The European Industrial Control Systems market is expected to grow at a CAGR of 12.3% during the forecast period. The global outbreak of COVID-19 has forced manufacturing industries to re-evaluate their traditional production processes, primarily driving the digital transformation and smart manufacturing practices across the production lines. The manufacturers are also collectively being forced to devise and implement multiple new and agile approaches to monitor product and quality control.
- There is an increase in the need to reduce manufacturing costs and applications of the Internet of Things and machine-to-machine (M2M) technologies. According to a government-commissioned review, the manufacturing sector in the country can unlock GBP 455 million over the next decade and create thousands of jobs if it cracks the fourth industrial revolution.
- The majority adoption of automation tools is seen in the automotive and manufacturing industries in the country. IoT enables automated driving assistance, vehicle maintenance, passenger infotainment, and vehicle-to-vehicle communications in the automotive industry. For instance, in 2020, Ericsson and Audi partnered to establish a 5G collaboration to test Ultra-Reliable Low-Latency Communication (URLLC) capabilities for factory automation at the Audi P-Labs facility in Germany.
- Supplementing vendors, the government efforts to regulate and bolster the cybersecurity industry suffered resistance from business associations. The opposition to the creation of a certification regime to rank firms on the basis of their performance against cybersecurity metrics is hampering the innovations to upgrade security. However, the country’s industrial policy is aiming at encouraging private investment and human capital development in response to addressing the cybersecurity challenge.
- The ANSSI (National Agency for Information Systems Security) proposed a similar class-based approach to deal with cyber security issues within the country. France’s Industrial Cyber Plan aims at the voluntary information-sharing system (CERT-FR) to support a reporting mechanism, sharing of best practices among companies, sponsors crisis management exercises involving the private sector (Piranet), and certification schemes for cybersecurity firms.
- Aging hardware or software of the ICS in a lot of organizations is another factor responsible for increased complexity. Most organizations still use legacy ICS, owing to their importance in the functioning of the plant. This increased age of ICS leaves ample opportunities for cyberattacks and leads to increased complexity.
Key Market Trends
Automotive Industry to Drive the Market Growth
- The automotive industry is among the prominent sectors that hold a significant share of automated manufacturing facilities across the world. The production facilities of various automakers are automated to maintain efficiency. The rising trend of replacing conventional vehicles with electric vehicles (EVs) is expected to augment the demand from the automotive industry further. For instance, the projected electric vehicle sales in Europe are expected to reach 6.33 million units by 2025, followed by China with 4.84 million units, according to UBS.
- With the help of artificial intelligence, the automotive sector s assembly lines have become more productive, efficient, and cost-effective. Industrial robotics on the shop floor, especially cylindrical robots, transformed automobile production by automating the manufacturing process. For instance, in 2020, Techman announced that its collaborative robots entered the supply chain of European and American car manufacturers.
- The E2EW series is optimized to withstand the harsh conditions of traditional automotive welding processes due to the fluororesin coating providing increased spatter resistance. The new sensors also support IO-Link capabilities, enabling real-time data gathering on proximity sensors detection levels and temperature changes from a single location. Such sensors are also widely used in industrial sensors to detect long-range distances, collision avoidance, determine the size of objects, navigation, and others.
- The International Automotive Components (IAC) implemented manufacturing 4.0 and smart factory applications at the UK site in Halewood, England. This application deployed smart logistics, cross-company integration, and collaborative robots (cobots). Moreover, German auto parts manufacturer Bosch has invested around 31 million euros in its Indian plant to develop industry 4.0 solutions.
Rising Incidence of Cyberattacks is One of the Factor Driving Market
- According to the X-Force Threat Intelligence Index 2020 from IBM, the threat targets on ICS and Operational Technologies (OT) assets have increased over 2,000% since 2018. In fact, the incidence of targeting OT assets in 2019 was more significant than the volume of activity observed in the past three years combined. The majority of these targets used a combination of known vulnerabilities within ICS hardware components and supervisory control and data acquisition (SCADA) in addition to brute-force login tactics such as password-spraying attacks.
- A survey conducted by ARC Advisory Group on the state of cybersecurity of Industrial Control Systems (ICS) recently indicated that around 70% of companies predict an attack on their OT/ICS infrastructure to be very likely. Similar results were found in research conducted by Siemens and Ponemon Institute. The survey results indicate that that OT was at a higher risk of cyberattack than IT. About 54% of respondents expect that they will be stuck with at least one cyberattack on critical infrastructure within the next few years.
- With cyber-attacks increasing in smart factories in the United States, there is growing concern about using Industrial Control Systems, and the government has plans to curb the rise of such crimes. This is aligned with the growing trend of the usage of industrial control systems that are manufactured in the country for smart factories to avoid the risk of cybersecurity breaches. Companies like Panasonic North America offer complete smart manufacturing solutions, including ERP and multiple others.
- Hence, over the past few years, oil and gas companies have invested heavily into cybersecurity technologies, such as incident response solutions and software capable of collecting logs in ICS environments to enhance visibility and segmenting networks and to prevent lateral movement, and eliminate imminent threats.
The European factory industrial control system market is moderately fragmented due to several players in the market. Players are primarily involved in product development and strategic activities such as partnerships, mergers, and acquisitions. Some of the key developments in the market are:
- April 2021 - Schneider Electric released version 21.1 of EcoStruxure Automation Expert, its software-centric universal automation system. Among other advancements, EcoStruxure Automation Expert V21.1 includes: enhanced cybersecurity, diagnostics, discovery and commissioning features, and expanded libraries and language support. This new technology is expected to be beneficial for consumer-packaged goods, pharmaceutical, and logistics enterprises.
- March 2021 - McLean Technology Group (MTG) employed ABB to deliver automation, electrification, and instrumentation solutions at Nashville’s Central Wastewater Treatment facility, managed by Metro Water Services (MWS). Additionally, ABB will provide control system optimization via a second control system that will standardize all MWS water and wastewater plant operations of the project.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness: Porter s Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
4.4 Assessment of the Impact of COVID-19 on the Industry
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Incidence of Cyberattacks
5.1.2 Convergence of IT and OT Networks
5.2 Market Restraints
5.2.1 Complexity in Implementing the Security Systems
5.3 Emergence of Various Business Models in ICS Security Industry�
6 MARKET SEGMENTATION
6.1 By End-User Industry
6.1.2 Chemical and Petrochemical
6.1.3 Power and Utilities
6.1.5 Food and Beverage
6.1.6 Oil and Gas
6.1.7 Electronics and Semiconductor
6.2 By Country
6.2.1 United Kingdom
6.2.4 Rest of Europe
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.2 Siemens AG
7.1.4 Honeywell International Inc.
7.1.5 Tofino Security
7.1.6 Kasa Companies Inc
7.1.7 Kasa Companies Inc
7.1.8 Schneider Electric
7.1.9 Sourcefire Inc.
7.1.10 Juniper networks Inc.
7.1.11 Emerson Electric Co.
7.1.12 Mitsubishi Electric Corporation
8 INVESTMENT ANALYSIS
9 MARKET OUTLOOK