Cyber Security for Industrial Automation Market by Type (Fixed Automation System, Programmable Automation System, Flexible Automation System, and Integrated Automation System), Tools or Technologies (Numerical Control (NC) Machine Tools, Programmable Logic Controllers (PLCs), Computer Numerical Control (CNC) Systems, and Industrial Sensors), Security Type (Enterprise Security, SCADA Security (Supervisory Control and Data Acquisition), Network Security, Device Security, and Physical Security), End Use (Automotive Manufacturing, Electronics & Telecommunication, Food & Beverage Processing, Pharmaceuticals, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2023-2032

Cyber Security for Industrial Automation Overview

Cyber security for industrial automation refers to the protection of various industrial components, machinery, and networks against cyber-attacks. Industrial automation is witnessing a rising significance in the realm of cybersecurity. The continuous evolution and integration of new technologies in the industrial sector have increased the susceptibility of cyber-attacks. Thus, securing industrial automation systems against cyber threats is important. The interconnection of industrial processes with networked technologies presents an increased risk of cyber threats from various sources. The risks associated with cyber security in industrial automation may lead to production failures, environmental contamination, personal injuries, and others. For instance, in the manufacturing industry, a cyberattack on manufacturing equipment’s or systems may lead to equipment malfunctioning that can release hazardous substances or chemicals causing personal injuries. Thus, in the period of data-driven and Internet-connected industrial systems, the adoption of cybersecurity will play a crucial role in mitigating the risks.

Global Cyber Security for Industrial Automation Market Analysis

The global cyber security for industrial automation market size was $9,000.0 million in 2022 and is predicted to grow with a CAGR of 8.7%, by generating a revenue of $20,456.7 million by 2032.

Source: Research Dive Analysis

COVID-19 Impact on the Global Cyber Security for Industrial Automation Market

The COVID-19 pandemic had a significant impact on cybersecurity for industrial automation. Remote work culture led industrial automation professionals to work remotely which increased the reliance on digital communication and collaboration tools. Thus, the industrial systems were more prone to cyber vulnerabilities owing to remote connections. The risks associated with ransomware, phishing attacks, and other malware have led to a surge in cyber threats.

In addition, the supply chain disruptions due to the pandemic led to delays in the timely delivery of various components. This led to disruptions in implementing security updates and patches that have made industrial systems susceptible to vulnerabilities. Thus, the increase in the frequency and severity of cyber threats has led to an increase in the awareness regarding cybersecurity among industry professionals. However, in the post-pandemic period, the adoption of different industrial automation technologies such as artificial intelligence (AI), cyber security, cloud, and others has increased drastically.

Rise in the Incidences of Cyber Attacks to Drive the Market Growth

The incidences of cybercrimes and cyber-attacks are on the rise globally in which the hackers can get access to all sorts of information by breaking into a vulnerable part of the system. For instance, crucial information related to production and design secrets, as well as sensitive data related to customers and finances may be compromised due to cyber-attacks. For instance, in May 2021, JBS, the Brazil-based meat processing company, paid out $8.8 million in a ransomware attack. Due to the ransomware attack, the majority of the company’s factories and operations were halted and closed to protect the integrity of their food supplies and customer information. Furthermore, in March 2021, Acer, the Taiwan-based computer manufacturer, was hit by a ransomware attack that compromised the company’s financial information. Thus, manufacturers need to be more aware regarding cybercrime and how to prevent it. The implementation of cyber security in the industrial sector can lead to better risk assessment and risk management, can enforce access control measures so that only authorized personnel have access to critical data and systems. These factors are anticipated to boost the cyber security for industrial automation market growth during the forecast period.

