Cyberattacks on Energy Industry Cost Average of $13.2m Annually

energy industry cyberattacksEnergy industry cyberattacks cost organizations an average of $13.2 million per year, according to new analysis by Frost & Sullivan.

At the same time, the threat is exacerbated by the high penetration of industrial Internet of Things (IIoT) devices in these industries. This opens up thousands, if not millions, of attack targets.

The increase in energy industry cyberattacks, changing compliance regulations by governments, and increased awareness have accelerated the adoption of cybersecurity approaches in the sector.

Unfortunately, existing cybersecurity services vendors are struggling to provide comprehensive visibility into IIoT devices. However, there is opportunity for cybersecurity services vendor who get it right to expand in this market.

“The industrial cybersecurity services market is at the high growth stage of its lifecycle, with rising awareness among end users, increased industrial control systems-based attacks, and the rising need for cybersecurity skills,” judged Frost Industrials Research Analyst Rita Newa.

“Many end users have labor-intensive security practices and lack strong cybersecurity policies. Service providers can help automate cybersecurity services and provide a more holistic approach by offering joint solutions that provide a consolidated view of the IT and OT environment,” she added.

What vendors need to do to expand energy sector business

Newa advised vendors looking to expand their business in the industrial cybersecurity market to:

  • Provide integrated platforms that can deploy a range of services to enhance the security posture of end users while incorporating the best security practices;
  • Use automated management services and advanced analytics to develop a comprehensive service portfolio that can be adapted for all types of end users; and
  • Offer flexible pricing models, such as cybersecurity-as-a-service, and lifetime services to increase accessibility across industries at a lower cost.

“Despite the growing frequency of cyber-attacks, industries still have very low cyber resilience, struggling to ensure cybersecurity in the OT environment. With complexity and sophistication of the attacks, service providers will need to focus on advanced services that can address the threat landscape and automate cybersecurity,” Newa concluded.