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The global industrial cybersecurity market size was USD 15.84 billion in 2019. The global impact of COVID-19 has been exceptional, with industrial security solutions observing a positive demand across all regions during the pandemic. Based on our analysis, the global market will exhibit a significant growth of 6.9% in 2020. The market is projected to grow from USD 15.84 billion in 2019 to USD 29.41 billion in 2027 at a CAGR of 8.2% in the 2020-2027 period.
The industrial cybersecurity market size of industrial cybersecurity is primarily driven by the growing adoption of the internet of things (IoT) solutions in industrial control systems and cloud security applications. The rising implementation of emerging technologies such as the 5G network, big data, and artificial intelligence (AI) across industries, is also expected to drive the growth of the market. Further rising demand for advanced solutions such as firewalls, antivirus, intrusion detection systems (IDS) and others, are expected to boost the demand for cybersecurity solutions across industries.
Also, the rising investment by key players to develop and launch advanced industrial cybersecurity solutions, and growing instances of cyber threats is anticipated to drive the industrial cybersecurity market growth. Companies such as Broadcom Inc., CyberArk Software Ltd., Schneider Electric SE., and others have invested heavily in developing advanced and innovative solutions for industries. For instance:
COVID-19 Impact: Reinvestment Strategies by Key Players and Government to Drive Market in Pandemic
The Coronavirus pandemic has been affecting sectors and exhorting economic disruptions across the world. With the temporary closure of manufacturing facilities, industrial plants, factories, and other industries worldwide, the unemployment rate has increased in the countries. The economic sectors rely on industry and manufacturing, as most business models are built and depend on manufacturing. These outburst effects of COVID-19 are leading countries as well as the global economy towards recession. As the pandemic continues to pester, it will pose an unprecedented challenge for both back-end technologies and front-end applications.
The adverse impact of Coronavirus has also affected industrial cybersecurity spending among the industries around the globe. The key players are focused on completing pending investment and business strategies to recapture positioning in the market. For instance, in May 2020, Rockwell Automation, Inc., completed the acquisition of Kalypso, LP., a software delivery and consulting organization. The aim was to provide control products and solutions based on Kalypso’s capabilities to develop security solutions on critical resources.
According to IDC, worldwide IT spending is expected to decline by 2.7% due to COVID-19. Moreover, the expenditure on infrastructure as a service (IaaS) and cloud computing tools is projected to increase in the near future. These investments would assist in creating various growth opportunities and demand for industrial cybersecurity in industrial applications.
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Increasing Trends of Integrating Security Solutions with Cloud to Drive Growth of the Market
One of the emerging market trends is integrating industrial cybersecurity solutions with advanced cloud services as massive amounts of data and information have been generated across industries daily. To monitor and analyze this information, advanced cloud services are required. Key players in the market are focused on developing and integrating cloud-based cybersecurity solutions for operational technology (OT) and industrial control systems (ICS) applications across industries.
Growing Adoption of AI-based Industrial Robots to Augment Growth
The industrial cybersecurity market is primarily driven by the rising adoption of cloud-based ICS-as-a-service and industrial robots based on artificial intelligence platforms, among manufacturing and industrial plants. Cybersecurity solutions are installed across industrial robots to secure them from cyber-attacks and make them run smoothly. According to the International Federation of Robotics, in 2018, there were around 125.6 thousand industry robots deployed across the automotive industry, 105.2 thousand deployed across the electronic industry, and 43.6 thousand deployed across the metal and mining industry worldwide. According to the Robotic Industries Association (RIA) report, in 2018, around 422,000 units of industry robots shipped globally. With the growth in the adoption of industrial robots, the market for industrial cybersecurity is expected to boost during the forecast period.
Lack of Awareness and lack of professionals to Restrain Market Growth
Although industrial cybersecurity solutions provide numerous advantages, the bulk of the end-users are uninformed of its services in developing countries across the Asia Pacific, Middle East, and Africa, and South America. Also, the lack of professionals to build and operate industrial cybersecurity solutions across the developing countries, where cyber-attacks are increasing is expected to hamper the growth of the global industrial cybersecurity market. With the advancement of technologies, new threats have been created by security hackers. These new threats are quite complicated for traditional cybersecurity solutions to identify and mitigate.
Software Segment to Lead Owing to Increasing Demand for Solutions such as Firewall, SCADA Encryption, and Others
Based on the component, the market is divided into products, software, and services.
Among all, the software is likely to seize the largest industrial cybersecurity market share. This growth is mainly owing to the increasing demand for software solutions such as DDoS, firewall, SCADA encryption, virtualization security, antivirus/malware, backup & recovery, and many others. Key players are focusing on developing and launching advanced industrial security software solutions across industries such as automotive, oil & gas, energy, and others. For instance, in November, Check Point Software Technologies Ltd. launched Check Point R81, a unified cybersecurity platform for industrial applications. The platform assists in providing programmed threat prevention alerts, assisting the IT workforce in efficiently managing complex network settings.