Costly and Complex Process Associated with the Implementation of Cyber Security in Industrial Automation to Restrain the Market Growth

Implementing cyber security measures is not affordable to many small and mid-sized industries. Its installation can also be a complex procedure. Individuals or businesses are required to purchase services and cover maintenance costs, which may be perceived as an expense. Typically, small or medium-sized enterprises find it challenging to allocate sufficient funds to safeguard their systems and data against potential cyber threats, whether originating internally or externally. This is because the cyberthreats in the industrial automation sector can be external threats in which the external attackers may attempt to infiltrate industrial systems to steal data, disrupt operations, or cause damage or it can be internal threats in which the employees, contractors, or third-party vendors with access to industrial systems can pose a threat. It is essential for them to recognize the benefits of integrating cybersecurity measures in their business operations and to make cost-effective investments in this regard. In industrial settings, there may be budget constraints that affect the allocation of resources for cybersecurity measures. Organizations might prioritize operational needs or other capital investments over cybersecurity, especially if they underestimate the potential impact of a cyber incident. These factors are anticipated to hamper cyber security for industrial automation market growth in the upcoming years.

Integration of Artificial Intelligence and Machine Learning to Drive Excellent Opportunities

Artificial Intelligence (AI) and Machine Learning (ML) technologies are reshaping the landscape of industrial automation and cybersecurity. The advancements in AI and ML bring about a transformative impact on the cyber security measures employed by organizations. For instance, AI-driven algorithms play a critical role in detecting anomalies, predicting potential attacks, and executing automated responses to threats, thereby facilitating a proactive defense against sophisticated cyber threats. In addition, the integration of AI and ML involves the analysis of extensive datasets derived from various sources such as network traffic, logs, and user behavior. Thus, with a thorough analysis of these datasets, the AI and ML technologies can discern patterns indicative of potentially malicious activities. Also, by utilizing historical data, AI and ML can anticipate and predict potential threats and can generate real-time alerts. Furthermore, automated response systems driven by AI can efficiently contain and mitigate attacks. This helps in reducing response times and minimizing the impact of security incidents. Thus, the advancements in AI and ML enable organizations to effectively safeguard against evolving cyber risks, thereby enhancing the resilience of their systems. These factors are anticipated to boost the cyber security for industrial automation market expansion in the upcoming years.

Global Cyber Security for Industrial Automation Market Share, by Type, 2022

Source: Research Dive Analysis

The programmable automation system sub-segment accounted for the highest market share in 2022. The flexibility of programmable automation systems makes it adaptable for various industrial automation processes such as packaging, processing, and others. In addition, programmable automation systems make installation and troubleshooting easier compared to fixed automation systems. The programmable automation systems facilitate seamless adjustments in different applications. In addition, the maintenance costs of these systems are notably lower when compared to flexible automation systems and integrated automation systems. These factors are anticipated to boost the popularity of programmable automation system sub-segment in the upcoming years.

Global Cyber Security for Industrial Automation Market Share, by Tools or Technologies, 2022

Source: Research Dive Analysis

The programmable logic controllers (PLCs) sub-segment accounted for the highest market share in 2022. A specialized computer program known as a programmable logic controller, or PLC, is widely utilized in manufacturing processes and industrial automation. These controllers are intricately designed to oversee and regulate real-time operations within processes and machinery. In large-scale industries, PLCs serve as indispensable components, significantly enhancing efficiency and simplifying various tasks. The primary objective of PLCs is to optimize industrial processes by offering an efficient approach to executing a multitude of operations. Their benefits include flexibility, ease of programming, and scalability. PLCs excel in facilitating quick modifications and updates without the necessity for extensive rewiring or hardware alterations, making them particularly well-suited for dynamic industrial environments. Their adaptability allows for straightforward programming and reprogramming to meet evolving requirements. Renowned for their high reliability, PLCs can operate continuously for extended durations without encountering failures. PLCs are exclusively designed for industrial applications as they can endure challenging conditions, including high temperatures, humidity, and electrical noise.

