Industrial Operational Technology Security Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 21.33 Billion |
| Market Size (2030) | USD 104.45 Billion |
| Growth Rate (2025 - 2030) | 37.40% 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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Industrial Operational Technology Security Market Analysis by Mordor Intelligence
The industrial operational technology security market size stands at USD 21.33 billion in 2025 and is projected to reach USD 104.45 billion by 2030, registering a 37.4% CAGR over the forecast period. Rising cyber-attacks on industrial control systems, stricter regulations such as the EU’s NIS2 Directive, and higher cyber-insurance premiums compel asset owners to fortify legacy plants with purpose-built cybersecurity solutions. Consolidation among specialized vendors, rapid cloud migration of monitoring functions, and AI-driven anomaly detection platforms collectively accelerate technology refresh cycles. Service providers gain momentum as manufacturers address persistent skills shortages, while hybrid deployment models balance regulatory compliance with analytics-rich cloud tools. Competitive intensity remains moderate; domain-focused players that integrate deep protocol visibility, managed detection, and zero-trust access lead market share expansion.
Key Report Takeaways
- By component, solutions led with 64.8% of the industrial operational technology security market share in 2024; services are forecast to expand at a 39.8% CAGR through 2030.
- By security type, network security accounted for a 35.7% share of the industrial operational technology security market size in 2024, while risk and vulnerability management is advancing at a 39.4% CAGR to 2030.
- By deployment mode, on-premise held 51.3% of the industrial operational technology security market size in 2024; cloud deployment is projected to grow at a 40.4% CAGR during 2025-2030.
- By end-user industry, oil and gas captured 28.7% industrial operational technology security market share in 2024, whereas transportation and logistics is poised for the highest 39.2% CAGR through 2030.
- By geography, North America dominated with a 38.5% share of the industrial operational technology security market in 2024; Asia-Pacific is set to witness the fastest 39.6% CAGR between 2025 and 2030.
Global Industrial Operational Technology Security Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Convergence of IT and OT security operations | +8.2% | Global, with early adoption in North America and EU | Medium term (2-4 years) |
| Escalating ransomware on critical infrastructure | +9.1% | Global, particularly North America and Europe | Short term (≤ 2 years) |
| Mandatory cyber-regulations for ICS in U.S./EU | +7.8% | North America and EU, expanding to APAC | Medium term (2-4 years) |
| AI-driven anomaly-detection improving ROI | +6.4% | Global, led by developed markets | Long term (≥ 4 years) |
| Insurance underwriters demanding OT controls | +4.2% | North America and EU, emerging in APAC | Short term (≤ 2 years) |
| OEM-embedded security shipping in new PLCs | +5.1% | Global, manufacturing-heavy regions | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Convergence of IT and OT security operations
Unified visibility platforms replace air-gapped strategies as 80% of industrial breaches now originate in corporate networks that pivot into plants. [1]Rockwell Automation, “IT/OT Convergence Trends and Best Practices,” rockwellautomation.com Centralized SOCs leverage deep-packet inspection of proprietary protocols to correlate events across production and enterprise layers. Early adopters report faster incident triage and measurable downtime reduction, although integration complexity heightens demand for managed services. Edge computing and Industrial IoT gateways amplify this trend by adding new data flows that must be monitored in real time. As convergence matures, insurers increasingly tie premium discounts to demonstrable cross-domain monitoring capabilities.
Escalating ransomware on critical infrastructure
Ransomware incidents on factories and utilities surged 181% year-on-year, with manufacturing absorbing the highest incident volume in Q1 2025. [2]Manufacturing.net, “Behind the Recent Wave of Ransomware Groups Targeting Manufacturing,” manufacturing.net Modern payloads now manipulate set-points before encryption, intensifying physical-world risk. The Waterfall Security 2024 report logged 68 multi-site attacks, a 19% rise, and attributed 80% of breaches to ransomware. Financial fallout includes a USD 600 million production loss at a consumer-goods plant in 2023, pushing boards to prioritize OT-specific incident response, zero-trust segmentation, and immutable backups across PLC networks.
Mandatory cyber-regulations for ICS in U.S./EU
The EU’s NIS2 expands obligations to chemical and medical device manufacturers, introduces board-level liability, and enforces fines up to 2% of global revenue. In the U.S., the forthcoming NERC CIP-015-1 will require internal network security monitoring on all high-impact bulk electric assets within 36 months. TSA pipeline directives mandate segmented architectures and annual red-team testing, while the EPA faces GAO pressure to secure 170,000 water facilities. Compliance spending dominates capital budgets and fuels long-tail demand for audit-ready platforms and advisory services.
