South Korea Cybersecurity in Manufacturing Market

The South Korea cybersecurity in manufacturing market, valued at USD 1.1 billion, is growing due to rising cyber threats, government initiatives, and IoT integration in smart factories.

Region:Asia

Author(s):Geetanshi

Product Code:KRAB1460

Pages:85

Published On:October 2025

About the Report

Base Year 2024

South Korea Cybersecurity in Manufacturing Market Overview

  • The South Korea Cybersecurity in Manufacturing Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by the rapid digitization of manufacturing processes, a surge in sophisticated cyber threats—including ransomware and AI-powered attacks—and the increasing adoption of cloud and IoT technologies within factories. The market has seen significant investments from both private and public sectors, with heightened focus on advanced threat detection, incident response, and compliance with evolving security standards .
  • Key players in this market include Seoul, Busan, and Incheon, which dominate due to their advanced technological infrastructure, dense concentration of manufacturing industries, and robust government support for cybersecurity initiatives. These cities are central to fostering innovation and attracting investments in cybersecurity solutions tailored for the manufacturing sector .
  • The Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. (Ministry of Science and ICT, amended 2023) requires all operators of critical information infrastructure—including manufacturing companies—to implement comprehensive cybersecurity measures. This regulation mandates regular risk assessments, incident reporting, and the adoption of technical and managerial safeguards to enhance the sector’s resilience against cyber threats and ensure the protection of sensitive industrial data .
South Korea Cybersecurity in Manufacturing Market Size

South Korea Cybersecurity in Manufacturing Market Segmentation

By Type:The market is segmented into various types of cybersecurity solutions, including Network Security, Endpoint Security, Application Security, Cloud Security, Data Security, Identity and Access Management, Infrastructure Protection, Integrated Risk Management, and Others. Each of these segments plays a crucial role in safeguarding manufacturing operations from cyber threats. The adoption of cloud security and identity management is accelerating, driven by the shift to smart manufacturing and remote operations .

South Korea Cybersecurity in Manufacturing Market segmentation by Type.

By End-User:The end-user segmentation includes Automotive Manufacturing, Electronics Manufacturing, Heavy Machinery Manufacturing, Food and Beverage Manufacturing, Pharmaceuticals Manufacturing, Semiconductors Manufacturing, Chemicals Manufacturing, and Others. Each sector has unique cybersecurity needs based on the nature of its operations and the sensitivity of its data. Automotive and electronics manufacturing are leading adopters due to high automation and data integration, while semiconductor and pharmaceutical sectors prioritize protection of intellectual property and compliance .

South Korea Cybersecurity in Manufacturing Market segmentation by End-User.

South Korea Cybersecurity in Manufacturing Market Competitive Landscape

The South Korea Cybersecurity in Manufacturing Market is characterized by a dynamic mix of regional and international players. Leading participants such as Samsung SDS, SK shieldus (formerly SK Infosec), LG CNS, Hanwha Techwin, AhnLab, Inc., Daou Technology, Softcamp Co., Ltd., S1 Corporation, Seculetter, Hancom Secure, POSCO ICT, KT Corporation, Hyundai AutoEver, Dream Security, Cisco Systems Korea contribute to innovation, geographic expansion, and service delivery in this space.

Samsung SDS

1985

Seoul, South Korea

SK shieldus

1997

Seoul, South Korea

LG CNS

1987

Seoul, South Korea

Hanwha Techwin

1977

Seongnam, South Korea

AhnLab, Inc.

1995

Seoul, South Korea

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate (YoY %)

Market Share in Manufacturing Cybersecurity (%)

Number of Manufacturing Clients

Customer Acquisition Cost (CAC)

Customer Retention Rate (%)

South Korea Cybersecurity in Manufacturing Market Industry Analysis

Growth Drivers

  • Increasing Cyber Threats:The manufacturing sector in South Korea has witnessed a significant rise in cyber threats, with reported incidents increasing by 30% in recent periods. The Korea Internet & Security Agency (KISA) reported over 1,200 cyberattacks targeting manufacturing firms in a recent year. This alarming trend has prompted manufacturers to invest heavily in cybersecurity measures, with expenditures projected to reach approximately $1.6 billion in future, reflecting a growing recognition of the need for robust security protocols.
  • Government Initiatives for Cybersecurity:The South Korean government has implemented various initiatives to bolster cybersecurity in manufacturing. The government allocated approximately $210 million to enhance cybersecurity infrastructure across critical industries in recent periods. Additionally, the establishment of the Cybersecurity Strategy Council aims to streamline efforts and promote collaboration between public and private sectors. These initiatives are expected to drive investments in cybersecurity technologies, with a focus on protecting sensitive manufacturing data and ensuring operational continuity.
  • Adoption of IoT in Manufacturing:The integration of Internet of Things (IoT) technologies in South Korean manufacturing is accelerating, with an estimated 75% of manufacturers adopting IoT solutions in future. This shift is expected to generate approximately $3.2 billion in cybersecurity investments as companies seek to secure interconnected devices and systems. The rise of smart factories necessitates advanced cybersecurity measures to protect against vulnerabilities, driving demand for innovative security solutions tailored to IoT environments.

Market Challenges

  • High Implementation Costs:The financial burden of implementing comprehensive cybersecurity measures poses a significant challenge for South Korean manufacturers. On average, companies are expected to spend around $520,000 annually on cybersecurity solutions, which can be prohibitive for small and medium-sized enterprises (SMEs). This high cost of entry may deter many manufacturers from adopting necessary security technologies, leaving them vulnerable to cyber threats and potential data breaches.
  • Shortage of Skilled Professionals:The cybersecurity workforce in South Korea is facing a critical shortage, with an estimated gap of 32,000 skilled professionals in future. This shortage hampers the ability of manufacturing firms to effectively implement and manage cybersecurity strategies. As the demand for cybersecurity expertise continues to grow, companies struggle to find qualified personnel, leading to increased reliance on external consultants and potentially compromising the effectiveness of their security measures.

South Korea Cybersecurity in Manufacturing Market Future Outlook

The future of the South Korean cybersecurity market in manufacturing is poised for significant transformation, driven by technological advancements and evolving threat landscapes. As manufacturers increasingly adopt cloud-based solutions and AI-driven security measures, the market is expected to witness a surge in innovative cybersecurity offerings. Additionally, the emphasis on regulatory compliance and data protection will further shape investment strategies, compelling firms to prioritize cybersecurity as a core component of their operational frameworks.

Market Opportunities

  • Growth in Cloud-Based Security Solutions:The shift towards cloud computing in manufacturing presents a substantial opportunity for cybersecurity providers. With an estimated 45% of manufacturers expected to migrate to cloud-based systems in future, the demand for cloud security solutions is projected to increase significantly, potentially reaching $850 million in investments.
  • Expansion of AI and Machine Learning in Cybersecurity:The integration of AI and machine learning technologies in cybersecurity is gaining traction, with investments expected to exceed $650 million in future. These technologies enhance threat detection and response capabilities, providing manufacturers with advanced tools to combat sophisticated cyber threats effectively.

Scope of the Report

SegmentSub-Segments
By Type

Network Security

Endpoint Security

Application Security

Cloud Security

Data Security

Identity and Access Management

Infrastructure Protection

Integrated Risk Management

Others

By End-User

Automotive Manufacturing

Electronics Manufacturing

Heavy Machinery Manufacturing

Food and Beverage Manufacturing

Pharmaceuticals Manufacturing

Semiconductors Manufacturing

Chemicals Manufacturing

Others

By Component

Hardware

Software

Services (Professional & Managed)

By Sales Channel

Direct Sales

Distributors

Online Sales

By Deployment Mode

On-Premises

Cloud-Based

By Industry Compliance

ISO/IEC 27001 Standards

NIST Cybersecurity Framework

GDPR/KR Data Protection Compliance

By Policy Support

Government Subsidies

Tax Incentives

Grants for Cybersecurity Initiatives

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Science and ICT, Korea Internet & Security Agency)

Manufacturers and Producers

Cybersecurity Solution Providers

Industry Associations (e.g., Korea Smart Factory Association)

Financial Institutions

Supply Chain Partners

Technology Integrators

Players Mentioned in the Report:

Samsung SDS

SK shieldus (formerly SK Infosec)

LG CNS

Hanwha Techwin

AhnLab, Inc.

