The operational technology or OT is combination of both hardware and software which is used to control and monitor devices, physical processes, and infrastructure. Operational technology can be found in various asset-intensive sectors, performing wide range of task from operating robots on the manufacturing site to monitoring critical infrastructure. There are various industries, which are adopting operational technology solutions including power generation & electrical, manufacturing, transportation & logistics, ·mining, and others. The demand for operational technology is expected to increase over the forecast period. The growth is primarily attributed to increasing number of cyber attacks on the OT systems.
The global operational technology security market is segmented into component, industry, and region. On the basis of component, the market is segmented into solution and services. Among which, solution segment generated the largest revenue in 2020. The solution segment is further segmented into OT endpoint security, OT network segmentation, anomaly detection, incident response and reporting, and others; whereas, services segment is segmented into professional services and managed services. Professional service segment is further segmented into consulting services, deployment and implementation services, and other support services. Furthermore, on the basis of industry, the global operational technology security market is segmented into power generation & electrical, manufacturing, transportation & logistics, mining, oil & gas, and others (water treatment, aerospace & defence, healthcare, etc.). Among which, power generation & electrical segment generated highest revenue in 2020. On the basis of region, the global operational technology security market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa.
The global operational technology security market is expected to witness significant growth during the forecast period (2021–2028) due to increasing number of cyber attacks
In the past, Information technology (IT) and Operational Technology (OT) networks operated individually. OT systems mostly run on the legacy software and are inaccessible from open network. As the adoption of Industry 4.0 is rapidly increasing, the technological gap between IT and OT systems is rapidly reducing. OT with open system enables organizations to manage overall plant process remotely, allowing companies to achieve higher efficiency and productivity. However, as industrial systems become more connected, they are increasingly becoming exposed to vulnerabilities.
A cyber-attack on the system can cause serious damages in terms of equipment, loss of reputation, leaking sensitive company data and information, in worst case it can damage lives of citizens. For instance, in August 2017, there was a cyber-attack on the Middle East’s petrochemical facilities. The hackers attacked safety instrumented systems (SIS), a system designed to protect the humans. The primary aim of this attack is to disturb the overall industrial process. Furthermore, in June 2017, there was a cyber-attack on the Ukraine power grid, the hackers managed to take control of the Supervisory control and data acquisition or SCADA system and managed to disrupt the power supply to end users.
Thus, the rapidly increasing adoption of Industry 4.0 and increasing number of cyber-attacks on the OT networks is expected to drive the demand for operational technology security during the forecast period.
The major factor restraining growth of the global operational technology security market is lack of awareness and high cost of operational technology security. Although the demand for operational technology security solution is rapidly increasing, the factors such as lack of awareness among the consumers, high implementation cost may hamper the growth during the forecast period. In the past, IT and OT were monitored and controlled by different individual departments however, currently, the technological gap between the two is reducing drastically. Many companies fail to acknowledge this major shift in the OT. According to IBM, a U.S.- based technology company, 74% of organization do not have OT risk assessment, 78% companies do not have OT specific security policies, and 81% businesses do not have OT specific response plan. Furthermore, investing in OT related solutions is time consuming and expensive process, where staffs need continuous training with rapidly changing nature of attacks. Thus, lack of awareness among the consumers and high implementation cost may hamper the growth during the forecast period.
|Base Year:||2020||Market Size in 2020:||US$ 14,803.2 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||7.7%||2028 Value Projection:||US$ 26,518.7 Mn|
Accenture plc, Belden Inc., Cisco Systems, Inc., Claroty Ltd., CyberX, Cyberbit, Darktrace, Deloitte Touche Tohmatsu Limited, Bayshore Networks, Hitachi Systems Security Inc., Fortinet, Inc., OTORIO Ltd., IBM Corporation, Dragos, Inc., Indegy, IOActive Inc., Kaspersky Lab, Leidos, Thales Group, TÜV SÜD, Wurldtech Security Technologies Inc., Honeywell International Inc. (NextNine Ltd.), Nozomi Networks Inc., and NCC Group.
|Restraints & Challenges:||
Global Operational Technology Security Market - Impact of Coronavirus (Covid-19) Pandemic
The outbreak of COVID-19 has significantly affected all the industries globally. This led to significant effects on economic growth and governments had to shut down commercial as well as educational sectors for a specific period. To combat COVID-19 pandemic, most of the countries had implemented lockdown, and are now easing it phase-wise and industry wise.
