The global cyber security market for oil and gas market is projected to reach USD 15 Billion by 2025 at a CAGR of around 9% during the forecasted period.
The oil and gas industry has changed substantially over the last decade. Increase in the expenditure by oil and gas companies on the network and operational technology security and increased trend of security and vulnerability management have bolstered the growth of the cyber security market for oil and gas. The greater connectivity of the digital technologies and IOT has resulted in the increased efficiency through big data, analytics, sensors and the ability to automate highly sensitive tasks. However, it has opened the door to cyber-attacks. This sector is now no longer protected by just isolated control systems and detached core operations but by high level of cyber security technologies.
From study, it has been found that 43% of significant cyber breaches were from a lack of end user awareness exploited via phishing. Also 87% have not implemented information security in their current strategy and plans. As the industry is mainly about barrels, not bytes, about 50% employees does not fully have acquired the resources needed to challenge the security breach.
Sustained low oil prices are driving the adoption of digitalization across the oil and gas market, ramping up the stakes for cyber security. Thus organization must not only address the security of the traditional IT and OT environments, but also the complexities from IOT by applying robotic process automation, block chain techniques and artificial intelligence which will surely lead the cyber security market for oil and gas. The rising energy demand and depletion of energy resources in recent years have put pressure on companies as well as governments to develop plans for oil and gas security system measures.
Cyber security refers to the body of technologies, processes and practices designed to help protect networks, devices, programs and data from attack, damage, or unauthorised access. In the oil and gas market, cyber security plays an important role because the industry is engaged in exploration, development and production of crude oil and natural gas and any loss or disrupt in the operations like stealing field data would lead to a heavy loss of the organisation. The cyber security market for oil and gas is segmented on the basis of application, type, and region.
On the basis of application, the global cyber security market for oil and gas is bifurcated into pipeline and transportation, exploration and drilling, refining and storage area protection, and others. Natural gas pipeline companies account for and manage cyber security to protect the use of automated digital controls, or industrial control systems (ICS). ICS are not unique or new to pipelines; they are prevalent across the entire energy landscape, including at coal and nuclear power generation facilities. The National Institute of Standards and Technology Cyber Security Framework (NIST CSF) has been widely adopted by natural gas pipeline operators.
Based on type, the cyber security market for oil and gas is divided into cloud security, network security, endpoint security, and application security. Oil and gas companies are among the largest, most valuable, and most powerful organizations in the world, but also lag behind in addressing application security threats. Adding to the complexity of their portfolios is their tendency to purchase the majority of their applications instead of developing them in-house.
The networks used between process equipment and control systems were previously isolated and proprietary, but are now based on internet technology. Industrial automation and control systems used to be physically separate from traditional information systems and open networks. There is an increasing use of remote operation from an onshore location or neighbouring platform, and this may lead to the use of shared computer networks. Locating operations rooms onshore means that less attention may be paid and this increases cyber breaches. This means that production equipment is exposed to network-related vulnerabilities and thus network security plays a great role in this factor.
Malicious codes, data are usually spread due to human error. Users are tricked into revealing passwords, open spam mails that contains virus. Hence endpoint security is also a matter of concern as human error is regarded as the greatest digital vulnerability in the sector.
The cyber security market for oil and gas is analysed across five regions including North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. From a geographic standpoint, North America and Europe are key markets in the global market for oil and gas cyber security. This is because the two continents are home to advanced countries that invest heavily in sophisticated cyber security systems to avoid breaches.
The U.S. and Canada are pulling out every stop to ensure cyber security in the development and production of shale gas. Europe and North America are home to key manufacturers of cyber security components such as hardware and software to ensure safety of different operational processes in the entire oil and gas value chain. These manufacturers are now making efforts to tap into the promising China and India markets in Asia Pacific in order to up their revenues and profit margins.
The report covered the detailed competitive analysis including company profiles of the major industry players operating in the global cyber security market for oil and gas. Key players profiled in the report are Juniper Networks, Micro Focus, Microsoft, Akamai, BAE Systems, Fortinet, Gemalto, IBM, Intel, Check Point Software Technologies, Cisco, CyberArk Software, and others.
The global cyber security market for oil and gas is segmented as follows:
Cyber Security Market for Oil and Gas, Type Segment Analysis
- Cloud Security
- Network Security
- Endpoint Security
- Application Security
Cyber Security Market for Oil and Gas, Application Segment Analysis
- Pipeline and Transportation
- Exploration and Drilling
- Refining and Storage Area
Cyber Security Market for Oil and Gas, Region Segment Analysis
- North America
- United States
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of MEA