Operational technology (OT) security market is used in various industries to measure, control, and provide a view of processes. These systems are extremely 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 global operational technology security market by value is estimated to register an 18.1% CAGR during the forecast period, 2022 to 2030. In 2021, the market was dominated by North America with a 41.5% share, followed by Europe and Asia-Pacific with shares of XX% and XX%, respectively.
The global operational technology security market has been segmented based on solutions, deployment type, end-use industry, and region. On the basis of solution, the OT endpoint security segment held the largest market share, with a market value of USD 4,359.4 million in 2021, and is projected to register a CAGR of 18.5% during the forecast period. Based on deployment type, the on-premises segment held the largest market share of XX% in 2021, with a market value of USD XXX million and is projected to witness a CAGR of XX% during the forecast period. By end-use industry, the power & electrical segment held the largest market share of XX% in 2021, with a market value of USD XXX million and is projected to witness a CAGR of XX% during the forecast period.
Honeywell International Inc., Schneider Electric, Palo Alto Networks, Cisco Systems Inc., Fortinet Inc. and General Electric are the prominent companies in the global market, which compete in terms of availability, quality, price, and technology. They primarily focus on the development of sophisticated operational technology security. Although the international players are dominating the market, regional and foreign players with small market shares also have a notable presence.
GLOBAL: OPERATIONAL TECHNOLOGY SECURITY MARKET, 2018-2030
Source: Industry Expert, Secondary Research, and MRFR Analysis
COVID-19 had created a massive challenge for businesses globally: to continue functioning despite global shutdowns of offices and other facilities. The IT infrastructure on which they have depended, including data centres, cloud systems, departmental servers, and digital devices, are now remote. This has exposed network architecture to cybercrime. In India, for instance, according to a paper published by Economic Times, in June 2020, cybersecurity attacks and breaches in the country have increased by approximately 500% since the lockdown was first imposed. Internet service providers have received cyberattack alerts from corporate clients almost every alternate day compared to an average of once a week before lockdown. Most of the attacks are on small companies and range from data loss to phishing. Enterprises have, therefore, upgraded their security facility. Bharati Airtel, an India-based telecommunication company, upgraded its security operations centre to a higher threat-level status in the wake of growing cyberattacks. Similarly, in the UK, people working from home became a victim of cyber-attacks. According to a cybersecurity company named the proportion of Darktrace, the percentage of attacks targeting people working from home increased from 12% of malicious email traffic before the lockdown to more than 60% six weeks later. To deal with such a situation, companies including micro, small, and medium enterprises had started investing in advanced antivirus software.
Operational Technology Security Market Dynamics
OT Security Market Drivers
Operation technology (OT) includes the devices, sensors, and software required to control and monitor plants and equipment. On the other hand, information technology (IT) combines all the necessary technologies for information processing. During the last couple of decades, most industries have developed and managed OT and IT as two different domains, maintaining separate technology stacks, protocols, standards, governance models, and organizational units. However, over the last few years, OT has started to increasingly adopt technologies that are similar to IT. For example, Internet Protocol (IP) is gaining acceptance as an all-purpose networking protocol and is more frequently used in a wide range of devices. The convergence of IT and OT is likely to offer clear benefits to companies, including cost and risk reductions, enhanced performance, and gains in flexibility. In the coming years, sensors and connected systems such as wireless sensors and actuator networks (WSANs) are likely to be integrated into the management of industrial environments, including water treatment, electric power, and factories. Although traditional OT devices can collect data, they are not capable of transmitting the data over a large network or perform any in-depth analysis on that data. The integration of automation, communications, and networking in industrial environments is an integral part of the boosting adoption of the Internet of things (IoT). The IoT, when paired with edge computing, enables the IT portion of IT/OT convergence.
OT Security Market Opportunity
Technological advancement is a continuous process. There is an increasing trend of using artificial intelligence, cloud technology, edge computing, and machine learning, along with IoT technology. The IoT is completely dependent on the network connectivity of the devices. The advent of 5G technology, in combination with IoT technology, is also expected to create lucrative opportunities across various industry verticals. Further developments in 5G would result in a faster internet connection and an unmatched degree of connectivity among connected devices in an IoT environment, which is not possible with the current connectivity technologies. Industrial Internet of things (IIoT) is a collection of connected devices that are used for expediting the production process in industrial sectors. IIoT can be used in maximizing efficiency and minimizing wastage of resources. Various industry leaders are implementing IIoT in their processes to expand their current businesses. Government policies such as Make in India, Industrial Value Chain Initiative Forum, and Industry 4.0 can create awareness in industries and positively influence its adoption rates. Investments by industry leaders in IoT can galvanize market growth in the coming years. The rapid pace of industrialization and integration of automation to alleviate the burden on production assemblies has also created several opportunities in the operational technology security market. Thus, the increasing investments in adopting IIOT solutions are expected to offer lucrative opportunities for the players operating in the global operational technology security market during the forecast period.
