Cyber Physical Systems (CPS) Security Market Report 2026

Cyber Physical Systems (CPS) Security Market Overview

• Cyber Physical Systems (CPS) Security market size has reached to $10.05 billion in 2025 • Expected to grow to $18.51 billion in 2030 at a compound annual growth rate (CAGR) of 13% • Growth Driver: Rising Incidents Of Cyber-Attacks Driving The Market Growth Due To Increasing Digitalization And Expanding Internet Connectivity • Market Trend: AI-Native Platform Enhances Critical Infrastructure Protection Against Converging Cyber-Physical Risks • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Cyber Physical Systems (CPS) Security Market?

Cyber-physical systems (CPS) security is the practice of safeguarding interconnected computational and physical processes from malicious attacks, failures, or unauthorized access. It focuses on maintaining the integrity, confidentiality, and availability of both digital control systems and the physical components they manage. The main components of cyber-physical system (CPS) security include solutions and services. Solutions refers to technologies and services designed to protect cyber-physical systems by monitoring, detecting, and mitigating security threats across both digital and physical components of critical infrastructure and industrial environments. The security types involved are network security, endpoint security, application security, cloud security, and others. The deployment modes include on-premises and cloud-based solutions, and these offerings are adopted by organizations of different sizes, including large enterprises as well as small and medium enterprises (SMEs). Cybersecurity solutions are utilized by end-users in industries such as manufacturing, energy and utilities, healthcare, transportation, government, and others.

What Is The Cyber Physical Systems (CPS) Security Market Growth Forecast?

The cyber physical systems (cps) security market size is expected to see rapid growth in the next few years. It will grow to $18.51 billion in 2030 at a compound annual growth rate (CAGR) of 13.0%. The growth in the forecast period can be attributed to increasing adoption of ai-driven threat detection, growth in cloud and hybrid deployment security, rising integration of autonomous systems, increasing cybersecurity investments in energy and utilities, expansion of smart infrastructure and connected ecosystems. Major trends in the forecast period include growing adoption of managed security services, increasing focus on compliance and regulatory advisory, rising deployment of encryption and data protection solutions, expansion of security training and awareness programs, growing use of vulnerability assessment and penetration testing services.

Global Cyber Physical Systems (CPS) Security Market Segmentation

1) By Component: Solutions, Services 2) By Security Type: Network Security, Endpoint Security, Application Security, Cloud Security, Other Security Types 3) By Deployment Mode: On-Premises, Cloud 4) By Organization Size: Large Enterprises, Small And Medium Enterprises 5) By End-User: Manufacturing, Energy And Utilities, Healthcare, Transportation, Government, Other End Users Subsegments: 1) By Solutions: Intrusion Detection And Prevention Solutions, Firewall And Network Security Solutions, Encryption And Data Protection Solutions, Identity And Access Management Solutions, Security Information And Event Management Solutions 2) By Services: Consulting And Risk Assessment Services, Implementation And Integration Services, Managed Security Services, Maintenance And Support Services, Incident Response And Recovery Services

What Is The Driver Of The Cyber Physical Systems (CPS) Security Market?

The rising incidents of cyber-attacks are expected to propel the growth of the cyber physical systems (CPS) security market going forward. Cyber-attacks are malicious acts that seek to damage data, steal data, or disrupt digital operations and infrastructure. Incidents of cyber-attacks are growing due to increasing internet usage, as the rapid expansion of digital technologies and online services has created more entry points and vulnerabilities for cybercriminals to exploit. Cyber physical systems (CPS) security serves as a fundamental defense mechanism in preventing and mitigating cyber-attacks by integrating robust monitoring, threat detection, encryption, and resilient control mechanisms to protect the interconnected physical and digital components of critical infrastructures from unauthorized access, disruption, and malicious exploitation. For instance, in January 2026, according to the Identity Theft Resource Center, a US-based nonprofit cybersecurity organization, the number of data compromise incidents in the USA rose to 3,322 in 2025, marking a 5?% increase from 3,152 incidents in 2024. Therefore, rising incidents of cyber-attacks are driving the growth of the cyber physical systems (CPS) security industry.

Key Players In The Global Cyber Physical Systems (CPS) Security Market

Major companies operating in the cyber-physical system (CPS) security market are Microsoft Corporation, Robert Bosch GmbH, Siemens Aktiengesellschaft, Hitachi Ltd., Cisco Systems Inc., Continental AG, Schneider Electric SE, Mitsubishi Electric Corporation, Honeywell International Inc., SAP SE, ABB Ltd, GE Vernova Inc., Toshiba Corporation, Texas Instruments Incorporated, Emerson Electric Co., Rockwell Automation Inc., Phoenix Contact GmbH & Co. KG, Yokogawa Electric Corporation, Advantech Co. Ltd., The MathWorks Inc., and Dragos Inc.

Global Cyber Physical Systems (CPS) Security Market Trends and Insights

Major companies operating in the cyber physical systems (CPS) security market are focusing on leveraging innovative technologies such as, artificial intelligence (AI)-powered cyber-physical threat detection to enhance real-time risk visibility and strengthen the resilience of critical infrastructure against evolving cyber-physical threats. Artificial Intelligence (AI)-powered cyber-physical threat detection refers to advanced security systems that use machine learning algorithms, behavioral analytics, and real-time data correlation to identify anomalies and potential threats across interconnected digital and physical assets, helping organizations detect sophisticated attacks early, reduce false positives, enhance situational awareness, and proactively protect critical infrastructure from evolving cyber-physical risks. For instance, in January 2026, Indurex B.V., a Netherlands-based AI-native operational technology (OT) security company, launched AI-native CPS security platform designed to protect critical infrastructure at the intersection of AI and cyber-physical risk. The platform aggregates and analyzes OT, safety, and engineering signals to generate context-aware, AI-scored insights with prioritized remediation guidance, enhancing situational awareness and predictive risk management. It reduces alert fatigue, improves compliance reporting, strengthens safety integrity, and supports operational continuity across sectors such as energy, utilities, manufacturing, and data centers. The solution combines safety and cybersecurity intelligence within a single adaptive framework, advancing beyond conventional point security products.

What Are Latest Mergers And Acquisitions In The Cyber Physical Systems (CPS) Security Market?

In July 2023, Honeywell International Inc., a US-based technology and manufacturing company, acquired SCADAfence Ltd. for an undisclosed amount. With this acquisition, Honeywell International Inc. aims to strengthen its cybersecurity software portfolio and enhance its operational technology (OT) and industrial cybersecurity capabilities to better protect critical infrastructure and industrial environments from evolving cyber threats. SCADAfence Ltd. is an Israel-based technology company that specializes in providing OT and ICS cybersecurity.

Regional Insights

North America was the largest region in the cyber-physical system (CPS) security market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Cyber Physical Systems (CPS) Security Market?

The cyber-physical systems (CPS) security market includes revenues earned by entities through threat intelligence, security training and awareness programs, vulnerability assessment and penetration testing, network segmentation and isolation, data encryption and protection, and compliance and regulatory advisory. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Cyber Physical Systems (CPS) Security Market Report 2026?

The cyber-physical system (CPS) security market research report is one of a series of new reports from The Business Research Company that provides cyber-physical system (CPS) security market statistics, including cyber-physical system (CPS) security industry global market size, regional shares, competitors with a cyber-physical system (CPS) security market share, detailed cyber-physical system (CPS) security market segments, market trends and opportunities, and any further data you may need to thrive in the cyber-physical system (CPS) security industry. This cyber-physical system (CPS) security market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.