Cybersecurity for critical infrastructure New battlefield, new opportunities

The global annual cost of cybercrime is skyrocketing. Now amounting to USD 10.3 trillion, it's expected to rise to USD 13.8 trillion by 2028 according to Statista. But it isn't just the cost that is shifting; the targets of cybercrime now include the infrastructure behind power grids, water supplies, logistics, and healthcare. That's because these supply systems are based on networked, digitally controlled processes that offer more opportunities for cyberattacks.

Critical infrastructure, known in the industry by the acronym KRITIS, is a particular target. It includes service and supply systems that are essential for the smooth functioning of society. Just think what disruptions to our food, transport, energy, water, and communication networks can do to economic stability and national security, not to mention daily life.

And if you think that these events are very rare, consider the statistics. Between January 2023 and January 2024, over 420 million cyberattacks on KRITIS were recorded worldwide according to Center for Strategic and International Studies - that's 13 attacks every second. This number represents a 30 % increase on the previous year.

The United States is the most often affected, followed by the United Kingdom, Germany, India, and Japan. The attacks originate most frequently in China, Russia, and Iran. And while military facilities are the most often targeted, they are closely followed by communication infrastructures. The originators are criminals and state or state-linked actors.

Targeting both digital and physical infrastructure

The growing interconnection between digital and physical infrastructure poses a huge technical challenge for the cybersecurity industry. Physical infrastructure assets, such as undersea cables and satellites, are increasingly the target of state-sponsored attacks.

This represents a new dimension in hybrid cyber warfare. No longer a simple matter of data theft, these strikes seek to disrupt physical processes with the strategic goal of causing interruptions, sabotage, or espionage.

Small- and medium-sized KRITIS organisations are particularly attractive targets. They often devote significantly fewer resources to cybersecurity because they think they are too insignificant to be attacked by cybercriminals. What this approach ignores is the fact that it isn't the most important infrastructure links that are targeted, but the weakest ones.

Market growth

In view of this threat, the market for protection solutions in the KRITIS sector is experiencing a strong upswing. The global market volume amounted to USD 142 billion in 2023, and is expected to grow to USD 190 billion in 2030 according to Grand View Research, an annual growth rate of 4.6 %. These figures include both solutions and services, with the strongest growth expected in the Asia Pacific region.

Cybersecurity solutions aren't limited to information technology (IT) but also include operational technology (OT) systems. OT security uses sensors, controllers, machines, and similar devices to protect critical operational tech systems that are crucial to the efficient functioning of manufacturing, utilities, and transportation.

Every new networked device a target

OT systems used to be clearly isolated from IT and the internet. But IT and OT are converging rapidly thanks to the prevalence of global connectivity. Which means that every newly networked device can be compromised through a cyberattack.

IT security and OT security both aim to protect critical systems and data from unauthorised access and operational disruption, and must be closely monitored. To this end, common technology such as firewalls, intrusion detection systems, and encryption are covered by both IT and OT security.

However, while IT security focuses on protecting the confidentiality, integrity, and availability of data, the target of OT security is to maintain system availability and physical security.

IT systems are digital and dynamic. They have data flows and connectivity that support organisational operations through communications and data processing. They are regularly updated and patched to protect them from new cyber threats.

OT systems, on the other hand, focus on physical infrastructure and seek to ensure continuous industrial operations and physical processes. Disruptions to OT can lead to direct physical damage to the operating environment, or even failures that cause financial damage and compromise human safety.

But unlike IT systems, OT systems often run on outdated software that was not designed with connectivity or modern security threats in mind. Due to the risk of disrupting ongoing operations, very often these systems can't be regularly updated or patched, so there are longer intervals between revisions.

OT security is the fastest-growing cybersecurity area

Things are changing, however, and fast.

• As traditionally isolated OT environments become connected to corporate IT networks in order to increase productivity, these OT systems are using robust new security solutions to protect against cyberattacks.
• Tailored, high-margin OT security systems are on the riseto secure OT products with its often outdated technology.
• The increasing frequency and sophistication of cyberattacks is receiving considerable attention within corporate boards and governments, increasing their willingness to install better security.
• Governments are investing in improved cybersecurity, and setting stricter regulatory frameworks that mandate robust security practices for critical infrastructure.

The result of these developments? A significant growth spurt for the OT security market. According to Next Move Strategy Consulting (NMSC), a global consulting firm, while the market was worth USD 24.7 billion in 2024, they expect it to grow to USD 95.1 billion by 2030, an annual growth rate of 25.5 %.

In defence of national security

Today, the importance of cybersecurity goes far beyond the traditional protection of digital data. It increasingly secures entire supply systems, with critical infrastructure particularly in focus. A disruption in just one key area can have far-reaching and devastating consequences for society. And at a time of rising geopolitical tensions, protection against cyberattacks has never been more necessary.

The convergence of IT and OT, new products, more government investment, and new regulations, are making OT a dynamically growing sector and an interesting area for investigation by investors.