Industrial Control Systems Security Market Size, Share, and Trends 2024 to 2033

Industrial Control Systems Security Market Size and Growth

The global industrial control systems security market size was USD 19.04 billion in 2023, calculated at USD 20.60 billion in 2024 and is expected to reach around USD 41.91 billion by 2033, expanding at a CAGR of 8.21% from 2024 to 2033. The rising number of cyberattacks on critical infrastructure is the key factor driving the growth of the industrial control systems security market.

Industrial Control Systems Security Market Key Takeaways

• The North America industrial control systems security market size reached USD 6.47 billion in 2023 and is expected to attain around USD 14.46 billion by 2033, poised to grow at a CAGR of 8.37% between 2024 and 2033.
• North America dominated the industrial control systems security market with the major revenue share of 34% in 2023.
• Asia Pacific is expected to show the fastest growth in the market during the forecast period.
• By component, the solution segment has contributed more than 71% of revenue share in 2023.
• By component, the services segment is expected to grow at a solid CAGR of 8.62% during the forecast period.
• By solutions, the identity & access management (IAM) segment led the market in 2023.
• By solutions, the encryption segment is expected to grow at the fastest rate in the market over the forecast period.
• By services, in 2023, the professional services segment dominated the market.
• By services, the managed services segment is projected to grow at the fastest rate in the market during the forecast period.
• By end use, the energy & utilities segment held the largest share of the market in 2023.
• By end use, the automotive segment is expected to grow at the fastest rate in the market over the projected period.

U.S. Industrial Control Systems Security Market Size and Growth 2024 to 2033

The U.S. industrial control systems security market size was exhibited at USD 4.53 billion in 2023 and is projected to be worth around USD 10.19 billion by 2033, poised to grow at a CAGR of 8.44% from 2024 to 2033.

North America dominated the industrial control systems security market in 2023. North America has one of the largest automobile markets, which drives the demand for industrial control systems. Furthermore, the U.S., amidst its fourth Industrial Revolution, features increased data usage in production and integration with various manufacturing systems across the supply chain. During the forecast period, the growth of the global industrial control systems security market is also expected to benefit from Canada's economic recovery.

Asia Pacific is expected to show the fastest growth in the industrial control systems security market during the forecast period. Rapid Industrialization will create numerous opportunities for market expansion in the region. With government support, China is expected to lead in deploying industrial networking technology. Governments drive investments by establishing and enforcing cybersecurity regulations and standards, which set minimum security requirements for critical infrastructure. For example, Japan, South Korea, and Singapore have developed comprehensive cybersecurity frameworks that mandate specific security measures for industrial control systems.

• In September 2023, Dragos, a company building software to secure the control systems for manufacturing and industrial equipment, raised $74M to secure industrial control systems from threats extension led by WestCap. The round, which brings Dragos’ total raised to $440 million, leaves the startup’s post-money valuation unchanged for the second year at $1.7 billion.

Industrial Control Systems Security Market Overview

Industrial control systems (ICS) security involves the implementation of measures and practices to safeguard these systems from cyber threats and unauthorized access. ICS is essential for managing and operating critical infrastructure like power plants, water treatment facilities, manufacturing plants, and transportation networks. Unlike traditional IT systems, ICSs are designed to monitor and control physical processes and can pose unique cybersecurity challenges. Additionally, the main objective of ICS Security is to maintain the availability, integrity, and confidentiality of these systems and the information in the process. Availability ensures that these systems operate continuously and reliably without interruptions.

Industrial Control Systems Security Market Growth Factors

• Escalating cyber threats along with regulatory compliance requirements is expected to fuel the industrial control systems security market growth.
• The growing adoption of big data analytics in ICS can boost the growth of the industrial control systems security market in the future.
• Rising industrial automation and virtualization will likely help in the industrial control systems security market expansion shortly.
• Increasing investments in industrial control structures and technologies can propel the growth of the industrial control systems security market.

Industrial Control Systems Security Market Scope

Industrial Control Systems Security Market Dynamics

Driver

Adoption of advanced technologies

The adoption of advanced technologies like the Internet of Things (IoT) in industries has driven the demand for the industrial control systems security market. The increasing use of IoT and other network devices has expanded the threat landscape for criminals and requires robust security measures. The complex industrial network infrastructure, with its numerous connected sensors and controllers, further complicates security. Hence, the need for ICS security in IoT applications has become critical and propelled market growth.

• In June 2024, EmberOT and Obscura joined forces to introduce a unified solution aimed at addressing the critical and evolving challenges in OT (operational technology) and ICS (industrial control systems) environments. The partnership marks a significant advancement in protecting vital industrial processes and data against increasingly sophisticated threats.

Restraint

Difficulties in legacy systems

Many industrial control systems in critical infrastructure sectors such as energy, manufacturing, and transportation depend on legacy systems that lack robust cybersecurity features. These systems often operate with outdated software and are not easily compatible with modern security solutions, which makes them difficult to secure. However, the vulnerabilities present in these legacy systems are challenging to address. The complexity involved in securing these outdated systems can significantly impede the industrial control systems security market.

Opportunity

The evolving trend of using digital technology in ICS security

The growing demand for the industrial control systems security market to manage operations in the power, manufacturing, and industrial sectors is driven by the increasing reliance on these systems. Every day, ICS face a wide range of security risks that are becoming more sophisticated in the digital economy. As the industrial sector depends more on these control systems, understanding the importance of industrial cybersecurity and monitoring emerging security trends and threats are more crucial than ever.

