Demand grows for OT cybersecurity

China's rapid industrial internet growth is spurring huge demand for operational technology cybersecurity solutions, said Russian cybersecurity company Kaspersky, adding that it is bullish on the sector's future development potential.

OT cybersecurity means the protection of industrial environments which involve machinery, programmable logic controllers, and communication across industrial protocols, as connecting devices to networks exposes them to risks such as technical vulnerabilities, cyberattacks and information security threats.

Kirill Naboyshchikov, team lead for product marketing at Kaspersky, said China ranked second globally in sales volumes for Kaspersky Industrial CyberSecurity, the company's primary OT cybersecurity platform, trailing Russia.

Naboyshchikov said that market needs for OT cybersecurity solutions may continue to expand in China, as the country's industrial internet sector is experiencing rapid growth, with great achievements seen in the internet of things, edge computing, advanced automation and transportation technologies.

"What we're trying to do is keeping up with the current demand in providing security solutions to these advanced technologies. We're now working to equip the fast-growing automotive industry in China with security products," Naboyshchikov said. "Right now, we have gateways for personal vehicles, trucks, railways and potentially future aviation industry applications. We are also developing cloud-based cybersecurity monitoring centers for car manufacturers."

Evgeniy Goncharov, head of industrial control systems at Kaspersky, noted that Chinese industrial enterprises have a strong awareness of cybersecurity. He explained that while industrial internet security risks often stem from operators accessing the internet or using USB devices, Chinese clients' exposure to cyber threats has dropped considerably over the years.

China's industrial internet cybersecurity sector has seen remarkable growth over the years. According to data service provider International Data Corp (IDC), the market size for industrial internet cybersecurity management platforms in China reached 680 million yuan ($93.7 million) in 2023, an 18.5 percent year-on-year increase.

This growth has attracted numerous cybersecurity companies, including both comprehensive network security firms and specialized industrial internet cybersecurity providers, said IDC, adding that an increasing number of businesses are expanding investment in this sector, spurring a booming market.

Experts noted that with the government ramping up support for industrial internet, its technological advancement and expansion of application scenarios, OT cybersecurity is poised for further growth. The latest data from China's Ministry of Industry and Information Technology show the scale of industrial internet reached 1.35 trillion yuan last year, covering all industrial sectors.

Yu Mengda, general manager of industrial cybersecurity at SUPCON Technology Co Ltd, an intelligent manufacturing service provider in Zhejiang province, noted that Chinese companies have developed robust capabilities in securing industrial internet and generally offer competitive pricing. In contrast, foreign firms like Kaspersky bring global threat intelligence and extensive research expertise to the table.

Yu said that attacks on control systems usually fall into two categories: targeted malicious code exploiting controller vulnerabilities or protocol flaws, and common ransomware viruses from the internet. He pointed out that IT-targeted viruses affecting industrial control networks are quite common, impacting production operations.

"For example, a ransomware virus infecting control system software can encrypt data, disrupting the visibility of complex production processes and affecting operations. Therefore, understanding malicious software characteristics is crucial, and a large virus database becomes essential in such scenarios," he said.

Cooperation between Chinese and foreign industrial internet cybersecurity companies could yield win-win results, he added.

To adapt to the local market, Kaspersky has made several adjustments. "We are decentralizing the interface, integrating with Chinese automation system vendors and conducting security research on products commonly seen in the Chinese market," Naboyshchikov said.