Industrial Cybersecurity Market Size, Share, Forecast & Trend Analysis by Component (Solutions, Services), Security Type (Endpoint Security, Network Security), End User (Industrial Manufacturing, Transportation & Logistics) & Geography - Forecast to 2032

The Industrial Cybersecurity Market was valued at $21.33 billion in 2024. This market is expected to reach $57.6 million by 2032 from an estimated $23.8 billion in 2025, at a CAGR of 13.5% during the forecast period 2025-2032.

Industrial Cybersecurity Market Size & Forecast

Key factors driving the growth of this market include the rise of disruptive digital technologies, increasing frequency & sophistication of cyberattacks and cybersecurity regulations & industry compliance. However, the shortage of skilled professionals and complexity of securing of environments restrain this market’s growth.

The growing interest in cloud-based security solutions and AL & ML for threat detection is expected to generate market growth opportunities for the stakeholders operating in this market. Furthermore, the rising adoption of cloud technologies is a major trend in the industrial cybersecurity market.

Industrial Cybersecurity Market Growth Drivers

The Rise of Disruptive Digital Technologies

As industries across the globe continue to embrace digital transformation, the adoption of disruptive technologies has led to significant improvements in operational efficiency, productivity, and cost reductions. However, this rapid advancement has also introduced a greater number of cybersecurity challenges. The industrial sector, in particular, is becoming increasingly vulnerable to cyber threats due to the integration of advanced technologies such as the Industrial Internet of Things (IIoT), artificial intelligence (AI), machine learning (ML), data analytics, robotics, and cloud computing. While these technologies provide substantial benefits in terms of automation, real-time data analytics, and enhanced decision-making, they also increase the attack surface for cybercriminals, exposing critical infrastructure to a wide array of vulnerabilities.

Governments and organizations around the world have recognized this and are taking steps to facilitate the widespread adoption of Industry 4.0 technologies to drive innovation and efficiency. For example, in November 2024, ADNOC, the UAE's energy giant, announced plans to deploy highly autonomous agentic artificial intelligence (AI) in the energy sector for the first time. This initiative, in collaboration with G42, Microsoft, and AIQ, aims to enhance operational efficiencies, such as speeding up seismic surveys and improving production forecast accuracy.

The increasing frequency and sophistication of cyberattacks targeting the industrial sector have underscored the urgent need for robust cybersecurity measures. In recent reports, the number of cyber incidents in manufacturing environments continues to rise. For instance, a 2023 report by Ponemon Institute revealed that 53% of manufacturing organizations experienced a significant cyberattack, causing disruptions such as production halts, financial losses, and the theft of sensitive data. As industries continue to adopt advanced technologies like machine learning, robotics, and the Internet of Things (IoT), the attack surface grows larger, creating more vulnerabilities. The integration of these technologies into critical infrastructure increases the complexity of industrial environments, making traditional security systems inadequate in combating emerging threats. This shift has driven industries to adopt more sophisticated security strategies, including real-time threat monitoring, advanced access control protocols, and comprehensive surveillance systems to strengthen defense mechanisms and mitigate potential cyber risks.

In response, the industrial sector is adopting next-generation cybersecurity solutions that can proactively defend against the evolving threat landscape. AI and ML technologies, in particular, have become instrumental in detecting potential threats and providing real-time protection by analyzing vast amounts of data for anomalies. Additionally, new security frameworks, such as zero-trust architecture and network segmentation, are being implemented to safeguard sensitive operational systems from unauthorized access. Given the growing reliance on IIoT devices and connected infrastructure, comprehensive endpoint security solutions are essential to prevent cybercriminals from exploiting vulnerabilities in industrial networks.

Overall, the rise of disruptive digital technologies in the industrial sector has created an urgent need for advanced cybersecurity solutions. As these technologies continue to evolve, industries must prioritize securing their systems against a broad range of cyber threats to ensure the safety and continuity of their operations. The continued development of innovative security solutions, coupled with strategic industry partnerships and investment in specialized cybersecurity talent, will be critical in safeguarding the digital future of the industrial sector.

Increasing Frequency & Sophistication of Cyberattacks

The increasing frequency and sophistication of cyberattacks targeting the industrial sector is a primary driver of the growing demand for industrial cybersecurity solutions. The industrial sector, which includes critical infrastructure, manufacturing, energy, utilities, and transportation, has become a prime target for cybercriminals due to the high value of operational technologies (OT) and the potential for widespread disruptions. In 2023, the Cost of a Data Breach report by IBM revealed that industrial organizations face some of the highest data breach costs globally, averaging USD 4.5 million per incident. These breaches not only result in financial losses but also lead to significant disruptions, such as production downtime, loss of intellectual property, and reputational damage. The need for enhanced cybersecurity is further underscored by high-profile attacks like the 2021 ransomware attack on Colonial Pipeline, which resulted in fuel shortages and widespread operational disruptions, costing the company millions of dollars.

As industrial operations increasingly adopt technologies like IoT, AI, robotics, and machine learning, the attack surface expands, introducing new vulnerabilities. According to a 2023 Check Point Software Technologies survey, 72% of manufacturing and energy organizations reported an uptick in cyberattacks, with multi-vector threats targeting both IT and OT systems. Traditional security solutions are often ill-equipped to handle the complexity of modern industrial networks, making it essential to invest in integrated security frameworks. The rise in sophisticated attacks, such as the manipulation of physical systems seen in past incidents like the Stuxnet worm, highlights the need for specialized OT security solutions capable of defending against evolving threats.

This increasing frequency of cyberattacks is propelling the industrial cybersecurity market. Several factors contribute to this growth, including the increasing investment in OT security solutions that integrate both IT and OT systems. The rise of AI-driven cybersecurity tools is also fueling market demand, as these tools offer real-time threat detection and advanced monitoring capabilities. Additionally, heightened regulatory pressures, such as the EU’s Network and Information Systems (NIS) Directive and the U.S. Executive Order 14028, are compelling organizations to adopt more robust cybersecurity practices, further driving the market for compliant solutions. Smaller industrial companies are increasingly turning to cybersecurity-as-a-service (CaaS) models, which provide scalable, expert-driven protection while helping to address budget and resource limitations. The widespread adoption of IoT and edge computing technologies also requires specialized security solutions, as these technologies create new attack vectors. The integration of advanced security measures for these connected devices is another key driver of the industrial cybersecurity market.

Overall, the rising sophistication of cyberattacks on industrial organizations is reshaping the cybersecurity landscape, with increasing investments in advanced security technologies. The industrial cybersecurity market is expected to grow rapidly, driven by the need for integrated, AI-powered solutions, compliance with evolving regulations, and the protection of critical infrastructure and connected systems. As cyber threats continue to evolve, both established players and newcomers to the cybersecurity market must prioritize innovation and proactive threat management to safeguard industrial operations.

Industrial Cybersecurity Market Trends

Rising Adoption of Cloud Technologies

The shift toward cloud technologies is accelerating across industries, with organizations of all sizes—from small and medium-sized enterprises (SMEs) to large corporations—embracing the cloud to enhance operational efficiency, reduce costs, and improve scalability. This trend is expected to persist as businesses increasingly rely on cloud solutions to drive digital transformation, streamline workflows, and accelerate time to market. Additionally, the growing adoption of emerging technologies such as the Internet of Things (IoT) has significantly contributed to the surge in data being stored and processed on the cloud. As businesses continue to embrace trends like Bring Your Own Device (BYOD) and as internet connectivity expands into new markets, the demand for cloud-based solutions is rising, driving a parallel need for enhanced cloud cybersecurity.

However, the rapid increase in cloud adoption has introduced new cybersecurity challenges, particularly in light of the substantial amount of sensitive data now being stored and accessed on cloud platforms. The expansion of cloud infrastructure has made it a prime target for cybercriminals. For example, according to Fintech News, cloud-based cyberattacks surged by an alarming 630% between January and April 2020. This spike in attacks highlights the vulnerability of cloud environments and the growing risks associated with cloud data storage and management. As a result, organizations are prioritizing cloud security to protect sensitive information, mitigate the risks of data breaches, and ensure compliance with industry regulations.

