Operational Technology Market Analysis

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.