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
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