The hardware segment is expected to grow with a substantial CAGR during the forecast period owing to the rising adoption of networking devices such as routers, gateways, controllers, industrial Ethernet switches and others. The service segment is anticipated to grow with the highest CAGR during the forecast period due to the rising adoption of operational technology (OT) and industrial control systems (ICS).
Increasing Acceptance of Cloud Technologies Among Heavy Manufacturing Industry to Aid Growth
Based on the security type, the market is classified into network security, cloud application security, end-point security, internet security and others.
Among all, cloud application security is anticipated to grow with the highest CAGR during the forecast period. This is mainly attributable to the increasing adoption of cloud technology across the heavy manufacturing industry. The network security, end-point security, internet security segment is expected to rise at a stable growth rate during the forecast period. The growth in the segment is owing to increasing demand for stable and secure security solutions across industries such as energy, food & beverages, automotive and others.
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Rising Implementation of IoT-Enabled Devices, 5G and Others, to Boost Demand
Based on the industry, the market is divided into process and discrete industry. The discrete industry is expected to dominate the market during the forecast period. The growth is due to the rising demand for IoT-enabled devices, 5G network, and industry 4.0 solutions. Further, the discrete industry has been segmented into automotive, electronics, heavy manufacturing, packaging, others (aerospace and defense, and others).
The process industry is expected to grow at a CAGR during the forecast period. Further, the process industry has been segmented into oil and gas, chemical, food, beverages, energy and power, other (water, etc.)
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North America Industrial Cyber Security Market Size, 2019 (USD Billion)
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North America to Dominate the Market, owing to Rising Investment by Key Players and Government
Based on the region, the market has been studied across five foremost regions, namely North America, South America, Europe, Middle East and Africa, and the Asia Pacific.
North America is anticipated to hold a dominant share in the market. The growth in the region is mainly due to significant players such as CyberArk Software Ltd., Rockwell Automation, Inc., Cisco System, Inc., and others. Further, rising investment by key players to expand their presence worldwide is expected to boost the growth of the industrial cybersecurity market in North America. For instance:
With the adoption of advanced cyber security solutions across industrial applications, the country remains protected from external trade vulnerabilities.
Asia Pacific is expected to grow with the highest CAGR during the forecasted period. Major players in countries such as China, India, Taiwan, Japan, Australia, South Korea, and other ASEAN countries, are focused on investments to adopt cloud-based security applications. These countries have a vast number of small and medium enterprises (SMEs), and startups in the manufacturing industry.
Europe is projected to develop with a considerable growth rate throughout the estimated period. The growth in this region is mainly owing to the rising investment for the advancement of secure IT infrastructure across automotive industries. For instance, according to UBS Group AG, in Europe, the estimated electric vehicle revenue is likely to reach around 6.33 million units by 2025.
The regions, namely South America and the Middle East and Africa are expected to grow with a noteworthy growth rate. The development is mainly owing to the rising investments in projects across countries such as Turkey, Iran, Brazil, Israel, and others. For instance, in June 2020, Iran is currently developing a cybersecurity force program with the assistance of the elite Revolutionary Guards Corps, with an estimated investment of around USD 1 billion.
Market Players are Implementing Mergers, Acquisition, and Collaboration to Strengthen Position
Major players such as IBM Corporation, Check Point Software Technologies Ltd., Cisco System, Inc., ABB Ltd., Schneider Electric, McAfee LLC, among others, are among the top players in the market. These organizations are completing several corporate strategies to strengthen their global expansion and provide advanced security services. For instance:
An Infographic Representation of Industrial Cybersecurity Market
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The industrial cybersecurity market report delivers a detailed analysis of the market and focuses on key aspects such as leading companies, product and services types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD billion)
Component; Security Type; Industry; and Geography
By Security Type
Fortune Business Insights says that the global market size was USD 15.84 billion in 2019 and is projected to reach USD 29.41 billion by 2027.
In 2019, the North America market stood at USD 5.42 billion.
Growing at a CAGR of 8.2%, the market will exhibit steady growth between 2020 to 2027.
The software segment is expected to be the leading segment in this market during the forecast period.
The growing adoption of AI-based industrial robots across manufacturing units and rising demand for advanced solutions such as firewalls, antivirus, intrusion detection systems (IDS) and others, are expected to boost the demand for cybersecurity solutions across industries.
IBM Corporation, Check Point Software Technologies Ltd., Cisco System, Inc., ABB Ltd., Schneider Electric, and McAfee LLC, among others are among the top players in the market.
North America dominated the market share in 2019.
Asia Pacific is expected to exhibit the highest growth rate during the forecast period.
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