Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 154.32 Billion |
| Market Size (2030) | USD 187.03 Billion |
| Growth Rate (2025 - 2030) | 3.92% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Critical Infrastructure Protection (CIP) Market Analysis by Mordor Intelligence
The Critical Infrastructure Protection market size is valued at USD 154.32 billion in 2025 and is projected to reach USD 187.03 billion by 2030, reflecting a 3.92% CAGR over the forecast horizon. This balanced expansion shows how cybersecurity and physical security are converging into unified programs that protect energy, transportation, water, and communications assets. Heightened state-backed attacks, expanding regulatory mandates, and rapid digitization of operational technology (OT) are increasing demand for threat monitoring, incident reporting, and zero-trust access solutions. North American investments remain dominant, yet Asia-Pacific growth is accelerating as 5G, edge computing, and smart-grid deployments widen the attack surface. Services revenue is rising faster than traditional hardware and software because operators are outsourcing continuous monitoring to managed security providers. Meanwhile, talent gaps and legacy OT interoperability issues temper deployment speed even as artificial-intelligence-driven analytics unlock predictive protection models.
Key Report Takeaways
- By component, solutions led with 66.0% of 2024 revenue, while Services are advancing at a 5.7% CAGR through 2030.
- By security type, Physical Safety and Security held 56.9% of 2024 revenue; Cybersecurity is growing at 5.9% CAGR through 2030.
- By deployment mode, on-premise installations accounted for 69.5% share of the 2024 Critical Infrastructure Protection market size, yet cloud/X-as-a-Service is expanding at 4.8% CAGR.
- By vertical, energy and Power commanded 29.3% of 2024 Critical Infrastructure Protection market share, while Transportation is projected to grow at 4.9% CAGR to 2030.
- By geography, North America contributed 36.1% revenue in 2024; Asia-Pacific is the fastest-growing region at a 4.2% CAGR to 2030.
Global Critical Infrastructure Protection (CIP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Growing Government Mandates (e.g., NIS-2, CISA) in North America and EU | +1.2% | North America and EU | Short term (≤ 2 years) |
| State-backed OT Cyber-attacks on Energy and Water Utilities | +0.8% | Global, concentrated in North America | Medium term (2-4 years) |
| Smart-Grid Roll-outs Driving Integrated Physical-Cyber Spending | +0.6% | Global, with early gains in Europe and Asia | Medium term (2-4 years) |
| 5G and Edge Expansion Increasing Telecom Attack Surface in Asia | +0.4% | Asia-Pacific core, spill-over to global | Long term (≥ 4 years) |
| IT-OT Convergence Accelerating Zero-Trust Adoption | +0.5% | Global | Medium term (2-4 years) |
| Public–Private Funding for Airport and Port Security in Middle East | +0.3% | Middle East, with expansion to Africa | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Growing Government Mandates Drive Compliance-Led Market Expansion
Mandatory regulations are reshaping Critical Infrastructure Protection market purchasing patterns. The EU NIS-2 directive extends obligatory cybersecurity to 18 sectors and any organization with more than 50 employees and EUR 10 million (USD 10.9 million) revenue, enlarging the addressable base. In the United States, CISA’s proposed CIRCIA rule compels roughly 316,000 entities to report cyber incidents within 72 hours and ransomware payments within 24 hours.[1]Office of the Federal Register, “Cyber Incident Reporting for CIRCIA,” Federal Register, federalregister.gov Alignment around ISA/IEC 62443 standards simplifies vendor certification and drives bulk procurement, while entities that previously relied on voluntary guidelines now accelerate investments to meet penalties and audit thresholds.
State-Backed Cyber Campaigns Target Operational Technology Systems
Nation-state groups are prioritizing long-dwell infiltration of OT networks that run power, water, and transport systems. Chinese actor Volt Typhoon remained in U.S. infrastructure for over five years aiming for disruptive capability rather than espionage. Similar campaigns against U.S. water facilities and Japanese aerospace organizations underscore the shift from IT-centric data theft to OT-level sabotage. These threats exploit aged protocols such as Modbus that lack authentication, spurring investment in specialized intrusion detection and network segmentation tools.
