Industrial Cybersecurity Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 82.75 Billion |
| Market Size (2029) | USD 131.82 Billion |
| CAGR (2024 - 2029) | 9.76 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Industrial Cybersecurity Market Analysis
The Industrial Cybersecurity Market size is estimated at USD 82.75 billion in 2024, and is expected to reach USD 131.82 billion by 2029, at a CAGR of 9.76% during the forecast period (2024-2029).
- The cybersecurity market has grown exponentially due to the rising volume of cyberattacks targeting critical infrastructure, enterprises, and government institutions. Organizations across industries are increasingly investing in robust security solutions to protect sensitive data, mitigate risks, and ensure regulatory compliance. The market encompasses a wide range of solutions, including firewalls, endpoint protection, threat intelligence, and cloud security, with North America and Asia-Pacific being the leading regions in terms of adoption.
- Emerging trends include the adoption of AI-powered security systems for real-time threat detection and response, the growing implementation of zero-trust security frameworks, and a focus on securing hybrid work environments. Additionally, the shift to cloud-native security and the rise in ransomware-as-a-service (RaaS) have driven demand for managed security services and advanced encryption technologies. Increased interest in cybersecurity mesh architecture and the integration of security into DevOps (DevSecOps) are also reshaping the market.
- Key drivers include the proliferation of connected devices through IoT, stricter regulatory requirements such as GDPR and CCPA, and growing awareness about the financial and reputational damage of breaches. Industries such as BFSI (Banking, Financial Services, and Insurance), healthcare, and government sectors represent significant growth potential, with BFSI leading as the most cybersecurity-dependent due to its high exposure to financial crimes and data breaches.
- Cybercriminals are increasingly leveraging generative AI and dark large language models (LLMs) to orchestrate sophisticated cyberattacks. Accenture’s Cyber Intelligence (ACI) researchers reported a staggering 223% increase in the trading of deepfake-related tools on dark web forums during Q1 2024 compared to the same period in 2023. The ACI team anticipates a sharp escalation in AI-driven cyberattacks, underscoring the urgent need for organizations to adopt advanced AI-based cybersecurity solutions capable of real-time threat detection, prediction, response, and prevention. This highlights the critical importance of staying ahead of adversaries by leveraging AI to combat evolving cyber risks.
- Despite its growth, the cybersecurity market faces challenges such as the shortage of skilled cybersecurity professionals and the rising complexity of cyber threats. The high cost of advanced solutions also deters adoption among small and medium enterprises (SMEs). Additionally, end-users often struggle with balancing security with user experience, leading to hesitance in deploying stricter access controls. These challenges highlight the need for affordable, user-friendly, and scalable solutions to drive further market penetration.
Industrial Cybersecurity Market Trends
BFSI Sector Accounts For a Major Share
- The BFSI (Banking, Financial Services, and Insurance) sector has become one of the largest contributors to the demand for industrial cybersecurity solutions. With the rapid digitization of financial services and the integration of advanced technologies such as blockchain, AI, and cloud computing, BFSI institutions face heightened exposure to cyber risks. Protecting sensitive customer data, ensuring uninterrupted financial transactions, and complying with regulatory requirements have become critical priorities, driving the need for robust cybersecurity frameworks.
- Rising incidents of financial fraud, ransomware attacks, and phishing campaigns targeting financial institutions have amplified the sector’s reliance on advanced cybersecurity solutions. Attackers increasingly exploit vulnerabilities in digital banking systems, payment gateways, and ATMs, which necessitates endpoint protection, encryption, and real-time monitoring tools. The BFSI sector has also witnessed significant investment in threat intelligence systems and identity management solutions to mitigate these risks.
