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Data Diode Solution Market Size, Share & COVID-19 Impact Analysis, By Type (Regular Data Diode, and Ruggedized Data Diode), By Application (Government, Energy and Power, Manufacturing, Oil and Gas, Aerospace and Defense, Critical Infrastructure, and Others), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI104770

 

KEY MARKET INSIGHTS

The global Data Diode Solution Market size was USD 352.2 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with data diode solution witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 11.2% in 2020 as compared to year-on-year growth during 2017-2019. The market is projected to grow from USD 392.2 million in 2021 to USD 880.0 million in 2028 at a CAGR of 12.2% during the 2021-2028 period. The steady rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The global market size is inclusive of various data diode solution offered by the market players, such as X.D. Prism MPP by Owl Cyber Defense, WF-500 by Waterfall Security Solutions Ltd., 1G (TX to R.X.) by VADO Security Technologies Ltd., BLDPR469EN0918 Hirschmann Rail Data Diode by Belden Inc., among others.


The growth of the global market is primarily driven by increased demand for data diode solutions by various industry verticals such as oil & gas, manufacturing, critical infrastructure, among others. Cyber-attacks, malware, ransomware, and phishing attacks have increased substantially in recent years, necessitating the implementation of comprehensive cyber security architecture to safeguard mission-critical assets.


According to research performed by Deep Instinct, a prominent cyber security technology firm, malware attacks grew by 358% in 2020, while ransom wares increased by 435%. In the near future, the development of Operational Technology (O.T.) and Industrial Control Systems (ICS) is projected to fuel market expansion.


Cyber breaches and data theft are a problem for manufacturing and oil and gas industries in North America, Europe, and the Middle East and Africa. Various end-users across the world are using Industrial Internet of Things (IIoT) and Internet of Things (IoT) technologies in their everyday operations in order to obtain a better understanding of their operations. When the oil and gas sectors' whole operating systems move online and integrate seamlessly with the IoT and IIoT, their vulnerability and susceptibility to cyber-attack increases substantially. As a result, organizations are increasingly turning to these solutions for smooth data transfer and implementing effective cybersecurity strategies.


COVID-19 Impact


Increasing Number of Cyber-attacks on Oil & Gas and Manufacturing Industries amid COVID-19 to Drive Growth


The coronavirus pandemic has created significant challenges as businesses adjust to a new operational paradigm in which working from home has become the "new normal." Businesses are accelerating their digital transitions, and cybersecurity has emerged as a top priority. The pandemic hampered the overall performance of the market, with several market players witnessing financial downturns.


Whereas; industry verticals such as oil & gas, manufacturing, among others, are heavily investing in strengthening enterprise cybersecurity solutions amid the rising cases of cyber-attacks during COVID-19. Attributable to recent cyber-attacks on the oil and gas industry, large oil and gas corporations have been forced to implement complete data diode solution that allow for efficient data flow while maintaining security.



  • In May 2021, one of the major U.S. fuel pipeline operating company Colonial Pipeline had to shut its entire network after a cyber-attack caused by ransomware. The shutdown raised fears of a price spike ahead of the busy driving season and susceptibility of U.S. energy infrastructure vulnerable to hackers.


With the rise of digital transformation and the large volume of data processed and produced, as well as the growing demand for remote access and online services, cyber threats have become more prevalent. Over the forecast period, long-term growth of the global market will be driven by upfront growth of the manufacturing and oil & gas industries. Moreover, government agencies, critical infrastructure, aerospace and defense companies are increasingly relying on data diode technology to protect their data and safeguard important assets. This, as in result, is expected to drive the market growth over the forecast period.


LATEST TRENDS


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Growing Trend of IIoT Would Contribute to Market Growth


The IoT has ushered in a digital revolution in industrial technologies. As the internet becomes more widely accessible, the cost of connectivity drops and more devices with built-in Wi-Fi and sensors become available; the industry may benefit from linking industrial devices to construct smart equipment, machines, processes, service vehicles, and more. The IIoT integrates traditional industrial infrastructure with cutting-edge technologies such as edge computing, machine learning, cloud computing, and mobility. The IIoT aids organizations in improving industrial operations to increase output and efficiency. As industries and manufacturing plants become more connected with the growth of IIoT technologies, the possibilities of data theft and cyber-attacks remain the same.


The data diode provides enhanced security for critical infrastructures that rely on sending business data over the internet, such as the chemical industry, manufacturing, oil and gas, and other industries. Employees and security teams may monitor data flow in production systems without exposing the main network to assaults.


According to a survey conducted by IBM Corporation in 2020, 61% of electronics manufacturing companies reported that the protection of mission-critical data is the primary driver of their IIoT cybersecurity spending. As a result, the expansion of IIoT across sectors is projected to provide market participants with opportunities to improve their solution offerings and embrace a customer-centric business strategy.


DRIVING FACTORS


Rising Prevalence of Major Cyber Attacks on Oil & Gas Industry to Drive Market Growth


The digitization and penetration of advanced technology in the oil & gas sector has exposed it to a variety of cyber-attacks, including phishing, data breaches, DDoS, ransomware, among others. Connecting the oil and gas business to more technologically sophisticated solutions such as IIOT has definitely enhanced output and reduced costs, but it has also exposed the industry to fatal cyber-attacks. These malicious intrusions have the ability to bring a company's operations to a halt, resulting in huge financial, reputational, and, in some cases, human life losses, as well as environmental disasters. For instance;



  • In July 2020, Saudi Aramco, one of the leading oil and gas company confirmed that it had leaked important business information, and the hackers demanded USD 50 million ransom.


Such incidences have prompted oil & gas and critical infrastructure companies to strengthen cyber-security measures to safeguard their critical data from potential threats and vulnerability from third-party sources. In order to offer efficient solutions, key players operating in the market are taking key initiatives to better serve companies from data thefts and cyber-attacks. For instance,



  • In May 2021, Owl Cyber Defense, a leading data diode company, launched IXD, an individual data diode for critical infrastructure network cyber-security. The newly launched solution is a revolutionary milestone that will help oil & gas, manufacturing, and critical companies in safeguarding their data and critical assets.

  • In March 2021, Deep Secure, a security solution provider, partnered with Ingram Micro, a distributor of information technology products and services based in California. This partnership will help Deep Secure to strengthen its global footprints and better serve consumers.


Such initiatives by key players are expected to spread awareness about the advantages of data diode in a variety of industries and drive the data diode solution market growth.


RESTRAINING FACTORS


Associated High Costs and Budget Constraints for Small & Medium-Sized Enterprises to Hinder Market Growth


The industrial control system has grown over time to encompass a varied range of networked devices that help industry employees understand and analyze the operational environment. Because of the rise of sophisticated threats and smarter attack tools, better cyber-security solutions are necessary to combat cyber-attacks. Implementation of this diode solution requires significant upfront investments to set up field-level devices and replace aging cyber-security infrastructure. Also, companies planning to integrate data diode solutions into their security infrastructure need to make sure that servers, applications, and systems are interconnected.


Cybersecurity and management authorities are particularly concerned about high post-deployment operation and maintenance costs. In addition, limited budgets make it difficult for government agencies and SMEs to deploy advanced technologies and solutions. As a result, market development is anticipated to be restrained in the coming years due to the high initial cost of adopting data diodes.


SEGMENTATION


By Type Analysis


Ruggedized Data Diode to Capture Largest Data Diode Solution Market Share


Based on type, the global market has been segmented into regular data diode and ruggedized data diode.


This segment covers regular and ruggedized data diode offered by key players. For example, Data Diode Rugged 100Mbit MM is a ruggedized data diode offered by Fibersystem AB mainly manufactured for critical environments. The ruggedized data diode captured the largest market share and is expected to maintain its dominance over the forecast period. The growth of this segment would occur on account of its effective operating capabilities in challenging environments such as high temperatures and humid environments. Ruggedized data diode is expected to gain momentum over the forecast period as companies opt for cyber-security solutions that offer redundant power supply and uniform access over data flow.