Daou Technology

Softcamp Co., Ltd.

S1 Corporation

Seculetter

Hancom Secure

POSCO ICT

KT Corporation

Hyundai AutoEver

Dream Security

Cisco Systems Korea

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. South Korea Cybersecurity in Manufacturing Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 South Korea Cybersecurity in Manufacturing Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. South Korea Cybersecurity in Manufacturing Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Cyber Threats
3.1.2 Government Initiatives for Cybersecurity
3.1.3 Adoption of IoT in Manufacturing
3.1.4 Rising Awareness of Data Protection

3.2 Market Challenges

3.2.1 High Implementation Costs
3.2.2 Shortage of Skilled Professionals
3.2.3 Rapidly Evolving Threat Landscape
3.2.4 Compliance with Regulatory Standards

3.3 Market Opportunities

3.3.1 Growth in Cloud-Based Security Solutions
3.3.2 Expansion of AI and Machine Learning in Cybersecurity
3.3.3 Increased Investment in Cybersecurity Startups
3.3.4 Collaboration with Global Cybersecurity Firms

3.4 Market Trends

3.4.1 Shift Towards Managed Security Services
3.4.2 Integration of Cybersecurity with Operational Technology
3.4.3 Focus on Zero Trust Security Models
3.4.4 Emphasis on Cybersecurity Training and Awareness

3.5 Government Regulation

3.5.1 Cybersecurity Frameworks and Standards
3.5.2 Data Protection Laws
3.5.3 Industry-Specific Compliance Requirements
3.5.4 Incentives for Cybersecurity Investments

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. South Korea Cybersecurity in Manufacturing Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. South Korea Cybersecurity in Manufacturing Market Segmentation

8.1 By Type

8.1.1 Network Security
8.1.2 Endpoint Security
8.1.3 Application Security
8.1.4 Cloud Security
8.1.5 Data Security
8.1.6 Identity and Access Management
8.1.7 Infrastructure Protection
8.1.8 Integrated Risk Management
8.1.9 Others

8.2 By End-User

8.2.1 Automotive Manufacturing
8.2.2 Electronics Manufacturing
8.2.3 Heavy Machinery Manufacturing
8.2.4 Food and Beverage Manufacturing
8.2.5 Pharmaceuticals Manufacturing
8.2.6 Semiconductors Manufacturing
8.2.7 Chemicals Manufacturing
8.2.8 Others

8.3 By Component

8.3.1 Hardware
8.3.2 Software
8.3.3 Services (Professional & Managed)

8.4 By Sales Channel

8.4.1 Direct Sales
8.4.2 Distributors
8.4.3 Online Sales

8.5 By Deployment Mode

8.5.1 On-Premises
8.5.2 Cloud-Based

8.6 By Industry Compliance

8.6.1 ISO/IEC 27001 Standards
8.6.2 NIST Cybersecurity Framework
8.6.3 GDPR/KR Data Protection Compliance

8.7 By Policy Support

8.7.1 Government Subsidies
8.7.2 Tax Incentives
8.7.3 Grants for Cybersecurity Initiatives

9. South Korea Cybersecurity in Manufacturing Market Competitive Analysis

9.1 Market Share of Key Players

9.2 KPIs for Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate (YoY %)
9.2.4 Market Share in Manufacturing Cybersecurity (%)
9.2.5 Number of Manufacturing Clients
9.2.6 Customer Acquisition Cost (CAC)
9.2.7 Customer Retention Rate (%)
9.2.8 Market Penetration Rate (%)
9.2.9 Average Deal Size (USD)
9.2.10 Pricing Strategy (Subscription, Perpetual, etc.)
9.2.11 Return on Investment (ROI) for Manufacturing Clients (%)
9.2.12 Net Promoter Score (NPS)
9.2.13 R&D Spend as % of Revenue
9.2.14 Number of Patents/Intellectual Property Related to Manufacturing Security

