Cyber-Physical Systems (CPS) Security Market by Component (Hardware, Software, and Services), by Deployment (Deployment, On Premise, and Cloud), and by End-User (Aerospace & Defense, Automotive, Energy Utility, Healthcare, eCommerce, Manufacturing, Consumer Electronics, and Others)- Global Opportunity Analysis and Industry Forecast 2024-2030

Market Definition

The Cyber-Physical Systems (CPS) Security Market size was valued at USD 8.22 billion in 2023 and is predicted to reach USD 17.02 billion by 2030 with a CAGR of 10.9% from 2024-2030.

Cyber-physical systems (CPS) security refers to the integration of physical systems with computational and communication technologies, creating a new generation of smart systems that can monitor and control physical processes in real-time. It consists of several key components, including sensors and actuators that monitor and control physical processes, embedded systems that process and analyze data, and communication networks that enable seamless exchange of information between different components. CPS systems are designed to be highly reliable, secure, and efficient, using advanced algorithms and control strategies to optimize performance and reduce energy consumption. The CPS system have the ability to adapt to changing environmental conditions and user requirements, using advanced machine learning and artificial intelligence techniques to learn from past data and make predictions about future events.

Market Dynamics and Trends

The growing threat of cyber-attacks on CPS systems which can lead to physical damage and disruption of essential services, the need for robust security measures to protect against cyber threats is increasing, thereby fostering the growth of the market. For instance, cyber-attacks is growing at a significant rate across the globe, with cyberattack happening every 39 seconds, and it is estimated to cost the world USD 9.5 trillion in 2024.

Moreover, the rising adoption of cybersecurity measures within the healthcare sector, prompted by the surge in cyber-attacks, is propelling the growth of the market. According to the latest report from the IBM X-Force Threat Intelligence Index 2023, a 58% of healthcare cyber-attacks in 2022 occurred in Europe with North America closely following at 42%. This regional concentration underscores the necessity for customized cybersecurity strategies tailored to the specific challenges and threats faced by different geographic regions.

Furthermore, the increasing implementation of strict government policies, particularly in industries such as healthcare and finance, that enforce regulatory compliance requirements mandating specific cybersecurity measures, is propelling the demand for cyber-physical systems security solutions.

However, the high cost of implementing and maintaining security in CPS as it requires specialized expertise, hardware, and software to secure these complex systems is the major factor restraining the growth of the market. On the contrary, the integration of artificial intelligence (AI) and blockchain technology in CPS security system to detect and respond to cyber threats more quickly and effectively is expected to create ample opportunities in the growth of the CPS security market in the coming years.

Market Segmentations and Scope of the Study

The cyber-physical systems security market share is segmented on the basis of component, deployment, end-user, and region. On the basis of component, the market is divided into hardware, software, and services. On the basis of deployment, the market is classified into deployment, on-premise, and cloud. On the basis of end-user, the market is segmented into aerospace & defense, automotive, energy utility, healthcare, ecommerce, manufacturing, consumer electronics, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant share of cyber-physical systems security market and is expected to continue its dominance during the forecast period. This is attributed to factors such as the increasing adoption of connected medical devices, electronic health records, and other digital technologies in the healthcare industry.

According to the National Center for Health Statistics (NCHS) of the Centers for Disease Control and Prevention (CDC), the use of electronic medical records (EMRs) in the U.S. continues to grow in healthcare settings with 86.9% of office-based physicians and 96.9% of non-federal acute care hospitals in the U.S. have adopted EMRs.

Moreover, the aerospace industry’s heavy reliance on CPS systems for critical aerospace applications such as aircraft control systems, satellite communication systems, and unmanned aerial vehicles (UAVs) for the safety and performance of aerospace operations is driving the growth of the CPS security market.

According to the Airlines of America, the commercial aviation industry in the U.S. reached USD 1.25 trillion carrying 2.3 million passengers and 66000 tons of cargo in 2022, driving the demand for robust CPS security measures to ensure the safety and efficiency of aerospace operations.

On the other hand, Asia-Pacific is expected to show steady growth in the CPS security market due to the growing e-commerce industry in Asia-Pacific region. According to the International Trade Administration, China is the largest e-commerce market globally as it reached USD 2.29 trillion in 2020 and is expected to reach USD 3.56 trillion by 2024. With the rapid growth of the e-commerce sector, the risk of online frauds is also on the rise, driving the need for advanced CPS security solution.

Moreover, the increasing use of smart devices such as smartphones, tablets, and smart TVs, alongside the thriving consumer electronics industry, is boosting the demand for cyber-physical system (CPS) security. CPS security is vital as it safeguards these interconnected systems, ensuring the safety and privacy of users in a rapidly evolving digital landscape.

According to the Indian Ministry of Information and Broadcasting, the number of mobile users reached 1.2 billion in India in 2022 as compared to as compared to 493 million in 2021. This rapid growth in mobile users highlights the remarkable expansion of digital connectivity and the need for robust cybersecurity measures to protect this vast user base and their data.

Competitive Landscape

Various market players operating in the cyber-physical systems security market include Cisco Systems, Intel Corporation, IBM Corporation, Honeywell International Inc, Siemens AG, Schneider Electric SE, Rockwell Automation Inc, General Electric, Toshiba Corporation, Hewlett Packard Enterprise Company, and others. These market players are adopting various strategies such as product launches to remain dominant in the cyber-physical systems security market.

For instance, in November 2022, Honeywell announced an expansion of its operational technology (OT) cybersecurity capabilities across its offerings. This new development aims to improve security for industrial organizations and protect them from cyber threats. The enhanced OT cybersecurity features include new capabilities for risk management, threat detection and response, and network security.

Moreover, in August 2022, Intel unveiled a new security feature called "Control-Flow Enforcement Technology" (CET) available on Intel's 11th Gen Core processors. Through this launch, the company aims to prevent malware attacks by blocking certain techniques used to hijack a program's control flow and improve security. 

Furthermore, in January 2020, Cisco launched a new Industrial IoT Security Architecture  to provide a comprehensive security solution for industrial environments, enabling organizations to safeguard their critical operations from cyber-attacks. The architecture provides security solutions for various components of industrial networks, including endpoints, network infrastructure, and applications and offers a range of security features such as threat detection, segmentation, and access control.

Key Benefits

• The report provides quantitative analysis and estimations of the cyber-physical systems security market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the cyber-physical systems security market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the cyber-physical systems security market is provided in the report.

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders. 

Key Market Segments

By Component 

• Hardware

• Software

• Services

By Deployment 

• Deployment

• On Premise

• Cloud

By End-User 

• Aerospace & Defense

• Automotive

• Energy Utility

• Healthcare

• eCommerce

• Manufacturing

• Consumer Electronics

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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