Global Smart Building Security Services Present Massive Opportunity for Channel

The market for information technology/operational technology (IT/OT) security services in smart buildings is set to explode in the coming years, reaching nearly $900 million by 2022.

That’s according to a new analysis by Frost and Sullivan. Widespread digitization of building operations and increasing cyberattacks on operational environments are driving adoption of these security services.

The market for these services is increasing at a record compound annual growth rate (CAGR) of 37%, with major growth opportunities arising from EMEA and APAC.

Tony Massimini, senior industry analyst, information and network security at Frost and Sullivan, tells Channel Partners this is all about convergence of IT and OT, “two silos that have been separated for a long time.”

Frost & Sullivan’s Tony Massimini

“Companies are trying to bridge these silos for better operational efficiencies, but that opens vulnerabilities,” he said. “Devices may have old vulnerabilities that have not been found. It’s important to have the technology to get visibility into these devices so they can do asset monitoring and auditing to determine what security is needed.”

In 2018, the Americas accounted for 43.6% of total revenue share, followed closely by EMEA at 40.7%, while APAC was a distant third at 15.7%. However, with a majority of opportunities for IT/OT security solution vendors expected from EMEA and APAC, this is set to turn around.

The technology is available, through channel providers like Fortinet and Forescout, to provide threat hunting, automation, machine learning and AI to make it easier for customers to deal with the cybersecurity skills shortage while protecting these environments, Massimini said.

“It’s still in the early stages, so marketing and education are important to continue to drive security into this convergence,” he said.

The proliferation of IoT devices poses a particular threat to industries like health care, finance and hospitality, Massimini said.

Vendors in IT/OT security can capitalize on this development by:

“Today, smart devices control building management activities, including temperature control, access and lighting control, communication and safety systems in many enterprises,” said Swetha Krishnamoorthi, industry analyst at Frost and Sullivan. “Such converged IT/OT environment has made enterprises more vulnerable to cyberattacks. With diverse protocols, hardware and software systems, the OT devices controlling building operations provide a heterogeneous environment. Coupled with IT devices and a common network connection, the attack surface expands, providing a thriving ground for cyber adversaries to play on.”