The regular data diode is expected to witness significant demand. The growth of the segment will be driven by increasing demand among major oil & gas and manufacturing companies.


By Application Analysis


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Oil & Gas Industry to Showcase Strong Growth


Based on application, the market is segmented into government, energy and power, manufacturing, oil and gas, aerospace and defense, critical infrastructure, and others.


The oil and gas industry captured the largest market share in 2020. The study covers data diodes offered by market players tailored for the oil & gas industry. For instance, Advenica AB’s DualDiode enables oil & gas companies to transfer data in one direction and eliminate cyber threats. The oil and gas industry's digitalization has rendered it vulnerable to cyber-attacks such as malware, denial of service, and phishing. Furthermore, cyber-attacks in the industry have impacted negatively on the whole network, including upstream, middle, and downstream operations. To counterattacks of rising cyber-threats on the oil & gas industry, companies are putting in place effective cybersecurity measures. The increasing number of cyber-attacks on oil & gas companies such as the U.S. Colonial Pipeline ransomware attack, attack on Saudi Aramco, among others, has prompted companies to integrate data diode solutions in their cyber-security measures. Thus, the industry is expected to witness high adoption over the coming years.


The scope of the study covers data diode offered for energy & utilities and critical infrastructure industries such as Advenica’s DD1000A Data Diode with front panel display enable companies to safeguard their critical assets. Typical risks that interrupt corporate operations, including billing fraud, data theft, and ransomware, are driving the rise of data diode solution in the energy and power industry. Hackers also target energy and utilities, as well as vital infrastructure, for financial gain. A ransomware attack on Baltimore city systems in May 2019 halted city services for weeks, costing an estimated USD 18.2 million in damages—more than the demanded ransom—making it one of the most public cases of cyber-attack on energy and utility infrastructure. As cyber-attacks on critical power infrastructure become more common, combating them is becoming a concern. These solutions are in high demand among energy and power industries to protect mission-critical data and databases.


REGIONAL INSIGHTS


North America Data Diode Solution Market, 2020 (USD Million)

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Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.


North America accounted for the largest market share in 2020. Data diode solutions are expected to become increasingly popular as the region's use of the internet grows. In addition, the increasing wireless network for mobile devices has increased data vulnerability, making cyber-security an essential and crucial component of any company in the region. Companies in the region are constantly developing new solutions to meet the demands of advanced cyber threats. As a result of the COVID-19 outbreak, assaults on freshly deployed remote access and teleworking equipment have risen. The cyber-security and Infrastructure Security Agency (CISA) of the U.S. Department of Homeland Security (DHS) have reported a significant increase in malware and attacks using COVID-19-themed lures.


The region invests heavily in cyber-security solutions to prevent intellectual property theft and compromise systems used to monitor and control the country's defense assets and capabilities. To keep up with current defense advances, countries such as the U.S. and Canada have developed new technologies. As a result, market growth is expected to accelerate in the long run.


Europe is anticipated to expand at a significant CAGR during the forecast period. Cyber security initiatives and investments by major corporations in countries such as the U.K., France, Germany, Italy, Spain, and others are driving the industry ahead. Significant advances in Europe have come from the rising need for safety solutions and services in the manufacturing and oil and gas industries.


Asia Pacific is expected to grow at the highest CAGR over the forecast period. To address the growing need for security solutions and services, several firms in this region are focusing on developing and launching novel cyber security solutions. The growth of the market in countries such as Japan, India, China, Korea, and others is expected to experience an exceptional CAGR during the forecast period due to increased investments by key players, governments, and foreign investors.


The Middle East & Africa, and South American countries are expected to witness high demand for data diode solutions. Due to the strong presence of numerous market players, as well as recent security risks in the region, the regional market is likely to accelerate even further.


