Operational Technology (OT) security refers to securing industrial control systems including supervisory control and data acquisition (SCADA) systems, distributed control systems (DCS), and other control system configurations such as programmable logic controllers (PLC) often found in industries such as manufacturing, transportation, and critical infrastructure. OT security solutions ensure the safety, security, and reliability of control systems by protecting them from cyber threats and vulnerabilities. The global rise in cyberattacks on critical infrastructure has brought the security of OT environments into focus. Ransomware and other malware posing threats to OT networks can disrupt industrial operations and pose safety and environmental risks. These security concerns are driving increased investments in OT security solutions to safeguard industrial control systems from cyberattacks.

The global operational technology security market is estimated to be valued at US$ 15.1 billion in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing cyberattacks on critical infrastructure remain a key driver favoring growth of the operational technology security market over the forecast period. As highlighted in the heading, the uptick in ransomware and other malware targeting OT networks managing critical services like power generation and distribution has heightened security risks. This is prompting infrastructure owners and operators to bolster defenses of their operational environments with dedicated OT security solutions. The adoption of such solutions is further propelled by the growing interconnectivity of operational technologies with other enterprise systems rendering them more vulnerable to cyber threats. Regulatory mandates in some countries also necessitate securing industrial control systems to ensure continuous and safe operations.

Segment Analysis

The operational technology security market is dominated by the network security sub-segment. Network security solutions help secure OT networks from cyber threats by providing network visibility, threat detection and mitigation. As OT networks increasingly get connected to other networks like IT, cloud and internet for remote monitoring and management, the risk of cyber attacks has increased substantially. Network security solutions ensure proper segmentation between OT and other networks to prevent lateral movement of threats. They also offer centralized monitoring and management of OT devices and networks from one place. This has made network security indispensable for operational technology environments.

PEST Analysis

Political: Governments across major countries are introducing regulations and frameworks around critical infrastructure security in industries like oil & gas, manufacturing, energy, utilities etc. to mandate minimum security requirements. This is driving more organizations to invest in operational technology security.
Economic: With increasing instances of ransomware attacks and other cyber incidents disrupting production in process manufacturing industries, the economic costs of downtime and loss of operations are significant. This is compelling industry operators to prioritize security spending for their industrial control systems.
Social: The skills shortage in operational technology security is a major challenge. Most cybersecurity professionals are trained for IT environments while understanding of industrial protocols and control systems requires very different expertise. This is also promoting market growth for vendor solutions.
Technological: The evolving threat landscape targeting critical infrastructure and lack of security in legacy OT systems increases risks. Technologies like AI, analytics are helping gain better visibility into OT networks for early threat detection and prevention of disruptions. Upgradation of aged systems with secure protocols and network segmentation aids security.

Key Takeaways

The global Operational Technology Security Market Growth is expected to witness high growth over the next decade. Network security solutions will continue dominating the market supported by the need to secure industrial IoT and OT networks.

Regional analysis:

North America currently captures the largest share of the operational technology security market supported by stringent regulations around critical infrastructure in industries such as oil & gas, manufacturing, utilities etc. and high awareness among organizations regarding cyber risks to their industrial control systems. Europe is another major region driven by initiatives from cybersecurity organizations to strengthen security of national infrastructure. Asia Pacific is anticipated to experience fastest growth in the OT security market attributed to increasing number of industries adopting industrial automation and growing critical infrastructure in countries such as India, China.

Key players operating in the operational technology security market are Cisco, Honeywell, Kaspersky, CyberArk, Symantec, Rockwell Automation, Schneider Electric and McAfee. These players offer comprehensive OT security solutions including network access control, firewalls, anti-virus, identity & access management and anomaly detection systems tailored for industrial environments.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it