Global Cyber Security for Industrial Automation Market Share, by Security Type, 2022

Source: Research Dive Analysis

The SCADA security (Supervisory Control and Data Acquisition) sub-segment accounted for the highest market share in 2022. SCADA systems provide a multitude of advantages across various industries. The capability of remote monitoring and control offered by SCADA ensures efficient centralized process control in the industrial sector. Real-time data collection and analysis empower informed decision-making, leading to increased efficiency and cost savings across various industries. SCADA contributes to enhanced safety by monitoring critical process parameters and equipment in real-time. Through its capacity to optimize processes and minimize downtime, SCADA positively impacts quality and productivity. These systems are adaptable to changes in process or equipment requirements and can be customized to align with specific organizational needs. SCADA systems provide real-time information about processes and machines, enabling operators to promptly identify and address issues as they arise. This swift response reduces downtime and mitigates the impact of problems. In addition, SCADA systems can automate various tasks, enhancing operational efficiency of the industrial processes. For instance, SCADA can be utilized to control and optimize energy usage in manufacturing processes, resulting in reduced energy consumption and associated costs. By continuously monitoring processes, SCADA identifies inefficiencies, enabling organizations to make informed changes and progressively enhance performance. In addition, SCADA systems contribute to organizational efficiency by minimizing downtime, and improving processes.

Global Cyber Security for Industrial Automation Market Share, by End Use, 2022

Source: Research Dive Analysis

The food & beverage processing sub-segment accounted for the highest market share in 2022. In the food & beverage industry, cybersecurity for industrial automation plays a pivotal role due to the extensive influence of digital transformation on production operations. This transformation is aimed at increasing product output, enhancing batch quality, and optimizing overall equipment effectiveness (OEE). The extensive connectivity introduced by digitalization poses a higher risk to control systems, potentially leading to production downtime, process anomalies, and even necessitating product recalls. For instance, in September 2022, ABB Ltd., a technology leader in digital transformation, introduced the ABB Ability digital services, significantly improving the cybersecurity posture of food & beverage plants worldwide. This platform enhances the protection of critical industrial infrastructure by consolidating ABB and third-party security solutions into a unified and straightforward digital platform.

Global Cyber Security for Industrial Automation Market Size & Forecast, by Region, 2022-2032 ($Million)

Source: Research Dive Analysis

The Asia-Pacific cyber security for industrial automation market generated the highest revenue in 2022. The prevalence of digital technology in every area of life poses a significant challenge for governments, organizations, and individuals. While Asia-Pacific countries, such as South Korea, Japan, China, and others, have been at the forefront of technological innovation, the rapid evolution of digital technology has led to an increase in demand for cybersecurity in this region. Despite their dynamic digital economies and technological advancements, the surge in innovation has led to an increase in cyber-attacks. According to a July 2023 survey conducted by Cloudflare, which involved over 4,000 cybersecurity managers in countries like Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam, 78% of respondents experienced at least one cybersecurity incident in the preceding 12 months. Among the survey participants, 80% reported four or more incidents, and 50% faced ten or more incidents. Approximately 63% estimated the financial impact of cyber incidents on their organizations over the past year to be at a minimum of $1 million, with 14% indicating losses exceeding $3 million. Hence, the increase in cyber-attacks in Asia-Pacific along with rapid industrialization is estimated to boost the cyber security for industrial automation demand in the upcoming years.

Competitive Scenario in the Global Cyber Security for Industrial Automation Market

Technological advancement and product launch are common strategies followed by major market players. In May 2023, Renishaw, the global engineering technology company, unveiled a newly developed product line specifically designed for the industrial automation market. This new product line will enhance automation in the industrial sector by addressing the issues related to manual set-up, calibration and maintenance of robots, such as operational accuracy and repeatability. This product line comprises three products: RCS L-90, RCS T-90 and RCS P-series, all supported by a dedicated software suite.

Source: Research Dive Analysis

Some of the leading cyber security for industrial automation market players are IBM, ABB, Schneider Electric, Honeywell International Inc., Siemens AG, Microsoft Corporation, Rockwell Automation Inc., Palo Alto Networks, Cisco Systems, Inc., and Dell Inc.