Critical Infrastructure Protection (CIP) Market Size, Share & COVID-19 Impact Analysis, By Component (Type, Services), By Application (Identity and Access Management, Patching and Vulnerability Management, Security Event Monitoring, Incident Response, Resilience and System Recovery), By Vertical (Energy and Power, BFSI, Transportation and Logistics, Healthcare, Manufacturing and Chemical, Oil and Gas) and Regional Forecast, 2020-2027

The global critical infrastructure protection market size was valued at USD 96.30 billion in 2019 and exhibiting a CAGR of 6.2% during the forecast period. The market is projected to reach USD 154.59 billion by 2027 and further expand to USD 196.64 billion by 2031. To anticipate and mitigate the critical infrastructure from disaster and cyberattacks, the organizations are implementing a robust framework. 

These frameworks are helping businesses to respond to the critical incidents and safeguard the infrastructure against threats. The growing smart city projects, need for security solutions to mitigate cyber and terrorist attacks, and the increasing initiatives by the governments towards the protection of critical infrastructure are some of the factors fueling the growth of the global critical infrastructure protection market. For instance, in April 2020, Accenture acquired Revolutionary Security, a cybersecurity services provider to enhance its critical infrastructure security capabilities to deliver advanced cyber defense management services.

Requirement of Planning and Implementation of Strategies to Reduce COVID-19 Impact 

The spread of novel coronavirus has forced citizens to stay at homes and essential businesses to operate under certain strict guidelines. Industries such as healthcare, pharmaceutical, and telecommunication come under the essential criteria and hence, are allowed to operate at present. The companies shifting to work from home and schools moving to e-learning have made communication infrastructure as one of the critical needs for the countries. This has led to the increased adoption of critical infrastructure protection solutions globally.

Similarly, the water and wastewater facilities of various countries are re-examining emergency plans, continuity of operations (COOP) plans, and standard operating procedures (SOP) to reduce the impact of calamities such as pandemics and earthquakes. The homeland security departments have also started modifying their operating strategies to cope up with COVID-19. The homeland security agencies such as the Federal Emergency Management Agency (FEMA), critical infrastructure, and law enforcement are adopting tactical shifts as suggested by their respective governments, such as implementing national strategic plans and essential guidelines for critical infrastructure protection workforce for the effective management of COVID-19.

LATEST TRENDS

Growing Smart City Projects to Upsurge Demand for Critical Infrastructure Protection Offerings

Smart cities comprise of physical and cyber infrastructures which bring a lot of benefits and improves the overall standard of living. However, smart city development poses risks to the critical infrastructures such as public safety, electrical grids, smart transportation systems, and water supply which indirectly lead to national security risk. These sensitive infrastructures in the smart cities are more vulnerable to cyber threats owing to their interconnectivity. To prevent the critical infrastructure from being obstructed by cyberattacks, security experts use cyber and physical systems that provide suitable layers of protection against threats. Thus, the demand for critical infrastructure protection offerings is increasing to protect the smart city critical infrastructure from cyber-attacks.

DRIVING FACTORS

Risk of Cyber and Terrorist Attacks to Surge Usage of Critical Infrastructure Protection Solutions

Critical infrastructure is continuously at risk from a variety of natural and man-made threats and hazards including extreme weather, failing or aging infrastructure, cyberattacks, and terrorism threats. Large industrial critical infrastructures mostly depend on internet connectivity for remote monitoring and administration. The cyberattack or any other threat to energy systems, telecommunications, transport, finance, healthcare, and defense can have devastating consequences and might impede the global economy. Therefore, various sectors are implementing critical infrastructure protection solutions in their spaces to combat against the cyber and terrorist attacks.  

For instance, Regulation (EU) 2017/1938 deals with a severe gas supply crisis caused by several risk factors, including terrorism, cyber-attacks, and sabotage by setting protocols for regional emergency planning and risk assessments based on the principle of solidarity.

Increasing Initiatives by Government towards Protection of Critical Infrastructure to Propel Growth

To maintain vital societal functions, nations across the world are taking protective measures and procedures by collaborating with the private sector to secure critical infrastructures. Destruction or damage of critical infrastructure by criminal activity, terrorism, or natural disasters may lead to negative consequences for the security of the country and the well-being of its people. 

The Cybersecurity and Infrastructure Security Agency (CISA) Act of 2018 assists in managing risks related to the nation's critical infrastructure and enhances the resilience and security of America's cyber and physical infrastructure. Thus, the growing government support for critical infrastructure is set to propel the critical infrastructure protection market growth.

RESTRAINING FACTORS

Complexities in Creating Partnership among Private Business and Government to Hamper Growth

To protect the critical infrastructure from unethical activities, it is necessary to continually collect and analyze data such as random threats, new events, and computer intrusions from a wide spectrum of globally distributed sources. However, it is difficult to collect and build a comprehensive and overall picture of activities on the global information infrastructure. 

Therefore, it has become essential to build strong partnerships between a wide range of stakeholders, companies, and the government to ensure the right data is placed at the right place and at the right time.  However, creating partnerships for coordination and information sharing is a difficult task as trust needs to be built among the parties having varying interests and expectations.

SEGMENTATION

By Component Analysis

Type Segment to Capture Largest Market Share as it Improves Controlling and Monitoring of Physical Devices

On the basis of component, the critical infrastructure protection market has been segmented into type and services. The type segment is further sub-segmented into operational technology and information technology. The services segment is further classified as consulting services, maintenance and support, managed services, and risk management systems.

Among these, the type segment holds the largest critical infrastructure protection (CIP) market share and is expected to dominate the market in the coming years. Operational technology with internet connectivity improves the controlling and monitoring of physical devices such as industrial control systems (ICS) and supervisory control and data acquisition (SCADA). However, the services segment is projected to be the fastest-growing segment during the forecast period. The CIP services help organizations in improving cyber security by streamlining incident response and strengthening security awareness and communications.

By Application Analysis

Identity and Access Management Segment to Capture Highest Share Due to High Demand for Secure and Efficient Access to Diverse Systems

Based on application, critical infrastructure protection market is categorized into identity and access management, patching and vulnerability management, security event monitoring, incident response, resilience and system recovery, and others.

The identity and access management segment is likely to capture the highest share as it supports the organizations by providing secure and efficient access to their diverse systems. Similarly, vulnerability management identifies, processes, and controls vulnerabilities within the company’s information technology infrastructure and system components. These infrastructures and components are usually exploited by hackers to gain unauthorized access and disrupt business operations. Similarly, the patch management identifies and controls sand processes to provide suitable protection against threats.

Likewise, the Department of Homeland Security (DHS) works in collaboration with the non-federal operators and private sectors to provide a greater response to cyber incidents. The resilience and system recovery segment would show the highest CAGR during the forecast period as it minimizes the consequences of threats, reduces vulnerability, accelerates recovery and response, and facilitates adaptation of a disruptive event.

By Vertical Analysis

Government and Defense Segment Excels Owing to Growing Need to Protect Facilities from Varying Attacks

By vertical, the critical infrastructure protection market for critical infrastructure protection has been segmented into energy and power, BFSI, transportation and logistics, healthcare, manufacturing and chemical, oil and gas, government and defense, and others.

The government and defense segment held the largest market share as the security of the critical infrastructure facilities is of supreme importance. These facilities include special-use military installations, national laboratories, courthouses, embassies, and buildings that house critical equipment, networks, and systems. The BFSI is expected to be the fastest-growing segment during the forecast period owing to the growing attention by the authorities to safeguard their IT infrastructure.

REGIONAL INSIGHTS

Geographically, critical infrastructure protection market is studied for five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

Among them, the North America market captured the highest share. The increasing frequency of cyber-attacks and the growing dependence of the electric power industry and e-commerce have shifted the focus of American government towards safeguarding the critical infrastructure of the countries.

The European energy system is undergoing a fundamental transformation to increasingly control and monitor the energy flows by networked industrial control systems.

Asia Pacific critical infrastructure protection market is projected to be the fastest-growing region during the forecast period. The growing number of high-profile cyber-attacks incidents has forced the authorities to strengthen their cyber resilience, as well as protect the critical infrastructure from cyber threats.

Similarly, the Middle East and Latin American market is expected to see numerous changes in public and network infrastructure developments such as energy, ICT, transport among others owing to the modernization and rising economic growth.

KEY INDUSTRY PLAYERS

Companies to Follow Organic and Inorganic Growth Strategies to Stay Competitive in Market

The key players offering critical infrastructure protection such as BAE Systems, Honeywell International, Inc., Huawei Technologies Co., Ltd., and others in this market are working with the manufacturers, electric utilities, oil and gas, water and wastewater, and food processing companies. These major players are supporting them to measure cybersecurity risk and offer suitable solutions to protect their infrastructure. The government and industry leaders are collaborating to build, manage, and protect the critical infrastructure of the country.

List of Key Companies Profiled:

• 3xLogic (Westminster, US)


• Airbus (Leiden, Netherlands)


• Axis Communications (Lund, Sweden)


• BAE Systems  (Farnborough, United Kingdom)


• Cisco Systems, Inc. (California, United States)


• General Dynamics (Virginia, United States)


• Hexagon AB (Sweden)


• Honeywell International, Inc. (North Carolina, United States)


• Huawei Technologies Co., Ltd (Shenzhen, China)


• Johnson Control (Cork, Ireland)


• Motorola Solutions (Illinois, United States)


• Northrop Grumman (Virginia, United States)


• Thales Group (La Défense, France)


• Tyco International (Cork, Ireland)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: The EU and NATO revealed their collaborative effort with the launch of the EU-NATO Task Force focused on bolstering the resilience of critical infrastructure, aiming to strengthen shared security. The initiative entails the exchange of best practices, heightened situational awareness, and the formulation of essential principles to enhance resilience, encompassing measures for mitigation and remedial actions. The initial focus of the Task Force will span across four sectors: energy, digital infrastructure, transport, and space.


• February 2023: Northrop Grumman made an announcement regarding the initiation of integration and testing for their newly unveiled ultra-wideband sensor, the Electronically Scanned Multifunction Reconfigurable Integrated Sensor (EMRIS). Northrop Grumman's advanced multifunction sensors, including EMRIS, empower military personnel to expedite decision-making processes and foster collaboration.

REPORT COVERAGE

The critical infrastructure protection market report offers qualitative and quantitative insights and a detailed analysis of market size & growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption of CIP by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

REPORT SCOPE & SEGMENTATION