Cybersecurity in Logistics Market Size - By Security Type, By Deployment Mode (On-premises, Cloud-based, Hybrid), Organization Size (Large Enterprises, Small and Medium-sized Enterprises), Application, Industry Vertical, End Use & Forecast, 2024 - 2032

Cybersecurity in Logistics Market Size

Cybersecurity in Logistics Market size was valued at USD 7.25 billion in 2023 and is anticipated to grow at a CAGR of over 10% between 2024 and 2032, driven by the rapid digital transformation within the industry. According to the U.S. Department of Homeland Security, the logistics sector has seen a significant increase in cyber threats due to the adoption of digital technologies. The department’s Cybersecurity and Infrastructure Security Agency (CISA) reported that cyber incidents in the transportation and logistics sector increased by 50% from 2020 to 2023.

Regulatory compliance and the need for stringent data protection measures are significant growth drivers for cybersecurity in the logistics industry. Governments and regulatory bodies worldwide are implementing strict regulations to safeguard data privacy and security. Laws such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States mandate logistics companies to adopt comprehensive cybersecurity frameworks. Compliance with these regulations not only helps avoid hefty fines but also builds trust with customers, encouraging the adoption of advanced cybersecurity solutions.
 

The escalating frequency and sophistication of cyber threats and attacks are compelling logistics companies to prioritize cybersecurity. Cybercriminals are increasingly targeting the logistics sector, aiming to disrupt supply chains, steal valuable data, and cause financial losses. High-profile incidents, such as ransomware attacks and data breaches, highlight the critical need for robust cybersecurity measures.
 

The implementation of advanced cybersecurity infrastructure involves significant financial investment. This includes the cost of acquiring state-of-the-art security hardware and software, ongoing maintenance, and regular updates to keep up with evolving threats. For smaller logistics companies or those with limited budgets, these costs can be prohibitive, making it difficult to deploy comprehensive cybersecurity solutions.
 

The logistics sector faces a critical shortage of skilled cybersecurity professionals, which poses a significant challenge to effective security management. As cyber threats become more sophisticated, the demand for highly trained experts who can design, implement, and manage robust cybersecurity measures increases. However, there is a global talent gap in the cybersecurity field, with more positions available than qualified individuals to fill them. This shortage not only makes it challenging to maintain a secure logistics environment but also drives up the cost of hiring and retaining skilled professionals.

Cybersecurity in Logistics Market Trends

The latest trend in cybersecurity in logistics industry is the growing emphasis on integrating AI and IoT technologies to bolster digital defenses. As supply chains become increasingly interconnected, traditional cybersecurity measures are proving inadequate against sophisticated threats. AI-driven solutions offer advanced threat detection and automated response capabilities, while IoT integration provides real-time monitoring and control across logistics networks. This convergence is crucial for enhancing resilience, improving threat visibility, and ensuring robust protection against cyber-attacks.
 

For instance, In July 2024, a report published by Transport & Logistics Middle East (TLME) highlighted a significant global IT outage caused by a flawed CrowdStrike update. This incident impacted millions of Windows devices, severely disrupting the logistics sector, including major airlines and shipping companies in the Middle East. The report underscored the urgent need for AI and IoT integration to enhance digital resilience and mitigate future disruptions.
 

Cybersecurity in Logistics Market Analysis

Based on application, the market is divided into supply chain management, warehouse management, transportation management, e-commerce logistics, maritime logistics, aviation logistics, and others. The supply chain management segment is expected to reach a value over USD 5 billion by 2032.
 

• Modern supply chains are highly complex, involving multiple stakeholders, global operations, and intricate networks. This complexity increases the vulnerability to cyber threats, making robust cybersecurity solutions essential for SCM.
   
• The adoption of digital technologies and IoT in SCM enhances efficiency but also introduces new vulnerabilities. Investing in cybersecurity is necessary to protect these digital assets and maintain the integrity of operations.
   

Based on deployment mode, the cybersecurity in logistics market is divided into on-premises, cloud-based, and hybrid. The cloud-based segment is the fastest growing segment with a CAGR of over 10% between 2024 and 2032.
 

• Cloud-based solutions offer unparalleled scalability and flexibility, allowing organizations to easily adjust their security resources according to their needs. This adaptability is particularly valuable for businesses facing fluctuating or growing security demands.
   
• Cloud-based cybersecurity solutions often provide a more cost-effective approach compared to on-premises deployments. Organizations can reduce capital expenditures on hardware and software, opting instead for a subscription-based model that aligns with their budget.
   