AI-driven anomaly-detection improving ROI
Machine-learning models baseline controller behavior and flag millisecond deviations, cutting mean-time-to-detect from weeks to minutes in pilot deployments. Nozomi’s embedded sensor for Mitsubishi PLCs illustrates how on-board AI can continuously protect legacy lines without network redesign. Early adopters note 40% fewer false positives and shorter outages, strengthening the business case for predictive analytics-based security. As data-lake volumes grow, cloud-based AI services enrich threat intelligence and automate response playbooks across distributed plants.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Legacy equipment with proprietary protocols | -6.7% | Global, particularly in mature industrial regions | Long term (≥ 4 years) |
| Low cyber-maturity among mid-size manufacturers | -4.3% | Global, concentrated in emerging markets | Medium term (2-4 years) |
| Shortage of OT-savvy cyber-talent | -5.8% | Global, acute in North America and EU | Medium term (2-4 years) |
| Fragmented security standards across regions | -3.2% | Global, regulatory harmonization challenges | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Legacy equipment with proprietary protocols
Plants commissioned before 2010 still run unsupported operating systems and vendor-specific fieldbus standards that complicate patching and network segmentation. Downtime-averse operators fear firmware flashes that could halt production lines, slowing adoption of modern endpoint agents. Water utilities illustrate the gap: 70% fail basic cyber hygiene due to funding and technology constraints. Mining firms face similar hurdles integrating IIoT over vast pits where cable replacement is impractical. Vendors respond with passive-monitoring appliances and jump-host access controls, yet retrofit timelines extend well into the forecast horizon.
Shortage of OT-savvy cyber-talent
Only 25% of security professionals feel confident handling PLC-level incidents, and open requisitions for ICS engineers exceed available talent by a factor of five in North America. To fill gaps, Honeywell and Rockwell Automation bundle 24/7 managed detection with asset inventory and vulnerability remediation, shifting spend from CapEx to OpEx. Certifications and university programs are increasing, but will not materially narrow the deficit until after 2028, sustaining double-digit growth for outsourced security services.
Segment Analysis
By Component: Services Narrow the Gap
Solutions retained a 64.8% industrial operational technology security market share in 2024, anchored by network segmentation firewalls, deep-packet-inspection probes, and secure remote-access gateways. [3]Claroty, “Operational Technology Cybersecurity Rises as Priority for Federal Agencies,” claroty.com Growth moderates as enterprises finish first-wave rollouts. Conversely, services, ranging from architecture assessments to incident-response retainers, accelerate at a 39.8% CAGR thanks to acute skills shortages.
Second-generation projects now bundle technology refresh with continuous monitoring and compliance reporting delivered via managed security service providers. Honeywell’s Advanced Monitoring and Incident Response supports legacy DCS assets and cloud-hosted dashboards, illustrating how vendors monetize lifetime support contracts.
By Security Type: Risk Programs Outpace Perimeter Tools
Network security dominated with a 35.7% share, reflecting mandatory segmentation under TSA and NERC rules. Mature utilities and refineries must still expand packet capture retention to satisfy new audit clauses.
Risk and vulnerability management shows the highest 39.4% CAGR as regulators and insurers demand evidence-based mitigation plans. Context-aware scoring tools map CVEs to process-safety impact, guiding maintenance windows and investment prioritization. Vendors integrate digital twin simulations that quantify downtime exposure, further elevating demand.
By Deployment Mode: Cloud Gains Trust
On-premise systems held 51.3% of the industrial operational technology security market size in 2024 due to air-gap traditions and data-sovereignty rules. Despite this, operators increasingly siphon telemetry to virtual data lakes for AI analytics while keeping control traffic local.
Cloud deployment posts a 40.4% CAGR as hyperscaler regions achieve IEC 62443 certification and offer private-link connectivity. Hybrid architectures dominate migration roadmaps; Cisco’s Industrial DMZ reference design exemplifies segmented pathways that preserve deterministic latency while enabling SaaS-based threat feeds.
Note: Segment shares of all individual segments available upon report purchase
By End-user Industry: Logistics Momentum Builds
Oil and gas maintained 28.7% industrial operational technology security market share in 2024, reinforced by Colonial Pipeline fallout and methane-emission monitoring mandates. Refineries allocate multi-year budgets to mitigate operational risk and reputational damage.
Transportation and logistics enjoy the fastest 39.2% CAGR as connected warehousing, autonomous vehicles, and smart-port cranes expand attack surfaces. The sector’s 181% rise in data violations during 2024 prompts boards to elevate cybersecurity to a primary IT priority.
Geography Analysis
North America led with a 38.5% share of the industrial operational technology security market in 2024, underpinned by strict regulatory oversight and a mature cyber-insurance ecosystem. Utilities and pipelines dominate spending, driven by mandatory network-monitoring requirements. North America’s industrial operational technology security market size leadership is reinforced by federal initiatives that target critical infrastructure after a 30% year-on-year rise in power-grid and water-system attacks. [4]House Committee on Homeland Security, “Cyber Threats to Critical Infrastructure Increasing,” house.gov NERC CIP expansions, TSA pipeline mandates, and GAO pressure on the EPA create a steady compliance backlog. Canada mirrors U.S. momentum through energy-sector modernization, while Mexico aligns refinery upgrades with neighboring regulatory frameworks.
