Critical Infrastructure Protection (CIP) Market Size By Component (Solution, Services), Security Type (Physical Security, Cyber Security), Vertical (Energy and Power, BFSI, Telecommunications, Transportation, Healthcare, Manufacturing, Government, Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

KEY MARKET INSIGHTS

The global Critical Infrastructure Protection (CIP) Market is projected to grow from USD 106.45 billion in 2022 to USD 172.32 billion by 2030 at a CAGR of 6.21% during the forecast period. 

The organizations are putting in place a robust framework to predict and mitigate disasters and cyberattacks on key infrastructure. These frameworks assist firms in responding to major crises and protecting their infrastructure from threats. Growing smart city projects, the need for security solutions to counter cyber and terrorist threats, and government attempts to secure key infrastructure are just a few of the factors driving the industry forward. For instance, Accenture purchased Revolutionary Security, a cybersecurity services provider, in April 2020 to strengthen its critical infrastructure security capabilities and provide advanced cyber defense management services.

COVID-19 ANALYSIS 

Citizens have been obliged to stay at home because of the spread of new coronavirus, and critical enterprises have been forced to follow specific rigorous standards. Healthcare, pharmaceuticals, and telecommunications industries fall under the essential criteria and are thus permitted to operate at this time. Communication infrastructure has become one of the important necessities for countries as companies move to work from home and schools go to e-learning. As a result, critical infrastructure protection technologies are being adopted more widely around the world.

Similarly, different countries' water and wastewater facilities are re-examining continuity of operations (COOP) plans, emergency plans, and standard operating procedures (SOP) in order to mitigate the impact of calamities like pandemics and earthquakes. In order to deal with COVID-19, homeland security departments have begun to change their working strategies. For the effective management of COVID-19, homeland security agencies such as critical infrastructure, the Federal Emergency Management Agency (FEMA), and law enforcement are implementing tactical shifts as recommended by their respective governments, such as essential guidelines and implementing national strategic plans for critical infrastructure protection workforce. 

LATEST TREND

Growing Smart City Projects Is Upsurge Markets Demand

Smart cities are comprised of cyber and physical infrastructures that provide several benefits and raise overall living standards. However, smart city growth puts essential infrastructures such as electrical grids, public safety, water supply, and smart transportation systems in danger, posing a national security risk indirectly. Because of their interconnectedness, these critical infrastructures in smart cities are particularly exposed to cyber assaults. Security specialists utilize cyber and physical technologies that provide appropriate layers of defense against threats to prevent critical infrastructure from being harmed by cyberattacks. As a result, there is a growing demand for critical infrastructure protection services to defend smart city critical infrastructure from cyber-attacks.    

DRIVING FACTORS

Increasing Government Initiatives to Protect Critical Infrastructure to Promote Growth

Protective measures and processes are being implemented by countries throughout the world in collaboration with the private sector to secure critical infrastructures in order to sustain key social functions. Terrorism, Criminal activity, or natural disasters that destroy or damage essential infrastructure can have serious ramifications for the country's security and the well-being of its citizens. The Cybersecurity and Infrastructure Security Agency (CISA) Act of 2018 aids in the management of critical infrastructure risks and improves the resilience and security of America's cyber and physical infrastructure. Therefore, increasing government initiatives to protect critical infrastructure to promote market growth during the forecast period.

RESTRAINTS

Complexities in Forming Partnerships Between Private Industry and Government That Hamper Growth

To defend critical infrastructure against immoral acts, data such as new occurrences, random threats, and computer intrusions must be continuously collected and analyzed from a wide range of internationally distributed sources. However, gathering and constructing a comprehensive and overall picture of activity on the global information infrastructure is difficult. As a result, robust relationships across a wide range of corporations, stakeholders, and the government have become critical to ensuring that the correct data is presented in the right place at the right time. Thus, forming partnerships for information sharing is a tough process since trust must be established among parties with differing interests.

SEGMENTATION

Based on component, the market is bifurcated into solution and services. The solution dominated the market in 2022 because more and more businesses are choosing to use critical infrastructure protection solutions. This is because they want to gain an advantage over their competitors and ensure that their infrastructure is secure. These solutions also help businesses protect their important infrastructure and receive alerts to prevent any damage or attacks. As a result, the market for these solutions is growing rapidly.

Based on security type, the market is categorized into physical security and cyber security. In 2022, the cybersecurity field took the lead in market share. This was because more and more businesses started using industrial control systems and cybersecurity solutions in their SCADA systems and other operational technology networks. The reason for this shift was the rise in complex cyberattacks, like the power grid incident in the United Kingdom. This incident highlighted the importance of implementing advanced preventive measures, which led governments to prioritize countering sophisticated cyber threats and strengthening their overall cybersecurity readiness.

Based on vertical, the market is segmented into energy and power, BFSI, telecommunications, transportation, healthcare, manufacturing, government, and others. The energy and power sector generated the highest revenue in 2022 because it's crucial to protect classified network traffic. To achieve this, it's important to implement various measures such as cryptographic security, transmission integrity, emission protection, and physical equipment security. Even though these networks are reliable, they can still be disrupted by natural disasters like hurricanes and floods. These incidents can have negative effects on interconnected infrastructures. Western nations are especially vulnerable to recurring natural disasters that cause power outages and flooding, leading to critical infrastructure breakdown. Securing the cybersecurity of telecommunications is equally important because malicious actors often use mobile networks to spread harmful emails and messages that can infect devices and networks. So, ensuring the security of telecommunications networks is essential to avoid frequent repairs, which can be costly and inconvenient for users.

REGIONAL INSIGHTS

The global Critical Infrastructure Protection (CIP) Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.

North America is the largest market for critical infrastructure protection due to the government being highly focused on the protection of critical infrastructure. The rising frequency of cyber-attacks, as well as the growing reliance on the electric power industry and e-commerce, has moved the American government's priority to protect the region’s critical infrastructure.

The European energy system is experiencing a major shift, with networked industrial control systems increasingly controlling and monitoring energy flows.

During the forecast period, the Asia Pacific CIP market is expected to develop at the fastest rate. The increased frequency of high-profile cyber-attacks has compelled governments to improve their cyber resilience and defend critical infrastructure from cyber-attacks. Similarly, due to modernization and increased economic growth, the Middle East and Latin American markets are projected to see various changes in public and network infrastructure developments such as energy, ICT, transportation, and others. 

 LIST OF KEY COMPANIES PROFILED:

• BAE Systems
• Thales
• Lockheed Martin Corporation
• Telefonaktiebolaget LM Ericsson
• General Dynamics Corporation
• Hexagon AB
• Airbus SAS
• General Electric
• RTX Corporation
• Johnson Controls

KEY INDUSTRY DEVELOPMENTS:

February 2020- Raytheon Company and IronNet Cybersecurity Inc. collaborate to develop cyber solutions for defense operational technology and information technology (OT/IT) systems. These solutions would protect OT/IT platforms in order to improve the robustness of systems that sense and govern physical interactions.

April 2019 – The Carlyle Group and Schneider Electric SE have teamed up to develop innovative critical infrastructure projects in response to the growing demand for critical assets and services. Schneider Electric's smart energy automation and management technologies will be combined with Carlyle asset-operator knowledge to create digitally enabled critical assets. 

SEGMENTATION

By Component

• Solution
• Services

By Security Type

• Physical Security
• Cyber Security

By Vertical

• Energy and Power
• BFSI
• Telecommunications
• Transportation
• Healthcare
• Manufacturing
• Government
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • North America
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America