Critical infrastructure protection market

Market Size and Trends

The Critical Infrastructure Protection (CIP) market is estimated to be valued at USD 139.72 Bn in 2024 and is expected to reach USD 186.32 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.

The Critical Infrastructure Protection (CIP) Market is expected to grow steadily over the forecast period. Increasing instances of cyber threats targeting critical infrastructures along with growing adoption of Internet of Things and industrial control systems have increased security concerns among various organizations. Furthermore, favorable government regulations and standards regarding infrastructure security along with increasing investments by industry players to develop advanced CIP solutions are some key factors expected to drive the demand for CIP systems over the coming years. Innovations to integrate advanced technologies like AI, Blockchain, and big data analytics into CIP offerings are anticipated to present lucrative opportunities for vendors. However, factors such as perceived high costs of deploying CIP systems and lack of skilled security professionals are expected to pose a few challenges to the growth of this market.

Rising Cyber Threats

The increasing frequency and sophistication of cyber threats poses serious risks to critical infrastructure facilities and operations around the world. Hostile state actors and terrorist groups have demonstrated repeatedly their ability and intent to disrupt essential services like power grids, transportation networks, water supplies, and others through cyber means. Even seemingly minor outages or disruptions could endanger public safety and health on a large scale. Infrastructure owners and government agencies recognize that the traditional approaches to security are no longer sufficient to counter evolving cyber dangers. Advanced persistent threats continuously probe for vulnerabilities across vast digital assets, making complete prevention nearly impossible. A robust critical infrastructure protection strategy demands new solutions optimized for detection, response, and resilience against both known and unknown cyber threats.

In May 2023, the U.S. Cybersecurity & Infrastructure Security Agency (CISA) disclosed the Ransomware Vulnerability Warning Pilot (RVWP) program. This pilot is designed to assist in securing critical infrastructure organizations, enabling them to fortify their systems against ransomware threats. The RVWP initiative focuses on providing timely updates on potential attack targets, empowering security teams to take prompt action.

Market Concentration and Competitive Landscape

Operational Technology Integration

Traditionally, operational technology (OT) systems that monitor and control physical infrastructure functions ran on isolated networks with proprietary protocols, leaving them relatively sheltered from main IT domains and the internet at large. However, the adoption of industrial internet-of-things, cloud services, artificial intelligence and other digital innovations is driving an unprecedented convergence of Information Technology and Operational Technology environments. The integration aims to deliver benefits such as remote monitoring, predictive maintenance, automated workflows, and data-driven optimization of infrastructure performance. While unlocking new capabilities, the merging of IT and OT also significantly widens the vulnerable attack surface. Legacy OT equipment designed without modern cybersecurity practices must now interface with IT systems continually confronting advanced digital threats. Even minor flaws, poor configurations, or lack of automated protections on OT endpoints could provide unauthorized access at the core of critical operations. Given lives and national interests depend on seamless services, infrastructure entities must take decisive steps to erect digital firewalls separating sensitive control systems from public networks while enabling secure two-way data flows between IT and OT domains. Consistent security practices, upgraded equipment, and multi-layered protections must defend the connection points every step of modernizing infrastructure control through connected technology.

In June 2023, McAfee Corp., a global online security provider, introduced McAfee Business Protection in collaboration with Dell Technologies. This comprehensive security solution is designed for small business owners and helps them safeguard against cyber threats and vulnerabilities. The features include award-winning security, identity and dark web data monitoring, VPN services, web protection for secure browsing, and others. The partnership with Dell Technologies aims to provide robust security solutions tailored for the needs of small businesses.

Market Challenges: Cybersecurity Vulnerabilities in Interconnected Infrastructure

The Critical Infrastructure Protection (CIP) Market faces several challenges. As infrastructure becomes more interconnected and reliant on technology, it grows more vulnerable to cyber threats which are increasingly sophisticated. Maintaining security across vast networks of utilities, transportation, and other vital systems is an immense undertaking. Limited budgets for upgrades can hamper the implementation of needed protections.

Market Opportunities: Rising Demand for CIP Solutions in the Era of Digital Transformation

The necessity of CIP solutions will only increase as digital transformation continues. More investment will be demanded to bolster resilience against threats. Emerging technologies from AI and IoT can enhance detection capabilities if incorporated properly. Partnerships between governments and businesses continue developing to leverage collective strengths. 

Insights By Component - Increasing Digitalization Powers the Solutions Segment

In terms of component, solution is expected to contribute the highest share of 54.6% in 2024, in the market owing to the rising needs for network security, cloud computing, and integrated systems across critical infrastructure sectors. As industries increasingly rely on digital technologies, physical assets, and operational processes are becoming interconnected through novel IT and OT systems. This growing digital transformation of utilities, transportation networks, healthcare facilities, and other lifeline services has amplified their cyber exposure and surfaced new vulnerabilities. As a result, there is a pressing demand for multifaceted security solutions that can provide robust monitoring, detection and response capabilities at scale. Leading solution vendors have responded by developing intelligent platforms that leverage automation, analytics and artificial intelligence to continuously assess risk, strengthen access controls and enable rapid remediation of threats. Comprehensive solutions allowing for centralized protection and governance of hybrid environments have seen the strongest uptake.

Insights By Security Type- Prioritizing Application Security Amid Complex Threat Landscapes

Among the security types, application security is expected to contributes the highest share of 21.8% in 2024, to the market due to the critical reliance of modern operations on software and applications. As digital services become more personalized and data-driven, there is an ever-expanding attack surface for bad actors to target. Applications containing vulnerabilities can now be weaponized to disrupt entire systems and steal sensitive operational and customer data. Moreover, the use of third-party software components introduces additional risks owing to long patching cycles and unknown exploits. As a result, keeping applications secure through measures like authorization management, input validation, encryption, and patching has become a top priority. Leading vendors in this segment provide application scanning, code review and runtime protection capabilities tailored for safety-critical infrastructure environments with stringent reliability requirements.

Insights By End-use Industries- Securing Digital Transformation in IT & Telecommunications

Among end-use industries, IT & telecommunications is expected to contribute the highest share of 24.7% in 2024 to the Critical Infrastructure Protection (CIP) market. This is because digital networks form the backbone for all modern communication systems and are prime infrastructure sectors undergoing digital transformation themselves. Next-generation technologies like 5G, edge computing, and IoT have ushered unprecedented levels of connectivity but also multiplied entry points for cyberattacks. Ensuring network performance and resilience has become mission-critical for telecom operators. Additionally, as more industrial control takes place over public networks, utility firms also rely heavily on telecom infrastructure. Thus, application security, cloud security, and other solutions play a prominent role in bolstering the cyber defences of these foundational industries and enabling their innovation initiatives while mitigating new risks.

Regional Insights

North America is expected to be dominant region in the Critical Infrastructure Protection (CIP) market with 37.34% share in 2024, in the market. This is because many key players operating in the CIP space have their headquarters located in countries like the U.S. and Canada. They have pioneered several technologies and solutions for protecting critical infrastructure from various threats like cyber-attacks, terrorism, and natural disasters. In addition, governments in the region like the U.S. have allocated sizable budgets on initiatives aimed at strengthening CIP capabilities. Organizations across sectors like energy, utilities, transportation and manufacturing have also proactively invested in advanced CIP solutions to boost the security of their assets and operations.

The Asia Pacific region has emerged as the fastest growing market for CIP globally with CAGR of 5.34%. Rapid industrialization and urbanization have led to vast infrastructure development across nations like China, India, and Japan. This has also brought cyber and physical security challenges that demand robust CIP systems. Further, frequent natural calamities in the region have highlighted the need for building resilient infrastructure. Governments are actively working with international players to transfer CIP technologies and best practices. Local companies are also launching innovative and cost-effective solutions tailored for the Asia Pacific landscape. The large and rapidly developing economies provide a lucrative customer base for CIP vendors looking to expand their footprint. Export/import channels are enabling Asia Pacific countries to access CIP hardware and software from global as well as neighboring markets. 

Market Report Scope

Key Developments

• In October 2023, GHD Digital introduced its Cyber Critical Infrastructure and Risk Centre of Excellence (CoE). This initiative is crafted to safeguard organizations, their crucial systems, and sensitive data from the escalating risk of cyber-attacks.
• In September 2023, Ericsson and Google Cloud expanded their partnership to create an advanced Ericsson Cloud RAN solution on Google Distributed Cloud (GDC). This collaboration aims to provide communication service providers (CSP) with integrated automation and orchestration, utilizing AI/ML for added benefits. GDC is a fully-managed hardware and software package that extends Google Cloud services to the edge and data centers. The deployment of Ericsson Cloud RAN on GDC Edge facilitates a highly efficient, reliable, and secure software-centric radio access network infrastructure, offering automation on a large scale.
• In February 2023, Northrop Grumman shared news about the launch of its Electronically Scanned Multifunction Reconfigurable Integrated Sensor (EMRIS), a cutting-edge ultra-wideband sensor, which is now undergoing integration and testing. These advanced sensors, like EMRIS, empower military personnel to make quicker decisions and collaborate effectively.
• In December 2022, Hexagon AB made a significant move by acquiring Qognify, a top-tier provider of software solutions for physical security and enterprise incident management. Qognify’s Video Management Software (VMS) utilizes video analytics from cameras and cloud technology to offer a unified video monitoring solution.
• In December 2020, Fortinet made strides in enhancing security for customers using Amazon Web Services. It announced new integrations to deliver advanced security solutions across cloud platforms, applications, and networks. Fortinet’s cloud-security offerings, including the virtual next-generation firewall FortiGate VM and web application firewall FortiWeb, leverage AWS to provide customers with comprehensive application visibility and centralized management.

*Definition: The Critical Infrastructure Protection (CIP) market provides security solutions and services to safeguard vital assets, facilities, systems, and networks that define a nations critical infrastructure sectors. This includes threat detection and monitoring capabilities, vulnerability assessments, and risk management services to help critical infrastructure owners and operators better defend against cyber threats, physical security threats, and other risks that could disrupt vital services or cause mass casualties. CIP solutions aim to strengthen the resilience of sectors like energy, water, transportation, and health care.

Market Segmentation

•  Component Insights (Revenue, USD BN, 2019 - 2031)
  • Solution
    • Hardware
    • Software
  • Services
    • Professional Services
    • Managed Services
•  Security Type Insights (Revenue, USD BN, 2019 - 2031)
  • Application Security
  • Cloud Security
  • Critical Network Security
  • Supply Chain Security
  • Endpoint Management
  • Others
• End-use Industry Insights (Revenue, USD BN, 2019 - 2031)
  • IT & Telecommunications
  • BFSI
  • Government and Defence
  • Healthcare and Public Health
  • Manufacturing
  • Oil & Gas
  • Others
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • BAE Systems
  • Symantec Corporation
  • General Dynamics Corporation
  • McAfee, Inc.
  • Honeywell International Inc
  • Thales Group
  • IBM Corporation
  • Lockheed Martin Corporation
  • Robert Bosch
  • Northrop Grumman Corporation
  • Axis Communications
  • Raytheon Company
  • Huawei Technologies IBMCo., Ltd.
  • Airbus Group S.E.
  • Motorola Solutions, Inc
  • Hexagon AB
  • OptaSense
  • Johnson Controls International PLC
  • 3x Logic