Fewer than 50 per cent of manufacturing firms are prepared for the threat of cyber security breaches according to a major new survey by researchers Omdia.
And cyber attacks are on the increase across the sector as information technology (IT) and operational technology (OT) converge — creating greater opportunities but leading to increased risk.
The Omdia survey, produced in partnership with Telstra International, the global arm of telecommunications and technology company Telstra, revealed that 80 per cent of manufacturing firms had experienced a significant increase in overall security incidents and breaches in 2024.
And the heightened risk of cyber attacks comes as manufacturers move to leverage IT such as cloud, AI and Internet of Things (IoT) as part of their digital transformation — the umbrella process known as Industry 4.0.
Ganesh Narayanan, Telstra International’s Global Head of Cyber Security, said: “IT and OT integration create enormous value for organisations across industries, although organisations must address risks to unlock its potential.
“Organisations should prioritise IT/OT and IoT security across six core areas: collaboration and planning; defining a strategy; bolstering technical expertise; assigning responsibility and accountability; leveraging the right tools; and expediting readiness with standards.”
It is clear that while the convergence of IT with traditional OT can increase scale, resilience and efficiency in operations, it also increases the attack surface for cyber threats.
And Adam Etherington, Senior Principal Analyst at Omdia, said: “Our study illuminates critical attack vectors and lessons learned and provides timely advice for any executive responsible for IT and OT.
“More pervasive connectivity between IT and OT is essential across greenfield and brownfield manufacturing system design and enhancements. Step change improvements to innovation, availability, safety and security require firms to harness cloud, IoT, AI and private networks, with IT/OT convergence bringing these technologies to life.
“However, most firms have been hit with expensive outages and security incidents while traditional security controls, policies and culture struggle to keep pace. Given the magnitude of downtime costs from any breach or network incident that impacted operations, it’s important to better understand the causes for proactive remediation.”
Callum Thompson, CEO of Business Energy Claims, works with manufacturers across the UK and he added: “This is yet another example of firms facing an additional cost at a time when finances are already stretched to the limit. However, a proactive approach to cyber security is a necessary insurance policy in 2025. It’s something the manufacturing sector needs to be aware of — just as firms need to be on the ball when it comes to securing fair and competitive quotes for energy.”
Read the full Omdia report here.