Global Supply Chain Cyber Security Market - 2024-2031

Overview

Global Supply Chain Cyber Security Market reached US$ 624.6 million in 2023 and is expected to reach US$ 1,720.2 million by 2031, growing with a CAGR of 13.5% during the forecast period 2024-2031.

Continued advancement and increasing intensity of cyberattacks remain the primary reason for the growing adoption of supply chain cybersecurity solutions. A recent such example was the October 2023 hack of Okta, a company that provides authentication management services. Private customer data was leaked when hackers were able to impersonate real users and gain login credentials to the customer support management system.

All these factors account for the growth of the supply chain security market. For example, from the SITA's 2021 research on Air Transportation IT Insights, all airlines invested in cyber security services (100%), consequently, improving productivity through digitalization. Also, a shift by end-user companies to focus on supply chain traceability & transparency and developments in digital security solutions are forming strong growth prospects for the market.

North America is the dominating region in the market due to the growing cyberattacks and the need for data security across various SMEs and large-scale enterprises. For instance, one of the largest cybersecurity emergencies in recent years involves the Network Management System SolarWinds. The U.S. is expected to have a dominant share of the market during the projection period due to the high rate of adoption of security solutions and the presence of significant supply chain security vendors in the area. In addition to actively battling cyber threats, U.S. government has improved its cybersecurity infrastructure. In May 2021, President Biden signed an Executive Order on Strengthening the Nation's Cybersecurity, emphasizing the need to update federal cybersecurity and enhance information exchange between the public and commercial sectors.

Dynamics

Growing Complexity of Supply Chains

Cybercriminals have a bigger attack surface as supply chains get more sophisticated. Cyber assaults have additional access points due to the increased number of networked systems, suppliers, partners and third-party integrations. The need for all-encompassing cyber security solutions that safeguard the natural environment of the supply chain is fueled by this. Cloud platforms, IoT devices, digital networks and networked systems are all crucial components of modern supply chains. Although it increases efficiency, this interconnection also creates weaknesses. To guarantee data availability and integrity across the supply chain, supply chain cybersecurity solutions need to take into account these linked networks.

Supply chains include multiple third-party vendors and suppliers. Each of these entities introduces cyber risks, like malware infections, insider threats and data breaches. Supply chain cyber security solutions help manage these third-party risks through risk assessments and security controls. Supply chains rely on data exchange and integration between various systems and stakeholders. The data exchange includes sensitive information such as product designs, financial transactions, customer data and intellectual property. Secure data exchange protocols, encryption techniques and data loss prevention measures are essential components of supply chain cyber security solutions.

Increase in Automation and Frequency of Cyberattacks

Companies are upgrading supply chain management by experimenting with and applying technologies like blockchain, machine learning and artificial intelligence (AI) to traditional supply chain management duties. As suppliers, workers and communities access more sophisticated technology, they use it to collect and exchange environmental and social performance data. Supply networks are becoming increasingly transparent. Automation and sophisticated manufacturing are already affecting supply chains significantly. It will continue to transform the labor force and total sourcing costs, particularly in areas ripe for automation, are regarded as the crux of the global supply chain.

A recent study by BlueVoyant, a cybersecurity consultancy, concluded that supply chain breaches which negatively impacted organizations jumped by 26% in 2023 as compared to 2022. The average number of daily breaches also rose from 3.29 incidents in 2022 to nearly 4.26 incidents in 2023. The report also noted an increase in vigilance, with roughly 47% of executives saying that they monitor their supply chains monthly, an increase of 5% from 2022. The growing nature of cyberattacks will continue to remain a major reason for the growth of the global supply chain cybersecurity market.

Complexity and Integration Challenges

Many different parties, such as suppliers and distributors are frequently involved in supply chains. When incorporating cyber security solutions across the supply chain and integration challenges arise since each business may utilize different systems, software and protocols. Interconnected systems, networks and digital platforms play a major role in modern supply chains' communication, data exchange and transaction processing. Cyber security solution integration into these networked settings necessitates meticulous planning, synchronization and alignment with supply chain processes and workflows.

Numerous companies continue to run their supply chains using outdated infrastructure, obsolete software and outdated technologies that might not have strong cyber security protection. It is difficult to integrate cyber security solutions with older systems because of compatibility problems, limitations on data interoperability and the requirement for modifications or retrofits to improve security posture. Supply chains are constantly changing to meet the needs of the market and the expansion of businesses. Solutions for cyber security must be sufficiently scalable to deal with new partners adapt to shifting supply chain dynamics and scale up or down without affecting company operations.

Segment Analysis

The global supply chain cyber security market is segmented based on component, deployment, organization size, application, end-user and region.

Supply Chain Cyber Security Solutions Segment Accounted for Largest Market Share in the Market

Based on the component, the supply chain cyber security market is segmented into solutions and services.

Complex cyberattacks that target supply chains more frequently include ransomware, supply chain incidents and data breaches. The increasing connectivity and reliance of organizations on digital supply chain activities have led to a need for specialized cybersecurity solutions to address these risks. As there are so many suppliers, distributors and third-party service providers involved with modern supply chains, they are highly complex. Due to this complexity, thieves have several avenues of entry to target, requiring a requirement for comprehensive cyber security solutions customized to supply chain environments. Independent service suppliers. Due to this intricacy, cybercriminals have several ports of entry to exploit, rendering comprehensive cyber security solutions customized for supply chain settings necessary.

Organizations are growing more conscious of the risks that suppliers and third-party vendors represent to their supply chains. To address risks resulting from external dependencies, supply chain cyber security solutions prioritize supply chain visibility, resilience, third-party risk assessment and vendor security management. Globally, there has been an increase in the number of laws about cyber security. Using security controls, privacy access restrictions and audit trails within supply chain cyber security solutions helps companies comply with legal requirements, industry standards and industry standards.

