The operations technology (OT) cybersecurity market is expected to grow at a 9.2% compound annual growth rate (CAGR) from $12.75 billion in 2023 to about $21.6 billion by 2028, according to the “Operational technology security markets” study released on June 24 by ABI Research.
ABI reports waves of digitization and smart manufacturing are making cyber-attacks on OT common, widespread and frequent. Consequently, its research indicates that network security and segmentation technologies will grow the most, followed by identity and access management and endpoint protection.
“Every industrial sector is embracing some digitization and concept of Industry 4.0. As a result, the potential for cyber-threats has increased, prompting a growing demand for robust defensive measures,” says Michael Amiri, senior industrial cybersecurity analyst at ABI. “This market has considerable capacity for expansion.”
ABI speculates OT and Internet of Things (IoT) spending could surpass information technology (IT) spending in the future because the number of laptops, tablet PCs and other IT-related devices has hit a plateau. “The fact is that OT and IoT devices are just beginning to expand and are far more numerous,” explains Amiri. “An industrial plant could have tens of thousands of sensors, routers and PLCs, all of which must be protected from malicious actors. OT cybersecurity revenues are becoming integral to the overall cybersecurity market.”
Amiri reports that demand has grown for technologies that secure OT networks because they’ve been enhanced with artificial intelligence (AI) and behavioral traffic analysis to detect and respond to OT-specific network threats. However, ABI expects segmentation technologies that secure OT traffic will still generate the most revenue in the OT cybersecurity market. This is because they not only provide cost-effective partitioning, but also allow customization of security controls and data flows for each isolated segment.
“Recent macroeconomic pressures don’t seem to impact the OT cybersecurity market,” adds Amiri. “On the contrary, rapid digitization and escalating geopolitical tensions have contributed to increased spending and market revenues, especially in sectors most prone to cyberattacks, such as oil and gas, utilities, mining and manufacturing. These are sectors where OT cybersecurity providers might want to direct their marketing efforts.”
