OPERATIONAL TECHNOLOGY SECURITY MARKET ANALYSIS

Operational Technology Security Market Size and Trends

The operational technology security market is estimated to be valued at US$ 20.18 billion in 2024 and is expected to reach US$ 57.51 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 16.1% from 2024 to 2031.

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The growth of the operational technology security market can be attributed to the increasing threat of cyberattacks on industrial control systems. With more industrial equipment and manufacturing systems being connected to the internet through IoT, the risk of exploits has risen dramatically. As operational networks and enterprise networks converge, both government and commercial organizations are recognizing the need for stronger security solutions to protect critical infrastructure from threats. The implementation of best practices such as secure authentication, network segmentation, malware protection, and endpoint detection on industrial control systems is expected to drive the demand for operational technology security solutions over the coming years.

Growing Connectivity in Operational Technology Environments

As operational technology networks continue to become increasingly connected to enterprise IT infrastructures and public networks like the internet, they have grown more vulnerable to cyberattacks. The traditional air gaps that once separated these systems are disappearing as organizations look to leverage connectivity and data insights across departments. But bringing OT online also exposes critical infrastructure systems controlling everything from energy generation to water treatment to new threat vectors. Recent incidents involving ransomware like the attack on Colonial Pipeline have underscored the risks of unsecured OT environments. Regulators and asset owners alike are recognizing that strong security is imperative for these networked control systems that underpin essential public services and national infrastructure. The demand is therefore growing for solutions that can help OT stakeholders implement proper governance, segmentation, access control, and monitoring of their operational networks. Vendors offering industrial cybersecurity technology and services are well positioned to benefit from this driver.

For instance, in May 2021, Forcepoint completed the acquisition of Cyberinc, an IT services and consulting firm headquartered in the U.S. Forcepoint's portfolio includes advanced remote browser isolation (RBI) technology, providing administrators with precise control. Additionally, its Smart Isolation capabilities aim to boost user productivity, reduce operational complexities, and replace traditional monolithic products with a leading SASE cloud service.

Transition to IoT and Cloud Adoption

There is a major ongoing transition happening in OT where legacy systems are being upgraded to connect with modern smart technologies and integrated cloud platforms. The adoption of industrial internet of things (IIoT) solutions and other advancements like AI often comes with connecting previously air-gapped equipment to new networks. This brings the promise of data-driven optimization and remote management capabilities. However, it also expands the attack surface and introduces new security complexities for asset owners as IT and OT converge. As more industrial assets and processes become software-defined, there is a clear need to ensure these modernized systems have security baked into their design. This significant technology transition opens up an expanded market for OT security offerings that facilitate secure connectivity, identity and access management, anomaly detection, and forensic analysis in hybrid cloud and IIoT environments. Leading security providers are aligning their product roadmaps to address the security challenges of industrial modernization initiatives involving cloud platforms and smart networked devices.

For instance, in May 2022, UST, a prominent provider of digital transformation solutions, disclosed an original equipment manufacturer (OEM) agreement with SAP. This agreement enables UST to incorporate SAP Business Technology Platform (SAP BTP) into its Cogniphi AI Vision platform, rebranded as UST Sentry Vision AI. This service utilizes advanced video analytics to integrate predictive, contextual, and analytical functionalities into retail and manufacturing operations. Offered as a SaaS-based packaged solution, it seamlessly integrates with SAP S/4HANA and RISE with SAP.