ID: MRFR/ICT/6717-CR | November 2020 | Region: Global | 174 pages
Operational technology (OT) security is used in various industries to measure, control, and view processes. They are defined as solutions that can detect or cause a change in asset-centric enterprises by direct monitoring and controlling physical devices, processes, and events. The security services related to these systems help companies assess, design, and manage security strategies and activities for the protection of OT systems. These systems are interconnected infrastructures and networks that control and manage the industrial processes. OT comprises systems of electronic components that can control the physical operations of the machines, which transmit sensor data to the controller for monitoring and automated operational functions. Factors such as the increase in cyber-attacks and network security threats, smart operational technologies, and convergence of IT and OT ecosystems are expected to boost the growth of the market. However, budget constraints affecting innovation and an increase in cyber threats due to the traditional OT security systems could restrain the market growth to a certain extent. The increasing investments to adopt the industrial internet of things (IIoT) solutions are expected to offer promising opportunities for the market players.
The operational technology security market in Europe held a market share of 26.1% in 2019, holding the second position in the globe. The region is home to some of the world's largest industrial states, such as Germany, and the most technologically forward and startup-friendly countries, such as the UK. Furthermore, Europe is one of the early adopters of OT security. The UK accounted for the largest market share of 27.75% in 2019, with a market value of USD 995.8 million; the market is expected to register a CAGR of 9.4% during the forecast period owing to the demand for WAN solutions for centralized management, improved automation, and increased network reliability and security among enterprises. Germany, the fourth-largest economy in the world, was the second-largest market in 2019 for operational technology, valued at USD 832.7 million; the market is projected to exhibit an 8.4% CAGR. However, the market in France is expected to register the highest CAGR of 10.34%.
The operational technology security market in Asia-Pacific held an 18.0% market share in terms of revenue generation as China, Japan, India, Australia, South Korea, Singapore, and the rest of Asia-Pacific are experiencing significant growth in their respective operational technology industry. Furthermore, the growing industrial development in the region, especially in countries such as China and India, is pushing the market forward. China is the largest economy in Asia-Pacific and is home to large manufacturing organizations, including Foxconn, which provides electronic components.
The operational technology security market in the Middle East & Africa accounted for a 7.5% share in 2019. Industries in Saudi Arabia, UAE, Qatar, and Africa require cybersecurity and OT security to effectively transform their business operations. The operational technology security market is gaining momentum in the Middle East & Africa as enterprises in the region are provisioning network services to utilize their infrastructure more efficiently.
South America comprises Brazil, Chile, Peru, Colombia, and the rest of South America. The regional market is driven by factors such as the increasing demand for cloud-based services and the rising demand for mobility and server virtualization from industry verticals such as manufacturing, healthcare, retail, and public sector organizations.
Global Operational Technology Security Market generated a revenue of USD 13,740.3 Million in 2019 and is expected to reach a market value of USD 24,092.7 Million by 2026, growing at an 8.17% CAGR.
Global Operational Technology Security Market has been segmented based on Component, Deployment, End-Use Industry and Region.
By component, the market has been segmented into solution and services. The solution segment is further divided into OT endpoint security, OT network segmentation, anomaly detection, incident response, and reporting, and others. The services segment is further divided into managed and professional services. The solution segment accounted for the largest market share of 66.7% in 2019.
Based on deployment, the operational technology security market is segmented into on-premise, hybrid, and cloud. The on-premise segment accounted for the largest market share in 2019; it is expected to register a CAGR of 7.4% during the forecast period. The hybrid segment reported a 35.8% market share, growing at the highest CAGR of 9.7% during the forecast period. However, the cloud segment is expected to gain momentum owing to the rapid advancements in technology.
Geographically, the global operational technology security market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
North America is the largest market in terms of market share in the global operational technology security market. The US is the biggest market for operational technology, mainly due to heavy investments in research and development activities and a vast IT and communication sector in the country. The US market is expected to continue its leading position during the forecast period, driven by constant technological changes, a dynamic regulatory framework, increased customer expectations, and cutthroat competition. Enterprises operating in their respective industry verticals require resilience from cyber-attacks and, hence, cybersecurity services.
Europe is the second-largest market for operational technology. The region comprises a number of developed and developing countries, including the UK, Germany, France, Italy, and Spain. Factors driving the growth of the regional market include a surge in data traffic, the deployment of 5G services, the growing number of cloud-based data centers, employee mobility, and the rapidly increasing adoption of IoT technologies. These factors are encouraging enterprises and service providers to incorporate operational technology security solutions into their networks.
Asia-Pacific is the third-largest regional market comprising China, Japan, India, Australia, South Korea, Singapore, and the rest of Asia-Pacific. Of these, China, Japan, and India account for a major portion of the regional market share, of which India is expected to grow with the largest CAGR of 13.40%. The driving factors include the increasing need to consolidate the threat detection and prevention operations in one place and the growing focus of enterprises on the vulnerability and threat exposures of their systems.
South America is expected to grow at a CAGR of 6.2% during the forecast period, whereas the Middle East & Africa is projected to register a CAGR of 4.7%. Both South America and the Middle East & Africa are expected to register substantial growth in the demand for OT security.
The key players operating in the global operational technology security market are VMware, Inc (US), Honeywell International Inc (US), Schneider Electric (France), Cisco Systems, Inc. (US), Broadcom (US), Kaspersky Lab (Russia), General Electric (US), Rockwell Automation, Inc. (US), PAS Global LLC. (US), Fortinet, Inc. (US), Palo Alto Networks (US), Darktrace (UK), and Forescout Technologies Inc. (US)
In June 2020, Honeywell and KIPIC (Kuwait Integrated Petroleum Industries Company) announced a five-year agreement to protect, maintain, and optimize operations at Al Zour refinery and LNGI terminal in South Kuwait using Honeywell Forge Cyber Security software and Assurance 360 service package.
In July 2020, Schneider, Doris Group, a global engineering and project management company, and AVEVA, a leader in engineering and industrial software, joined hands to provide digital twin technology for the upstream oil & gas markets. The solutions proposed are expected to support oil and gas organizations' goals to improve asset performance, increase sustainability, and maximize returns on capital on projects.
In January 2020, Rockwell Automation acquired Avnet Data Security ltd, an Israel-based cybersecurity company, to enhance its existing solution deck with a full set of IT/OT cyber services and solutions ranging from penetration testing, assessments, network and security solutions, and training to IT/OT managed services.
In July 2020, PAS Global made changes to its OT cybersecurity solution by releasing modular OT Cyber Security Solution for critical infrastructure and process industries. The update includes inventory management, vulnerability and patch management, and enterprise cybersecurity solutions.
In June 2020, Palo Alto launched NGFW (Next-Generation Firewall) based on machine learning to actively and intelligently stop threats, secure devices, and recommend safety policies against known and unknown threats.
Key Questions Addressed by the Report
Frequently Asked Questions (FAQ) :
Factors such as increasing cyber security threats, convergence of IT and OT ecosystems, etc. are supposed to drive the growth of the market in the foreseeable future.
The complexity of the OT security solutions is projected to restrict the growth of the market.
Increasing adoption of Industrial Internet of Things (IIoT) is presumed to attract investments into the market.
The different types of professional services assessed in the report are - deployment and implementation services, consulting services, and other support service.
Rising adoption rate f OT security in the region is poised to drive market growth.