According to The Insight Partners latest market study on “Railway Cybersecurity Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Offering, Security Type, Type, and Application,” the market is projected to grow from US$ 6,721.12 million in 2022 to US$ 12,647.40 million by 2028;
Railway operation and safety have significantly improved due to digital transformation in the railway industry. Integrating digital technology to automate various tasks helps the industry increase operational efficiency and reliability customer experience. Most digital transformation applications in railways are based on IP technologies. Train control, maintenance monitoring, signaling control, and passenger information systems are common areas where digitization is applied in railways.
The growing urbanization, smart cities, smart transportation, and smart railway management propel the development of internet-driven systems in the railway industry. Railway cybersecurity solutions and services protect against cyberattacks on the network, systems, and software associated with the railroad industry.
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The effective IT management and dependable security environment have created ample demand for cloud-based services, analytics, and mobile internet technologies. The level of security complexity is also expected to increase due to the rapid proliferation of big data applications, emerging technologies, and the constant need to optimize costs. These factors would positively influence the development of new data storage and analysis platforms.
In railways, cloud computing uses information gathered and distributes it to one or more computer systems to perform various functions, such as railway signaling systems. Therefore, minimizing the risk of cyberattacks on critical and noncritical data would drive the railway cybersecurity market growth.
According to World Economic Forum’s “Global Risks Report 2022, 17th Edition”, cyberattacks have been classified as the fifth most significant risk in 2020. They have become the new normal in the public and private sectors. IoT cyberattacks alone are expected to double by 2025. According to GRPS, cyber security failure ranks among the top 10 risks that have worsened since the COVID-19 crisis.
Further, according to World Economic Forum’s “Global Risks Report 2022, 17th Edition”, malware attacks increased by 358% in 2020, whereas ransomware increased by 435%. It means that cyber threats are now growing faster than the ability to prevent and manage them effectively. Therefore, the demand for cyber security solutions is growing across all sectors. Railway operators worldwide adopt cyber security products and services to prevent cyberattacks. The Biden administration has taken initiatives to protect the US’s vital rail transit and passenger railroad infrastructure. Thus, the rise in cyberattack activities boosts the railway cybersecurity market growth.
COVID-19 outbreak has adversely affected many industries across the world. Passenger count in rail journeys began to decline from March 2020. By the end of Q2, passenger numbers had dropped to as low as 8% compared to normal levels.
In Q1 of 2020, key railway component manufacturers and solution providers discontinued production/service due to disrupted demand–supply chain. Further, decline in demand for mass transit and rolling stock delayed the deployment of cyber security projects on the rail.
However, by the end of financial Q2 2020, the demand for railways’ cyber security solutions and services has grown exponentially. Key players in the railway cybersecurity market has launched various solutions and services to secure railways’ operations against cyberattacks. Additionally, in 2021, railways witnessed rise in internet traffic.
The risk of cyberattacks has substantially increased in the railway industry, necessitating the deployment of cyber security solutions and services. Moreover, the growth in the risk of cyberattacks has led to the advancement in cyber security solutions, such as cloud security and AI-integrated solutions, contributing to the railway cybersecurity market growth.
The digital transformation across industries makes cyber security a crucial need for enterprises worldwide. In addition, the increasing complexity and frequency of cyber-attacks in critical industries, including logistics & transportation, energy & power, and IT & telecom, is changing the security landscape. It generates the need to establish stringent regulations and frameworks that can help tackle the fast-evolving cyber security landscape.
Various governments and regulators are formulating effective regulations, laws, and compliances related to cyber security. A few noteworthy efforts include Securities & Exchange Commission Cyber Exams (The US), National Institute of Standards and Technology (NIST) Cybersecurity Framework (The US), Office of the Superintendent of Financial Institutions (OSFI) Memorandum (Canada), General Data Protection Regulation (The EU), Network and Information Systems (NIS) Directive (The EU), National Credit Union Administration (NCUA) Risk Alert (The US), and several other country-specific laws, such as Korean Cyber Laws (Korea).