North America dominated the global cybersecurity in logistics market in 2023, accounting for a share of over 35%. The region is home to many leading cybersecurity firms and technology giants, including companies that drive research, development, and deployment of cutting-edge security solutions. The region’s strong economic resources enable significant investment in cybersecurity technologies and services, supporting the development and adoption of innovative solutions.
 

The United States dominates the cybersecurity in logistics market due to its position as a global technology leader and innovation hub. The country’s extensive technological infrastructure, coupled with a high concentration of major cybersecurity firms and tech giants, drives the development and deployment of advanced security solutions.
 

In China, the cybersecurity in logistics market is experiencing rapid growth due to the country’s expansive logistics network and increasing digitalization. With the rise of e-commerce and smart logistics solutions, there is a heightened need for robust cybersecurity measures to protect against data breaches and system vulnerabilities. The Chinese government’s focus on improving cybersecurity infrastructure and its implementation of stricter regulations is driving investments in advanced security solutions.
 

The South Korean government is actively promoting digital transformation across industries, including logistics, which is leading to increased investment in cybersecurity. Companies are focusing on enhancing their security frameworks to protect sensitive data and ensure operational continuity amid rising cyber threats. The integration of AI and IoT in logistics operations is also driving demand for sophisticated cybersecurity solutions to safeguard these technologies.
 

In Japan, the cybersecurity in logistics market is expanding as businesses prioritize securing their logistics operations amid a rapidly evolving digital landscape. Japan’s strong emphasis on technological innovation and its well-established logistics infrastructure are key factors driving this growth. The country’s proactive stance on cybersecurity, including stringent regulations and compliance requirements, is encouraging companies to invest in advanced security measures.
 

Cybersecurity in Logistics Market Share

Cisco Systems, Inc. and Palo Alto Networks, Inc. hold a significant share in the cybersecurity in logistics industry. Cisco Systems, Inc. leverages its comprehensive suite of cybersecurity solutions to address the complex needs of the logistics sector. Cisco’s offerings include network security, threat intelligence, and advanced threat protection, which are crucial for safeguarding logistics operations against cyber threats.
 

Its strong market presence is supported by its global reach and the integration of cybersecurity features across its networking infrastructure, making it a preferred choice for many logistics companies seeking robust and scalable security solutions. Palo Alto Networks, Inc. also holds a substantial share in the market, recognized for its advanced cybersecurity solutions and innovative approach to threat detection and prevention. Palo Alto Networks provides a range of services, including next-generation firewalls, cloud security, and endpoint protection, which are vital for securing logistics operations.
 

Cybersecurity in Logistics Market Companies

Major players operating in the cybersecurity in logistics industry are:

• Check Point Software Technologies Ltd.
• Cisco Systems, Inc.
• CrowdStrike Holdings, Inc.
• Darktrace Ltd.
• Fortinet, Inc.
• IBM Corporation
• Palo Alto Networks, Inc.
   

Cybersecurity in Logistics Industry News

• In July 2024, Gerardo de la Torre of Nissan discussed cybersecurity and digital strategies for automotive supply chains at the Automotive Logistics & Supply Chain Digital Strategies North America event. Emphasizing increased visibility and proactive digital measures, de la Torre outlined Nissan's approach to enhancing supply chain resilience and security.
   
• In July 2024, Whiz hack Technologies, an Indian cybersecurity firm, signed a Memorandum of Understanding (MoU) with Vietnamese company Total Solutions and Logistics to develop advanced cybersecurity solutions. This partnership aims to deploy AI-based security products, provide managed security services, and offer cybersecurity training, enhancing Vietnam's IT and manufacturing sectors' security infrastructure.
   

The cybersecurity in logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Security Type

• Network Security
• Cloud Security
• Application Security
• Endpoint Security
• Identity and Access Management
• Data Security

Market, By Deployment Mode

• On-premises
• Cloud-based
• Hybrid

Market, By Organization Size

• Large Enterprises
• Small and Medium-sized Enterprises (SME)

Market, By Application

• Supply Chain Management
• Warehouse Management
• Transportation Management
• E-commerce Logistics
• Maritime Logistics
• Aviation Logistics
• Others

Market, By Industry Vertical

• Retail and E-commerce
• Manufacturing
• Healthcare and Pharmaceuticals
• Automotive
• Aerospace and Defense
• Food and Beverage
• Oil and Gas
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA