The global critical infrastructure protection market was valued at USD 79.49 billion in 2020 and is projected to be worth USD 117.19 billion by 2026, registering a CAGR of 6.49% during the period from 2021 - 2026. Critical infrastructure plays an active and dynamic part in supporting the seamless progression and assimilation of modern society. The performance, safety, reliability, continuous operation, maintenance, and protection of critical infrastructure are among the national priorities for countries around the world.
- The critical infrastructure sectors comprise assets, networks, and systems, whether physical or virtual. The physical protection of critical infrastructure can prevent the commission of high-impact terrorist attacks and avoid the cascading effects that are frequently associated with such attacks. INTERPOL has observed an increase of 200%, in the number of profiles of foreign terrorist fighters, between January 2017 and April 2018.
- The issue of critical infrastructure protection is emerging as one of the primary concerns for the national governments, infrastructure managers, and local authorities. The European Union (EU), through its European Program for Critical Infrastructure Protection (EPCIP), announced the importance of CIP to all its member states and the citizens.
- Due to rapid urbanization across the world, there has been immense stress on infrastructure in cities, and the governments are focusing on improving the infrastructure, such as transport, energy, and water, in order to provide better livability stature. The information and the telecommunications sector also play a very crucial role in CIP.
- Industrial control systems (ICSs) are yet another essential type of the critical information infrastructure in the industrial ecosystem that supervises and control processes in industrial infrastructures, such as bulk energy generation systems, electrical distribution and transmission systems, water treatment systems, oil and gas pipelines, and chemical plants and refineries.
- According to the Kaspersky and Symantec, attacks on industrial control systems are increasing. Developing countries are being attacked primarily, as in the countries in Western Europe and North America such as the United States. Most attacks are through the internet, removable drives or email. Furthermore, 1%-4% of the IC systems are attacked by cryptocurrency malware each month.
- According to the Consumer Technology Association (CTA), spending on smart cities is expected to reach USD 34.35 billion by the end of 2020, up from USD 14.85 billion. The increase in investment in smart cities is expected to augment the demand for critical information systems protection solutions.
- Moreover, the use of connected devices led to the vulnerability of cyber threats, and the governments have incorporated them as an essential part of the critical infrastructure. For instance, according to Cisco Systems Inc., 500 billion devices are anticipated to be connected to the internet by 2030. All these factors are expected to drive the growth of the market studied, over the forecast period.
Key Market Trends
Sensitive Infrastructure and Enterprises Sector Vertical to Grow at the Highest Rate
- The financial services sector is a vital component of the nation's critical infrastructure. Recent natural disasters, large-scale power outages, and an increase in the number and sophistication of cyberattacks demonstrate the wide range of potential risks facing the sector.
- Owing to the presence of a large networking framework, coupled with sensitive and critical data, the BFSI sector is facing several data breaches and cyberattacks, due to the large customer base served by the industry. ATMs face various security challenges, such as robberies, vandalism, and fraud.
- The increasing customer propensity towards ATM withdrawals is also expected to contribute to the market’s growth. For instance, the Reserve Bank of India (RBI) has made it mandatory for banks to have the entire area under CCTV surveillance. The primary aim is to identify unscrupulous elements, like the circulation of fake currency in the banking system.
- Additionally, the Trojan malware steals credentials for e-payment and online banking systems, intercepting one-time passwords, and then sending the data to the attackers behind the Trojan. According to Kaspersky Lab, of 889,452 attacks, almost 25% of them were corporate, a figure that remained consistent for the past three years.
- Some of the prominent players in the industry, through R&D, have been able to develop advancements in technology, which is expected to boost the adoption of critical infrastructure during the forecast period. For instance, in December 2018, Intracom Telecom announced the launch of SIS-C2, a command, control, and integration management platform for border surveillance, critical infrastructure protection, homeland security, and maritime domain awareness.
- According to a 2018 report by EfficientIP, the telecom sector is one of the worst at tackling cyber threats. In 2018, 43% of telco organizations were victimized by DNS-based malware, and 81% took three days or more to apply the critical security patch. As telecoms are often the gateway into numerous businesses, the aim of direct cyber attacks is to access the core infrastructure of the telecom companies. Hence, there is an increasing need for protecting such infrastructure. Thus, creating opportunities for the market.
- The increasing initiatives by the government, in order to protect the defense critical infrastructures, are expected to boost the market’s growth during the forecast period. For insatnce, in March 2019, Raytheon Company announced that it would deliver advanced surveillance towers to a Middle Eastern nation to help protect that nation's borders and military installations.
- Government surveillance has been brought increasingly under public scrutiny, as it increases security, and opponents are decrying its invasion of privacy. For instance, In June 2019, the AAP government formally launched a flagship scheme in which it installed 1.4 lakh CCTV cameras in public places of the city for the safety of women around the city.
- Furthermore, over the years, activities to protect public spaces against terrorism have evolved and been strengthened, focusing on protecting critical infrastructure.
North America is Expected to Hold Major Share
- Owing to the growing adoption of CIP solutions and services across different end-user verticals in the region, North America is expected to be a prominent market. The region has a strong foothold of vendors, which contributes to market growth positively. Some of them include Honeywell International Inc., Raytheon Co., General Electric Co., General Dynamics, Lockheed Martin Corporation, and Northrop Grumman Corporation.