The global OT security market witnessed strong growth in pre-COVID era, however, COVID disturbed that trend. Many industries such as manufacturing, chemical and petrochemical, and others are forced to close their business which drastically effected their overall revenue. Thus, many organizations are planning to postpone non-essential investments. Furthermore, due to social distancing and lockdown, ongoing implementation period for OT security has increased.
North America held dominant position in the global operational technology security market in 2020
North America held dominant position in the global operational technology security market in 2020, accounting for 40.8% share in terms of value, followed by Europe and Asia-Pacific, Latin America, Middle East and Africa.
Figure 1: Global Operational Technology Security Market Share (%), By Region, 2020
Over the forecast period, North America is expected to account for the largest market share in the global operational technology security market. The regulatory compliances are adopted by several governments to protect data from cyber threats and this is increase the adoption of operational technology (OT) security solutions.
In North America, governments of countries have formed regulations and associations such as United States Department of Homeland Security, Department of Defense Information Assurance Certification and Accreditation Process (DIACAP), and The National Strategy and Action Plan issued by Public Safety Canada to ensure and enforce reliability standards and national security across the countries’ critical infrastructures. These agencies help to enhance the security and resilience of physical and cyber infrastructures.
Power generation & electrical segment is expected to drive the market growth during the forecast period.
Among industry, the power generation and electrical segment is expected to hold dominant position in the global operational technology security market during the forecast period. The benefit of operational technology supports convergence of its infrastructure with IT network and results in improved operational efficiency
The digital transformation has increased the need of operational technology security in power generation & electrical segment. One such example is electrical grids are increasingly becoming smarter and more connected. Moreover, big data analytics and IoT technologies are used in smart grid.
A smart grid is an electricity network enabling a two way flow of electricity and data with digital communications technology.
Figure 2: Global Operational Technology Security Market Value (US$ Mn) Analysis and Forecast, 2017 - 2028
The global operational technology security market was valued at US$ 14,803.2 Mn in 2020 and is expected to reach US$ 26,518.7 Mn by 2028 at a CAGR of 7.7% between 2021 and 2028.
Major players operating in the global operational technology security market include Accenture plc, Belden Inc., Cisco Systems, Inc., Claroty Ltd., CyberX, Cyberbit, Darktrace, Deloitte Touche Tohmatsu Limited, Bayshore Networks, Hitachi Systems Security Inc., Fortinet, Inc., OTORIO Ltd., IBM Corporation, Dragos, Inc., Indegy, IOActive Inc., Kaspersky Lab, Leidos, Thales Group, TÜV SÜD, Wurldtech Security Technologies Inc., Honeywell International Inc. (NextNine Ltd.), Nozomi Networks Inc., and NCC Group
Operational technology is used to monitor and control various devices, physical processes, and infrastructure. The OT uses both hardware and software combination to monitor the equipment. There are large numbers of industries which rely upon OT for security; including power generation & electrical, manufacturing, transportation & logistics, ·mining, and others.
The global operational technology security market is expected to grow significantly during the forecast period. The adoption of advanced technology such as Machine Learning (ML), Artificial intelligence (AI) is a major trend in the global operational technology security market. The companies are rapidly adopting these technologies to reduce the time required to respond to a particular cyber threat. The OT security solution equipped with machine learning and AI are provided with large volume of data base which helps machines to quickly learn and distinguish between various types of security threats such as malware, virus, and others and protect the infrastructure.
Thus, considering the benefits offered by these technologies various key players in the market are integrating ML and AI technologies in their products. For instance, in June 2019, Cyber X, Inc., a U.S.-based software company and subsidiary of Microsoft Corporation, launched Ganymede, an advanced automated threat extraction platform for IoT/ICS/OT solution. The Ganymede integrated with machine learning technology is used to identify malware and Advanced Package Tool (APT).
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.