- Regulatory compliance is another major driver of cybersecurity demand in BFSI. Global standards such as PCI DSS, GDPR, and ISO/IEC 27001 require financial institutions to adopt stringent security measures. Local regulations in countries like India (RBI guidelines) and the U.S. (CFTC regulations) have further propelled investment in cybersecurity solutions to avoid penalties and safeguard customer trust. This compliance-driven approach makes BFSI a highly lucrative market for cybersecurity providers.
- According to Verizon, cyber incidents in the financial industry rose sharply from 1,829 in 2022 to 3,348 in 2023, with data breaches increasing from 690 to 1,115. This surge reflects a broader trend, with industries, including manufacturing and utilities, facing similar cybersecurity challenges. As digital transformation accelerates, the demand for robust cybersecurity solutions across industrial sectors continues to rise, driven by growing threats to critical infrastructure.
- Additionally, the shift toward digital banking and financial inclusion initiatives in emerging markets has led to the expansion of IT infrastructure in the BFSI sector. This has increased the attack surface for cybercriminals, further emphasizing the need for comprehensive cybersecurity strategies. From securing digital wallets to protecting mobile banking applications, cybersecurity demand in BFSI is expected to grow rapidly, fueled by technological advancements and the evolving threat landscape.
- In January 2025, global payments network Swift will unveil an AI-driven fraud detection service, bolstering its security measures to aid banks in the fight against financial crime, as announced in a recent news release. This advanced system will scrutinize pseudonymized data from billions of transactions annually on Swift's network, enabling real-time identification of suspicious activities. It builds on Swift's existing Payment Controls Service, which is currently utilized by smaller financial institutions. The launch follows successful trials with banks in Europe, North America, Asia, and the Middle East, coinciding with industry estimates that pegged financial services fraud losses at a staggering USD 485 billion in 2023.
Asia Pacific to Register Major Growth
- The Asia-Pacific (APAC) region is experiencing the highest growth in the industrial cybersecurity market due to rapid industrialization and the widespread adoption of smart manufacturing and Industrial IoT (IIoT) technologies. Countries like China, India, and Japan are increasingly integrating digital technologies in industries such as manufacturing, energy, and transportation, making cybersecurity a top priority to safeguard critical infrastructure.
- The rise in cyberattacks targeting industrial systems in APAC is a major driver of this growth. With sectors like power grids, oil and gas, and manufacturing becoming more digitized, the region is facing a higher risk of cyber threats. As a result, companies are ramping up investments in robust cybersecurity solutions to protect against data breaches, operational disruptions, and financial losses.
- Additionally, APAC's growing emphasis on regulatory compliance is accelerating the demand for industrial cybersecurity. Governments in countries like India and South Korea are enforcing stricter cybersecurity laws and regulations to protect their industrial sectors, further pushing the adoption of advanced security measures.
- The region's rapid urbanization and increasing number of connected devices in industries are contributing to the high growth rate. With more industrial systems moving to cloud-based platforms, APAC is witnessing a surge in demand for cybersecurity solutions that ensure data privacy, operational continuity, and protection against sophisticated cyber threats.
- As per a report published in Business Standard in October 2024, India has emerged as one of the top targets for ransomware attacks in the Asia Pacific and Japan (APJ) region, ranking second in terms of successful attacks. The findings come from Zscaler ThreatLabz’s 2024 Ransomware Report, which analyzed trends from April 2023 to April 2024. The report highlights a global surge in ransomware attacks, emphasizing the growing threat to critical sectors and underscoring the urgent need for advanced cybersecurity measures to combat this escalating challenge.
- In August 2024, railway cybersecurity company Cylus partnered with RailTel, a leading telecom, IT, and ICT solution provider in India, to bolster the cybersecurity framework of Indian railway infrastructure. This collaboration aims to enhance the security of critical railway systems, including trackside and onboard signaling systems, as well as SCADA systems. The partnership underscores the growing focus on securing transportation infrastructure against evolving cyber threats in India.
- According to the Data Security Council of India, the banking, financial services, and insurance (BFSI) sector led cybersecurity spending in 2023, investing over USD 1.7 billion. The information technology and services sector followed closely with expenditures of around USD 1.5 billion. This surge in cybersecurity investments highlights the growing recognition of cyber threats across critical sectors.
Industrial Cybersecurity Industry Overview
The industrial cybersecurity market remains fragmented, with key players significantly influencing the competitive dynamics. Companies like Siemens, ABB, Fortinet, Palo Alto Networks, and Accenture lead the charge, delivering diverse solutions to safeguard critical infrastructure. Siemens and ABB take the lead in the industrial control systems (ICS) security segment. In contrast, Fortinet and Palo Alto Networks specialize in network and endpoint protection. Meanwhile, Accenture offers consulting and managed services, aiding organizations in bolstering their cybersecurity frameworks. This competitive landscape drives relentless innovation, as firms adapt to the shifting security demands of industrial sectors.
Industrial Cybersecurity Market Leaders
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Siemens AG
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Fortinet, Inc.
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Palo Alto Networks
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Accenture plc
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ABB Ltd.
*Disclaimer: Major Players sorted in no particular order
Industrial Cybersecurity Market News
- November 2024: Accenture unveiled a suite of services and capabilities aimed at transforming business and cyber resilience. Leveraging the potential of generative AI, deepfake protection, and quantum-safe data security solutions, Accenture focuses on assisting clients from diverse industries in evolving into cyber-resilient organizations.
- October 2024: Kaspersky has rolled out advanced solutions specifically designed for industrial companies to combat rising cybersecurity threats targeting operational technologies (OTs) and critical infrastructure. These solutions introduce new asset types, enhancing context during incident investigations. They support the reception and aggregation of various assets, such as installed software, patches, local users, and discovered executables. Furthermore, the revamped system is set to periodically relay information to Kaspersky Industrial Cybersecurity (KICS) for Networks. This ensures automatic change management and alerts for any detected deviations.
Industrial Cybersecurity Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Regulatory Landscape
4.4 Industrial Cybersecurity Ecosystem Analysis
4.5 Pricing Analysis With a Focus on Firewall Solution
4.6 Analysis of Emerging Technologies
4.7 Impact of AI/ Gen AI on Industrial Cybersecurity Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Digitalization and Industry 4.0 Adoption Driving Cybersecurity Demand in Manufacturing
5.1.2 Rising Need to Protect Supply Chain and Operational Systems in the Oil and Gas Sector
5.1.3 Critical Infrastructure Protection Fuels Cybersecurity Investments in Power and Utilities
5.1.4 Stringent Regulatory Standards Propel Cybersecurity Adoption in BFSI
5.2 Market Challenges
5.2.1 Shortage of Skilled Cybersecurity Professionals to Manage Complex OT and ICS Environments
5.2.2 High Implementation Costs Limiting Adoption Among Small and Medium Enterprises (SMEs)
6. MARKET SEGMENTATION
6.1 By Offering
6.1.1 Hardware
6.1.1.1 Firewalls and Gateways
6.1.1.2 Intrusion Detection and Prevention Systems (IDPS)
6.1.1.3 Security Appliances (Unified Threat Management - UTM devices)
6.1.1.4 Networking Devices
6.1.1.5 Industrial Routers and Switches with Embedded Security
6.1.1.6 Other Hardware Offerings
6.1.2 Software
6.1.3 Services
6.1.3.1 Managed Services
6.1.3.2 Professional Services
6.2 By Deployment
6.2.1 On-premise
6.2.2 Cloud
6.2.3 Hybrid
6.3 By Enterprise Size
6.3.1 Large Enterprises
6.3.2 Small and medium Enterprises (SME)
6.4 By Security Type
6.4.1 Endpoint Security
6.4.2 Network Security
6.4.3 Cloud Security
6.4.4 Application Security
6.4.5 Other Security Type
6.5 By End-Use Industry
6.5.1 Aerospace and Defense
6.5.2 Energy and Utility
6.5.3 BFSI
6.5.4 Healthcare
6.5.5 Oil and Gas
6.5.6 Chemical
6.5.7 Government Organizations
6.5.8 Manufacturing
6.5.9 Other End-Use Industries
6.6 By Geography***
6.6.1 North America
6.6.2 Europe
6.6.3 Asia
6.6.4 Australia and New Zealand
6.6.5 Latin America
6.6.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Siemens AG
7.1.2 Honeywell International Inc.
7.1.3 Schneider Electric
7.1.4 ABB Ltd.
7.1.5 Fortinet, Inc.
7.1.6 Palo Alto Networks
7.1.7 Kaspersky Lab
7.1.8 IBM Corporation
7.1.9 Accenture plc
7.1.10 Dragos Inc.
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND INVESTMENT ANALYSIS
9. FUTURE MARKET OUTLOOK
Industrial Cybersecurity Industry Segmentation
The industrial cybersecurity market is dedicated to safeguarding critical infrastructure, industrial control systems (ICS), and operational technology (OT) from cyber threats. With industries progressively embracing digital technologies, the demand for strong cybersecurity measures to protect sectors like manufacturing, energy, and transportation has surged. This market encompasses hardware, software, and services aimed at preventing, detecting, and mitigating cyberattacks on industrial systems and networks.
The Industrial Cybersecurity Market is segmented by offering (hardware (firewalls and gateways, intrusion detection and prevention systems (IDPS), security appliances (unified threat management - UTM devices), networking devices, industrial routers and switches with embedded security, and other hardware offering)), software, services (professional services, managed services), deployment (on-premise, cloud, hybrid), enterprise size (large enterprise, small and medium enterprise), security type (endpoint security, network security, cloud security, application security, and other security type), end-use industry (aerospace and defense, energy and utility, BFSI, healthcare, oil and gas, chemical, government organizations, manufacturing, and other end-use industries) and geography (North America, Europe, Asia Pacific, Latin America, Middle East And Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Offering | ||||||||
| ||||||||
| Software | ||||||||
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| By Deployment | |
| On-premise | |
| Cloud | |
| Hybrid |
| By Enterprise Size | |
| Large Enterprises | |
| Small and medium Enterprises (SME) |
| By Security Type | |
| Endpoint Security | |
| Network Security | |
| Cloud Security | |
| Application Security | |
| Other Security Type |
| By End-Use Industry | |
| Aerospace and Defense | |
| Energy and Utility | |
| BFSI | |
| Healthcare | |
| Oil and Gas | |
| Chemical | |
| Government Organizations | |
| Manufacturing | |
| Other End-Use Industries |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Industrial Cybersecurity Market Research FAQs
How big is the Industrial Cybersecurity Market?
The Industrial Cybersecurity Market size is expected to reach USD 82.75 billion in 2024 and grow at a CAGR of 9.76% to reach USD 131.82 billion by 2029.
What is the current Industrial Cybersecurity Market size?
In 2024, the Industrial Cybersecurity Market size is expected to reach USD 82.75 billion.
Who are the key players in Industrial Cybersecurity Market?
Siemens AG, Fortinet, Inc., Palo Alto Networks, Accenture plc and ABB Ltd. are the major companies operating in the Industrial Cybersecurity Market.
Which is the fastest growing region in Industrial Cybersecurity Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Industrial Cybersecurity Market?
In 2024, the North America accounts for the largest market share in Industrial Cybersecurity Market.
What years does this Industrial Cybersecurity Market cover, and what was the market size in 2023?
In 2023, the Industrial Cybersecurity Market size was estimated at USD 74.67 billion. The report covers the Industrial Cybersecurity Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Industrial Cybersecurity Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Industrial Cybersecurity Industry Report
Statistics for the 2024 Industrial Cybersecurity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Industrial Cybersecurity analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
