by the impacts of cyber-attacks. These initiatives underscore the United States' commitment to strengthening its cybersecurity and resilience in a changing landscape.

Complexity may restrain the operational technology (OT) security market growth.

Securing operational technology (OT) systems is a tough task due to their complexity. These systems involve different technologies, configurations, equipment, and unique ways of communicating. It needs experts who understand both OT and cybersecurity because OT works in real-time and controls important processes.

Key Developments

• August 2023: Schneider Electric introduced Managed Security Services (MSS) to assist operational technology (OT) environments in addressing the growing cyber risks associated with remote access and connectivity demands. MSS leverages Schneider Electric's Cybersecurity Connected Service Hub (CCSH) to deliver flexible cybersecurity services for monitoring threats and taking proactive measures on behalf of customers. It is designed to provide specialized cybersecurity support to companies, particularly those in OT sectors, across various industries. The MSS solution monitors known risks and safeguards IT, OT, and cloud environments, offering vendor-agnostic adaptability and real-time threat mitigation with the help of machine learning and trend analysis.
• April 2023: Industrial Defender launched Phoenix, an operational technology (OT) security solution designed for small and medium-sized businesses (SMBs). Phoenix aims to provide visibility into all OT assets and associated cyber risks, offering a cost-effective and easily deployable solution. It addresses the growing cyber threats against industrial organizations, including SMBs, which are increasingly targeted due to limited resources. Phoenix offers an automated view of OT assets, including device details, software, user accounts, and configuration information.

Company Products

• Zero Trust OT security solution: Palo Alto Networks’ Zero Trust OT Security solution for operational technology (OT) environments utilizes AI to provide granular visibility and inline security for OT assets, recognizing hundreds of unique OT device profiles and over 1,000 OT/industrial control system applications. It also offers hundreds of distinct OT threat signatures to protect sensitive assets from sophisticated threats. The solution aims to simplify OT security by providing centralized management of consistent Zero Trust policies for various OT use cases, including remote access and 5G-connected devices.
• FortiPAM: FortiPAM is a Privileged Access Management solution that focuses on providing secure remote access for both IT and OT (Operational Technology) ecosystems. This release emphasizes enterprise-grade privileged access management, allowing organizations to regulate and monitor access to critical assets. It achieves this through workflow-based access approvals and session video recording, enhancing security and accountability in managing privileged access to sensitive resources.

Segmentation

• By System Type
  • Industrial Control System (ICS)
  • Supervisory Control and Data Acquisition (SCADA)
  • Industrial Internet of Things (IIOT)
  • Others
• By Technology
  • Next-Generation Firewall (NGFW)
  • Security Information and Event Management System (SIEM)
  • Others
• By Component
  • Hardware
    • Networking Equipment
    • Embedded Control Devices
    • Others
  • Software
• By End User
  • Manufacturing
  • Oil & Gas
  • Utilities
  • Aviation
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Other