Industrial Control Systems (ICS) Security Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Industrial Control Systems Security Market Size 2024-2028

The industrial control systems (ICS) security market size is forecast to increase by USD 12.2 billion at a CAGR of 8.16% between 2023 and 2028. The market is experiencing significant growth due to several key trends and challenges. One major trend is the increasing deployment of smart grids in the power sector, which necessitates advanced security measures to protect against cyber threats. Another trend is the adoption of hybrid security models that combine multiple security technologies to enhance system reliability and production throughput. However, the lack of enforceable security laws poses a significant challenge to market growth. Key industries such as oil and gas, banking and finance, transportation, utilities, electric power grids, and pharmaceutical manufacturing and biotech industries are particularly vulnerable to cyber-attacks. Government agencies like the Department of Energy and the Department of Defense are also increasing their focus on ICS security to safeguard critical infrastructure.

What will be the Size of the Market During the Forecast Period?

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The market is a significant sector that focuses on safeguarding the digital assets and infrastructure of critical infrastructure organizations. These systems are integral to the smooth operation of various industries, including chemical, public safety, and energy, among others. With the increasing interconnectedness of industrial networks and the proliferation of advanced technologies, securing ICS has become a pivotal concern for stakeholders. Federal laws and cybersecurity standards mandate that organizations implementing ICS adhere to stringent security measures to protect their pivotal assets from network security threats. The IT workforce plays a crucial role in ensuring the effective implementation of these measures.

Moreover, cybersecurity organizations are tasked with providing the necessary training and resources to help IT professionals stay updated on the latest threats and best practices. Critical infrastructure stakeholders recognize the importance of securing their ICS against hacker groups and criminals. Database security is a primary concern, as these systems often store sensitive information. The system type, be it Supervisory Control and Data Acquisition (SCADA) or Distributed Control Systems (DCS), requires specialized security solutions. Connected sensors and controllers are essential components of modern industrial networks. Big data and analytics can help identify potential vulnerabilities and threats in real time. However, these advanced technologies also introduce new risks, making it essential to implement security measures.

Furthermore, the purchasing power of organizations in the US drives the growth of the ICS security market. The market is witnessing a growing demand for solutions that can provide comprehensive protection against network security threats. Hackers continue to target ICS, putting public safety systems and critical infrastructure at risk. Database security is a critical aspect of ICS security. Hackers often target databases to gain unauthorized access to sensitive information. Effective database security solutions can help prevent data breaches and protect against cyber attacks. ICS security solutions must be tailored to the specific needs of different industries. For instance, the chemical industry requires solutions that can protect against threats such as malware and ransomware, while public safety systems need solutions that can ensure system availability and reliability.

In conclusion, the ICS security market is a vital sector that plays a crucial role in protecting critical infrastructure and ensuring public safety. With the increasing interconnectedness of industrial networks and the evolving threat landscape, it is essential to invest in advanced security solutions to safeguard against network security threats.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Network security
  • Cloud security
• End-user
  • Oil and gas
  • Power
  • Chemicals and mining
  • Automotive
  • Others
• Geography
  • North America
    • US
  • APAC
    • China
    • Japan
  • Europe
    • Germany
    • UK
  • South America
  • Middle East and Africa

By Type Insights

The network security segment is estimated to witness significant growth during the forecast period. Industrial Control Systems (ICS) security is essential for safeguarding critical infrastructure and ensuring uninterrupted availability of business operations in various sectors such as energy and infrastructure. ICS security focuses on securing the networks and control systems that manage critical functions in these industries. Technologies like Intrusion Detection and Prevention Systems (IDPS) are utilized in ICS security to identify and respond to potential threats and anomalous activity in real-time. Cybercriminals frequently target large corporations and their cyber infrastructures, making it crucial for employees to adhere to stringent security policies and best practices. A collective cybersecurity mindset and heightened security awareness are vital to mitigating risks.

Moreover, the internet poses a significant threat, with targeted attacks increasing in frequency. Protective measures like firewalls, access control, and patch management are essential components of ICS security. Automatic security updates and strict operational cycles help maintain a secure environment. Adhering to these measures and staying informed about the latest cybersecurity trends can help organizations stay ahead of potential threats. In conclusion, ICS security plays a vital role in safeguarding critical infrastructure and business operations from cyber threats. By implementing security measures, adhering to best practices, and maintaining a collective cybersecurity mindset, organizations can minimize risks and ensure the uninterrupted availability of their industrial control systems.

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The network security segment was valued at USD 10 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, the industrial control system (ICS) security market is experiencing significant growth due to the increasing number of cyber-attacks targeting various industries in the region. The oil and gas sector is particularly vulnerable, as these companies face persistent threats that can disrupt industrial processes and cause substantial financial damage. Compliance with government regulations is another key factor driving market growth, as the need to protect against network security threats becomes increasingly urgent. The lack of awareness and trained security analysts in the conventional manufacturing process is a major concern for industrial automation in North America. Strategic decisions regarding the maintenance and upgradation of ICS are essential to mitigate these risks.

Moreover, the core market applications of ICS security include power generation, water and wastewater treatment, and manufacturing. Advanced technologies such as artificial intelligence and machine learning are being adopted to enhance security measures and improve overall system performance. The chemical industry is also at risk of cyber-attacks, which can result in production downtime, data theft, and financial losses. Hackers often exploit vulnerabilities in outdated systems, making regular updates and patches crucial to maintaining ICS security. As the importance of securing industrial processes becomes increasingly recognized, the demand for ICS security solutions is expected to continue growing in North America. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

Increasing smart grid deployments in power sector is the key driver of the market. Industrial Control Systems (ICS), also known as Supervisory Control and Data Acquisition (SCADA) systems, play a crucial role in managing industrial network infrastructures, including connected sensors, controllers, and field devices, in various sectors such as power generation, transmission, and distribution. These systems collect, store, and analyze data from multiple data points in national or regional electricity networks, enabling power network modeling, simulating power operations, identifying faults, and preventing outages. Moreover, they allow for remote control of substations and power generation facilities. The expansion of smart grid projects worldwide is broadening the application scope of ICS in developing countries like India and Brazil, where energy demand is on the rise.

Smart grids integrate centralized and distributed power generation, enabling power companies to distribute excess power and implement real-time pricing and load management data. The increasing complexity of industrial activities, coupled with aging hardware, necessitates the need for advanced ICS solutions. The automotive sector, including automakers and production facilities, also utilizes ICS for managing robotics and automation in manufacturing processes and electric vehicle production.

Market Trends

Adoption of hybrid model is the upcoming trend in the market. In the realm of Information Technology, the security market for Industrial Control Systems (ICS) has seen significant growth and evolution. Two primary deployment models have historically been offered by companies for cybersecurity solutions: on-premises and cloud-based. The on-premises model necessitated a substantial investment from organizations, while cloud-based solutions presented a more cost-effective alternative. However, instances of data breaches, such as the compromise of financial information, have been reported in cloud-based security solutions. In extensive ICS installations, cloud-based alternatives often provide analytics and real-time monitoring capabilities, which can prove beneficial in detecting anomalies and potential security threats. To address the limitations of the traditional deployment models, hybrid deployment models have emerged as a viable option.

Market Challenge

Lack of enforceable security laws is a key challenge affecting the market growth. In the US, various standards and guidelines are available for securing Industrial Control Systems (ICS), such as NIST Interagency Publication 7628 and NIST Special Publication 800-82. These publications provide strategies, architectures, and recommendations for data privacy in smart grid cybersecurity. In April 2021, the US government launched an initiative to fortify the cybersecurity of electric utilities' ICS and safeguard the energy sector's supply chain. However, these standards are not mandatory for audits or certifications, making the absence of enforceable regulations a challenge for the global ICS security market. Energy and utility companies in the US are likely to prioritize ICS security investments only when legal penalties for non-compliance become a legal requirement.

Sectors like oil and gas, banking and finance, transportation, utilities, electric power grids, Department of Energy, Department of Defense, pharmaceutical manufacturing, and biotech industries rely on ICS for production throughput and reliability. Cybersecurity firms like CyberProof and Radiflow offer solutions to help these industries meet compliance requirements and protect their systems from potential threats.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB Ltd. - The company offers industrial control systems security such as ABB Ability Cyber Security Suite.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Airbus SE
• AO Kaspersky Lab
• BAE Systems Plc
• Belden Inc.
• Broadcom Inc.
• Check Point Software Technologies Ltd.
• Cisco Systems Inc.
• Claroty Ltd.
• CyberArk Software Ltd.
• Darktrace Holdings Ltd.
• Fortinet Inc.
• Honeywell International Inc.
• International Business Machines Corp.
• Lockheed Martin Corp.
• Musarubra US LLC
• Palo Alto Networks Inc.
• Positive Technologies
• Radiflow
• Sophos Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Industrial Control Systems (ICS) security is a critical concern for organizations managing critical infrastructure and industrial processes. With the increasing digitalization of industrial operations, the threat landscape has become more dynamic, with cybercriminals targeting pivotal assets in sectors such as chemicals, energy, automotive, and utilities. The need for the cybersecurity measures is driven by federal laws and cybersecurity standards, as well as business requirements for uninterrupted availability and strict operational cycles. Cybersecurity training and a collective cybersecurity mindset are essential for IT workforces and cybersecurity organizations to mitigate the risks posed by sophisticated attacks, hacker groups, and targeted intrusions.

Moreover, the dynamic nature of the threat landscape necessitates automatic security updates and protective measures such as intrusion detection systems, secure remote access, and endpoint security. Critical infrastructure stakeholders must prioritize security policies, best practices, and compliance mandates to safeguard their cyber infrastructures. The complexity of industrial processes and the interconnectedness of equipment and computing systems require a security governance framework that addresses network security, application security, database security, and system type vulnerabilities. The ICS security market caters to the security needs of large corporations, with a focus on securing operational technology products and physical processes. Verticals such as automotive, oil and gas, banking and finance, transportation, and utilities are major consumers of ICS security services.

Furthermore, the market is driven by the need for advanced technologies to protect against complex threats and sophisticated malware, as well as the lack of awareness and trained security analysts in the industry. The aging hardware and increasing use of IoT and cloud technologies in industrial processes add to the complexity of securing ICS. The market for ICS security is expected to grow as organizations invest in cyberproof solutions to protect their critical infrastructure and ensure the reliability and productivity of their industrial processes.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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