Geographical Penetration

North America is Dominating the Supply Chain Cyber Security Market

The cyber threat situation in North America is serious, with many hacks aimed at vital infrastructure and organizations. Strong cyber security solutions are in high demand as a result of the increased threat landscape. The solutions are required to shield supply chains from ransomware, data breaches, supply chain attacks and spying. Strict legal structures and data protection regulations, such as the General Data Protection Regulation of Europe and the many different privacy laws of US, are in place in this field. To maintain data privacy and regulatory compliance across supply chain networks, businesses operating in North America are required to adhere to these requirements. Consequently, supply chain cyber security investment has increased dramatically.

North America has the presence of major players, such as Google Oracle Corp., IBM Corporation and others. The companies provide security solutions that help organizations conduct their supply chain activities effectively and protect their data from cyber threats. For instance, in September 2023, over 20 e-commerce businesses adopted Google Cloud's Open Commerce solution as well as ONDC. It will allow buyers, sellers and logistic service providers to join the ONDC network without any difficulty. It will increase the number of consumers and sellers who use generative AI tools provided by Google Cloud for making transactions on the network particularly those residing in smaller cities.

Competitive Landscape

The major global players in the market include IBM, Emerson oracle, Testo orbcomm, Honeywell International Inc., Trend Micro, Darktrace Holdings Limited, CyberArk Software Ltd. and Palo Alto Networks.

COVID-19 Impact Analysis

A shift towards remote work and online activity during the epidemic expanded hackers' attack surface. Due to an increase in cyber threats like supply chain weaknesses and ransomware, there is a greater demand for cyber security solutions to secure supply chain networks and data. Cybercriminals have capitalized on these delays by concentrating on supply chain systems and distant personnel.

To protect sensitive data and remotely accessible systems, this involves setting multi-factor authentication (MFA), secure remote desktop protocols, secure Virtual Private Networks and endpoint security solutions into place. As companies adjust to virtual operations, online purchases and distant collaboration, the pandemic has accelerated digital transformation activities. The necessity of cyber security in enabling digital resilience, protecting digital assets and securing digital supply chains against cyber threats has been highlighted by this fast digitalization.

Russia-Ukraine War Impact Analysis

Cyber risks are growing during geopolitical conflict. Cybercriminals and hacktivist organizations take advantage of the circumstances to attack government institutions and supply chain networks with cyberattacks. The results in an increase in the need for cyber security services and solutions for protecting against these kinds of attacks. The conflict sabotages international supply networks, impacting the movement of products, services and technological components. Organizations fight to locate new partners and suppliers in the event of a supply chain interruption, putting them at risk for cyber hazards including ransomware events and supply chain assaults.

During times of conflict, governments put a high priority on protecting vital infrastructure sectors like energy, healthcare and banking. To protect against cyberattacks that target crucial networks and systems that enable supply chain activities, this involves strengthening cyber security measures. The war may lead to regulatory changes and compliance requirements related to cyber security and data protection. Organizations operating in regions affected by the conflict or with business ties to the region may face stricter regulations, cybersecurity standards and reporting obligations, driving investments in cybersecurity solutions and compliance frameworks.

By Component

• Hardware
  • Secure Hardware Modules
• Trusted Platform Modules (TPM)
• Hardware Security Modules (HSM)
• Others
  • Network Firewalls
• Next-Generation Firewalls (NGFW)
• Unified Threat Management (UTM) Appliances
• Others
  • Secure Storage Devices
• Hardware Encrypted Drives
• Secure USB Drives
• Others
  • Secure Endpoints
• Secure Routers
• Secure Switches
• Secure Gateways
• Others
  • Physical Security Devices
• Biometric Access Control Systems
• Surveillance Cameras
• Intrusion Detection Sensors
• Others
  • Others
• Software
  • Antivirus and Antimalware Software
  • Data Encryption Software
  • Vulnerability Assessment and Management Software
  • Security Information and Event Management (SIEM) Software
  • Endpoint Security Software
  • Patch Management Software
  • Identity and Access Management (IAM) Software
  • Secure Email Gateways
  • Others
• Services
  • Managed Security Services
  • Implementation and Integration Services
  • Security Consulting and Advisory
  • Support and Maintenance Services

By Deployment

• On-Premises
• Cloud-Based

By Organization Size

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

By Application

• Data Protection
• Data Visibility and Governance
• Others

By End-User

• Retail and E-Commerce
• FMCG
• Healthcare
• Manufacturing
• Automotive
• Transportation and Logistics

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On February 21, 2024, BlueVoyant, a cybersecurity company that illuminates, validates and remediates internal and external risk expanded Cyber Third-Party Risk Management Solution to Monitor Risk Across Eight Business Risk Categories.
• On February 01, 2024, Accenture invested in TXOne Networks, a leader in cybersecurity Tenchi Security to Help Organizations Manage Supply Chain Security Risks. Accenture will leverage Tenchi's SaaS platform as a new component of its managed security services offering to help organizations reduce cyber risks across their supply chain.
• On December 05, 2023, KPMG and Lineaje collaborated to manage software supply chain security risk. The organizations safeguard against software supply chain attacks with advanced third-party risk management offerings. Software supply chain attacks often involve adversaries exploiting vulnerabilities in third-party software products (or components) to target customer organizations.

Why Purchase the Report?

• To visualize the global supply chain cyber security market segmentation based on component, deployment, organization size, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of supply chain cyber security market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global supply chain cyber security market report would provide approximately 78 tables, 73 figures and 199 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies