Construction Cybersecurity Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024 – 2032

Construction Cybersecurity Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024 – 2032

The Global Construction Cybersecurity Market was valued at USD 6.9 billion in 2023. Projections indicate a growth of over 18% CAGR from 2024 to 2032, driven by the rising digitalization within the construction sector. Industry players are increasingly launching digital initiatives, aiming to revolutionize the sector through the adoption of advanced technologies.

Cyberattacks, including ransomware, phishing, and data breaches, are increasingly targeting the construction sector. For example, in October 2023, Simpson Manufacturing Company, known for its wood and concrete construction products, reported disruptions to its IT infrastructure due to a cybersecurity incident. This event impacted various facets of the company's operations. Such escalating threats underscore the rising demand for cybersecurity solutions tailored for construction firms.

Another notable trend in the market is the heightened integration of IoT devices and connected technologies at job sites, aimed at boosting efficiency and productivity. Construction firms are leveraging smart sensors, connected machinery, and drones for monitoring and automation. While these advancements optimize operations, they simultaneously heighten cybersecurity concerns. Consequently, there is a surge in demand for cybersecurity solutions safeguarding these connected devices, leading to the creation of specialized IoT security measures tailored for construction settings.

The overall industry is divided based on component, deployment model, enterprise size, functional area, end-user industry, and region.

The large enterprises accounted for over 65% share in 2023 and are projected to surpass USD 16.5 billion by 2032. These major construction firms manage high-value assets, from intellectual property and proprietary designs to sensitive client data. The imperative to shield these assets from cyber threats fuels the demand for robust cybersecurity measures. Furthermore, with a vast network of contractors, suppliers, and partners, these firms recognize the importance of securing their integrated supply chains. Such vigilance is essential to avert breaches that could jeopardize entire projects, amplifying the necessity for comprehensive cybersecurity strategies, especially in managing third-party risks.

The commercial construction segment represented approximately 39% share in 2023. Commercial buildings often incorporate intricate systems for HVAC, lighting, security, and energy management. These interconnected systems, managed through digital platforms, are susceptible to cyber threats, underscoring the demand for specialized cybersecurity measures. Moreover, commercial construction endeavors produce and archive vast amounts of critical data, from blueprints and financial records to proprietary designs, making them prime targets for cybercriminals.

North America, particularly the U.S., commanded a dominant 40% share of the construction cybersecurity market in 2023, with expectations of significant expansion through 2032. The region's swift adoption of advanced technologies, such as IoT, BIM, and cloud-based project management tools, has enhanced efficiency and project oversight. However, this technological embrace has also ushered in new cyber risks.