KEY INDUSTRY PLAYERS


Key Players to Launch Data Diodes and Focus on Mergers to Eliminate Rising Prevalence of Cyber-threats


Companies operating in the market such as OPSWAT, Inc., Forcepoint, BAE Systems, Siemens Mobility, Owl Cyber Defense, Advenica AB, Belden Inc., Fibersystem AB, Waterfall Security Solutions Ltd., Fox-IT, Rohde & Schwarz GmbH & Co, Deep Secure Ltd., and Garland Technology among others are focused on developing and offering different types of data diode solutions. Also, the high competition in the market is forcing service providers to focus on acquisition strategies for strengthening their positions.



  • March 2021 - Deep Secure collaborated with Ingram Micro U.K. Ltd., headquartered at Milton Keynes, U.K. This partnership will expand Ingram’s cyber security portfolio with the help of Deep Secure’s Threat Removal Platform to exchange information with high security and provide protection from cyber-attacks.


LIST OF KEY COMPANIES PROFILED:



  • Advenica AB (Malmo, Sweden)

  • Belden Inc. (Missouri, U.S.)

  • Waterfall Security Solutions Ltd. (Melbourne, Australia)

  • ST Engineering (Ang Mo Kio, Singapore)

  • Deep Secure Ltd. (Malvern, U.K.)

  • Owl Cyber Defense (Connecticut, U.S.)

  • Fibersystem AB (Bromma, Sweden)

  • Garland Technology (New York, U.S.)

  • OPSWAT, Inc. (California, U.S.)

  • Rohde & Schwarz GmbH & Co KG (Munich, Germany)


KEY INDUSTRY DEVELOPMENTS:



  • June 2021 - Garland Technology partnered with Dragos, Inc., a cyber-security solution provider based in U.S. Through this partnership, Garland Technology aims to strengthen its network TAP products to provide enhanced network security for industrial controls systems (ICS) and operational technology (O.T.) infrastructures.

  • September 2019 - Advenica AB, a prominent player that offers data diode solutions, launched a new product in its data diode family. The newly launched product offers multiple organizations the ability to exchange critical information in one-way with high security.


REPORT COVERAGE


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The global data diode solution market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, product Industry, and leading product type applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors that have contributed to the market's growth over recent years.


Report Scope and Segmentation


















































  ATTRIBUTE



  DETAILS



Study Period



2017 – 2028



Base Year



2020



 Estimated Year



  2021



Forecast Period



2021 – 2028



Historical Period



2017 – 2019



Unit



Value (USD million)



Segmentation



By Type, Application, and Region



By Type




  • Regular Data Diode

  • Ruggedized Data Diode



By Application




  • Government

  • Energy and Power

  • Manufacturing

  • Oil and Gas

  • Aerospace and Defense

  • Critical Infrastructure

  • Others (Healthcare)



By Region




  • North America (By Type; Application; Country)

    • U.S.

    • Canada

    • Mexico



  • Europe (By Type; Application; Country)

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Benelux

    • Nordics

    • Rest of Europe



  • Asia Pacific (By Type; Application; Country)

    • China

    • India

    • Japan

    • South Korea

    • ASEAN

    • Oceania

    • Rest of Asia Pacific



  • Middle East & Africa (By Type; Application; Country)

    • Turkey

    • GCC

    • Israel

    • North Africa

    • South Africa

    • Rest of Middle East & Africa



  • South America (By Type; Application; Country)

    • Brazil

    • Argentina

    • Rest of South America





Frequently Asked Questions

According to Fortune Business Insights, the global market is expected to reach USD 880.0 million by 2028.

Fortune Business Insights says that the market stood at USD 352.2 million in 2020.

The market is expected to grow at a CAGR of 12.2% during the forecast period (2021-2028).

Based on type, the ruggedized data diode is expected to lead the market.

The rising prevalence of major cyberattacks on the oil & gas industry is one of the key drivers for market growth.

OPSWAT, Inc., Forcepoint, BAE Systems, Siemens Mobility, Owl Cyber Defense, Advenica AB, Belden Inc., Fibersystem AB, Waterfall Security Solutions Ltd., Fox-IT, Rohde & Schwarz GmbH & Co, Deep Secure Ltd., and Garland Technology are some of the top companies in the market.

The oil & gas application holds the major market share.

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