The market for security solutions serving embedded systems has grown considerably in recent years, and will continue to do so as the expansion of Internet of Things intensifies. The demand for security solutions is especially strong in the industrial space, where spending on embedded security software trailed only that of the mobile phones industry according to research recently published by VDC.

Embedded security software for industrial automation resides at two levels: device and system. Device-level security is embedded within the software stack in individual pieces of industrial equipment or sensors, protecting machine functionality and the integrity of data. System-level security is within the network connecting multiple pieces of equipment and sensors, typically as part of an ICS with one or more PC-like terminals to monitor and control the components of the system.

While such software offerings comprise the majority of the commercial market for security solutions serving the industrial space, security services are an equally critical component of the industrial security solutions landscape. The growth rate within this segment—forecast to average more than 22% annually through the end of our forecast period in 2021—will actually exceed that of the software segment. This growth will swell as industrial organizations embrace a broader IT trend and continue migrating toward cloud-based solutions and the “as-a-service” business model. Most security-as-a-service solutions address either identity and access management or threat detection, prevention, and response; however, a variety of other services are available.

Security, of course, is a critical consideration for any IoT device. Within the Industrial IoT, however, where system failures can result in life-threatening or otherwise catastrophic situations, the stakes are particularly magnified. Combined with the financial and operational implications of shutting down manufacturing lines—lost production, scheduling delays, scrap, overhead—the consequences of even a temporary disruption can be disastrous.

Worldwide Revenue for Security-as-a-Service, 2016–2021 (US $M)

How should industrial organizations safeguard themselves against such risks? VDC’s latest report, Securing the Industrial Internet of Things, explains. Please contact us for more details!