Think Your Firewall is Enough?
As industries become increasingly digitized, Industrial IoT (IIoT) security is now a critical concern for organizations operating in manufacturing, energy, oil & gas, and other industrial sectors. Traditional perimeter-based security measures, like firewalls and air-gapped networks, are no longer sufficient in a world where connected sensors, remote monitoring, and cloud-based control systems have blurred the boundaries between IT and operational technology (OT).
With cyber threats targeting critical infrastructure, ransomware attacks surging, and nation-state actors actively exploiting OT vulnerabilities, industrial organizations must rethink their security approach. In 2025, the biggest IIoT security risks include supply chain attacks, ransomware targeting industrial operations, and unpatched legacy systems.
This blog explores the evolving threat landscape of Industrial IoT and how modular, secure-by-design IIoT solutions can help mitigate these risks.
Industrial IoT Security: A Growing Challenge
The Industrial IoT market is expanding rapidly, with global IoT spending expected to surpass $1 trillion by 2026, growing at a 10.4% compound annual growth rate (CAGR) from 2023 to 2027 (IDC). However, as industries scale their IoT deployments, cyber threats are evolving in parallel.
According to McKinsey & Company, cyberattacks on industrial and critical infrastructure targets have increased significantly, with cybercrime costing the global economy an estimated $10.5 trillion annually by 2025. A Boston Consulting Group (BCG) report highlights that 69% of industrial companies have suffered at least one security breach in their OT environment in the past two years, many of which disrupted operations.
Why Traditional Security is No Longer Enough
Historically, industrial environments relied on perimeter security, assuming that firewalls, VPNs, and air-gaps would keep industrial control systems (ICS) isolated from external threats. However, modern IIoT adoption has dissolved these traditional barriers:
- Legacy OT Systems Are Insecure: Many SCADA systems, PLCs, and industrial control systems were designed decades ago, lacking built-in security features. Nearly 50% of all industrial devices currently in use run outdated firmware that cannot be patched (Gartner).
- The IT/OT Convergence Problem: The integration of IT and OT networks has created new attack vectors, allowing ransomware, supply chain attacks, and phishing campaigns to impact industrial operations.
- Supply Chain Risks: 60% of cyberattacks on industrial organizations now originate from compromised third-party vendors (McKinsey).
- Rise of Ransomware Attacks on Critical Infrastructure: The Colonial Pipeline ransomware attack disrupted fuel supplies across the U.S. in 2021, and ransomware attacks on OT environments increased by 87% in 2024 (IDC).
Emerging Threats in Industrial IoT Security
1. Ransomware is Now an OT Crisis
Ransomware attacks are no longer just an IT problem. In 2024, three out of four ransomware attacks on industrial organizations led to disruptions in physical production (Dragos). Unlike traditional ransomware, which encrypts data, OT ransomware shuts down physical operations, causing financial losses and safety hazards.
Examples of recent industrial ransomware incidents:
- Colonial Pipeline (2021): The ransomware attack led to a shutdown of 5,500 miles of pipeline, causing nationwide fuel shortages. (TechTarget)
- Norsk Hydro (2019): The attack cost the company $70–80 million and forced manual operations in its aluminum plants. (Microsoft)
- JBS Meat Processing (2021): Ransomware disrupted 20% of the U.S. meat supply, demonstrating the vulnerability of food processing and supply chains. (Mitnick Security)
2. Supply Chain Cyberattacks
The SolarWinds breach in 2020 demonstrated how attackers can compromise widely-used software to infiltrate thousands of industrial organizations. In OT environments, attackers exploit vulnerabilities in hardware suppliers, software vendors, and cloud service providers.
A McKinsey analysis found that 70% of industrial cyber incidents involve third-party suppliers, underscoring the urgent need for supply chain risk management.
3. Edge Computing Security Risks
As IIoT shifts toward edge computing, where data is processed locally rather than in the cloud, new security risks emerge. While edge computing reduces latency and bandwidth costs, it also creates decentralized attack surfaces, increasing exposure to tampering, malware, and data interception.
Gartner forecasts that by 2025, 75% of enterprise data will be processed at the edge, requiring organizations to adopt zero-trust security models to secure distributed computing environments.
How Secure-by-Design IIoT Solutions Strengthen Cyber Resilience
As cyber threats evolve, industrial organizations must move beyond reactive security and adopt secure-by-design IIoT solutions that integrate encryption, authentication, and tamper-resistant hardware from the ground up.
1. Modular IIoT Security Solutions
A modular, secure-by-design IIoT architecture lets industries customize security features without disrupting operations. The Interceptor product line exemplifies this approach, offering industrial-grade, cybersecurity-focused edge devices with:
- Built-in Trusted Platform Module (TPM 2.0) for secure device authentication.
- End-to-end encryption to protect data in transit and at rest.
- Tamper-resistant firmware to prevent unauthorized modifications.
This modularity allows businesses to adapt security as needed, keeping their operations protected from emerging threats.
2. AI-Driven Threat Detection & Anomaly Monitoring
AI-powered real-time anomaly detection systems are critical for identifying suspicious activities before they escalate into major cyber threats. These systems utilize predictive analytics to analyze data patterns and detect irregularities across IIoT endpoints. This includes spotting unusual traffic patterns, unauthorized access attempts, and emerging malware signatures.
By identifying threats early in their lifecycle, AI enables security teams to take swift, proactive actions, minimizing the potential damage and reducing the overall impact of a cyberattack. Furthermore, AI continuously learns from new data, improving its accuracy and responsiveness over time, which strengthens the organization’s overall cybersecurity posture.
3. Zero-Trust Security & Network Segmentation
Implementing a Zero-Trust security model ensures every device, user, and application is authenticated before accessing the network. Combining this with network segmentation—separating IT and OT networks—limits lateral movement for attackers.
McKinsey research shows that adopting zero-trust architecture reduces breach costs by up to 40%, making it a vital strategy for strengthening cyber resilience.
Final Thoughts: Cybersecurity is Non-Negotiable for IIoT
The threat landscape for Industrial IoT in 2025 demands a fundamental shift in cybersecurity strategy. Organizations must:
- Move beyond traditional firewalls and adopt secure-by-design IIoT solutions.
- Deploy AI-driven anomaly detection to monitor real-time threats.
- Implement zero-trust security and network segmentation to minimize attack surfaces.
- Strengthen supply chain security to prevent third-party vulnerabilities.
As ransomware, supply chain breaches, and edge computing risks grow, industrial cybersecurity is no longer optional—it is essential. Investing in modular, security-first IIoT infrastructure is the key to long-term resilience.
For more in-depth information on secure Industrial IoT solutions, feel free to contact us today.
