The report authors at Marketsandmarkets, suggest that this market is driven by the expansion of domestic semiconductor manufacturing and tighter regulatory oversight across energy and industrial sectors. New chip production hubs created under the Chips Act require integrated physical and cyber security to protect intellectual property and maintain operational integrity. At the same time, federal incentives are tied to stricter compliance mandates, pushing utilities and manufacturers to adopt standardized security controls, continuous monitoring, and mandatory reporting to meet evolving regulatory and operational requirements.

Surveillance and monitoring systems to hold the largest share

By physical security systems, surveillance and monitoring systems account for the largest share, as critical infrastructure operators prioritise continuous situational awareness across high-risk facilities. Energy plants, transportation hubs, data centres, and manufacturing sites rely on video surveillance, perimeter monitoring, and sensor-based detection to prevent unauthorised access and physical sabotage. According to Motorola Solutions' 2024 Critical Infrastructure Security Report, the operators increasingly view real-time video intelligence and centralised monitoring as essential for incident prevention and rapid response. Surveillance platforms are being integrated with analytics and access control systems to improve threat detection and operational visibility. Public and private infrastructure owners are expanding investments to support 24/7 monitoring, regulatory compliance, and resilience against coordinated physical and cyber incidents. These systems remain foundational to infrastructure protection strategies due to their ability to deter threats and support coordinated emergency response.

IAM segment sees highest growth within IT cyber security solutions

The identity access management (IAM) segment is expected to grow at the highest rate in North America as critical industry organisations are now focusing on controlling access to sensitive systems and facilities. Infrastructure operators manage large workforces, contractors, and third-party vendors that require secure, time-bound access. According to Cybersecurity and Infrastructure Security Agency guidance updates in 2024, weak identity controls remain a leading cause of infrastructure breaches. IAM solutions help enforce least privileged access, monitor user behaviour, and support compliance with federal and state regulations. Utilities, transportation agencies, and manufacturing firms are adopting centralised identity governance to reduce insider risk and credential misuse. Cloud adoption and remote operations are also increasing demand for scalable IAM platforms that protect both physical and digital assets. This focus on identity-driven security is accelerating IAM adoption across critical sectors.

In OT cyber security solutions, the digital twin platform segment is expected to see strongest growth

Digital twin platforms are emerging as the fastest-growing segment as operators seek predictive security and operational insight. Digital twins create virtual replicas of physical assets, enabling simulation of cyber and physical threat scenarios without disrupting operations. According to Honeywell’s 2025 Industrial Cybersecurity Insights, infrastructure operators are increasingly using digital twins to identify vulnerabilities, test response strategies, and improve resilience planning. These platforms support proactive risk assessment across power grids, pipelines, and manufacturing systems by visualising asset behaviour under stress. Digital twins also enhance coordination between physical security and OT cyber security teams by providing a shared level of visibility. As infrastructure complexity increases, organisations are investing in digital twin platforms to strengthen prevention, response readiness, and long-term asset protection strategies.

Key players

Some of the active players in this US market and mentioned within the report include large businesses such as Honeywell, Lockheed Martin, General Dynamics, Northrop Grumman, Johnson Controls, and Motorola Solutions, for example.