To address these evolving threats, many cybersecurity vendors are focusing on developing and deploying comprehensive security solutions tailored specifically for cloud environments. These solutions often include advanced threat detection, real-time monitoring, access controls, and data encryption, all designed to safeguard cloud-based applications and networks. Furthermore, organizations are increasingly adopting cloud-level security monitoring systems to detect vulnerabilities and prevent potential security breaches in their industrial operations. The growing dependence on cloud technologies and the heightened risks associated with their use are propelling the demand for robust cloud security solutions and services, presenting significant growth opportunities for cybersecurity providers in this space. As more organizations transition to the cloud, securing cloud environments will continue to be a critical focus, shaping the future of industrial cybersecurity.

Industrial Cybersecurity Market Opportunity

Cloud-based Security Solutions

The growing trend of digital transformation is not limited to large enterprises but is increasingly embraced by small and medium-sized enterprises (SMEs) as well. SMEs are progressively becoming prime targets for cyberattacks due to their increasing adoption of digital technologies and connected devices in their operations. This shift has prompted a surge in demand for cloud-based security solutions, as these technologies offer flexibility, scalability, and cost-effective data storage options. Cloud-based security solutions are critical in safeguarding sensitive data by providing robust protection against theft, loss, and leakage. Key security features, such as penetration testing, firewalls, tokenization, and virtual private networks (VPNs), are integrated into cloud services to ensure data integrity and confidentiality.

Moreover, cloud security solutions offer significant advantages, including real-time threat detection, powerful policy enforcement, and adaptable architectures that can scale as the organization grows. These features are especially appealing to SMEs that may not have the resources for extensive on-premise security infrastructure. The growing adoption of Internet of Things (IoT) devices and policies like BYOD (Bring Your Own Device) within SMEs further fuels the demand for cloud security solutions, as these organizations seek ways to secure increasingly decentralized and interconnected networks.

The rise in cyberattacks targeting SMEs has created a pressing need for advanced cybersecurity solutions. A 2023 Symantec report revealed that SMEs are facing cyberattacks at an unprecedented rate, with 43% of all cyberattacks now targeting small businesses. In response, cloud security providers are collaborating with various organizations to deliver affordable, comprehensive security services tailored to SMEs. For instance, in 2023, Microsoft Azure partnered with cloud security firms to provide advanced security services to SMEs, while offering scalable solutions that cater to their specific needs. Similarly, Amazon Web Services (AWS) continues to expand its cloud security offerings to support SMEs in protecting their infrastructure and data.

As SMEs adopt more cloud-based technologies and integrate digital services into their operations, the demand for robust cloud security solutions will continue to rise, offering significant growth opportunities for cybersecurity vendors. This trend is expected to drive the expansion of the industrial cybersecurity market, as SMEs recognize the importance of protecting their digital assets from increasingly sophisticated cyber threats.

Industrial Cybersecurity Market Analysis: Key Findings

Key Findings in the Industrial Cybersecurity Market Study:

By Component: In 2025, the Solutions Segment to Dominate the Industrial Cybersecurity Market

Based on components, the global industrial cybersecurity market is primarily segmented into two key components: solutions and services. In 2025, the solutions segment held the dominant share of 56.4%, reflecting its critical role in addressing the growing challenges of data security and privacy. The prominence of this segment can be attributed to the heightened concerns over cybersecurity risks in industrial operations, as well as the consistent efforts by industrial stakeholders to enhance operational efficiency, reduce costs, and ensure a resilient security framework.

Moreover, this segment is also further projected to record a higher CAGR of 15.1% during the forecast period of 2025– 2032.

By Security Type: In 2025, the Endpoint Security Segment to Dominate the Industrial Cybersecurity Market

Based on security type, the global industrial cybersecurity market categorized by security type into network security, application security, cloud security, endpoint security, and other security types. In 2025, the endpoint security segment is expected to account for the larger share of 40.3% of the global industrial cybersecurity market. This segment’s large market share is attributed to the increasing need for organizations to protect their expanding network perimeters, which now include a wide variety of endpoints, such as computers, mobile devices, and IoT devices.

By Deployment Mode: In 2025, the Cloud-Based Deployment Segment to Dominate the Industrial Cybersecurity Market

Based on deployment mode, the global industrial cybersecurity market is segmented based on deployment mode into on-premises deployment and cloud-based deployment. In 2025, the cloud-based deployment segment is expected to account for the largest share of 54.7% of the global industrial cybersecurity market. This segment’s large market share is attributed to the rapid evolution of cloud technologies, which offer enhanced flexibility, scalability, and cost-efficiency. The affordability and superior scalability of cloud-based solutions, coupled with the increasing adoption of cloud platforms by small and medium-sized enterprises (SMEs), are key factors driving this segment's growth.

Moreover, this segment is also further projected to register the highest CAGR during the forecast period of 2025–2032. The increasing reliance on cloud-based environments and the scalability offered by these platforms are expected to further drive this segment's dominance within the global industrial cybersecurity market.

By End-User: In 2025, the Industrial Manufacturing Segment to Dominate the Industrial Cybersecurity Market

Based on end-user, the global industrial cybersecurity market is segmented by end user into industrial manufacturing, energy & utilities, transportation & logistics, and other end users. In 2025, industrial manufacturing is expected to account for the largest share of 65.4% of the global industrial cybersecurity market. This segment’s large market share is attributed to the growing demand for real-time security monitoring, rising cybersecurity incidents, and the increasing integration of smart devices and IoT technologies in manufacturing processes.

Geographical Analysis

Based on geography, the industrial cybersecurity market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2025, North America is expected to account for the largest share of 36.1% of the global industrial cybersecurity market. This market is projected to reach USD 8.58 billion in 2025. North America’s significant market share can be attributed to several key factors, including This dominant share can be attributed to several factors, including robust government initiatives to enhance cybersecurity, the rapid adoption of advanced technologies, and the rising number of cyberattacks targeting industrial sectors in the region.

However, Asia-Pacific is expected to register the highest growth rate, with a projected CAGR of 15.0% during the forecast period. The growth in this region is driven by the widespread integration of connected devices across industries, the rise of Industry 4.0 technologies, increasing cloud-based solution adoption, and the growing frequency of cyberattacks within the Asia-Pacific industrial sector.

Industrial Cybersecurity Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the Industrial Cybersecurity Market are Fortinet, Inc. (U.S.), Cisco Systems, Inc. (U.S.), Juniper Networks, Inc. (U.S.), Palo Alto Networks, Inc. (U.S.), IBM Corporation (U.S.), Check Point Software Technologies Ltd. (Israel), F5, Inc. (U.S.), Mandiant, Inc. (U.S.), Broadcom, Inc. (U.S.), Oracle Corporation (U.S.), Microsoft Corporation (U.S.), Intel Corporation (U.S.), Imperva, Inc. (U.S.), Cyberark Software Ltd. (U.S.), and RSA Security LLC (U.S.).

Industrial Cybersecurity Industry Overview: Latest Developments from Key Industry Players

• In February 2025, Fortinet launched FortiGate 70G, FortiGate 50G, and FortiGate 30G, the latest G series of next-generation firewalls (NGFWs) designed to meet the technology and business demands of today’s distributed enterprises.
• In November 2024, Cisco signed a Whole Portfolio Agreement (WPA) agreement with MGM Resorts International for 5.5 years. This provides MGM Resorts access to much of Cisco’s software portfolio and Customer Experience (CX) services to deliver next-generation guest experiences with automation, enhanced security, and innovation.
• In August 2024, Juniper Networks partnered with Quantum Bridge Technologies for a strategic investment in Quantum Bridge to develop post-quantum cryptography (PQC) networks. This investment aims to advance quantum-safe communications by enabling Quantum Bridge to further scale its DSKE solution.
• In June 2023, IBM Security expanded its integration with Amazon Web Services (AWS) to simplify cloud security. This helps security teams gain better visibility, respond faster to threats, and automate security across their AWS environment. The integrations aim to streamline security operations and improve overall cloud security posture.

Industrial Cybersecurity Market Research Summary

Key questions answered in the report: