How is your organization preparing for the convergence of operational and cyber-physical systems amid rising digital threats?
As the cybersecurity landscape continues to evolve, the boundaries between OT and IT are dissolving, making room for a new domain of Cyber-Physical Systems (CPS) security. Frost & Sullivan’s latest growth webinar “Identifying Growth Opportunities in Cyber-Physical Systems and OT Security Solutions”, explored this transformation in depth. Moderated by Adrian Drozd, Growth Expert & Vice President of Research, Security at Frost & Sullivan, the session featured rich insights from:
- Danielle VanZandt, Growth Expert, Research Manager & Program Director, Security at Frost & Sullivan
- Tobias Folatelli, Growth Expert & Research Analyst, Commercial & Public Security at Frost & Sullivan
The panel delved into how organizations must rethink threat detection, remote access, AI enablement, and platform strategies across industrial, healthcare, and enterprise verticals.
Watch the full webinar here
Key Takeaways from the Webinar
- CPS Is Not Just a Buzzword, It’s a Strategic Pivot
OT security has long focused on protecting mission-critical systems like turbines and refineries through passive monitoring and protocol-specific defense. But CPS security is expanding the scope, integrating IoT devices, building management systems, and third-party infrastructure into a unified framework. CPS is now defined as any digital system with physical-world impact, requiring deeper business integration and broader visibility than traditional OT solutions.
- Real-Time Visibility and Secure Remote Access Are Table Stakes
Unlike OT security which emphasizes operational uptime and minimal interference, CPS security leans heavily on real-time data correlation and proactive threat prevention. A major differentiator is secure remote access to distributed assets, including those managed by vendors or service providers. This is essential in a world where supply chains are fragmented, and systems are not always owned in-house.
- AI Adoption Is Cautious but Purposeful
Organizations are not using AI to automate control but to enhance decision-making in high-value areas. Key use cases include:
- Automated compliance reporting for complex regulatory environments (e.g., NERC, CCPA)
- Predictive maintenance and asset utilization tracking, especially in healthcare CPS
- Security alert triage and risk prioritization, assisting SOCs without replacing human judgment
While Dragos, Forescout, Nozomi Networks, ARMIS, and TXOne are leading innovation here, the lack of OT-specific data is still a major constraint in developing robust AI models.
- IT-OT-CPS Convergence Is Real but Still Imperfect
One of the strongest undercurrents driving change is the growing need for interoperability between legacy OT, modern IT, and emerging CPS assets. However, integration challenges remain due to mismatched device lifecycles and operational priorities:
- IT favors speed, patching, and iteration
- OT prioritizes uptime, safety, and process stability
Vendor success now depends on addressing this cultural and architectural divide through simplified integration, low-friction tools, and hybrid solutions.
- Moving Beyond Why to How in CPS and OT Security or Empowering Enterprises to Act on CPS and OT Security Priorities
Organizations now understand the “why” behind CPS and OT security. The new question is: Where do we start? Vendor roles are evolving from product sellers to strategic partners, guiding clients through phased adoption, framework alignment, and tailored security architecture. This is especially crucial as even mid-sized, less-regulated enterprises are beginning to adopt industry-grade security protocols from sectors like oil & gas and transportation.
Why This Matters in 2025
CPS and OT security are no longer niche concerns, they are boardroom-level imperatives. The Frost & Sullivan webinar emphasized how vendors and enterprises alike must adapt to a more connected, diverse, and risk-prone ecosystem. Key implications include:
- Shift from isolated OT defense to ecosystem-wide visibility
- Need for on-demand surge protection teams and managed detection
- AI as a support system for operators, not a replacement
- Platform consolidation as a growth enabler
- Emergence of vertical-specific CPS subsegments (healthcare, enterprise)
Watch the full webinar by clicking here
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Annexure: Frost & Sullivan Security Analyses
Frost & Sullivan has curated analyses that highlight growth opportunities, strategic imperatives, and technological advancements across the security landscape, offering critical insights for strengthening threat resilience, accelerating innovation, and enabling secure digital transformation. The analyses covered are:
- Data Security Posture Management Market
- External Attack Surface Management Sector
- Global Surveillance Solutions Growth Opportunities
- Extended Detection and Response (XDR) Industry
- Cloud-native Application Protection Platform (CNAPP) Market
- Cloud/Application Runtime Security (CARS) Market
Abbreviations:
CPS – Cyber-Physical Systems, OT – Operational Technology, IT – Information Technology, AI – Artificial Intelligence, SOC – Security Operations Center, APAC – Asia-Pacific, CAGR – Compound Annual Growth Rate, ADR – Application Detection and Response, CI/CD – Continuous Integration / Continuous Deployment, IoT – Internet of Things, US – United States, NERC – North American Electric Reliability Corporation, CCPA – California Consumer Privacy Act, TXOne – (Brand name; not an acronym)
