ABI Research reveals industrial manufacturers prioritize network security investments amid rising cyber threats
Industrial manufacturers ranked network security as their top cybersecurity investment to guard against adverse cyber events, according to a recent State of Technology in Manufacturing survey by global technology intelligence firm ABI Research. With increasingly connected and digitized industrial assets providing ever more information about processes and workforce, manufacturers are focusing their security on network security technologies such as authentication and access control.
Coupled with a growing body of industrial-focused security regulation and an expanding cybercrime element (for whom data in discrete manufacturing processes are extremely high value), this puts pressure on manufacturers to safeguard their operations better. Network breaches can have significant repercussions on industrial manufacturers.
Unplanned downtime impacts production, which could lead to revenue loss or potential regulatory liability for data breaches. In Europe alone, three regulatory instruments impose financial penalties for non-compliance: the General Data Protection Regulations, the NIS2 Directive, and the Cyber Resilience Act.
“Industrial manufacturers are one of the top targeted sectors by threat actors. Not only is counterfeiting in contract manufacturing rife, but ransomware is a prevalent threat,” says Michela Menting, Senior Research Director. “Supply chain vulnerabilities and social engineering constitute important vectors for threat actors, and manufacturers are understandably concerned about security as they increasingly connect their industrial assets to operational networks.”
Demand for cybersecurity solutions focused on operational technologies is growing quickly as a result, with ABI Research forecasting a US$2 billion market globally in 2024. Much of it is driven by demand for network security and segmentation technologies. This correlates with the survey findings, with manufacturers citing network security solutions such as access control, authentication, and threat detection as their top security investments.
In June, ABI Research revealed that industrial operations are increasingly under threat as the industrial world embraces waves of digitization and smart manufacturing trends. Operational Technology (OT) attacks are common, widespread, and extremely frequent. The report forecasts that the OT cybersecurity market will grow from US$12.75 billion in 2023 to around $21.6 billion by 2028, with an approximate Compound Annual Growth Rate (CAGR) of 9.2 percent. Network security and segmentation technologies will grow the most, followed by identity and access management and end-point protection.
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