Operational Technology Market - By offering (Hardware, Software, Services), By Connectivity (Wired, Wireless), By Deployment Type (Cloud, On-Premises) By End-user (Process Industry, Discrete Industry [Automotive, Semiconductor & Electronics, Aerospace & Defense, Others]), Forecast 2024 – 2032

Operational Technology Market Size

Operational Technology Market size was valued at over USD 165 billion in 2023 and is anticipated to grow at a CAGR of over 7% between 2024 and 2032. The proliferation of cyber threats targeting Operational Technology (OT) systems, including ransomware, malware, and targeted attacks, has heightened the awareness of cybersecurity risks in industrial environments.
 

The increasing frequency and sophistication of cyberattacks aligns with the importance of robust cybersecurity measures to protect critical infrastructure and industrial processes. For instance, in July 2022, Rockwell Automation Inc. announced a partnership with Dragos to improve operational technology incident response readiness to help industrial organizations prepare for, respond to, and recover from cyber incidents in OT environments.
 

The surge in integration of government initiatives in security standards reflects a concerted effort to strengthen cybersecurity resilience, protect critical infrastructure, and mitigate cyber threats in OT environments. By aligning with government-mandated security standards and guidelines, organizations can enhance their cybersecurity stance, build trust with stakeholders, and contribute to a more secure and resilient OT ecosystem.
 

OT environments are inherently complex, involving a wide range of industrial systems, equipment, and processes. Skilled professionals with expertise in both OT and IT disciplines are essential for understanding the intricacies of OT systems, integrating them with IT infrastructure, and implementing effective cybersecurity measures. Effective collaboration between OT and IT teams is essential for successful OT projects. Cross-functional teams comprising professionals with diverse skill sets can collaborate effectively to address the multifaceted challenges of OT environments, fostering innovation and driving organizational success.
 

Operational Technology Market Trends

The growing adoption of SaaS solutions offering organizations a cost-effective, scalable, and agile approach to manage their OT systems and processes is gaining momentum. By embracing SaaS solutions, organizations can streamline operations, improve efficiency, and drive innovation in their OT environments, positioning themselves for success in an increasingly digital and interconnected world. For instance, In January 2022, ABB and Red Hat announced their partnership to deliver ABB automation and industrial software solutions at the intersection of OT and IT, equipping the industrial ecosystem with extended deployment capabilities and greater agility.
 

The surge in integration initiatives in security standards reflects a collective effort by industry stakeholders to strengthen cybersecurity defenses, promote interoperability, and enhance resilience in OT environments. By embracing standardized security frameworks and guidelines, organizations can better protect their critical assets, safeguard industrial operations, and support the continued growth and innovation of the OT market.
 

For instance, in May 2021, Broadcom Inc. launched Expert Advantage, an expanded global channel services partner program, focused on customer success to drive growth across Broadcom software solutions. Companies have been expanding specialized services partnerships to extend global reach and address growing demands in digital transformation and cybersecurity. Such strategic initiatives by the market players will contribute to significant growth of the OT security market across the globe.
 

Operational Technology Market Analysis

Based on offering, the market is divided into hardware, software, and services. The hardware segment is the fastest growing and is anticipated to expand at a CAGR of over 8.5% between 2024 and 2032.
 

• With the increasing digitization of industrial processes, there is a growing demand for industrial Ethernet switches designed to provide reliable and high-speed connectivity in harsh environments. These switches often feature ruggedized designs, support for industrial protocols, and advanced security features to ensure the integrity and availability of critical OT networks.
   
• For instance, in December 2023, Fortinet announced several updates to its operational technology security platform, including a new industrial Ethernet switch, an access point for hazardous OT environments and a wireless gateway for use in vehicle deployments. The new FortiSwitch Rugged 424F is designed for deployments in harsh outdoor environments, especially for digital substations and the power utility industry.
   

Based on deployment, the operational technology market is segmented into cloud, on-premises. In 2023, the cloud segment dominated the market with a share of over 65%.

• The rising challenge of cybersecurity threats and customer needs, the organization is focusing on several new capabilities that take security for OT environments to the next level. Industrial customers need solutions for OT network security that are purpose-built and reliable in environments where exposure to wide temperature ranges or dusty conditions is common. This includes the introduction of a new ruggedized firewall designed for harsh environments, as well as an industry-leading 5G security solution designed to safeguard industrial operations with enterprise-grade security.
   
•  For instance, in November 2023, Palo Alto Networks launched Zero Trust OT Security, a solution to help industrial asset owners and operators keep their operational technology (OT) environments secure. Zero Trust OT Security is built to provide visibility and security for OT assets and networks, 5G connected assets and remote operation.
   

The OT market in North America is projected to experience robust growth, with a CAGR expected to surpass 39% from 2024 to 2032. This growth is fueled by various factors, including technological advancements, increasing investments in industrial automation, and the adoption of Industry 4.0 initiatives across various sectors in the region. The United States and Canada are witnessing significant growth in the OT industry due to the presence of established industrial sectors, a strong focus on digital transformation, and growing demand for smart manufacturing and connected industrial ecosystems.
 

Operational Technology Market Share

ABB and Schneider Electric held a significant share of over 20% in 2023. ABB is a global leader in OT solutions, offering a comprehensive portfolio of products, systems, and services tailored to industrial automation, electrification, and digitalization needs. In the market, ABB provides cutting-edge solutions that enable organizations to optimize processes, improve productivity, and enhance operational efficiency across diverse industries.
 

Schneider Electric is a global leader in energy management and automation solutions, offering a wide range of products and services for various industries, including power, buildings, infrastructure, and data centers. The company specializes in providing integrated solutions that optimize energy efficiency, reliability, and sustainability across the entire lifecycle of assets and infrastructure.
 

Operational Technology Market Companies

Major players operating in the operational technology industry are:

• ABB
• Schneider Electric
• TE Connectivity
• Emerson Electric co.
• Fortinet, Inc.
• Honeywell International Inc.
• General Electric
   

Operational Technology Industry News

• In July 2023, Stellar Cyber launched XDR for operational technology (OT) environments. This new feature enhances their Open XDR Platform, offering organizations a unified solution to detect, analyze, and respond to threats across IT and OT networks. The platform includes OT-specific threat detection rules, provides visibility into OT networks and devices. This development is crucial in securing interconnected IT and OT networks, safeguarding against cyberattacks in the evolving landscape.
   
• In October 2023, Dragos Inc. announced the expansion of its combined capabilities in partnership with Rockwell Automation. With this expansion, Rockwell will be making the Dragos Platform available to organizations for enhanced ICS/OT cybersecurity threat detection, providing global deployment services and support capabilities to help customers operationalize their security investment.
   

The operational technology market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Offering

• Hardware
  • Industrial Sensors
  • Controllers
  • Actuators
  • Human-Machine Interfaces (HMI)
• Software
  • Data Acquisition (DAQ) Software
  • Control System Software
  • Industrial Automation Software
  • Enterprise Asset Management (EAM) Systems
• Services
  • System Design and Integration
  • Implementation and Deployment
  • Maintenance and Support
  • Security Services

Market, By Connectivity

• Wired
• Wireless

Market, By Deployment Type

• Cloud
• On-Premises

Market, By End-user

• Process Industry
  • Oil & Gas
  • Chemicals
  • Pulp & Paper
  • Pharmaceuticals
  • Others
• Discrete Industry
  • Automotive
  • Semiconductor & Electronics
  • Aerospace & Defense
  • 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
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific

• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA