Critical Infrastructure Protection Market Size, Share & Trends Analysis Report By Security Type (OT, IT), By Services (Consulting, Risk Management, Managed), By Application, And Segment Forecasts, 2018 - 2025

Report Overview

The global critical infrastructure protection market size was valued at USD 57.23 billion in 2016. It is anticipated to register a CAGR of 10.1% over the forecast period. Cybersecurity of the nation’s assets is vital and thus, securing cyberspace is of utmost importance in growing digitization. Rising concerns regarding advanced threats such as cutting populations off from clean water, power, transportation, and emergency supplies, thereby disrupting economy and nation, are one of the key trends escalating market growth.

A robust cybersecurity posture in an organization analyzes threats and mitigates them. Implementing critical infrastructure protection (CIP) solution ensures organization safety and the non-interrupted functioning of their critical infrastructure. It not only secures physical assets of national importance such as nuclear facilities but also protects virtual assets such as defense blueprints. However, with the emergence of advanced cyber-attacks, the need for continuous development of cybersecurity solutions is on the rise.

In every nation, it is important to protect government, transport, energy, and finances, among other critical infrastructure operations against terrorist activities and natural disasters. The U.S. government ensures the implementation of a robust cybersecurity posture in organizations and other facilities. In the recent past, the government established cybersecurity units and deterrence activities by enabling stringent policies aimed to reduce cyber-attacks causing catastrophic damage to the nation. Moreover, the National Protection and Programs Directorate (NPPD) aims to build public-private partnerships to enhance the security & resilience of the nation’s physical and cyberinfrastructure.

Critical infrastructure protection plays a vital role in modern society. Increasing efforts to safeguard the nation’s assets are being prioritized across the world. With the rapid evolution of cyber threats in modern critical infrastructure, there is a growing emphasis on protecting the supervisory control and data acquisition (SCADA) systems and industrial control systems in order to maintain continuous operations and performance. Moreover, rapidly developing internet and interconnected network architecture are prompting governments and organizations to secure cyberspace aimed to curb threat vulnerabilities.

Growing capabilities of adversaries to penetrate systems controlling all areas of critical infrastructure are raising concerns for several industries. In light of this, there is an increasing number of investments to encourage R&D of cybersecurity for launching advanced critical infrastructure protection solutions. Moreover, governments are backing the demand for CIP by implementing favorable policies for the safety of assets. For instance, in 2018 Aperio Systems, an Israel-based critical infrastructure protection solution provider raised USD 4.5 million in seed funding. The company aims to use the funding for strategic investment in next-generation cybersecurity intrusion protection systems to secure critical infrastructure.

Security Type Insights

The operational technology (OT) security segment is likely to maintain dominance in the market throughout the forecast period, accounting for a revenue share of over 60.0% by 2025. The growth of the segment can be attributed to the increasing deployment of cybersecurity solutions in SCADA systems, industrial control systems, and other operational technology systems. Mounting cases of sophisticated attacks such as the U.K.raine’s power grid attack are creating heightened awareness among governments to establish an advanced deterrence posture, which would enable them to prioritize the complex challenges in cyberspace. Taking into account the critical importance of OT and consequences arising from inadequate protection, enabling a robust security posture is of vital importance. Such factors along with surging demand from end-users are expected to bolster the growth of the market over the forecast period.

The information technology (IT) security segment is estimated to witness a CAGR of 9.8% over the forecast period. IT security plays a vital role in helping to create the environment needed to set the foundation for implementing successful e-government or e-commerce activities, national ICT plans, and sectoral projects in areas including finance and education. Furthermore, the continual development of new technologies such as big data, cloud, and IoT is projected to augment the market over the forecast period.

Services Insights

The consulting services segment dominated the critical infrastructure protection market, with a valuation of USD 20.24 billion in 2016. CIP provides a robust security posture through comprehensive assessment services along with expert advice. Consultants ensure that the OT & IT infrastructure are adequately aligned to deal with inherent challenges faced by organizations. With an increase in the demand for infrastructure security, consulting services are providing a combination of physical infrastructure protection with cyber, information, incident management, and disaster recovery to ensure overall organization resilience to threats. Furthermore, creating a customized solution for clients that exceed expectations for security and compliance initiatives is poised to propel the growth of the segment over the forecast period.

Risk management services are anticipated to witness a CAGR of 11.7% over the forecast period. Several governments are increasingly adopting risk management approaches. The risk management process involves the integration of threat, vulnerability, and consequence information. This approach helps governments and other organizations to identify key security assets, assess risks, and establish priorities & strategies for mitigating emerging risks. Adopting risk management services enable measures such as prevention, preparedness, response, and recovery from cyber threats. Moreover, it has improved coordination between government & private businesses to manage risks associated with critical infrastructure.

Application Insights

The energy & power segment dominated the market in 2016 and is likely to witness significant growth, registering a CAGR of 10.8% over the forecast period. Globally, a significant voluntary effort to increase planning and preparedness against cyber-attacks has been taken up by industries to ensure robust security measures. The emergence of the smart grid has further necessitated the application of robust critical infrastructure protection to underpin infrastructure security and resilience.

The transportation segment commanded a revenue share of 13.51% in the overall market in 2016. It is expected to witness a healthy CAGR during the forecast period. Transportation helps in quickly, safely, and securely allowing the moment of people, food, medicine, and other commodities within a country and overseas. Thus, the transportation system is vital owing to its economic importance and its various interdependencies with other infrastructure.

Regional Insights

North America was valued at USD 23.49 billion in 2016. Implementation of various bodies & policies by the U.S. government, such as the Homeland Security Presidential Directive (HSPD-7) and the National Infrastructure Protection Programme (NIPPare, contributes to the regional market's growth. Furthermore, the implementation of the National Strategy and Action Plan for Critical Infrastructure has established a risk-based approach for strengthening the resiliency of Canada's vital systems and assets, thereby supplementing the overall market growth.

Asia Pacific is estimated to post the highest CAGR of 11.9% during the forecast period. The proliferation of technology in industrial systems and defense are some of the key factors stimulating the growth of the regional market. China is projected to be the site of a high growth rate with increasing investments in infrastructure protection hardware and software. Key players are focusing on expanding their capacities in the Asia Pacific, which is poised to influence the growth of the market positively.

Key Companies & Market Share Insights

The market holds high growth potential. With increasing cyber-attacks, governments across nations are anticipated to implement more stringent policies within the private and public sectors, thereby creating opportunities for players in the market. In order to be ahead of the curve, companies operating in the physical & cybersecurity industry focus on rigorous R&D, which is dedicated to both business and technical innovations.

Key industry participants, including BAE System Plc; General Dynamic Corporation; Honeywell International Inc.; Boeing; and Raytheon Company, accounted for 32.1% of the overall market in 2016. Other prominent players are Airbus; Booz Allen Hamilton Inc.; DXC Technology Company; Intel Corporation; IBM Corporation; Lockheed Martin Corporation; Leonardo SpA; Northrop Grumman Corporation; and TRL Technology Ltd.

Critical Infrastructure Protection (CIP) Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global critical infrastructure protection market report on the basis of security type, services, application, and region:

• Security Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Operational Technology

  • Information Technology

• Services Outlook (Revenue, USD Billion, 2014 - 2025)

  • Consulting Services

  • Managed Services

  • Risk Management Services

  • Training & Support Services

• Application Outlook (Revenue, USD Billion, 2014 - 2025)

  • BFSI

  • Energy & Power

  • Government & Defense

  • IT & Telecom

  • Transportation

  • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA