Industrial Cybersecurity Market

Industrial Cybersecurity Market Size

The global industrial cybersecurity market size was valued at USD 21.7 billion in 2025. The market is expected to grow from USD 23.3 billion in 2026 to USD 51.1 billion in 2035 at a CAGR of 9.1%, according to latest report published by Global Market Insights Inc.

The increasing occurrence and complexity of cyber threats are driving substantial growth in the market. With industries becoming more interconnected and reliant on digital technologies, the need to safeguard critical infrastructure against attacks has intensified.

The global average cost of data breaches jumped 10% year-over-year between 2023 and 2024. In 2025, cybercrime is expected to cost the world USD 10.5 trillion annually. Such an increased amount of loss has pushed industry to adopt more advanced cybersecurity solutions to prevent such big losses.

According to the World Economic Forum, since 2024, the cyber skills gap has increased by 8%, with two out of three organizations reporting moderate-to-critical skills gaps, including a lack of essential talent and skills to meet their security requirements. Furthermore, only 14% of organizations are confident that they have the people and skills they need today.

It means that there are still huge gaps in industries such as energy & power, oil & gas, chemical and IT & telecommunications, in which sectors with high cyberattack risks are associated. These sectors will show major adoption due to pressure from government and regulatory bodies to not only protect an entity but also to prevent the nation from any big loss that could happen due to lack of cybersecurity infrastructure.

Industrial Cybersecurity Market Trends

As the world is taking benefits of technologies such as artificial intelligence and machine learning, the current cybersecurity landscape will be revolutionized through these technologies. AI & ML have capabilities to detect or predict cyberattacks more efficiently and effectively. It has a better capability of inspection, monitoring and detecting uncertainty in the workflow. According to the World Economic Forum survey, 66% of organizations anticipate that AI will have the most significant impact on cybersecurity in the coming year.

Conversely, in some recent cases, AI was used for cyberattacks, as it is a learning model, it could learn whatever is taught to the model. For example, 87% of organizations report having experienced an AI-driven cyberattack in 2024. Also, over 82% of phishing emails now use AI in some form. Despite this, industries have seen the benefit of AI-powered cybersecurity that could cut the probability of AI-driven cyberattacks.

The energy & power industry will show the major adoption of cybersecurity in coming years. The industry has been targeted the most and has lost a majority of the total amount lost every year. Regulatory bodies and government pressures are forcing such critical industries to adopt cybersecurity frameworks into their existing infrastructure.

According to Statista, for the fiscal year 2025, the government of the United States proposed a nearly 13 billion US dollar budget for cybersecurity, representing an increase of 10% as compared to 2024. Similarly, the European Union will invest approximately €210 million in Cyber Security, Digital Capabilities, and Technology through their Digital Europe Program. All of these examples show that Governments are being proactive in encouraging Cyber Security to be adopted not only as optional, but as a necessity.

Industrial Cybersecurity Market Analysis

Based on security, the industrial cybersecurity market is divided into network security, endpoint security, application security, cloud security, wireless security, and others. The network security segment dominated the market with 32.7% share in 2025.

• The need to prevent network breaches across industries is driving the network security segment growth. With the rise in cyber threats targeting various industries, robust network security measures have become essential.
  
• In 2025, the network security segment has reached USD 7.1 billion, reflecting a CAGR of around 8.4% in the projected period between 2026 and 2035.
  
• At present, most of the industries are relying on real-time data sharing across connected systems, requiring a network security solution as a priority. Protecting these communication paths is critical to keeping operations running smoothly and ensuring safety.
  
• Many industrial facilities still use older equipment that cannot support modern security tools. Network security solutions can be added without changing or stopping these systems, providing protection while keeping operations running. This easy-to-use feature has made network security widely adopted and the leading choice in the market.
  

Based on deployment model, the industrial cybersecurity market is divided into cloud, on-premises and hybrid. The cloud segment accounts for 57.6% in 2025 and is expected to grow at the CAGR of 10.2% between 2026 and 2035.

• The industrial cybersecurity market is estimated to reach a value of USD 12.5 billion in 2025, with the cloud deployment model taking the lead in market share. Its scalability and cost-effectiveness have made it the most appropriate choice for a wide spectrum of industrial users.
  
• Cloud-based cybersecurity enables organizations to install security measures over different locations, factories, and machinery without incurring massive initial infrastructure costs. This is particularly advantageous for SMEs and industries with dispersed operations, thus favoring cloud deployment over on-premise systems.
  
• In coming years, the cloud segment will grow at the fastest CAGR due to its compatibility with cutting-edge technologies such as AI, machine learning, and managed security services. This flexibility and future-readiness of the cloud model will continue to support its dominance between 2026 and 2035.
  

Based on enterprise size, the industrial cybersecurity market is divided into SMEs and large enterprises. In 2025, the large enterprises segment led the market, reaching a market value of USD 15.2 billion.

• Large enterprises have the potential to invest more in technical and cybersecurity solutions. Their ability to procure cybersecurity solutions is higher as compared to SMEs. Therefore, the 2025 market assessment sees the dominance of the large enterprises segment.
  
• These large enterprises have widespread IT–OT systems running across various regions, and thus they are considered the prime victims of sophisticated cyberattacks. Hence, they give their cybersecurity the utmost operation priority rather than treating it as an extra cost.
  
• In contrast to SMEs, they are also able to invest in long-term strategies, advanced threat detection and regular system updates without any disruption of their main operations. In result, SMEs are expected to grow faster than large enterprises in the projected period between 2026 and 2035.
  

The US industrial cybersecurity market reached USD 7.1 billion in 2025, growing from USD 6.6 billion in 2024.

• The United States leads the market in North America due to its advanced industrial systems and early use of connected technologies. Thus, it has turned industrial cybersecurity into a significant concern and has led to investments in such sectors as manufacturing, utilities, oil & gas, and transportation. As a result, the U.S. holds the largest share of industrial cybersecurity spending in the region.
  
• A major reason for this dominance is the strong startup and innovation environment in the U.S. By 2025, the country is expected to have over 85,000 new startups, making up nearly 90% of all startups in North America.
  
• Currently, there are more than 1.1 million startups in the U.S. This huge number of startups across various industries will create a big demand for cybersecurity solutions thereby supporting the market in the United States.
  
• Moreover, strict regulations and federal cybersecurity programs are other important factors in the U.S. The government imposes robust cybersecurity requirements on critical sectors such as energy, defense manufacturing, and transportation. These regulations cover the entire process of requiring companies to implement advanced cybersecurity systems, conduct regular audits, and continuously monitor their systems.
  

The North America industrial cybersecurity market is estimated to reach USD 18.3 billion by 2035 and expected to grow at the CAGR of 8.7% between 2026 and 2035.

• North America is home to many manufacturing and industrial units, which results in a strong demand for cybersecurity solutions. For example, the U.S. currently has more than 608 thousand manufacturing units and 3,000 electric utility providers. These industries are heavily monitored by governments and regulatory bodies.
  
• The government pushes for implementing cybersecurity in their infrastructure are contributing the major addition in the value creation within the North America region.
  
• The escalating number of factories prompts the cybersecurity vendors to provide a complete range of solutions, like endpoint security, network isolation, and real-time threat monitoring, thus assisting the existing market to continue growing in the region.
  

The Europe industrial cybersecurity market accounted for USD 5.8 billion in 2025 and is anticipated to grow at the CAGR of 9.5% between 2026 and 2035.

• The NIS2 Directive compels operators in the sectors of energy, manufacturing, and transportation to step up their cybersecurity measures. In particular, these operators must identify and manage risks, quickly report any incidents, and protect their supply chains. Industrial firms, mainly in Germany and the Nordic countries, are reinforcing their cybersecurity to comply with GDPR and national requirements.
  
• According to ENISA's 2025 Threat Landscape, 18.2% of the cyber threats in the EU are directed at operational technology (OT). Among these, manufacturing is the most exposed, as it accounts for 59.3% of cybercrime incidents and the introduction of ICS malware strains.
  
• Moreover, the growing number of attacks like ransomware and those supported by a state on outdated SCADA systems has led to a surge in the demand for real-time threat detection in utilities and heavy industries.
  

Germany's industrial cybersecurity market is growing quickly in Europe, with a strong CAGR of 10.6% between 2026 and 2035.

• Germany’s market is on the upsurge owing to the imposition of regulations like the IT Security Act 2.0 (IT-SiG 2.0) and NIS2. These rules place the operators of infrastructures critical to the industries of manufacturing and energy under the obligation to conduct risk analyses, take appropriate actions in case of incidents, and secure their supply chains.
  