- In October 2019, the Department of Homeland Security (DHS) selected Raytheon to help protect government networks. Raytheon would offer full lifecycle development and sustainment support under a new contract costing USD 1 billion.
- DHS implemented a risk-informed, all-hazards approach to safeguard critical infrastructure in the cyberspace, by focusing on protections for privacy and civil liberties, transparent and accessible security processes, and international and domestic partnerships. The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency leads the nation’s efforts to protect critical infrastructure.
- The United States has been witnessing a mature market in terms of CIP application. Back in 1996, the program was introduced to ensure the safety and security of critical and IT infrastructures. And in 2005, the country adopted smart grid technology to prevent power failure and promote self-repair among the connected computers.
- According to US Department of Energy, the annual investment on smart grids technology in United States is expected to reach USD 13.8 billion. The increasing investment in smart grid technology to improve the reliability, flexibility, security, and efficiency of the electricity system is also driving the market in the region.
- Besides, with the implementation of the National Strategy and Action Plan for Critical Infrastructure, a risk-based approach for reinforcing the resiliency of Canada's vital systems and assets such as electricity grids, transportation, communications and public safety systems is confirmed, thereby, supplementing the overall market growth.
- The action plan for 2019-2020 for enhancing the resilience of critical infrastructure in Canada support three strategic objectives that are identified in the National Strategy - Building partnerships, Sharing and protecting information and Implementing an all-hazards risk management approach.
- In Canada, cybercrime is rapidly gaining high traction as the impact is increasing at a significant rate, and organizations across Canada are spending highly on cybersecurity. Moreover, The Canadian Association of Chiefs of Police (CACP) have partnered with Canadian Advanced Technology Alliance (CATAAlliance) to create the eCrime Cyber Council (ECC) to improve national cybercrime strategy for Canada.
- According to the Canadian Department of Public Safety, the country suffers losses more than CAD 3.2 billion per year due to cybercrime, and SMEs account for around 71% of data breaches. In order to tackle this, the cybersecurity regulatory landscape across the region is fueled by the enforcement of Bill S-4, the Digital Privacy Act.
- Moreover, according to Scalar Decisions Inc.’s 2019 study on Canadian organizations’ cyber resilience, the average cost per organization from recovering of cyber security incidents increased to between USD 4.8 million to USD 5.8 million, up from USD 3.7 million as compared to last year.
- Furthermore, Statistics Canada Is planning to shift its data to digital cloud as a part of the federal governments ‘cloud-first strategy’ to seek benefits like additional processing power and storage, better data processing etc. However, such moves by the company demand high security of sensitive information.
The critical infrastructure protection market is highly competitive, owing to the presence of many small and large players in the market operating their business in domestic and international markets. With the advent of infrastructure attacks, many vendors respond to the rising threat by offering critical information security solutions. These offerings have to lead to new services, technologies, and partnerships with leading essential providers of infrastructure.
- June 2020 - The company and Kuwait Integrated Petroleum Industries Company (KIPIC) have participated in strategic collaboration, signing a five-year, multi-million dollar contract for services to protect, optimize and maintain operations at the Al Zour refinery and liquefied natural gas import (LNGI) terminal in southern Kuwait.
- Jan 2020 - The company partnered with Amossys at International Cybersecurity Forum (FIC). The partnership has three focus areas i.e. detecting vulnerabilities, studies, and innovation work (AI) and the development of Airbus’s cyber range platform.
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1.2 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Industry Policies
4.5 Market Drivers
4.5.1 Enormous Investments in Smart Grid Technology
4.5.2 Physical Threats, Cyber Threats, and Insider Attacks
4.5.3 Joint Functioning of Cloud Computing and Critical Infrastructure Protection
4.5.4 Political Pressures for Better Regulations and Implementations
4.6 Market Restraints
4.6.1 Poor Understanding of Industrial Control Systems
4.6.2 Lack of Interoperability between Products
4.7 Market Opportunities
4.7.1 IoT Driving the Information and Physical Security Market
4.8 Assessment of Impact of Covid-19 on the Industry
5.1.1 Network Security
5.1.2 Physical Security
188.8.131.52 Screening and Scanning
184.108.40.206 Video Surveillance
220.127.116.11 PSIM and PIAM
18.104.22.168 Access Control
5.1.3 Vehicle Identification Management
5.1.4 Building Management Systems
5.1.5 Secure Communications
5.1.7 Scada Security
5.2.1 Risk Management Services
5.2.2 Designing, Integration, and Consultation
5.2.3 Managed Services
5.2.4 Maintenance and Support
5.3.1 Energy and Power
5.3.3 Sensitive Infrastructure and Enterprises
5.4.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
5.4.4 Latin America
220.127.116.11 Rest of Latin America
5.4.5 Middle East and Africa
18.104.22.168 United Arab Emirates
22.214.171.124 Saudi Arabia
126.96.36.199 South Africa
188.8.131.52 Rest of Middle East and Africa
6.1.1 Bae Systems PLC
6.1.2 Honeywell International Inc.
6.1.3 Airbus SE
6.1.4 Hexagon AB (Intergraph Corporation)
6.1.5 General Electric Company
6.1.6 Mcafee Inc. (TPG Capital)
6.1.7 Waterfall Security Solutions
6.1.8 General Dynamics Corporation
6.1.9 Lockheed Martin Corporation
6.1.10 Northrop Grumman Corp.
6.1.11 Kaspersky Lab Inc.
6.1.12 Ericsson AB