Cyberattacks on industrial infrastructure triggering increased expenditure in operational technology cybersecurity
Operational Technology (OT) cybersecurity is gearing up for a significant rise in spending over the next five years, according to a report by ABI Research. The escalating complexity and frequency of cyber threats, combined with the expanding digitalization of critical infrastructure and industrial sectors, are driving this growth.
Michael Amiri, a senior analyst at ABI Research, has highlighted that attackers find multiple incentives in targeting OT, making it a potential target with weaker defenses. The integration of digital technologies and IoT in OT environments further expands the attack surface, prompting industries to adopt more robust security measures.
The projected increase in OT cybersecurity spending is a response to a wave of escalating attacks targeting internet-exposed devices at industrial sites. Key sectors driving this increase include manufacturing, Banking, Financial Services and Insurance (BFSI), healthcare, and government. Industrial and critical infrastructure vulnerabilities prompting increased investment in OT security solutions.
Enterprise spending on OT cybersecurity is expected to grow by nearly 70% from 2023 to $21.6 billion globally by 2028. In 2023, the OT cybersecurity sector generated $12.75 billion, as stated in the ABI Research report.
More than half of OT cybersecurity spending will be directed towards network security and segmentation, according to Amiri. Sectors fueling OT cybersecurity spending include mining, quarrying, oil and gas extraction, utilities, and manufacturing. Segmentation in OT cybersecurity is expected to capture approximately 27% of overall spending through the five-year period.
Industrial operators that deploy remote-access control access mechanisms for their OT environments are significant spenders in OT cybersecurity. Operational continuity is critical in the OT sector, making it a potential target with weaker defenses. The rise in cyberattacks such as ransomware, phishing, and data breaches, combined with heightened regulatory pressure, drives organizations to invest heavily in cybersecurity to protect sensitive data and ensure operational continuity.
The integration of digital technologies and IoT in OT environments further expands the attack surface, prompting industries to adopt more robust security measures. AI and generative AI are accelerating threat sophistication, compelling organizations worldwide to boost security spending, projected to reach $377 billion by 2028 globally.
In summary, the growth in OT cybersecurity spending from 2023 to 2028 is fueled by escalating cyber threats, regulatory mandates, AI-driven complexity, and digital transformation across critical industries. The OT sector, historically a small portion of overall IT spending, is expected to see a significant change as industries worldwide invest in safeguarding operational integrity and complying with increasing standards.
- The integration of digital technologies and IoT in OT environments increases the attack surface, requiring industries to adopt more robust security measures.
- More than half of OT cybersecurity spending will be directed towards network security and segmentation.
- The growth in OT cybersecurity spending is also driven by the rise in cyberattacks such as ransomware, phishing, and data breaches, combined with heightened regulatory pressure.
- The OT sector, historically a small portion of overall IT spending, is expected to see a significant change as industries worldwide invest in safeguarding operational integrity and complying with increasing standards.
