The manufacturing sector is experiencing a significant rise in cybersecurity incidents, driven by the increasing integration of Information Technology (IT) and Operational Technology (OT). A new study by consultancy Omdia and comms provider Telstra International, which surveyed over 500 technology executives worldwide, found that 80% of manufacturers reported an increase in security incidents across their […]
The manufacturing sector is experiencing a significant rise in cybersecurity incidents, driven by the increasing integration of Information Technology (IT) and Operational Technology (OT).
A new study by consultancy Omdia and comms provider Telstra International, which surveyed over 500 technology executives worldwide, found that 80% of manufacturers reported an increase in security incidents across their IT/OT environments.
Despite this heightened threat, only 45% of companies feel adequately prepared to address IT/OT security challenges. This lack of preparation is reflected in the financial impact of cyberattacks, with affected manufacturers facing downtime costs between $200,000 and $2 million per attack, depending on the severity of the incident.
Manufacturing’s growing vulnerability
The rise in cyber threats comes as manufacturers adopt digital technologies such as cloud computing, Artificial Intelligence (AI), and the Internet of Things (IoT) as part of Industry 4.0.
This digital transformation connects IT systems with OT systems to improve operational efficiency and innovation. However, experts warn that this convergence increases the potential for cyberattacks.
As Ganesh Narayanan, global head of cybersecurity at Telstra International, noted: “IT and OT integration creates enormous value but also increases the risks of a breach.”
The study found that the majority of cyberattacks targeting OT systems originated in IT systems. Specifically, 75% of reported incidents were classified as ‘Cyber-to-Physical’ security attacks, where IT breaches spread to OT systems.
As connectivity between IT and OT systems grows, manufacturers are finding that traditional cybersecurity measures, such as air gapping, are no longer sufficient.
Air gapping, which involves isolating OT systems from IT networks to prevent external threats, has become less effective due to the increased integration of these technologies.
Shifting security responsibilities and skills gap
The study also highlights a shift in responsibility for OT security. Historically, production managers and engineers oversaw securing OT systems. However, with IT and OT becoming more interconnected, security responsibilities are increasingly falling to chief information security officers (CISOs) and other IT executives.
Geraldine Kor, head of global enterprise business, Telstra
Geraldine Kor, head of global enterprise business at Telstra International, noted that the fragmented approach to security responsibility can leave manufacturing businesses without clear direction.
The study found that many manufacturers are struggling to manage this integration due to a shortage of skilled professionals who understand both IT and OT security.
As a result, many manufacturers are turning to third-party providers for support. The report indicated that firms in North America are most likely to outsource their IT/OT security, with 51% of respondents planning to engage external services within the next 18 months.
The growing reliance on external security providers underscores the challenges manufacturers face in securing their increasingly interconnected systems. The skills gap in the sector, particularly in understanding both IT and OT security, continues to be a significant hurdle in addressing these vulnerabilities.