Asia-Pacific’s outsized 39.6% CAGR reflects accelerated smart-factory rollouts, 5G adoption, and aggressive government subsidies for cyber-physical system resilience. China’s Critical Information Infrastructure regulations and India’s national cyber-security policy drive mandatory risk assessments, pushing multinational manufacturers to adopt global security baselines. Emerging ASEAN economies add greenfield capacity, offering vendors high-volume license opportunities.
Europe sustains mid-thirties growth as the NIS2 Directive’s December 2022 enforcement date compels chemical, medical device, and energy operators to upgrade security stacks. Germany and France invest in OT-specific SOCs to safeguard energy transition infrastructure, while Southern Europe leverages EU recovery funds for plant digitalization. Joint U.S.–EU efforts to harmonize incident reporting further raise minimum capability thresholds across member states.
Competitive Landscape
Twenty specialist vendors compete on deep protocol visibility and safety-aware remediation rather than generic IT controls. Claroty, Nozomi Networks, and Dragos top the cyber-physical rankings through extensive device fingerprint databases and AI-assisted threat modeling. Each surpasses USD 100 million in 2024 revenue, aided by OEM alliances with automation giants.
Consolidation intensifies: Armis acquired Otorio in March 2025 to boost exposure-management analytics ahead of a planned IPO valued at USD 4.2 billion. Rockwell Automation bought Verve Industrial Protection to embed zero-trust controls into its process-automation stack, reducing customer reliance on scarce talent. Partnerships proliferate; Nozomi integrates Mandiant threat feeds while ColorTokens combines micro-segmentation with deep OT telemetry for zero-trust edge enforcement.
Entry barriers remain moderate because protocol expertise and safety certifications require long development cycles, yet cloud providers lower adoption hurdles by offering turnkey managed detection. New entrants target niche gaps such as embedded PLC sensors and unidirectional gateways for water utilities. The industrial operational technology security market, therefore, balances innovation with domain-specific compliance demands, sustaining double-digit revenue expansion for leading platforms.
Industrial Operational Technology Security Industry Leaders
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Claroty Ltd.
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Nozomi Networks Inc.
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Dragos Inc.
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Tenable Holdings Inc.
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Forescout Technologies Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2025: Nozomi Networks and Mandiant launch a joint threat-intelligence solution unifying OT, IT, and IoT telemetry.
- May 2025: ColorTokens and Nozomi unveil a zero-trust framework pairing micro-segmentation with AI-based OT threat detection.
- March 2025: Armis acquires Otorio to expand exposure management across utilities and manufacturing ahead of its IPO.
- March 2025: Fortinet broadens its OT Security Platform to support 3,300 protocol rules and 5G connectivity for rugged assets.
- March 2025: Nozomi Networks secures USD 100 million Series E funding led by Mitsubishi Electric and Schneider Electric.
- February 2025: OPSWAT purchases Fend to integrate data diodes for water-facility protection.
- January 2025: Xage Security partners with Darktrace for combined AI anomaly detection and zero-trust access in critical infrastructure.
Global Industrial Operational Technology Security Market Report Scope
| Solutions |
| Services |
| Network Security |
| Endpoint Security |
| Visibility, Monitoring and Detection |
| Risk and Vulnerability Management |
| On-premise |
| Cloud |
| Hybrid |
| Energy and Utilities |
| Oil and Gas |
| Discrete Manufacturing |
| Process Manufacturing |
| Transportation and Logistics |
| Mining and Metals |
| Pharmaceuticals |
| Water and Wastewater |
| Other End-user Industries |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Chile | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia | ||
| Singapore | ||
| Malaysia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Component | Solutions | ||
| Services | |||
| By Security Type | Network Security | ||
| Endpoint Security | |||
| Visibility, Monitoring and Detection | |||
| Risk and Vulnerability Management | |||
| By Deployment Mode | On-premise | ||
| Cloud | |||
| Hybrid | |||
| By End-user Industry | Energy and Utilities | ||
| Oil and Gas | |||
| Discrete Manufacturing | |||
| Process Manufacturing | |||
| Transportation and Logistics | |||
| Mining and Metals | |||
| Pharmaceuticals | |||
| Water and Wastewater | |||
| Other End-user Industries | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Chile | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia | |||
| Singapore | |||
| Malaysia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the projected value of the industrial operational technology security market by 2030?
Forecasts indicate USD 104.45 billion by 2030 on a 37.4% CAGR trajectory.
Which component segment is growing fastest within industrial OT security?
Services segment is expanding at 39.8% CAGR due to demand for managed detection and compliance expertise.
Why is Asia-Pacific the fastest growing region?
Rapid digitalization of factories, stringent national cyber regulations, and booming cyber-insurance uptake drive a 39.6% CAGR.
How do mandatory regulations influence spending?
EU NIS2, NERC CIP-015-1, and TSA pipeline directives mandate continuous monitoring, creating sustained investment momentum.
Which end-user industry shows the highest growth potential?
Transportation and logistics leads with 39.2% CAGR as connected supply-chain assets expand attack surfaces.
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