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Samsung SDS
9.5.2 SK shieldus (formerly SK Infosec)
9.5.3 LG CNS
9.5.4 Hanwha Techwin
9.5.5 AhnLab, Inc.
9.5.6 Daou Technology
9.5.7 Softcamp Co., Ltd.
9.5.8 S1 Corporation
9.5.9 Seculetter
9.5.10 Hancom Secure
9.5.11 POSCO ICT
9.5.12 KT Corporation
9.5.13 Hyundai AutoEver
9.5.14 Dream Security
9.5.15 Cisco Systems Korea

10. South Korea Cybersecurity in Manufacturing Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Trade, Industry and Energy
10.1.2 Ministry of Science and ICT
10.1.3 Ministry of Defense

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Cybersecurity Infrastructure
10.2.2 Budget Allocation for Cybersecurity Training
10.2.3 Expenditure on Compliance and Regulatory Needs

10.3 Pain Point Analysis by End-User Category

10.3.1 Vulnerability to Cyber Attacks
10.3.2 Integration of Legacy Systems
10.3.3 Lack of Skilled Workforce

10.4 User Readiness for Adoption

10.4.1 Awareness of Cybersecurity Risks
10.4.2 Willingness to Invest in Solutions
10.4.3 Training and Support Needs

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Security Effectiveness
10.5.2 Expansion of Cybersecurity Solutions
10.5.3 Long-term Cost Savings

11. South Korea Cybersecurity in Manufacturing Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government publications and reports on cybersecurity regulations in the manufacturing sector
  • Review of industry white papers and market analysis reports from cybersecurity firms
  • Examination of academic journals and case studies focusing on cybersecurity threats and solutions in manufacturing

Primary Research

  • Interviews with IT security managers at leading manufacturing companies in South Korea
  • Surveys targeting cybersecurity consultants specializing in the manufacturing industry
  • Field interviews with operational technology (OT) specialists to understand on-ground challenges

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including industry reports and expert opinions
  • Triangulation of qualitative insights from interviews with quantitative data from surveys
  • Sanity checks conducted through expert panel reviews comprising cybersecurity professionals and industry analysts

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the overall cybersecurity market size in South Korea, focusing on the manufacturing sector
  • Segmentation of the market by manufacturing sub-sectors (e.g., automotive, electronics, pharmaceuticals)
  • Incorporation of government initiatives and funding aimed at enhancing cybersecurity in manufacturing

Bottom-up Modeling

  • Collection of data on cybersecurity spending from a sample of manufacturing firms
  • Estimation of average cybersecurity budgets based on company size and sector
  • Volume x cost analysis to determine the total addressable market for cybersecurity solutions

Forecasting & Scenario Analysis

  • Multi-factor regression analysis considering factors such as technological advancements and regulatory changes
  • Scenario modeling based on potential cyber threats and their impact on manufacturing operations
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Automotive Manufacturing Cybersecurity100IT Security Managers, Compliance Officers
Electronics Manufacturing Cybersecurity70Network Security Engineers, Operations Managers
Pharmaceutical Manufacturing Cybersecurity60Risk Management Officers, IT Directors
Food and Beverage Manufacturing Cybersecurity50Quality Assurance Managers, Cybersecurity Analysts
General Manufacturing Cybersecurity80Chief Information Officers, Production Managers

Frequently Asked Questions

What is the current value of the South Korea Cybersecurity in Manufacturing Market?

The South Korea Cybersecurity in Manufacturing Market is valued at approximately USD 1.1 billion, reflecting significant growth driven by increased digitization, sophisticated cyber threats, and the adoption of cloud and IoT technologies in manufacturing processes.

What are the main drivers of growth in the South Korea Cybersecurity in Manufacturing Market?

Which cities are leading in the South Korea Cybersecurity in Manufacturing Market?

What regulations impact cybersecurity in the South Korean manufacturing sector?

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