The railway cybersecurity market size is expected to reach US$ 13,763.76 million by 2028 & registering at a CAGR of 10.7% from 2022 to 2028, according to a new research study conducted by The Insight Partners.
Rising Number of Cyberattacks Boosts Demand for Railway Cybersecurity Market
According to World Economic Forum's “Global Risks Report 2022, 17th Edition”, cyberattacks have been classified as the fifth most significant risk in 2020. They have become the new normal in the public and private sectors. IoT cyberattacks alone are expected to double by 2025. In addition, the rapid digitalization in advanced economies during the COVID-19 pandemic has led to intense cyber vulnerabilities, as new technologies and ever-expanding attacks surface to enable a dangerous and diverse range of cybercrimes, as per the report published by the World Economic Forum’s Global Risks Perception Survey (GRPS) in 2022. According to GRPS, cyber security failure ranks among the top 10 risks that have worsened since the COVID-19 crisis.
Railway Cybersecurity Market – by Region, 2021 and 2028 (%)
Railway Cybersecurity Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Offering [Solution (Risk and Compliance Management, Encryption, Firewall, Antivirus/Antimalware, Intrusion Detection/Intrusion Prevention, and Others) and Services], Security Type (Application Security, Network Security, Data Protection, Endpoint Security, and System Administration), Type [Operational Technology (OT) and Information Technology (IT)], and Application (Passenger Trains and Freight Trains)
Railway Cybersecurity Market Size, Share Statistics Report 2028
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Further, according to World Economic Forum's “Global Risks Report 2022, 17th Edition”, malware attacks increased by 358% in 2020, whereas ransomware increased by 435%. It means that cyber threats are now growing faster than the ability to prevent and manage them effectively. Therefore, the demand for cyber security solutions is growing across all sectors. Railway operators worldwide adopt cyber security products and services to prevent cyberattacks. The Biden administration has taken initiatives to protect the US's vital rail transit and passenger railroad infrastructure. In addition, Thales offers a comprehensive set of specialist services to help railways operator meet the rising need for long-term cyber security maintenance in the rail sector. Also, in 2021, Alstom, Bosch, SpirOps, Thales, and the Railenium Technology Research Institute collaborated with SNCF to debut an autonomous train prototype in France. Since cyber security is a critical problem for autonomous trains, consortium partners have worked with ANSSI (Agence Nationale de la Securite des Systemes d’Information), the French national cyber security organization, to address cyber security issues. Thus, the rise in cyberattack activities boosts the railway cybersecurity market growth.
The railway cybersecurity market is segmented on the basis of offering, security type, type, application, and geography. Based on offering, the railway cybersecurity market is bifurcated into solutions and services. The railway cybersecurity market for the solutions segment is further segmented into risk and compliance management, encryption, firewall, antivirus/antimalware, intrusion detection/intrusion prevention system, and others. In terms of security type, the railway cybersecurity market is segmented into application security, network security, data protection, endpoint security, and system administration. Based on type, the railway cybersecurity market is bifurcated into operational technology (OT) and information technology (IT). By application, the railway cybersecurity market is segmented into passenger trains and freight trains. Based on geography, the railway cybersecurity market is segmented into North America (the US, Canada, and Mexico), Europe (Austria, Italy, Poland, Switzerland, Sweden, Norway, Denmark, the Netherlands, Finland, Spain, Baltics, and Rest of Europe), Asia Pacific (Australia, Japan, South Korea, Taiwan, and Rest of APAC), Middle East & Africa (Saudi Arabia, UAE, South Africa, and Rest of MEA), and South America (Brazil, Argentina, and Rest of SAM).
Impact of COVID-19 Pandemic on Railway Cybersecurity Market
COVID-19 outbreak has adversely affected many industries across the world. Passenger count in rail journeys began to decline from March 2020, and by the end of Q2, passenger numbers had dropped to as low as 8% compared to normal levels, according to Independent Regulators’ Group-Rail 2020-21. In Q1 of 2020, key railway component manufacturers and solution providers discontinued production/service due to disrupted demand–supply chain. Further, decline in demand for mass transit and rolling stock delayed the deployment of cyber security projects on the rail. Thus, the railway cybersecurity market growth was negatively impacted by the reduced demand for freight trains in Q1 of 2020. However, by the end of financial Q2 2020, the demand for railways' cyber security solutions and services has grown exponentially. Key players in the railway cybersecurity market has launched various solutions and services to secure railways' operations against cyberattacks. Additionally, in 2021, railways witnessed rise in internet traffic. As a result, the risk of cyberattacks has substantially increased in the railway industry, necessitating the deployment of cyber security solutions and services. Moreover, the growth in the risk of cyberattacks has led to the advancement in cyber security solutions, such as cloud security and AI-integrated solutions, contributing to the railway cybersecurity market growth.
Cisco Systems, Inc.; IBM Corporation; Thales Group; Siemens AG; Hitachi, Ltd.; ENSCO, Inc.; RazorSecure Limited; Alstom SA; Irdeto; and Raytheon Technologies Corporation are among the leading players operating in the railway cybersecurity market.
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