Global Cyber Attacks on Manufacturers Increase Sharply
A recent Omdia report commissioned by Telstra International highlights a surge in cyber attacks on manufacturing firms. The study reveals that 80% of manufacturers experienced security breaches last year, yet only 45% are adequately prepared. With the rise of Industry 4.0 and IT-OT convergence, the industry faces heightened cyber risks.
IT-OT Convergence Expands Attack Surface
Manufacturers are rapidly integrating operational technology (OT) with information technology (IT) to drive efficiency, resilience, and innovation. IT-OT security in manufacturing is critical to address these issues. The report notes that 70% of North American, Latin American, and European OT systems will soon be linked to corporate IT networks, up from 50%. In Asia & Oceania, connectivity will rise from 40% to 60%. However, this integration has made critical infrastructure more vulnerable to cyber threats.
Cyber Attacks Cause Costly Downtime
The financial impact of cyber incidents is severe. The report found that 62% of manufacturers faced resilience or availability issues due to attacks, with downtime costs between $200,000 and $2 million per incident. Most attacks targeted enterprise and corporate systems, disrupting production control and operations. IT-OT security in manufacturing must be robust to prevent such costly incidents.
Most Attacks Originate in IT, Impacting OT
A key finding in the report is that 75% of cyber attacks started in IT systems but spread to OT environments, disrupting manufacturing operations. The most common threats included advanced persistent threats (APTs), malware, and distributed denial-of-service (DDoS) attacks. The vulnerability was highest at Level 4 of the IT/OT stack, where corporate and enterprise systems operate. IT-OT security in manufacturing settings must account for these threats.
Traditional Air Gapping No Longer Sufficient
Historically, manufacturers relied on air gapping—isolating OT systems from IT networks—to secure operations. However, as IT-OT convergence accelerates, this approach is becoming obsolete. Cybersecurity experts urge manufacturers to adopt advanced security measures such as zero-trust architecture, micro-segmentation, and next-generation firewalls. These measures are vital for IT-OT security in manufacturing.
Security Responsibility Remains Fragmented
One of the biggest challenges in securing IT/OT environments is the lack of clear security ownership. The study found that only 20% of firms assign IT/OT security responsibility to a Chief Information Security Officer (CISO). In contrast, others distribute the responsibility among Chief Risk Officers (CROs), Chief Technology Officers (CTOs), and operational leaders. This fragmented approach leaves gaps in security strategy and response. To enhance IT-OT security in manufacturing, clear responsibility must be assigned.
Manufacturers Turn to Outsourcing for Cybersecurity
Given the complexity of IT/OT security and the shortage of skilled professionals, manufacturers are increasingly outsourcing their cybersecurity operations. The report states that 51% of North American firms, 43% of Asia Pacific firms, and 37% of European and Latin American firms plan to outsource IT/OT security within the next 18 months. Outsourcing can significantly enhance IT-OT security in manufacturing by leveraging external expertise.
Urgent Need for Proactive Cybersecurity Strategies
The report recommends six key areas of focus:
- Collaboration and Planning – Firms should align IT and OT security strategies across all levels.
- Defining a Security Strategy – Clear policies must be established for IT/OT security integration.
- Technical Expertise – Investing in skilled professionals and third-party cybersecurity services is crucial.
- Assigning Accountability – A single executive or team must oversee IT/OT security to ensure accountability.
- Leveraging Security Tools – Organizations should implement AI-powered threat detection, next-gen firewalls, and automated security solutions.
- Meeting Compliance Standards – Following frameworks like NIST CSF and ISA-95 ensures industry-wide best practices.
The Future of IT/OT Security in Manufacturing
Securing IT and OT environments must be a top priority as digital transformation continues. The rising cost of cyber attacks and increased regulatory scrutiny must result in the adoption of stronger cybersecurity measures. The report underscores that those who fail to act risk financial losses, operational downtime, and reputational damage. As such, IT-OT security in manufacturing is not just a technical challenge, but a strategic necessity.
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