Research by Omdia for Telstra’s global connectivity arm found manufacturing companies face an up to $2 million threat from cyberattacks after a significant hike in overall security incidents and breaches in 2024 due to greater use of IoT, AI and cloud technologies.
Omdia warned less than half of manufacturing companies had adequate cybersecurity in place as it revealed 80 per cent faced a considerable rise in threats during 2024. It stated businesses attacked were hit with resilience or availability issues costing between $200,000 and $2 million.
In its study for Telstra International, the research company noted dangers are growing as companies employ cloud, AI and IoT in digital transformation processes. Omdia explained the costs listed tended towards the higher end when enterprise and corporate systems or production control was affected.
Telstra International head of global enterprise business Geraldine Kor noted the figures put companies in a Catch-22 situation, increasing risks while they deploy much-needed fresh technology to unlock new potential in manufacturing.
She argued companies need a clear security strategy to overcome fragmentation, suggesting “one group or person” is granted “the authority to act on security challenges for mission-critical systems”.
The connectivity player’s global head of cybersecurity Ganesh Narayanan explained relying on air gapping is becoming ineffective as information and operational technologies converge, with Omdia senior principal analyst Adam Etherington suggesting companies should explore “proactive remediation”.
Omdia surveyed more than 500 technology executives globally.