Scaling cybersecurity in robotics businesses

During the forecast period, cybersecurity in the robotics market is anticipated to grow at a consistent CAGR of 11.7%.

In 2023, the market is projected to generate $3.8 billion in sales, and by 2033, it is predicted to reach $11.6 billion in value.

The increased use of robotics and autonomous machines, according to the market research report, is driving end users to look for cybersecurity solutions. In order to automate many industries, artificial intelligence, and robotics are also combined. The burgeoning robotics and self-working tool industries are popular with the elderly population.

The growing number of cyberattacks on robotic and autonomous systems is encouraging the widespread use of cyber-security in these systems. It increases the end user company’s loss by a factor of several. Robotic cyberattacks are becoming more prevalent due to the increased adoption of smart technology. Common cyber-attacks include distributed denial of service (DDoS), spoofing, man-in-the-middle, tapering, and reply attack.

“At the hardware, firmware/OS, and application levels, robots are vulnerable to cyberattacks. As a result, there is a huge increase in demand for cybersecurity management services. Additionally, the demand for cybersecurity in robotics market is being fuelled by the greater adoption of artificial intelligence, machine learning, robotics, and automation in all other verticals. By implementing robotic cyber-security solutions, businesses are bolstering their security wall. Additionally, built-in systems that provide cyber safety and security are changing how the market is growing,” says a Senior Research Analyst at FMI

Growth drivers flourishing the cybersecurity in robotics market

The market is being driven by the quick automation of many sectors and the increased use of big data, machine learning, and artificial intelligence. Additionally, there is an increasing need for robotic technology across a range of sectors, including security, space exploration, entertainment, healthcare, and underwater exploration. Additionally, there are commercial uses in the manufacturing, food preparation, military, and customer service industries.

The demand for cybersecurity solutions for robots and autonomous systems is being driven by the increased financial and data theft threats from cyberattacks. These technologies allow for immediate danger identification and reaction, shielding the business from irreparable harm. Robotics and artificial intelligence work together to foresee dangers and stop the spread of viruses. Emergency personnel are typically alerted when eldercare robots are needed. Additionally, it is employed to give out prescribed medication and inform medical personnel about the patient’s health. These cyberattacks on these medical robots have the potential to destroy critical data and endanger the user. Therefore, the business introducing its robots is preinstalling cybersecurity programmes.

Industry landscape

Industrial robots are outfitted with firewall devices by organisations since cyberattacks on them can result in significant financial losses.

Type-wise, the industrial robot market segment dominates with a market share of 26.7% in 2022. The automation of repetitive operations by goods makers is blamed for the development. These robots are also becoming more vulnerable to security threats due to the introduction of cutting-edge innovative technology and AI-based features.

Easy identification, fair estimation, and prioritised risk have made segmental growth successful.

In terms of service type, the security assessment category is in the lead thanks to its 34.3% market share in 2022. The characteristics of cybersecurity in robotics systems, such as high-risk identification, early detection, and potential threat confirmation, are credited with the segment’s expansion.

Role of cybersecurity in robotics manufacturers providers to scale their businesses in the market

Market players in the market are working on the following strategies.

Why are the US and robotics thought to be lucrative markets for cybersecurity?

The market is being driven by brands that specialise in data security and the use of AI for business expansion. In terms of market share, the US market dominates North America. In 2022, the area had a market share of 38.6%. In 2022, the North American region accounted for 42.4% of the global market.

Robotics is being used more frequently across a variety of industries in the US, which is attributable to the rising frequency of cyber-attacks and security difficulties. In addition to this, numerous data security firms are attempting to grow their operations in the US.

Organisations are being pushed to introduce next-generation security platforms and systems by the region’s expanding demand for IoT implementation. They also expected assistance in ensuring the secure deployment of cloud services and protecting business networks from cyberattacks.

How does Japan fare in the market for robotics’ cybersecurity?

Japan, a hub for robotics and technology, is implementing cutting-edge novel solutions. In 2022, the market in Japan had a 4.7% market share. The demand for robots used in vehicle manufacturing and elder care is driving the development. The growing elderly population in Japan is supporting the industry, which is anticipated to grow throughout the forecast period.

According to World Bank statistics, 28.3% of Japan’s population was 65 years of age or older in 2020. As a result, sales of elder care robots increase. Consequently, the need for cybersecurity systems in robotics is increasing.

What makes the UK another prominent market for cybersecurity in the robotics market?

The UK strengthens its robotic security layer by forming partnerships to implement new solutions.

During the forecast period, the market in the UK expands at a CAGR of 11.6%. The expansion is linked to the UK’s expanding need for robotics solutions across a variety of industries. As a result, Europe maintained a 31.8% market share in 2022. The partnership strategy is the main focus of many cybersecurity firms operating in the UK. Co-developing cutting-edge solutions for use in industries with participants from other nations.

Competition scenario

Due to its extreme fragmentation and intense competition, the worldwide robotics industry for cybersecurity is very dynamic. The goal is to raise public awareness of robots’ use of cybersecurity and how it affects its expanding market. Additionally, by conducting certification and awareness programs linked to various solutions, the key players hope to enhance their skills and knowledge.

Market developments

In January 2022, Veriff, an identity verification service company collaborated with Starship Technologies. It is a Tallinn-based developer of small self-driving robotic delivery vehicles. The mergers are key to expanding the sales funnel for both brands.

Japan and the EU Commission teamed up to strengthen their research and innovation activities for enhanced security solutions for robotics and autonomous machines.

Global X has stated that it had initiated the Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) fund. The company is a provider of exchange-traded funds based in New York. The fund aided the company in capitalising on global disruption with numerous technologies.

These insights are based on a report on ‘Cybersecurity in Robotics Market by Future Market Insights.

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