• In March 2024, NVIDIA Announces Omniverse Cloud APIs to power the wave of industrial digital twin software tools. The five new Omniverse Cloud application programming interfaces enable developers to easily integrate core Omniverse technologies directly into existing design and automation software applications for digital twins or their simulation workflows for testing and validating autonomous machines like robots or self-driving vehicles.

Component Insights

The solution segment dominated the industrial control systems security market in 2023. ICS security solutions adopt a proactive approach, which helps block threats before they affect critical assets and businesses to minimize risk and enhance industrial operations seamlessly. These solutions also offer integrated AI security, threat prevention, and secure 5G connectivity by protecting ICS in sectors such as manufacturing, energy, utilities, and transportation.

The services segment is expected to witness significant growth in the industrial control systems security market during the forecast period. The growth of the ICS security service segment is driven by consumer demand for regulatory compliance requirements, reliable services, and technological advancements fueling digital transformation in the power and utilities sectors. Organizations are prioritizing cybersecurity investments to protect critical infrastructure and operational continuity.

Solution Insights

The identity & access management (IAM) segment led the industrial control systems security market in 2023. Factors such as rising security breaches and identity-related fraud are driving the growth of the IAM market. Additionally, the market's expansion necessitates more qualified cybersecurity specialists within businesses. The increased adoption of IAM by SMEs, the introduction of AI/ML-powered services, and scalability benefits further contribute to the market's growth.

• In January 2024, Cross Identity launches a privileged identity and access management solution. The development comes after the Reserve Bank of India (RBI) outlined cybersecurity guidelines aimed at enhancing the security posture of financial institutions, specifically addressing privileged users.

The encryption segment is expected to grow at the fastest rate in the industrial control systems security market over the forecast period. In the ICS environment, cryptography is essential for managing and simplifying the encryption of ICS traffic. Encryption involves transforming plaintext into ciphertext using cryptographic algorithms. To decode the data back to plaintext, a decryption key is required, which is a string of numbers or a password generated by an algorithm.

Services Insights

The professional services segment dominated the market in 2023. In software companies, professional services usually refer to a team of technology and solution experts who provide technical advisory and implementation services for customers. OT and IoT security specialists support ICS security professional services by providing technical expertise and a thorough understanding of compliance frameworks.

The managed services segment is projected to grow at the fastest rate in the industrial control systems security market during the forecast period. Managed IT services provider (MSP) is a third-party provider that proactively monitors and manages a customer's server and network infrastructure. Managed cybersecurity services encompass security patch management, firewall management, threat detection, vulnerability assessments, intrusion detection and prevention, and incident response. MSPs also utilize advanced security technologies and best practices to safeguard their clients' data and systems from cyber threats. These factors are expected to drive the demand for industrial control systems security managed services.

• In May 2024, SK Shieldus Co. announced that it had signed an agreement with Yokogawa Electric Korea to expand its security business in operational technology (OT) and industrial control systems (ICS). The two companies will conduct joint research in various areas, such as security diagnosis and consulting for manufacturing and production factories, system integration and construction, and operation and management services.

End-use Insights

The energy & utilities segment held the largest share of the industrial control systems security market in 2023. This can be attributed to the consumer demand for uninterrupted energy and reliable utility services, which drives organizations in these sectors to prioritize cybersecurity. Securing industrial control systems (ICS) is important to maintaining continuous operations and protecting against disruptions that could affect millions of consumers.

The automotive segment is expected to grow at the fastest rate in the industrial control systems security market over the projected period. Automation in the automotive industry is becoming more widespread due to rising labor costs and the need for manufacturers to meet tight deadlines. Devices like industrial PCs, programmable logic controllers (PLCs), and programmable automation controllers (PACs) automate industrial processes without human involvement.

Industrial Control Systems Security Market Companies

• ABB Group
• BAE Systems
• Cisco Systems
• Check Point
• DarkTrace
• Fortinet
• Honeywell International Inc.
• IBM Corporation
• Kaspersky Labs
• Microsoft Corporation
• Nozomi Networks
• Palo Alto
• Siemens AG
• Trend Micro Incorporated
• Yokogawa Electric Corporation

Recent Developments

• In March 2024, the Smart Factory Automation World (SFAW) event in Seoul will showcase cutting-edge automation technologies such as robotics and digital factory solutions. More than 450 companies from nine countries will convene at the COEX Convention & Exhibition Center to present their latest innovations to an anticipated audience of over 70,000 visitors.
• In October 2023, Rockwell Automation, Inc. (NYSE: ROK) and Microsoft Corp. announced an expansion of their longstanding partnership to expedite the design and development of industrial automation using generative artificial intelligence (AI).
• In May 2024, Fortinet announced the launch of a new generation firewall (NGFW) appliance featuring industry-leading security and networking performance, positioned to serve as a cornerstone for modern campuses. Built on the Fortinet operating system and incorporating the 5G Fortinet security processing unit (SP5).

Segments Covered in the Report

By Component

• Solution
• Services

By Solutions

• Anti-malware/Antivirus
• Firewall
• Encryption
• Identity and Access Management (IAM)
• Security and Vulnerability Management
• Security Information and Event Management (SIEM)
• Distributed Denial-of-Service (DDoS)
• Intrusion detection systems (IDS)/Intrusion Prevention System (IPS)
• Others

By Services

• Professional Services
• Managed Services

By Type

• Endpoint
• Application
• Network
• Database

By End Use

• Energy & Utilities
• Manufacturing
• Power
• Transportation Systems
• Automotive
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa