Cyber Physical System (CPS) Security Market
Cyber-physical Systems (CPS) Security Market by Solution (Network Security, Data Security, IAM, SIEM), Service (Incident Response), Application (Medical Device Security, Industrial Automation Security, Smart Grid Security) - Global Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The cyber-physical systems (CPS) security market is projected to grow from USD 16.07 billion in 2025 to USD 34.44 billion by 2030 at a Compound Annual Growth Rate (CAGR) of 16.5% during the forecast period. The market growth is driven by the adoption of Industry 4.0, the convergence of IT and OT, and the further development of IoT, artificial intelligence, and automation in manufacturing, transportation, energy, healthcare, and smart infrastructure sectors. Increased cyber-physical threats, complexity of the system, and safety needs are driving the need for secure and real-time monitoring and control platforms. The use of CPS security is also growing worldwide due to government investments in smart city projects, the digitalization of industries, as well as the tightening of safety and cybersecurity laws. The development of digital twins, predictive maintenance, edge computing, and enhanced operational efficiency and system resilience is ongoing, with key economic entities focusing on CPS security to modernize critical infrastructure and autonomous systems.
KEY TAKEAWAYS
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BY REGIONAsia Pacific is estimated to account for 19.65% revenue share of the global market in 2025.
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BY OFFERINGBy offering, the services segment is expected to register the highest CAGR of 16.9% during the forecast period.
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BY DEPLOYMENT MODEBy deployment mode, the on-premises segment is projected to lead the market during the forecast period.
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BY ORGANIZATION SIZEBy organization size, the SMEs segment is expected to register the highest CAGR of 10.4% during the forecast period.
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BY APPLICATIONBy application, the transportation & vehicle security segment is projected to register the highest CAGR during the forecast period.
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BY VERTICALBy vertical, the healthcare segment is projected to grow at the highest rate during the forecast period.
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COMPETITIVE LANDSCAPE - KEY PLAYERSABB, Siemens, Honeywell, Schneider Electric, Hitachi, Rockwell Automation, Bosch, Toshiba, Continental AG, and Cisco lead the global CPS security market with comprehensive portfolios spanning industrial automation, control systems, connectivity, and integrated cyber-physical security solutions.
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COMPETITIVE LANDSCAPE - STARTUPSMicrominder Cyber Security, ITSEC, ATS, CyberKnight Technologies, Paramount Assure, Microtech AE, Help AG, CPX, Dragos, and C3 Automation represent key service-focused and emerging players in the CPS security market.
In the cyber-physical systems (CPS) security market, the need for reliable, real-time, and resilient system operations is becoming a major driver. This is pushing organizations to prioritize the security and performance of digitally connected physical systems across manufacturing, transportation, energy, healthcare, and smart infrastructure. Governments and industry organizations are augmenting the use of CPS security in safety, interoperability, and cybersecurity standards, and businesses are incorporating computation, networking, and physical operations in order to handle complex, autonomous processes. This alliance of regulatory control, digitalization of industries, and cross-ecosystem partnership is enhancing system intelligence, credibility, and stability, which are supportive of long-term investment in cyber-physical systems across the world.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The figure illustrates the shift in global CPS security revenues from traditional, siloed control systems and basic automation toward integrated, intelligent, and software-driven CPS security platforms. The adoption of AI/ML, real-time sensing and control, digital twins, cloud-edge architectures, and embedded cyber-physical security is accelerating growth and strengthening IT–OT convergence. This development assists predictive maintenance and autonomous operations as well as real-time decision-making in the complex physical environment, and meets increasing demands on system safety, operational resilience, regulatory compliance, and continuity of critical services in large industry verticals.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Rapid integration of IT, OT, IoT, and physical systems across industries
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Growing use of automation, robotics, and AI-enabled control systems
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High cost and complexity of integrating legacy and modern systems
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Limited availability of cross-domain CPS and cybersecurity expertise
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Growth of Industry 4.0, smart infrastructure, and digital twins
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Rising adoption of AI, edge computing, and predictive maintenance
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Increased exposure to security, safety, and reliability threats
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Lack of unified standards across CPS security platforms and devices
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Rapid integration of IT, OT, IoT, and physical systems across industries
The increased interrelation of digital systems and physical operations allows industries to monitor processes in real-time, automate them, and make decisions based on data. This convergence enhances efficiency, visibility, and control in complex environments. IT-OT convergence also favors advanced applications, like predictive maintenance and autonomous operation. Furthermore, it enhances interdependencies and complexity of the systems.
Restraint: High cost and complexity of integrating legacy and modern systems
Many organizations lack systems that are properly designed or configured to integrate legacy and modern equipment. Implementing these platforms within today’s digital environments is costly due to upgrade requirements, interface complexity, and the need for specialized talent. In addition, customization and extended deployment timelines increase expenses, which limit the adoption of CPS security, particularly among lower-end industries.
Opportunity: Growth of Industry 4.0, smart infrastructure, and digital twins
Industry 4.0 programs are rapidly advancing the use of interconnected machines, automation, and data analytics. With the help of smart infrastructure and digital twins, physical assets can be simulated in real-time, optimized, and their performance monitored. The technologies enhance efficiency in operations and lifecycle management, thereby increasing the demand for CPS security solutions worldwide.
Challenge: Increased exposure to security, safety, and reliability threats
The more systems are interconnected, the more there is an attack surface in cyber-physical systems. Physical safety and continuity of services can be directly affected by failures or cyberattacks. In mission-critical environments, reliability and resilience become critical factors. This is what fuels the demand for secure-by-design CPS security architectures.
CYBER PHYSICAL SYSTEM (CPS) SECURITY MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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Provides CPS security solutions for power and industrial operations by integrating OT security, digital substations, and real-time monitoring to protect and optimize critical assets. | Higher reliability, reduced downtime, improved cyber-physical security, and regulatory compliance. |
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Deploys CPS security platforms for energy and industrial sectors using secure ICS/SCADA, IoT, and anomaly detection to safeguard and optimize operations. | Enhanced safety, early threat detection, operational efficiency, and resilience. |
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Implements CPS security solutions for transport and utilities through IT-OT integration, AI analytics, and secure control systems. | Improved efficiency, predictive maintenance, service continuity, and risk reduction. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The cyber-physical systems (CPS) security ecosystem comprises specialized solution developers and service providers that provide integrated industrial automation, smart infrastructure, and operational technology platforms. Advanced CPS security platforms, industrial control, and automation solutions are offered by solution leaders such as ABB, Siemens, Honeywell, Schneider Electric, Hitachi, Rockwell Automation, Bosch, Toshiba, Continental, C3 Automation, and Cisco. Cybersecurity, system integration, monitoring, and managed services provided by Microminder Cyber Security, ITSEC, CyberKnight, ATS, Paramount, Microtechnik, HELP AG, and CPX are all useful in improving safety, resilience, and operational intelligence in industries across the world.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
CPS Security Market, by Offering
The solutions segment accounts for a larger share of the CPS security market, wherein organizations are becoming more and more interested in extensive integrated security platforms rather than individual services. Increasing cyber threats, compliance rules, and the necessity of a centralized visibility of IT, OT, and cloud environments are fueling the demand for high-level CPS security solutions. The platforms allow threat detection, enforcement of policies, automation, and real-time monitoring, and are essential to large and complex enterprise environments.
CPS Security Market, by Deployment Mode
The on-premises segment leads the CPS security market, driven by enterprises that operate in controlled and high-risk settings. The manufacturing, energy, and critical infrastructure sectors favor on-premise deployments because of data sovereignty, latency constraints, and more rigid control over sensitive systems. Additional factors driving the demand for on-premises CPS security deployments are legacy infrastructure integration and compliance requirements.
CPS Security Market, by Organization Size
By organization size, large enterprises represent the dominant segment of the CPS security market, having more cybersecurity budgets, IT-OT complexities, and cyber exposures. These organizations also need scalable and enterprise-grade CPS security to secure distributed operations, handle large amounts of data, and establish compliance with other geographies. Digital transformation efforts further increase the adoption of CPS security by large enterprises.
CPS Security Market, by Application
Industrial automation security dominates the CPS security market because the security requirement implies detection of threats in real-time, the availability of the system during the entire day, and solid control over the operational environments. Manufacturing facilities, utilities, and process industries use the approach of ensuring security of ICS, PLC, and SCADA systems and complying with stringent safety, reliability, and regulation standards, as well as compatibility with old OT infrastructure.
CPS Security Market, by Vertical
The manufacturing vertical accounts for the largest market share because of widespread automation, interconnected equipment, and Industry 4.0. The growing cyber threats to production systems, intellectual property, and supply chains are compelling manufacturers to invest in high-quality CPS security solutions. The fact that continuous monitoring, predictive threat management, and operational resilience are needed further hastens the adoption of CPS security in this vertical.
REGION
Asia Pacific to be fastest-growing region in global CPS market during forecast period
CPS security adoption in Asia Pacific is being driven by rapid digitalization and the convergence of IT, OT, and physical systems across emerging and developed economies. Organizations are increasingly deploying integrated CPS security platforms, real-time monitoring, and AI-driven control systems to enhance operational efficiency, improve safety and reliability, ensure regulatory compliance, and strengthen resilience across complex, distributed industrial and critical infrastructure environments.
CYBER PHYSICAL SYSTEM (CPS) SECURITY MARKET: COMPANY EVALUATION MATRIX
The cyber-physical systems(CPS) security market features a mix of established industrial automation leaders and rapidly expanding cybersecurity and integration specialists. Siemens, a star player, leads with strong capabilities in industrial automation, digital twins, and integrated IT-OT cyber-physical platforms for manufacturing, energy, transportation, and smart infrastructure. Dragos, an emerging player, is strengthening its CPS security presence by focusing on industrial threat intelligence, OT security monitoring, and cyber resilience for critical infrastructure. Across the market, vendors are prioritizing secure IT-OT convergence, real-time monitoring, and predictive analytics to address rising cyber-physical risks and infrastructure modernization needs.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- ABB (Switzerland)
- Honeywell (US)
- Hitachi (Japan)
- Schneider Electric (France)
- Siemens (Germany)
- Rockwell Automation (US)
- Continental AG (Germany)
- Toshiba (Japan)
- Cisco (US)
- Bosch (Germany)
- C3 Automation (UAE)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 13.90 Billion |
| Market Forecast in 2030 (Value) | USD 34.44 Billion |
| Growth Rate | CAGR of 16.5% from 2025 to 2030 |
| Years Considered | 2019–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD Million/Billion) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Regions Covered | North America, Asia Pacific, Europe, Middle East & Africa, Latin America |
WHAT IS IN IT FOR YOU: CYBER PHYSICAL SYSTEM (CPS) SECURITY MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Leading Solution Provider (US) | Product Analysis: Product Matrix, which gives a detailed comparison of the product portfolio of each company | Improved clarity on competitive positioning and product strengths to drive informed decision-making. |
| Leading Service Provider (UAE) | Company Information: Detailed analysis and profiling of additional market players (up to 5) | Comprehensive insights into market landscape and opportunities for strategic collaborations. |
RECENT DEVELOPMENTS
- August 2024 : Siemens launched the redesigned Sinumerik 828D CNC controller, featuring upgraded hardware and integrated digital twin capabilities to improve flexibility, sustainability, and cybersecurity. The new processor units support software upgrades and the “Run MyVirtual Machine” function, enabling NC program creation and validation without stopping production and reducing setup times by up to 20%.
- May 2024 : Honeywell partnered with Enel North America to deploy automated demand-response solutions for commercial and industrial customers, aiming to enhance energy management, stabilize power grids, improve operational efficiency, reduce energy costs, and ensure grid reliability during peak demand.
- August 2023 : Schneider Electric launched Managed Security Services (MSS) for operational technology (OT) environments to address rising cyber risks driven by remote access and increased connectivity, particularly in manufacturing. Powered by the Cybersecurity Connected Service Hub, the MSS offering delivers 24/7 monitoring and proactive threat response, integrating seamlessly with existing IT/OT infrastructures.
Table of Contents
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Methodology
Secondary research was conducted to collect information useful for this technical, market-oriented, and commercial study of the global Cyber Physical System (CPS) Security market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, such as top-down and bottom-up, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the Cyber Physical System (CPS) Security market.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information regarding the study. The secondary sources included annual reports, press releases, investor presentations of Cyber Physical System (CPS) Security solution and service vendors, forums, certified publications, and whitepapers. The secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives, all of which were further validated by primary sources.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included various industry experts, including Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the Cyber Physical System (CPS) Security market.
In the market engineering process, top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform the market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list key information/insights throughout the report.
After the complete market engineering process (including calculations for market statistics, market breakups, market size estimations, market forecasts, and data triangulation), extensive primary research was conducted to gather information and verify & validate the critical numbers arrived at. The primary research was also conducted to identify the segmentation, industry trends, competitive landscape of Cyber Physical System (CPS) Security market players, and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
Notes: Other levels include sales managers, marketing managers, and product managers.
Tier 1 companies receive revenues higher than USD 10 billion; Tier 2 companies' revenues range between
USD 1 and USD 10 billion; and Tier 3 companies' revenues range between USD 500 million and USD 1 billion.
Source: Industry Experts
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the Cyber Physical System (CPS) Security market and the size of various dependent sub-segments in the overall Cyber Physical System (CPS) Security market. The research methodology used to estimate the market size includes the following details: critical players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of the top market players, and extensive interviews were conducted for key insights from the industry leaders, such as CEOs, VPs, directors, and marketing executives.
All percentage splits and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added to detailed input and analysis from MarketsandMarkets.
Cyber-Physical Systems (CPS) Security Market : Top-Down and Bottom-Up Approach
Data Triangulation
The market was split into several segments and subsegments after arriving at the overall market size using the market size estimation processes explained above. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
According to MarketsandMarkets, Cyber Physical System (CPS) Security is a set of technologies, processes, and practices to fortify critical systems, such as networks, physical devices, programs, and information, from unauthorized access, insider threats, and malicious attacks. These cyberattacks can affect data transmission across the networks, cause operational disruptions, and result in money extortion/ransomware. Cyber Physical System (CPS) Security, or information security, can be provided through hardware, software, and services.
Stakeholders
- Chief Technology and Data Officers
- Consulting Service Providers
- Managed Security Services Professionals
- Business Analysts
- Information Technology (IT) Professionals
- Government Agencies
- Investors and Venture Capitalists
- Small and Medium-sized Enterprises (SMEs) and Large Enterprises
- Third-party Providers
- Consultants/Consultancies/Advisory Firms
- Managed and Professional Service Providers
Report Objectives
- To describe and forecast the global Cyber Physical System (CPS) Security market by offering, solution type, security type, deployment mode, organization size, vertical, and region from 2025 to 2030, and analyze the various macroeconomic and microeconomic factors that affect market growth
- To forecast the Cyber Physical System (CPS) Security market size of five main regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To analyze the subsegments of the Cyber Physical System (CPS) Security market with respect to individual growth trends, prospects, and contributions to the overall market
- To provide detailed information regarding major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the Cyber Physical System (CPS) Security market
- To analyze opportunities in the Cyber Physical System (CPS) Security market for stakeholders and provide details of the competitive landscape of major players
- To profile key market players; provide a comparative analysis based on the business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the competitive landscape of the marketTo analyze competitive developments, such as mergers & acquisitions, product developments, partnerships and collaborations, and research & development (R&D) activities, in the Cyber Physical System (CPS) Security market
Available Customizations
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis as per Feasibility
- Further breakup of the Asia Pacific Cyber Physical System (CPS) Security market into countries contributes to the rest of the regional market size
- Further breakup of the North American Cyber Physical System (CPS) Security market into countries contributes to the rest of the regional market size
- Further breakup of the Latin American Cyber Physical System (CPS) Security market into countries contributing to the rest of the regional market size
- Further breakup of the Middle East & African Cyber Physical System (CPS) Security market into countries contributing to the rest of the regional market size
- Further breakup of the European Cyber Physical System (CPS) Security market into countries contributes to the rest of the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
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Growth opportunities and latent adjacency in Cyber-physical Systems (CPS) Security Market