Cybersecurity in Oil and Gas - Thematic Research

Cybersecurity in Oil and Gas - Thematic Research

Summary

May 2022 marked the one- year anniversary of the Colonial Pipeline attack. The event in 2021 was nothing short of a wake- up call for the oil and gas industry, which has in recent years embraced the benefits of digital technologies, whilest being relatively naïve about its associated risks. However, a year later and oil and gas companies still remain highly vulnerable to cyber- threats as their digitalization continues to take place at breakneck speed. This report discusses how cybersecurity is impacting the oil and gas industry, how this market is expected to grow in the future, as well as the industry's leaders and laggards.

Cybersecurity has never been more critical to oil and gas

The Colonial Pipeline attack in May 2021 was a wake-up call that highlighted the vulnerability of the oil and gas industry to cyber threats. Cyber threats have always presented a risk to oil and gas companies. However, several factors, such as COVID-19 and the industry’s digitalization, have heightened the sector's vulnerability. For example, the former caused a rapid increase in cyberattacks as cyber criminals exploited the disruption caused by widespread lockdowns.

Energy’s cybersecurity market will continue its growth

As critical national infrastructure, oil and gas companies are key targets for cyber criminals. Cyberattacks on oil and gas companies promise maximum disruption and extortion opportunities. As a result, leading oil and gas companies are fortifying their cybersecurity posture by investing heavily in this theme. GlobalData predicts cybersecurity spending within energy will reach almost $10 billion by 2025. Robust cybersecurity is no longer just a case of best practice but is critical to the safe and reliable operation of companies within the oil and gas industry.

Increasing digitalization will bring risks as well as rewards

As the oil and gas industry undergoes digitalization, the cybersecurity market within the sector will also experience growth. Companies that maintain cybersecurity as a central tenet of their digital strategy stand to gain the most—however, companies failing to sufficiently invest in cybersecurity face financial and reputational harm. Finally, technology vendors that recognize the industry's specific requirements, such as the challenge of protecting aging industrial assets, will become leaders within the oil and gas cybersecurity market.

Leaders and laggards

GlobalData’s cybersecurity value chain for oil and gas is broken down into tech vendors within cybersecurity more broadly, tech vendors specializing in oil and gas, and the industry’s leading adopters of cybersecurity. Listed below are some of the leaders and laggards within cybersecurity in oil and gas.

Cybersecurity tech vendors specializing in oil and gas

  • Leaders: Siemens Energy, RigNet, Fortinet, Forescout, Mission Secure, Sectrio, Kognitiv Spark, XONA, Darktrace, EY.
Oil and gas cybersecurity adopters
  • Leaders: OMV, ExxonMobil, Equinor.
  • Laggards: Shell, Saudi Aramco, Chevron, Reliance Industries, Rosneft.
Key Highlights
  • The Colonial Pipeline attack in May 2021 was a wake-up call that stoked cybersecurity concerns in the oil and gas industry and beyond. GlobalData’s Emerging Technology: Sentiment Analysis Q1 2022 illustrates that the reverberations from this event are still being felt. Cybersecurity was ranked the second most disruptive theme behind artificial intelligence (AI), with just under 63% of respondents indicating that they expected cybersecurity to disrupt their industry in the next year. The critical nature of oil and gas infrastructure in an increasingly unstable world will heighten the risk of cyberattacks.
  • On March 21, 2022, President Biden said intelligence indicated Russia was exploring a cyberattack against the US. He urged critical infrastructure owners and operators to “accelerate efforts to lock their digital doors.” The capacity for severe disruption, combined with the convergence of OT and IT and inadequately protected oil and gas infrastructure, will see oil and gas companies become prime targets during future conflicts. The ever-increasing threat of cyberattacks will drive an increase in cybersecurity spending. Global cybersecurity revenues are expected to reach $198 billion in 2025, recording a compound annual growth rate (CAGR) of 9.5% between 2020 and 2025. The energy industry will be an important driver of increasing cybersecurity revenues globally. Cybersecurity is the most mentioned technology theme in oil and gas company filings. In 2021, cybersecurity appeared over 10,800 times, an 11% increase from the previous year. This illustrates how events such as the cyberattack on the Colonial Pipeline have increased engagement with this theme, making it a chief concern for the industry.
Scope
  • The detailed value chain is comprised of hardware, software, and services. The value chain is further broken down into chip-based security, identity management, network security, endpoint security, threat detection and response, cloud security, data security, email security, application security, unified threat management, vulnerability management, managed security services, post-breach response services and risk and compliance services. Leading and challenging vendors are identified across all of the value chain's segments.
  • Challenges the oil and gas sector is currently facing are outlined, and how these interact with the theme of cybersecurity are explored. Details case studies of how oil and gas companies are boosting their cybersecurity posture are also given.
  • Forecasts of cybersecurity revenues to 2025 are split by hardware, software, and services. An overview of key mergers and acquisitions between oil and gas companies and cybersecurity vendors between March 2021 to April 2022 is provided. A comprehensive industry analysis is also provided, looking at company filings, hiring, and social media trends related to cybersecurity within the oil and gas sector.
  • A timeline highlighting key milestones in the relationship between cybersecurity and the oil and gas sector is given. A list of leading cybesrecurity technology vendors, a separate list of cybersecurity vendors specific to oil and gas, and leading industry adopters is provided. Finally, thematic scorecards rank integrated oil and gas companies on 10 themes including cybersecurity.
Reasons to Buy
  • To understand the impact cybersecurity is having on the oil and gas industry.
  • To identify the emerging trends in this theme and how these developments might advance in the future.
  • Learn about the different use cases of cybersecurity in the oil and gas and how cybersecurity relates to the sector's challenges. View market forecast data for cybersecurity technology up to 2030.
  • Source the leading cybersecurity vendors for the oil and gas sector from our winners lists and shortlist potential partners based on their areas of expertise. GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.


