The Operational Technology Security Market Is Estimated To Witness High Growth
Operational technology (OT) includes industrial control systems, distributed control systems, supervisory control and data acquisition systems, and physical infrastructure supporting critical services. OT provides functions such as monitoring and control of industrial processes that include manufacturing, production, power generation and distribution, water treatment and other infrastructure. The need to protect industrial control systems and physical assets from cyber threats like advanced persistent threats, zero-day malware and targeted attacks is driving demand for OT security solutions.
The Operational Technology Security Market is estimated to be valued at US$ 18492.8 Mn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The operational technology security market is witnessing high growth owing to the trend of cloud-based OT security solutions. Rising deployment of cloud services across industries has increased the risk of cyber-attacks on OT networks. Cloud-based OT security solutions enable enterprises to monitor OT infrastructure from any location, get instant threat intelligence and detection alerts. They provide asset discovery, network segmentation, continuous monitoring and compliance reporting features in a scalable and affordable software-as-a-service model. Major players are focusing on developing cloud solutions to strengthen OT infrastructure security without disrupting industrial operations. For instance, Claroty launched its cloud-based OT security platform Claroty Visibility to provide asset inventory, network topology and risk assessments of industrial sites.
Porter's Analysis
Threat of new entrants: The operational technology security market presents moderate threat of new entrants due to high initial investment required for R&D, product development and marketing.
Bargaining power of buyers: Bargaining power of buyers is moderate as there are a variety of established players operating in this market providing differentiated solutions.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of multiple component manufacturers in the market.
Threat of new substitutes: Threat of substitution is low as operational technology security solutions offer unique value proposition of securing OT infrastructure from cyber threats.
Competitive rivalry: Intense due to presence of global and regional players differentiating offerings on basis of features and pricing.
SWOT Analysis
Strengths: Dedicated operational technology security solutions tailored for industrial environments. Growing investments by companies to protect critical infrastructure from cyber attacks.
Weaknesses: Lack of skilled professionals inhibiting effective implementation of solutions. Higher costs associated with deployment and management of security infrastructure.
Opportunities: Increasing adoption of IoT and networking of OT assets generating need to secure large scale distributed systems. Growing process automation in industries driving security upgrades.
Threats: Operational disruptions caused by sophisticated targeted attacks. Lack of regulations mandating security standards widening attack surfaces.
Key Takeaways
The Global Operational Technology Security Market Size is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing investments by companies in critical infrastructure protection against cyber attacks. North America dominated the market in 2023 with over 30% share owing to large presence of industrial controls manufacturers and early adoption of innovative solutions in the region.
Regional analysis: Asia Pacific is fastest growing region for operational technology security market rising at 8.5% CAGR during 2023 - 2030. Increasing manufacturing activities and ongoing modernization of industrial facilities are major factors attributed to heightened deployments.
Key players: Key players operating in the operational technology security market are 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.
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