• All IT systems are affected by these rules, including office networks, and the boards of companies are made responsible for assuring the establishment of mandatory detection of attacks in critical places. The practice of employing high-end security measures has seen a tremendous boost, particularly in sectors such as automotive and machinery.
  
• Germany’s commitment to Industry 4.0 is creating more security risks. The country’s ambitious energy transition, Energiewende, will also necessitate security solutions tailored to the smart grids and power plants where the greatest risks are encountered.
  

The Asia Pacific industrial cybersecurity market is estimated to reach USD 12.98 billion by 2035, by growing at a CAGR of 10.9% during the analysis timeframe.

• The development of industrial cybersecurity solutions is mainly driven by the rapidly growing industries and digital transformation in the Asia Pacific region. Smart factories integrated with artificial intelligence, the internet of things in the industrial environment, and cloud computing are a few of the sources from which the cybercriminals can gain access through the backdoor.
  
• And this scenario has resulted in the establishment of more robust defenses against ransomware and other similar threats that come from the state and the like, and these are the threats that are targeting operational technology (OT).
  
• Asia Pacific reported over 57,000 ransomware attacks in early 2024, with manufacturing and utilities being the main targets. To combat this situation, the sectors like semiconductors and energy are employing advanced technologies such as anomaly detection and network segmentation to ensure the security of their critical processes.
  
• Malaysia’s MyDIGITAL and ASEAN 5G rollout programs are accelerating the implementation of IIoT and cloud in smart manufacturing. In the meantime, this situation is prompting the companies to invest in AI-based security solutions to mitigate the risk associated with OT.
  

China is estimated to grow with a CAGR of 10.6% in the projected period between 2026 and 2035, in the Asia Pacific industrial cybersecurity market.

• China is seeing a rising demand for operational technology (OT) cybersecurity because of the fast growth of the industrial internet in industries like automotive, manufacturing, and transportation. Companies are using security platforms more frequently to protect machinery, PLCs, and OT networks from cyber threats. This has resulted in steady market growth, with revenues from industrial internet cybersecurity platforms increasing every year.
  
• Industrial companies in China are becoming more aware of cybersecurity risks and are spending more on protection. Proactive security steps have helped reduce cyber threats in recent years. Local companies are also improving their cybersecurity services while keeping costs competitive.
  
• The government is supporting cybersecurity through policies and programs, especially in industrial and critical infrastructure sectors. Stricter rules and compliance requirements are pushing companies to improve their security, leading to more use of industrial cybersecurity solutions in manufacturing, energy, and transportation.  
  

Latin America industrial cybersecurity market is estimated to reach USD 1.9 billion in 2025 and is anticipated to show lucrative growth over the forecast period.

• During the first quarter of 2025, malicious objects were detected and blocked on the 21% of Industrial Control Systems (ICS) computers in Latin America, which made it the second most targeted area in terms of attacks globally. The main threats were phishing and scripted attacks aimed at industrial systems.
  
• The industrial attacks have been continuous and sophisticated, so companies are ready to invest more money in AI-based threat detection, behavioral analytics, and stronger endpoint defenses that are specifically for OT/ICS environments.
  
• Firms in Latin America are transitioning to the zero-trust security model and adopting cloud-based security platforms to secure their industrial systems. Such measures comprise the application of identity-based controls and secure network segmentation for hybrid IT–OT systems.
  
• Because of a lack of cybersecurity skills and expertise within their teams, many industrial companies are relying on managed security service providers (MSSPs) for continuous monitoring, incident response, and compliance support.
  

Brazil is estimated to grow with a CAGR of 5.7% between 2026 and 2035, in the Latin America industrial cybersecurity market.

• Brazilian firms are enhancing their cyber defense systems to overcome the increasing threats. Cisco's 2024 Cybersecurity Readiness Index indicates that merely 5% of firms in Brazil have achieved a fully prepared state. Companies are protecting their OT, ICS, and manufacturing systems more vigorously due to ransomware, espionage, and other digital threats which are piercing through the industrial domains.
  
• The situation of rising cyber threats along with digitalization process is forcing companies to adopt AI for improved detection, fast response and automated processes. As a consequence, spending on industrial cybersecurity will increase significantly.
  
• Due to the scarcity of specialized personnel and the sophistication of industrial networks, a large number of companies opt for Managed Security Service Providers (MSSPs) to take care of the monitoring and incident handling.
  
• Brazilian Small and Medium Enterprises (SMEs) are also coming to the realization that cybersecurity is a necessity and hence are expanding their budgets. Consequently, smaller and mid-sized manufacturing firms might be more prone to adopting cybersecurity solutions.
  

The Middle East and Africa accounted for USD 1.2 billion in 2025 and is anticipated to show lucrative growth over the forecast period.

• The governments of the GCC nations, particularly Saudi Arabia and the UAE, are setting up national cybersecurity regulations, specific standards for different sectors, and compliance requirements. The introduction of these regulations is encouraging companies to enhance the cybersecurity of their industrial systems.
  
• In the region, cybersecurity incidents cost an average of USD 8.05 million per breach, almost double the global average of USD 4.45 million. Against this backdrop, the Gulf Cooperation Council (GCC) countries are taking decisive steps to boost their digital defences.
  
• Thus, the region has seen a marked rise in the adoption of cyber defense measures for industrial and operational technology (OT) across major sectors like production, energy, transportation, and mining.
  

UAE to experience substantial growth in the Middle East and Africa industrial cybersecurity market in 2025.

• The UAE is becoming a major industrial hub for industries like energy, oil & gas, manufacturing, and critical infrastructure. Emerging industries in this country will drive the cybersecurity market. In the forecasted period between 2026 and 2035, the UAE is expected to grow at a CAGR of 7.4%. This reflects a significant growth in the market for industrial cybersecurity in the country.
• Also, the government of the UAE manages to block thousands of attacks daily, thus acting as the main driver of adopting more sophisticated measures like threat detection, Zero Trust, IAM, and real-time monitoring, among others.
  
• The government policies and regulations, including the UAE National Cybersecurity Strategy and compliance requirements, are pushing the industries' cybersecurity spending plans. These policies are rendering the cybersecurity solutions and managed services demand to be huge in the areas of smart cities, energy automation, and digital industrial operations, to mention just a few.
  

Industrial Cybersecurity Market Share

The top 7 companies in the industrial cybersecurity industry are Cisco Systems, Microsoft, IBM, Honeywell, ABB, Rockwell Automation and Schneider Electric, contributing 30.8% of the market in 2025.

• Cisco's Industrial Threat Defense, combined with Cyber Vision, provides strong OT/ICS security. It includes asset visibility, threat detection, and ISA/IEC 62443 zone configuration. Built into industrial switches and routers, it ensures zero-trust remote access, detects anomalies, and integrates with Splunk without disrupting operations.
  
• Microsoft's Defender for IoT offers agentless security for industrial IoT, OT, and ICS. It focuses on asset visibility, risk prioritization, and AI-based threat detection. Integrated with Sentinel SIEM and Defender XDR, it stops complex attacks, supports hybrid environments, and improves incident response for manufacturing and energy industries.
  
• IBM's Security QRadar uses OT data and AI to detect threats in real time. It provides advanced threat intelligence, application security, data protection, and SIEM features. Designed for industries like oil, gas, chemicals, and mining, it ensures quick responses without disrupting workflows.
  
• Honeywell's Cyber Proactive Defense uses AI and analytics to detect OT issues, set system baselines, and deploy decoys for deception. Combined with OT Security Operations Center services, it offers real-time risk monitoring, vulnerability checks, and KPI dashboards for refineries, power plants, and multi-vendor setups.
  
• ABB's Cyber Security Workplace simplifies updates, malware protection, system hardening, and backups through an easy-to-use interface. It collects security events from industrial systems for SIEM integration, helps detect process control threats, and supports hybrid cloud setups for oil, gas, chemicals, and mining industries.
  
• Rockwell's SecureOT suite provides tools for asset visibility, vulnerability management, and risk assessment across different vendor systems. It includes 24/7 managed SOC/NOC services, expert reviews, and compliance with standards like NIST CSF, NIS2, and IEC 62443, ensuring system protection and uptime.
  
• Schneider Electric's Managed Security Services track ICS vulnerabilities in real time, detect OT-specific threats with custom algorithms, and manage controls like firewalls and endpoints. It is vendor-neutral, offers 24/7 monitoring, compliance reporting, and machine learning improvements for IT/OT integration in regulated industries.
  

Industrial Cybersecurity Market Companies

Major players operating in the industrial cybersecurity industry are:

• Cisco Systems
• Microsoft
• IBM
• Honeywell
• ABB
• Rockwell Automation
• Schneider Electric
• Palo Alto Networks
• Claroty
• Thales
  

• Cisco integrates OT security into its industrial networking hardware, like IE switches and routers. This setup allows easy asset discovery and zero-trust enforcement without extra infrastructure. Its Cyber Vision platform monitors legacy ICS protocols passively, providing clear visibility and quick threat isolation in busy manufacturing environments.
  
• Microsoft uses its Azure ecosystem and Defender XDR to combine IT and OT threat hunting. It offers agentless deployment that scales easily across hybrid clouds and on-premises ICS. With AI-based behavioral analytics and integration with Sentinel SIEM, Microsoft delivers clear risk insights and strong protection against complex attacks for global businesses.
  
• IBM stands out with QRadar, which uses AI to create behavioral baselines for process industries. It combines OT data with global threat intelligence to predict and detect anomalies. IBM also offers consulting services and works with partners like ABB to provide customized solutions for critical sectors like oil, gas, and chemicals, ensuring smooth deployments.
  
• Honeywell uses AI designed for industrial processes, along with deception technology and OT SOC services, to manage multi-vendor systems effectively. Its solutions, proven in refineries and power plants, reduce false alarms and provide real-time risk dashboards linked to key performance indicators, making them ideal for asset-heavy industries.
  
• ABB focuses on embedded cybersecurity in its automation products. Its Cyber Security Workplace offers centralized management of updates and events for hybrid setups. ABB’s solutions work well in industries like mining and chemicals, integrating with DCS and PLC systems to ensure compliance and maintain performance.
  
• Rockwell offers its vendor-neutral SecureOT suite, which includes 24/7 managed SOC/NOC services and compliance with standards like IEC 62443 and NIS2. It focuses on prioritizing vulnerabilities and maximizing up time, making it suitable for discrete manufacturing where quick returns and cross-vendor compatibility are important.
  
• Schneider Electric provides fully managed, vendor-neutral services with custom OT threat algorithms and machine learning-based controls. Its EcoStruxure platform speeds up IT and OT security integration in regulated industries like utilities and factories. With 24/7 monitoring and automated compliance reporting, Schneider ensures strong operational security.
  

Industrial Cybersecurity Industry News

• In November 2025, Rockwell Automation launched the SecureOT solution suite, an industrial cybersecurity tool designed to help manufacturers and critical infrastructure protect operations and create secure environments.
  
• In October 2025, Siemens introduced SINEC Secure Connect, a zero-trust security platform for operational technology (OT) networks. The platform uses overlay networks to virtualize network structures.
  
• In October 2025, Nozomi released the latest version of Nozomi Arc, which adds active threat prevention to industrial networks. This update helps organizations move from just detecting threats to actively defending critical assets.
  
• In August 2025, Honeywell launched AI-powered cybersecurity tools, including Honeywell Cyber Proactive Defence and Honeywell OT Security Operations Centre. These tools aim to reduce cyber risks, improve resilience, and ensure continuous operations.
  
• In June 2025, Advenica launched the DD500E, a compact data diode designed for secure, one-way data transfers in industrial environments. It helps connect air-gapped networks and securely transfers data from field devices to local or cloud platforms without risking network security.
  

The industrial cybersecurity market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2022 to 2035, for the following segments:

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Market, By Component

• Solution
  • Hardware
  • Software
• Services
  • Managed services
  • Professional services

Market, By Product

• SCADA
• Identity and Access Management (IAM)
• Unified Threat Management (UTM)
• Data Loss Prevention (DLP)
• IDS/IPS
• SIEM
• DDoS
• Others

Market, By Deployment Model

• Cloud
• On-premises
• Hybrid

Market, By Enterprise Size

• SMEs
• Large enterprises

Market, By Security

• Network security
• Endpoint security
• Application security
• Cloud security
• Wireless security
• Others

Market, By Industry

• Automotive
• Electronics
• Food & beverages
• Energy & power
• Oil & gas
• Chemical
• IT & Telecommunications
• Aerospace & Defense
• Others

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore
  • Malaysia
  • Indonesia
  • Vietnam
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • South Africa
  • Saudi Arabia
  • UAE