Industrial Threats Continue to Rise, but Security Implementation Remains Slow and Fraught, Still 10 to 15 Years Behind IT

Industrial manufacturers continue to be targeted by cyberattacks, with data breaches, ransomware, and operational disruptions topping the list of concerns. According to ABI Research’s latest survey of 458 manufacturers across the United States, Germany, and Malaysia, data loss remains the most feared impact of a cyber incident, followed closely by reputational damage, missed customer orders, and halting operations. More generally, cyberattacks targeting Operational technology (OT) environments are on the rise, with ransomware incidents causing downtime costs that can reach €150,000 per minute.

While industrial organizations recognize cybersecurity as a priority and understand they are not exempt from data breaches, Intellectual Property (IP) theft, or vulnerabilities from new technologies (e.g., Artificial Intelligence (AI), 5G, post-quantum), the integration and rollout of appropriate protective solutions is marred by technical complexities, the heterogeneity of the industrial environment, differing regional and sectoral cybersecurity maturity levels, and varying degrees of awareness among stakeholders.

The advent of OT-Information Technology (IT) convergence and digital transformation within industrial environments is bringing to the fore new security capabilities; it is also exposing shortcomings. According to the survey, the top challenges faced by manufacturers include the lack of OT-specific cybersecurity tools and skills, an immature OT cybersecurity market, and resistance to dynamic, autonomous security solutions. This means that industrial organization still largely rely on legacy solutions that have limited interaction with OT environments; uptime and availability remain critical requirements that trump security in many cases.

This translates directly to the adoption of security solutions that reflect this vision. The top identified security investment areas in the survey were network security (e.g., segmentation and access control, which are passive). Security at the chipset or silicon IP level was at the very bottom of the priority investment list for industrial manufacturers. And this is the crux of the problem. While network-level defenses such as segmentation and Managed Detection and Response (MDR) tools are currently the norm, they offer only partial protection. The long-term solution lies in adding embedded security to the formula and integrating technologies such as secure Microcontroller Units (MCUs), Trusted Execution Environments (TEEs), authentication Integrated Circuits (ICs) and Secure Elements (SEs) directly into the hardware of Industrial Control Systems (ICSs) as well.

Embedding hardware into the ICS is part of the security-by-design principle, and can greatly facilitate zero-trust architectures, by enabling hardware roots of trust for identity, authentication, and access control. Beyond that, technologies such as TEEs can support trusted AI/Machine Learning (ML) deployment at the industrial edge, as well as better IP and data protection through confidential computing capabilities. Despite the clear benefits, several barriers hinder their widespread adoption. Legacy systems with outdated protocols are difficult to secure, so they are left unprotected. High costs and long device lifecycles discourage secure hardware upgrades. And the lack of awareness and internal resistance, especially between IT and OT teams, slow down implementation. Smaller organizations, in particular, struggle with the financial and technical demands of embedding security, often relying on basic security measures that fall short of current threats.

The pressure, however, will continue to mount, and not just from a threat perspective. A growing web of cybersecurity regulations will mean increased compliance requirements for all industrial stakeholders. The NIS2 Directive and Cyber Resilience Act in the European Union (EU), as well as emerging federal policy in the United States on Software Bill of Materials (SBOM) is shifting accountability for cybersecurity not just to industrial operators, but also to ICS manufacturers.

The path forward, therefore, involves a dual approach: short-term reliance on network-level defenses and long-term investment in embedded security. Regulatory pressure, insurance requirements, and the growing convergence of IT and OT will continue to drive demand for secure ICS solutions. To succeed, industrial organizations must adopt a security-by-design philosophy, integrate SBOMs, ensure better supply chain transparency, and foster collaboration between IT and OT teams. ICS Original Equipment Manufacturers (OEMs), in turn, must offer flexible, pre-certified hardware platforms that support evolving standards and enable future-proofing.