  • Executive Summary
  • Cybersecurity Value Chain
    • Key cybersecurity players
      • Table Figure 1: This graphic displays the key players in the cybersecurity value chain
      • Table Figure 2: The cybersecurity value chain
    • Cybersecurity hardware
      • Chip-based security
        • Table Figure 3: The cybersecurity value chain - hardware
    • Cybersecurity software
      • Identity management
        • Table Figure 4: The cybersecurity value chain - software - Identity management: leaders and challengers
      • Network security
        • Table Figure 5: The cybersecurity value chain - software - Network security: leaders and challengers
      • Endpoint security
        • Table Figure 6: The cybersecurity value chain - software - Endpoint security: leaders and challengers
      • Threat detection and response
        • Table Figure 7: The cybersecurity value chain - software - Threat detection and response: leaders and challengers
      • Cloud security
        • Table Figure 8: The cybersecurity value chain - software - Cloud security: leaders and challengers
      • Data security
        • Table Figure 9: The cybersecurity value chain - software - Data security: leaders and challengers
      • Email security
        • Table Figure 10: The cybersecurity value chain - software - Email security: leaders and challengers
      • Application security
        • Table Figure 11: The cybersecurity value chain - software - Application security: leaders and challengers
      • Unified threat management
        • Table Figure 12: The cybersecurity value chain - software - Unified threat management: leaders and challengers
      • Vulnerability management
        • Table Figure 13: The cybersecurity value chain - software - Vulnerability management: leaders and challengers
    • Cybersecurity services
      • Managed security services
        • Table Figure 14: The cybersecurity value chain - services - Managed security services: leaders and challengers
      • Post-breach response services
        • Table Figure 15: The cybersecurity value chain - services - Post-breach response services: leaders and challengers
      • Risk and compliance services
        • Table Figure 16: The cybersecurity value chain - services - Risk and compliance services: leaders and challengers
  • Oil and Gas Challenges
    • Table Figure 17: 63% of respondents indicated that they expected cybersecurity to disrupt their industry
    • Table Key challenges facing the oil and gas sector
  • The Impact of Cybersecurity on Oil and Gas
    • Table Figure 18: A broad approach to investing in the cybersecurity value chain is required
    • How the challenge of COVID-19 accelerates the need for cybersecurity
    • How the challenge of geopolitics accelerates the need for cybersecurity
    • How the challenge of ESG accelerates the need for cybersecurity
    • How the challenge of digitalization accelerates the need for cybersecurity
    • How the challenge of a workforce skills gap accelerates the need for cybersecurity
  • Case Studies
    • PDO works with Hexagon to improve cybersecurity best practice
    • Forescout helps leading oil and gas companies implement OT network monitoring
    • OMV upgrades employee cybersecurity awareness
      • Table Figure 19: OMV's key digital initiatives
  • Data Analysis
    • Market size and growth forecasts
      • Table Figure 20: Cybersecurity revenue in the energy industry will reach almost $10 billion by 2025
      • Table Figure 21: Managed security services are the largest contributors to cybersecurity revenues from 2020 to 2025
      • Table Figure 22: Endpoint security platforms in energy will experience strong growth between 2020 and 2025
    • Mergers and acquisitions
      • Table Mergers and acquisitions
    • Patent trends
      • Table Figure 23: Cybersecurity patents increased as the oil and gas industry responded to the pandemic
      • Table Figure 24: Cybersecurity was among the top five tech themes driving patents in oil and gas
      • Table Figure 25: Cybersecurity patents are concentrated within particular companies and regions
    • Company filings trends
      • Table Figure 26: Cybersecurity is the most talked about technology theme in the oil and gas industry
      • Table Figure 27: Company filing analytics suggests engagement with cybersecurity remains uneven across the sector
    • Hiring trends
      • Table Figure 28: Cybersecurity is one of the top five tech themes driving hiring in oil and gas
      • Table Figure 29: Active cybersecurity jobs increased substantially throughout 2021
      • Table Figure 30: Several major oil and gas companies are heavily recruiting cybersecurity professionals
      • Chief information security officers (CISOs)
        • Table Chief information security officers (CISOs)
    • Social media trends
      • Table Figure 31: Social media posts are grouped around high profile cyber breaches of oil and gas companies
    • Cybersecurity timeline
      • Table Figure 32: The cybersecurity story
  • Companies
    • Leading cybersec1urity adopters in oil and gas
      • Table Leading cybersec1urity adopters in oil and gas
    • Leading cybersecurity vendors
      • Table Leading cybersecurity vendors
    • Specialist cybersecurity vendors in oil and gas
      • Table Specialist cybersecurity vendors in oil and gas
  • Sector Scorecard
    • Integrated oil and gas sector scorecard
      • Who's who
        • Table Figure 33: Who does what in the integrated oil and gas space?
      • Thematic screen
        • Table Figure 34: Thematic screen
      • Valuation screen
        • Table Figure 35: Valuation screen
      • Risk screen
        • Table Figure 36: Risk screen
  • Glossary
    • Table Glossary
  • Further Reading
    • GlobalData reports
      • Table GlobalData reports
  • Our thematic research methodology
    • Table Figure 37: Our five-step approach for generating a sector scorecard
  • About GlobalData
  • Contact Us

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook
Cookie Settings