Advancing digitalization in energy, transportation, healthcare, and public administration is not only delivering efficiency gains—it is also creating new vulnerabilities. The latest report from Marketsandmarkets shows how dynamically the market for Critical Infrastructure Protection (CIP) is growing: from $153.93 billion in 2025 to $197.13 billion in 2030 – an increase with an annual growth rate of 5.1%.
Drivers: IoT, cloud, and AI
More and more IoT devices and networked systems are being used in critical sectors. This increases the risk of so-called cyber-physical threats, i.e., attacks that can affect both IT systems and physical assets. Modern CIP solutions therefore rely on a combination of real-time monitoring, intelligent threat detection, and automated resilience control. Technologies such as cloud, artificial intelligence, and advanced analytics increase situational awareness and shorten response times in emergencies—a crucial factor in maintaining operational and supply security.
Physical security dominates
Even though cybersecurity receives a lot of attention, physical security remains the largest market segment. The focus here is on protecting facilities, personnel, and assets from intrusion attempts, theft, or terrorist threats. Video surveillance, access control, perimeter protection, and intrusion detection systems are now standard in sensitive infrastructures. Their performance is enhanced by the integration of AI, IoT, and analytics, which not only document incidents but also actively recognize patterns and initiate countermeasures.
Systems as growth drivers
Within physical security, the largest share is accounted for by the systems segment. This includes biometric access control, fire and security systems, drone and counter-drone systems, and sophisticated sensor networks. Infrastructure modernization, smart city projects, and the central control of complex facility environments are driving demand in particular. Automation and networking make it possible to detect threats in real time and initiate protective measures immediately.
Growth region: Middle East & Africa
The market in the Middle East & Africa (MEA) region is developing particularly dynamically. This is driven by billions of dollars of investment in oil and gas facilities, energy projects, transport, and urban infrastructure. In view of geopolitical tensions and terrorist threats, governments are placing greater emphasis on national security strategies and CIP initiatives. At the same time, smart city projects and international partnerships with leading CIP providers are accelerating the expansion of modern protection systems.
European perspective: Regulation as a key factor
Europe is also facing growing challenges, particularly from hybrid threats to energy supplies, rail networks, airports, and digital administrative structures. With the NIS 2 Directive and the Critical Entities Resilience (CER) Directive, the EU has created binding frameworks that member states must implement by 2025. The aim is to establish uniform security standards for critical infrastructures – from energy and transport to banking and public health.
In Germany, the IT Security Act 2.0 plays a central role, obliging operators of critical infrastructures to comply with stricter reporting and security requirements. At the same time, companies and public authorities are investing in sovereign cloud solutions and AI-based anomaly detection to increase resilience. CIP made in Europe is gaining strategic importance, particularly in the energy sector – for example, in the integration of renewable energies and smart grids.
Global players in competition
Competition in the CIP market is dominated by large international corporations. BAE Systems, Lockheed Martin, General Dynamics, Northrop Grumman, Honeywell, Airbus, Thales, Hexagon, Johnson Controls, and Motorola Solutions are among the key players. In Europe, Airbus and Thales play a key role: they develop security solutions that not only combine cyber and physical threats, but also support European sovereignty goals in the area of digital infrastructure.
Conclusion
The threat situation for critical infrastructure is shifting from classic cyberattacks to hybrid attacks that combine digital and physical levels. This increases the importance of integrated CIP solutions that holistically combine prevention, detection, and response. While regions such as the Middle East are investing heavily in new systems, Europe is focusing on regulatory compliance and sovereign technologies. Both will contribute to making security a prerequisite for digital transformation and national resilience.