Smart-Grid Modernization Integrates Physical and Cyber Protection
Distributed energy resources, smart meters, and automated substations blend physical asset security with real-time cyber monitoring, expanding the Critical Infrastructure Protection market. NIST’s Smart Grid Interoperability Standards Release 4.0 highlights secure communications as foundational to reliability.[2]NIST Team, “Smart Grid Interoperability Standards 4.0,” NIST, nvlpubs.nist.gov The FBI cautions that rapid renewable-energy build-outs create entry points for hackers as smaller private operators lag in controls. Utilities therefore pair perimeter fencing and video analytics with AI-based anomaly detection for substations and microgrids, bolstering integrated budgets.
5G Network Expansion Creates New Attack Surfaces in Telecom Infrastructure
Asia-Pacific’s aggressive 5G rollout yields performance gains yet introduces over 70 documented security risks, including cross-slice privilege escalation and edge-device hijacking. IoT endpoints account for a majority of malware events, signaling weak authentication protocols. Governments now draft spectrum-specific protection frameworks, pushing telecom operators to deploy virtual firewalls, secure access service edge (SASE) platforms, and continuous threat-intelligence feeds
Restraints Impact Analysis
| Restraint | (~)% Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Legacy OT-Security Interoperability Gaps | -0.7% | Global, particularly in mature industrial economies | Medium term (2-4 years) |
| Shortage of OT-Skilled Cybersecurity Workforce | -0.5% | Global, acute in North America and Europe | Long term (≥ 4 years) |
| High Total Cost of Ownership of End-to-End Solutions | -0.4% | Global, more pronounced in emerging economies | Medium term (2-4 years) |
| Fragmented Regulations in Emerging Economies | -0.2% | Emerging markets in Asia, Africa, and Latin America | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Legacy OT Systems Create Persistent Interoperability Challenges
Industrial assets often run for decades on protocols without basic encryption. Modbus and OPC Classic cannot be patched without downtime, requiring costly compensating controls such as data diodes and virtual patching. The FBI labels end-of-life systems the “Achilles’ heel” of infrastructure security, indicating that many upgrades depend on multi-year capital planning. These barriers slow the Critical Infrastructure Protection market even as compliance dates loom.
Acute Workforce Shortages Limit Deployment Capabilities
The United States needs an additional 225,000 cybersecurity professionals, yet only 85% of vacancies can be filled with existing talent pools. OT-focused roles are especially scarce because practitioners must blend IT expertise with process-control knowledge, commanding average salaries of USD 117,000.[3]BankInfoSecurity Editors, “Growing Demand for OT Security Experts,” BankInfoSecurity, bankinfosecurity.com Limited staffing forces operators to outsource or postpone projects, muting near-term market velocity.
Segment Analysis
By Component: Services Growth Outpaces Solutions Dominance
Solutions generated 66.0% of 2024 revenue; however, Services are projected to expand at a 5.7% CAGR as organizations confront mounting complexity. Managed detection and response, compliance auditing, and incident recovery are bundled into subscription contracts that transfer operational risk. Cloud Security Alliance guidance notes that zero-trust rollouts in OT require specialized road-mapping and 24/7 monitoring, workloads most enterprises lack in-house.
The Critical Infrastructure Protection market benefits as managed providers consolidate expertise through acquisitions such as GardaWorld’s integration of OnSolve for critical-event management. Dragos’ purchase of Network Perception adds continuous visualization of firewall rules to its industrial platform, broadening cross-sell potential. These moves illustrate how scale and breadth of service accelerate competitive advantage and underpin long-run recurring revenue.
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By Security Type: Cybersecurity Acceleration Challenges Physical Dominance
Physical Safety and Security retained 56.9% of 2024 spend through perimeter surveillance, access control, and screening technologies. Yet the Cybersecurity segment is advancing 5.9% annually as threat actors migrate to IT-OT convergence points. The Critical Infrastructure Protection market size for SCADA/OT security is expected to rise sharply given new zero-trust baselines, while network micro-segmentation products isolate legacy assets without plant shutdowns.
Automatic response suites such as Siemens SIBERprotect isolate compromised nodes within milliseconds, demonstrating how machine-speed defense reshapes incident containment. Identity-and-access platforms built for air-gapped systems prevent credential sprawl. As capital planners seek integrated dashboards combining CCTV analytics with cyber alerts, convergence software continues to erode the historical divide between physical and digital safeguards.
By Deployment Mode: Cloud Adoption Accelerates Despite On-Premise Dominance
On-premise architectures commanded 69.5% of 2024 Critical Infrastructure Protection market share because utilities and airports require direct control over mission-critical assets. However, hybrid models that send telemetry to secure clouds now post a 4.8% CAGR as operators leverage scalable analytics. Southern Company’s deployment of OneLayer’s Bridge platform illustrates how LTE network fingerprints feed cloud engines without exposing control loops.
Cloud-native vendors mitigate data-sovereignty risks with unidirectional gateways acquired through deals such as OPSWAT-Fend, which insert data diodes that enforce one-way traffic. As regulators clarify encryption and storage rules, subscription economics and rapid feature rollouts continue to influence procurement toward SaaS, especially for remote monitoring and compliance reporting.
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By Vertical: Transportation Momentum Challenges Energy Leadership
Energy and Power held 29.3% of 2024 revenue as grid modernization budgets prioritized substation firewalls and physical perimeter detection. Still, Transportation is forecast to grow at 4.9% CAGR on the back of connected rail, aviation, and port projects that overlay OT with real-time analytics. TSA pipeline security directives and the Department of Transportation’s AI framework compel operators to integrate threat-intelligence feeds into dispatch and safety systems.
The Critical Infrastructure Protection market size for autonomous freight corridors is rising because each smart sensor or micro-data-center presents an endpoint to secure. Airport authorities now bundle biometric access gates with cyber-incident response SLAs, reflecting the convergence paradigm. Meanwhile, BFSI, Government, and Healthcare sustain steady demand driven by compliance, but Telecommunications overtakes Manufacturing in spend intensity as 5G rollout accelerates network hardening.
Geography Analysis
North America maintained 36.1% of 2024 revenue, underpinned by CISA’s performance-goal road map that aligns 16 sectors with mandatory reporting. Schneider Electric’s USD 700 million manufacturing expansion demonstrates sustained capital inflows that localize supply chains and shorten response times for grid customers. The Department of Homeland Security’s AI safety framework further standardizes risk posture, fostering home-market strength for domestic vendors.
Asia-Pacific posts the fastest regional CAGR at 4.2% to 2030. Japan’s Active Cyber Defense Bill enables pre-emptive threat hunting, while the KDDI-NEC alliance scales managed supply-chain protection for industrial customers. ASEAN economies collectively budget USD 171 billion for cybersecurity by 2025, stimulating demand for localized SOCs and language-aware threat analytics. China’s national programs and India’s digital-public-infrastructure model broaden vendor opportunity, though unique encryption rules require country-specific product variants.
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Competitive Landscape
Competition is fragmented, with defense integrators and cybersecurity pure-plays vying for converged IT-OT budgets. Lockheed Martin, Northrop Grumman, and BAE Systems employ long-standing government credentials to secure large, multi-year system-integration engagements. Cyber-first specialists such as Darktrace, Claroty, and Dragos differentiate with machine-learning analytics tuned for industrial protocols.
Strategic plays center on capability consolidation. Dragos’ Network Perception acquisition layers continuous firewall compliance checks onto its detection stack, allowing one-stop procurement for utilities. OPSWAT’s purchase of Fend adds unidirectional data-flow hardware, bridging cloud analytics with air-gapped controllers. GardaWorld’s integration of OnSolve folds threat intelligence into physical guard services, signalling a move toward platform ecosystems that span digital and on-site response.
Partnerships scale market reach without heavy capital outlay. Xage Security’s alliance with Darktrace merges zero-trust gateways with AI-based anomaly detection, providing mid-tier operators an integrated option that meets CIRCIA reporting rules. Vendors increasingly position around outcome-based SLAs, highlighting reduced mean-time-to-detect rather than product features as procurement criteria evolve.
Critical Infrastructure Protection (CIP) Industry Leaders
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Bae Systems PLC
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Honeywell International Inc.
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Airbus SE
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Hexagon AB
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General Electric Company
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2025: Schneider Electric announced a USD 700 million investment in U.S. manufacturing through 2027, creating over 1,000 jobs and adding a microgrid testing center.
- May 2025: KDDI and NEC launched a joint cybersecurity business targeting critical infrastructure and supply-chain protection in Japan.
- March 2025: Fortinet expanded its OT Security Platform with ruggedized segmentation appliances and upgraded SecOps automation for 5G connectivity.
- March 2025: Southern Company’s Southern Linc selected OneLayer’s Bridge platform to secure its 122,000-square-mile LTE network.
Global Critical Infrastructure Protection (CIP) Market Report Scope
Critical infrastructure is the vigilance and response to serious incidents that involve the key infrastructure of a region, nation, or organization. The rising need to protect sensitive infrastructures from attacks is leading to the adoption of critical infrastructure protection solutions. Critical infrastructure protection provides controls to stabilize the device, secure communication between devices, and manage and monitor the connected devices. It is adapted to control the threat of cybercrime and physical tampering with the key infrastructure.
The critical infrastructure protection market estimates the revenue accrued from security technology solutions and services across the various end-use industries such as energy and power, transportation, and sensitive infrastructure and enterprises. The study also provides the current market scenario and outlook of the critical infrastructure protection market across various key countries considered under the scope. The study includes an in-depth analysis of the competitive landscape of the key critical infrastructure protection vendors operating in the region.
The critical infrastructure protection market is segmented by security technology (network security, physical security [screening & scanning, video surveillance, PSIM & PIAM, access control], vehicle identification management, building management systems, secure communications, radars, SCADA security, and CBRNE), services (risk management services, designing, integration, and consultation, managed services, maintenance & support), vertical (energy & power, transportation, sensitive infrastructure and enterprises), and geography (North America [United States, Canada], Europe [Germany, United Kingdom, France, Italy, Rest of Europe], Asia Pacific [China, Japan, India, Rest of Asia Pacific], Latin America [Brazil, Argentina, Mexico, Rest of Latin America], Middle East and Africa [United Arab Emirates, Saudi Arabia, South Africa, Turkey, Rest of Middle East and Africa]). The market sizes and forecasts are provided in terms of value in (USD) for all the segments.
By Component
| Solutions |
| Services |
By Security Type
| Physical Safety and Security | Screening and Scanning | Video Surveillance |
| Access Control | ||
| PSIM and PIAM | ||
| CBRNE Detection | ||
| Cybersecurity | Network Security | |
| SCADA / OT Security | ||
| Identity and Access Management | ||
| Data and Application Security | ||
| Secure Communications | ||
By Deployment Mode
| On-premise |
| Cloud / X-as-a-Service |
By Vertical
| Energy and Power |
| BFSI |
| Transportation |
| Telecommunications |
| Government and Defense |
| Chemical and Manufacturing |
| Healthcare and Life Sciences |
| Sensitive Infrastructure and Data Centers |
By Geography
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | United Kingdom | |
| Germany | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| New Zealand | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | GCC |
| Turkey | ||
| Israel | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Egypt | ||
| Rest of Africa | ||
| By Component | Solutions | ||
| Services | |||
| By Security Type | Physical Safety and Security | Screening and Scanning | Video Surveillance |
| Access Control | |||
| PSIM and PIAM | |||
| CBRNE Detection | |||
| Cybersecurity | Network Security | ||
| SCADA / OT Security | |||
| Identity and Access Management | |||
| Data and Application Security | |||
| Secure Communications | |||
| By Deployment Mode | On-premise | ||
| Cloud / X-as-a-Service | |||
| By Vertical | Energy and Power | ||
| BFSI | |||
| Transportation | |||
| Telecommunications | |||
| Government and Defense | |||
| Chemical and Manufacturing | |||
| Healthcare and Life Sciences | |||
| Sensitive Infrastructure and Data Centers | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | United Kingdom | ||
| Germany | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| New Zealand | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | GCC | |
| Turkey | |||
| Israel | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Egypt | |||
| Rest of Africa | |||
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Key Questions Answered in the Report
What is the projected growth of the Critical Infrastructure Protection market to 2030?
The market is forecast to expand from USD 154.32 billion in 2025 to USD 187.03 billion in 2030, reflecting a 3.92% CAGR.
Which region shows the fastest growth in Critical Infrastructure Protection spending?
Asia-Pacific leads with a 4.2% CAGR as 5G, edge computing, and proactive cyber-defense legislation accelerate budgets.
Why are Services growing faster than Solutions in this market?
Managed detection, incident response, and compliance outsourcing address skills shortages and complexity, driving a 5.7% CAGR for Services.
How are regulations influencing market demand?
Mandates such as the EU NIS-2 directive and U.S. CIRCIA rule require incident reporting and minimum controls, compelling even previously exempt operators to invest in protection platforms.
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