Increased instances of cyber-attacks on industrial sectors lead to a rise in expenditure on Operational Technology (OT) cybersecurity measures.

In a significant shift, enterprise spending on Operational Technology (OT) cybersecurity is projected to grow by nearly 70% from 2023 to reach $21.6 billion globally by 2028, according to a report by ABI Research. The surge in spending is driven by a combination of attack incentives and regulatory pressures, as stated by Michael Amiri, senior analyst at ABI Research.

The increasing sophistication and frequency of cyberattacks targeting OT environments, particularly ransomware, phishing, and data breaches, create an urgent demand for stronger security measures to protect critical infrastructure and industrial control systems. Rapid digitalization and integration of connected devices (IoT/IIoT) in industrial and manufacturing sectors expand the OT attack surface, necessitating enhanced cybersecurity investments to safeguard diverse OT assets.

Regulatory pressures and compliance requirements, such as national privacy laws and cybersecurity mandates, compel organizations operating OT systems to bolster defenses and mitigate non-compliance risks. The growing adoption of cloud services and remote work models in OT ecosystems increase vulnerabilities, pushing enterprises to invest more in comprehensive cybersecurity solutions tailored for OT environments.

Rising enterprise awareness and risk management prioritization place OT cybersecurity higher on executive agendas, driving budget allocations toward robust security strategies and technologies. Technological advancements in AI and machine learning enhance threat detection and response capabilities within OT cybersecurity, encouraging spending on AI-powered solutions that improve resilience against evolving threats.

Supply chain vulnerabilities and geopolitical tensions further emphasize the need for stronger OT cybersecurity to ensure continuity and protect against targeted attacks. More than half of OT cybersecurity spending will be directed towards network security and segmentation, according to ABI Research.

Industrial operators that deploy remote-access control access mechanisms for their OT environments are among the top spenders on OT cybersecurity. Sectors fueling OT cybersecurity spending include mining, quarrying, oil and gas extraction, utilities, and manufacturing. The specific sectors targeted in the wave of escalating attacks are drinking water, energy, agriculture, manufacturing, and other industries.

The OT cybersecurity sector generated $12.75 billion in 2023, as reported by ABI Research. Segmentation in OT cybersecurity is expected to capture approximately 27% of overall spending through the five-year period. The growth in OT cybersecurity spending is not specified as a result of any particular event or regulation.

Michael Amiri predicts that OT will no longer be a small portion of the overall IT spending pie. The OT cybersecurity spending is projected to potentially surpass overall IT spending in the future, as per ABI Research. Though the search results do not provide OT-specific projections explicitly, these drivers align with the broader cybersecurity market growth trends, where sectors such as manufacturing and critical infrastructure are key components of that growth.

[1][3][4] Industry reports highlight analogous factors impacting endpoint security and cyber insurance markets, reflecting a general trend of increased cybersecurity spending driven by digital transformation, regulatory demands, and evolving threat landscapes that are equally applicable to OT security contexts. However, it is not clear from the provided information if the wave of escalating attacks is ongoing or has subsided in these sectors.

Due to the increasing threat of cyberattacks on Operational Technology (OT) environments, such as ransomware, phishing, and data breaches, industrial operators are investing more in network security and segmentation to protect critical infrastructure and industrial control systems.
The digitalization and integration of connected devices (IoT/IIoT) in industrial and manufacturing sectors have expanded the OT attack surface, necessitating enhanced cybersecurity investments to safeguard diverse OT assets.
Regulatory pressures and compliance requirements, such as national privacy laws and cybersecurity mandates, are compelling organizations operating OT systems to bolster defenses and mitigate non-compliance risks, which in turn drives investment in OT cybersecurity.
Industry reports suggest that the trend of increased cybersecurity spending is reflected in similar markets, such as endpoint security and cyber insurance, due to digital transformation, regulatory demands, and evolving threat landscapes, which are equally applicable to OT security contexts.

Increased instances of cyber-attacks on industrial sectors lead to a rise in expenditure on Operational Technology (OT) cybersecurity measures.