Critical Infrastructure Protection Market

[359 Pages Report] The global critical infrastructure protection market is projected to grow from an estimated value of USD 143.0 billion in 2023 to USD 162.5 billion by 2027 at a Compound Annual Growth Rate (CAGR) of 3.3 % from 2023 to 2027. There has been a rise in the cyberattacks organizations face in recent years. This factor is expected to contribute to the growth of the critical infrastructure protection market.

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Critical Infrastructure Protection Market Dynamics

Driver: Increasing cyberattacks on the systems deployed

Cyberattacks on critical infrastructure industries are on the rise. Critical infrastructure provides the services that are the backbone of national and economic security and the health and well-being of people. Verticals such as energy, transportation, communications, and financial services depend on information technology systems and electronic data to carry out and report on operations. But these systems are increasingly at risk from things like insider threats and increasing cyber threats from across the globe. Cybersecurity threats to critical infrastructure threaten national security, economic prosperity, and public health and safety. For instance, the U.S. electric grid is vulnerable to cyberattacks, particularly on the systems that control electric power generation, transmission, and distribution. These systems were once isolated from the internet but are now increasingly connected. In addition, recent federal assessments indicate that cyberattacks could cause widespread power outages in the United States, but the scale of such outages is uncertain. Increased connectivity of people and devices to the internet and each other has created an ever-expanding attack surface that extends worldwide. Thus, increasing cyberattacks have led to organizations increasingly deploying CIP solutions.

Restraint: Lack of interoperability between CIP solutions

The requirement by organizations for sophisticated tools and to upgrade solutions has resulted in complex critical infrastructure. SCADA and Industrial Control Systems have undergone dramatic transformations in recent years. What was once a collection of isolated, proprietary systems based on serial protocols are now highly interconnected systems that leverage the internet protocol and commercial solutions to optimize operations and reduce costs. Like any other complex system, a critical infrastructure system includes many elements with different levels of importance, categorized into several layers, and interconnected by various types and intensity linkages. Interdependencies increase the risk of failures or disruptions in multiple infrastructures. Complexities in fragmented critical infrastructure protection solutions create vulnerabilities in CIP environments. This factor is a restraint to adopting critical infrastructure protection solutions.

Opportunity: Rise in the usage and adoption of the Internet of Things

IoT devices are vital in accelerating the demand for critical infrastructure protection solutions. The Internet of Things is an advanced technology that has changed traditional living into a technology-inclusive lifestyle. Smart cities, pollution control, energy saving, smart transportation, and smart industries are transformations due to IoT. IoT-connected systems act as a significant security risk for critical infrastructure services when security best practices are implemented, as they come with few intrinsic flaws, including a lack of standardization in cybersecurity practices across the supply chain, which leads to greater exposure; attack surface that increases with the number of connected devices; and obsolete and unsupported architecture. In March 2021, Silicon Valley start-up Verkada suffered a massive IoT cyberattack. The hackers could access administrative privileges to many security surveillance cameras, meaning they could execute malicious code on the devices. Once a hacker can breach a networked device, they can use it as a starting point for attacks, exposing systems involving critical operations. As industries further integrate IT and OT networks to gain new insights, these devices pose an even greater danger for processes that rely on industrial control systems. The IoT Cyber Security Improvement Act was enacted in late 2020. It requires US public sector users of IoT, including those used in critical infrastructure, to extend robust cyber defenses to their IoT deployments. Therefore several initiatives are also being taken involving IoT.

Challenge: Supply-chain Security based Challenges

Supply chain security is complex and involves protecting networks of endpoints that serve specific purposes. A supply chain network traditionally includes hardware, software, and managed services from third-party entities. With time, supply chain networks are transformed into more flexible, digital, and interconnected parts. Therefore, more data flows through these than before. The risk profile for supply chain systems that manage supply chain processes is more significant. The absence of proper operational technology security in the supply chain can result in losing access to emergency and essential services. Supply chain attacks exploit trusted third parties to access many targets in parallel. For example, the SolarWinds Orion is one of the most prominent examples of how a supply chain breach can affect 18,000 organizations. After gaining access to the SolarWinds build system, the attacker added a malicious DLL file and distributed it to SolarWinds customers. The malicious file enabled remote access and stayed undetected for over six months.

Critical Infrastructure Protection Market Ecosystem

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By vertical, the telecom segment is to grow at the highest CAGR during the forecast period

Telecom systems collate communication networks, transmission systems, and relay stations. The need to secure communication using crypto security, transmission security, emission security, and physical security of the equipment is required to protect classified traffic on these networks. These networks are highly reliable, but in case of natural disasters such as hurricanes and floods, large-scale outages occur, which can adversely affect other dependent infrastructures. Natural disasters keep happening more in western countries, and their substantial impact results in power outages and flooding, which lead to failures of the dependent critical infrastructures. The cybersecurity of telecommunications is also essential. A lot of hackers are making use of mobile networks for sending malicious emails as well as messages to users for infecting devices as well as networks. Hence, it is crucial to secure telecommunications networks as frequent repair can be costly and a disadvantage for users.

By cybersecurity, the encryption segment to grow at the highest CAGR during the forecast period

Encryption is used primarily in secure communication and SCADA protection. Communication encryption is widely used to prevent the unauthorized access of information by masqueraders and eavesdroppers. SCADA security protects SCADA networks, a common framework of control systems used in industrial operations. These networks provide millions of people with automated control and remote human management of essential commodities and services, such as water, natural gas, electricity, and transportation. Most critical infrastructure assets are controlled by SCADA systems connected to the rest of the world via high-speed data networks. This makes them vulnerable to cyber-attacks, primarily financially motivated, targeted to harm, steal, alter, or inject data within SCADA systems. Therefore, to protect SCADA systems, various new technologies are developed. One of the technologies is securing SCADA systems with high-assurance encryption.

By physical safety and security, physical identity and access control systems segment to grow at the highest CAGR during the forecast period

Physical identity & access control systems enable organizations to streamline access requests and approval processes across multiple users and physical access systems. ID management is important for the authorization and authentication of individuals within enterprise premises to prevent the misuse of sensitive information and data leaks. Access control systems provide access only to authorized personnel in secured premises by controlling the flow of people in and out of the premises. The physical identity and access control systems are growing because of the increasing number of critical infrastructures across the globe. Biometrics is one of the fastest-growing technologies used for securing the perimeter of critical infrastructure. It includes fingerprint scanning, facial recognition, iris scanning, retinal scanning, hand geometry, speech recognition, and signature recognition to provide physical access to authorized personnel. This technology is being increasingly adopted in government facilities, manufacturing units, power stations, defense establishments, and enterprises. Biometric systems may use contact-based or contactless approaches for scanning and reading physiological and behavioral features.

By region, North America accounts for the largest market size during the forecast period

The most robust economies in North America, the US, and Canada are the top contributing countries to the North American CIP market. North America is the most advanced and adaptable region in adopting security infrastructure and technological development. Public-Private Partnerships (PPPs) and international collaborations have led to adequate critical infrastructure security and resilience in the region. The North American Electric Reliability Council (NERC) and Canadian Electricity Association (CEA) seek to safeguard critical infrastructures from physical and cyber threats. Therefore, it is necessary to regulate and monitor industrial infrastructures and perform risk assessments for analyzing potential vulnerabilities in the critical infrastructure system.

Key Market Players

The key critical infrastructure protection market vendors include BAE Systems (US), Lockheed Martin (US), General Dynamics (US), Northrop Grumman (US), Honeywell (US), Airbus (France), Thales (France), Hexagon AB (Sweden), Johnson Controls (US), and Huawei (China).

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Scope of the Report

Market Segmentation

The study categorizes the critical infrastructure protection market based on component, security type, vertical, and region.

Component

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

Security Type

• Physical Safety and Security
• Cybersecurity

Vertical

• Financial Institutions
• Government
• Defense
• Transport and Logistics
• Energy and Power
• Commercial Sector
• Telecom
• Chemicals and Manufacturing
• Oil and Gas
• Other Verticals

Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

Recent Developments

• In February 2023, Northrop Grumman announced that it had launched its Electronically Scanned Multifunction Reconfigurable Integrated Sensor (EMRIS), a new ultra-wideband sensor, into integration and testing. Northrop Grumman’s sophisticated multifunction sensors, including EMRIS, enable warfighters to accelerate decision timelines and collaborate.
• In December 2022, Hexagon AB announced the acquisition of Qognify, a leading provider of physical security and enterprise incident management software solutions. Qognify’s video management software (VMS) leverages video analytics from camera feeds and cloud technology to provide a single video monitoring solution.
• In December 2020, Fortinet announced new integrations with Amazon Web Services to provide customers with advanced security across their cloud platforms, applications, and network. Fortinet continues providing cloud-security solutions, including its virtual next-generation firewall, FortiGate VM, and web application firewall. FortiWeb uses AWS to provide customers with complete visibility of applications and centralized management.

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