Operational Technology Security Market Segmentation
The scope of the global Operational Technology Security market has been segmented based on component, deployment, and end use.
By component, the global operational technology security market is 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 service segment is further bifurcated into professional and managed services. The managed security services are deployed with multiple delivery methods to help companies assess, design, and manage security strategy and activities, and thus, protect the OT systems.
By deployment, the global operational technology security market is segmented based on on-premises, cloud, and hybrid deployments. OT security solutions are deployed in harshest outdoor environments and, therefore, are integrated with added reinforcement to simplify their operation and provide extended security policies in a network.
Based on the end-use industry, the global operational technology security market has been segmented into power and electrical, mining, transportation, and manufacturing, among others. The manufacturing segment is further divided into discrete manufacturing and process manufacturing.
Operational Technology Security Market Regional Analysis
Geographically, the global Operational Technology Security market has been segmented into North America, Europe, the Middle East & Africa, and South America.
North America is likely to lead the Operational Technology Security market. The players present in North America are one of the top players in the world. North America accounted for the largest market share of XX% in 2021, with a market value of USD XXX million; the market is expected to register a CAGR of 17.1% during the forecast period. Europe was the second-largest market in 2021, valued at USD XXX million; the market is projected to exhibit a CAGR of 18.5%. However, the market in Asia-Pacific is expected to register the highest CAGR of 20.5%.
GLOBAL: OPERATIONAL TECHNOLOGY SECURITY MARKET, BY REGION, 2021 (% SHARE)
Source: Industry Expert, Secondary Research, and MRFR Analysis
Operational Technology Security Market Competitive Landscape
The Global Operational Technology (OT) Security Market is witnessed significant growth over the forecast period due to convergence of IT & OT ecosystems and rising risks of cyber threats on critical infrastructure. There are several domestic, regional, and global players operating in the OT security market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global operational technology security market who have contributed to the market growth. These include HCL, Vmware Inc., Honeywell International Inc., Schneider Electric, Cisco Systems Inc., Broadcom, Kaspersky Lab, General Electric, Rockwell Automation Inc., PAS Global Inc. (Hexagon AB), Fortinet Inc., Palo Alto Networks, Darktrace, Forescout Technologies Inc., Nozomi Networks and SCADAfence.
Among these, Honeywell International Inc., Schneider Electric, Palo Alto Networks, Cisco Systems Inc., Fortinet Inc and General Electric are among the top 6 players in the global Operational Technology (OT) Security market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
OT Security Market Recent Developments
This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2030. For this analysis, MRFR segmented the global Operational Technology Security market has been segmented based on component, deployment, and end-user, and region.
BY END-USE INDUSTRY
|Market Size||2021: USD 15.8 Billion 2030: USD 63.9 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Solution, Services, Deployment, End Users|
|Geographies Covered||North America, Europe, Asia-Pacific|
|Key Vendors||1. HCL Technologies Ltd. 2. VMware, Inc. 3. Honeywell International, Inc. 4. Schneider Electric Se 5. Cisco Systems, Inc. 6. Broadcom 7. Kaspersky Lab 8. General Electric 9. Rockwell Automation, Inc. 10. Pas Global Llc (Hexagon Ab) 11. Fortinet Inc 12. Palo Alto Networks Inc 13. Forescout Technologies Inc 14. Darktrace 15. Nozomi Networks Inc. 16. Scadafence|
|Key Market Opportunities||o Increasing investments to adopt the industrial internet of things (IIoT) solutions|
|Key Market Drivers||o Convergence of IT and OT ecosystems o Rising risks of cyber threats on critical infrastructure|
A 18.1% CAGR is expected to transform the market.
North America regional market is projected to be the major driver of the market.
The segments in the market are Component, Deployment, End-Use Industry and Region.
The different types of professional services assessed in the report are - deployment and implementation services, consulting services, and other support service.
The major contenders in the global market are Honeywell International Inc. (US), Schneider Electric (France), Palo Alto Networks (US), Cisco Systems Inc. (US), Fortinet Inc (US) and General Electric (US).