Increase in budgets allocated for Operational Technology (OT) cybersecurity due to rise in cyberattacks in the industrial sector

Increase in budgets allocated for Operational Technology (OT) cybersecurity due to rise in cyberattacks in the industrial sector

The global market for Operational Technology (OT) cybersecurity is poised for substantial growth over the next five years, driven by a surge in cyber threats, digital transformation, and regulatory demands in industrial sectors.

According to a report by ABI Research, the global cybersecurity market, which includes OT security, is projected to grow from around USD 172.24 billion in 2023 to approximately USD 562.77 billion by 2032, with a compound annual growth rate (CAGR) of about 14.3% to 14.4% during this period.

Key factors fueling this growth include the rising frequency and sophistication of cyberattacks targeting OT environments, the increasing digital transformation and adoption of IoT and connected systems in industries such as manufacturing, energy, and utilities, and regulatory and compliance pressures. Additionally, growing awareness among enterprises, including small and medium businesses, regarding OT risks and the need for protective solutions is also driving growth.

The sector is expected to see significant spending on network security and segmentation, with more than half of OT cybersecurity spending flowing in this direction. This is in response to the wave of escalating attacks targeting internet-exposed devices at industrial sites in sectors like drinking water, energy, agriculture, and manufacturing.

Industrial operators who deploy remote-access control access mechanisms for their OT environments are among the top spenders on OT cybersecurity. The increasing interest among corporate stakeholders in understanding the risk calculus of their technology stacks further underscores the importance of securing OT environments.

ABI Research predicts that the OT cybersecurity sector will grow more than 9% annually, reaching $21.6 billion by 2028. Michael Amiri, senior analyst at ABI Research, stated that attacks and regulation are driving spending in the OT cybersecurity sector. Segmentation in OT cybersecurity is expected to capture approximately 27% of overall spending through the five-year period.

Amiri also predicts that OT will no longer be a small portion of the overall IT spending pie. The rising cyber risk and increased connectivity requirements could lead to OT and IoT spending surpassing overall IT spending in the coming years. As the question on every corporate stakeholder's mind becomes "Are we a target?", the importance of investing in robust OT cybersecurity solutions becomes increasingly clear.

[1] Global Cybersecurity Market to Grow at a CAGR of 14.3% to 14.4% from 2023 to 2032

[2] Cybersecurity Market Size, Share & Trends Analysis Report By Component (Products, Services), By End-use (IT & Telecom, BFSI, Government & Defense, Healthcare, Retail & Consumer Goods, Manufacturing, Energy & Utilities, Others), By Region, And Segment Forecasts, 2023 - 2032

[3] The Rising Threat Landscape for Operational Technology Cybersecurity

[4] The Internet of Things (IoT) and Operational Technology (OT) Cybersecurity: Challenges and Solutions

[1] The growth of the global cybersecurity market, particularly Operational Technology (OT) cybersecurity, is projected to reach USD 562.77 billion by 2032, demonstrating a consistent growth rate of 14.3% to 14.4% from 2023 to 2032.

[2] Key drivers for this growth include cyber risks, digital transformation, and regulatory demands, with sectors such as finance, energy, and manufacturing being significant contributors to the market.

[3] In the midst of escalating attacks targeting OT environments, there is a surge in spending on network security and segmentation, with more than half of OT cybersecurity spending dedicated to these areas.

[4] As the cybersecurity and technology landscape evolves, understanding and mitigating the rising cyber risks associated with OT and IoT systems will become increasingly essential to safeguard critical infrastructure and business operations.

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