Operational technology (OT) plays a crucial role in critical infrastructure like manufacturing, oil & gas, electricity and transportation. It includes industrial control systems, Distributed Control Systems (DCS), Supervisory Control and Data Acquisition (SCADA) systems and other programmable logic controllers (PLCs) that monitor and control industrial processes and physical equipment. However, lack of advanced OT security has made critical infrastructure vulnerable to cyber threats that can disrupt operations and cause economic losses.
The global operational technology security Market is estimated to be valued at US$ 21.57 billion in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
To safeguard critical infrastructure, utilities and process industries from cyber attacks, there is a pressing need to implement robust OT security solutions. Attackers are increasingly targeting OT systems to gain access to large corporate networks and industrial control systems. As operational technology continues to connect to IT networks and the internet for remote access and monitoring, the risks of cyber threats, malware infections and even adversary-initiated disruptions have grown manifold. The adoption of OT security solutions will help organizations identify vulnerabilities, detect threats in real-time and respond quickly to incidents, thereby minimizing disruption to industrial operations from cyber attacks. This presents lucrative opportunities for OT security vendors to address the urgent need for protecting critical infrastructure with their innovative solutions.
Porter's Analysis
Threat of new entrants: The operational technology security market requires high R&D investments and resources to develop specialized products. Additionally, the presence of major global players like Cisco and IBM poses barriers for new companies.
Bargaining power of buyers: Large industrial and utility buyers have significant bargaining power due to the critical nature of OT systems. They can negotiate on pricing and demand additional services.
Bargaining power of suppliers: A few vendors dominate the supply of components for OT security solutions like networking hardware and embedded systems. This gives them control over pricing and inventory.
Threat of new substitutes: While there is increasing adoption of IT-OT convergence, there are limited substitutes for dedicated OT security technologies required for legacy industrial control systems.
Competitive rivalry: The market sees intense competition among major players attempting to expand their product portfolios and market share through partnerships and M&A activities.
SWOT Analysis
Strengths: OT security vendors have domain expertise and offer a comprehensive suite of solutions addressing unique OT network vulnerabilities and compliance needs.
Weaknesses: Many organizations lack awareness about sophisticated OT threats and have underinvested in security budgets for operational plants and machinery. Legacy systems also pose challenges to integrate new technologies.
Opportunities: Increasing connectivity of OT assets to external networks and demand for real-time threat monitoring present growth prospects. Adoption is set to rise across industries like oil and gas, manufacturing, and utilities.
Threats: Complex nature of industrial processes requires in-depth understanding before deployment can occur to avoid disruptions. Cyberattacks specifically targeting OT continue rising in frequency and sophistication globally.
Key Takeaways
The global Operational Technology Security Market Growth is expected to witness high growth over the next decade due to increasing digital transformation and connectivity of industrial control systems.
Regional analysis: North America currently dominates due to large-scale deployments across critical infrastructure sectors. However, Asia Pacific is emerging as a high potential region supported by ongoing modernization programs in countries like China, India, and Japan. Adoption across manufacturing and energy verticals will drive the market.
Key players operating in the operational technology security market are Cisco, Honeywell, IBM, Intel, and Symantec. IoT platforms and embedded device security are witnessing integration with solutions from major OT security vendors in a bid to deliver unified protection for both IT and OT assets under a single management console.
For more insights, read- https://www.newsstatix.com/operational-technology-security-market-trends-size-and-share-analysis/
For more details on the report, Read- https://cmiinfopiece.blogspot.com/2024/01/plant-based-meat-market-growth.html
