Cybersecurity in Manufacturing: Challenges, Threats, and Best Practices

Manufacturing is one of the world’s biggest, most varied, and fastest-growing sectors. It is, nevertheless, a prime target for cyber adversaries. According to IBM’s X-Force Threat Intelligence Index 2022 report, manufacturing became the most attacked industry, beating financial services and insurance. 

Financially driven threat actors, hacktivists, and rivals conducting industrial espionage (surveillance) are also responsible for these cyberattacks. Manufacturing companies are finding it difficult to secure their systems since cyber criminals are always coming up with new tactics.

Industrial systems on the factory floor are being impacted by cyberattacks that start in the IT layer, underscoring the pressing need for robust cybersecurity in manufacturing across both IT and OT (operational technology) settings. A resilient cybersecurity framework that monitors, detects, and mitigates cyber risks in real time.

In this article, we will explore how manufacturing cybersecurity is more critical than ever before.  To be globally competitive, industrial organizations are taking assistance from cybersecurity consulting services provider for more digitized processes within the factory walls and out into their supply chain networks. 

Why Manufacturing is a Prime Target for Cyberattacks?

The intricacy of digital transformation in supply chains makes manufacturing companies vulnerable to cyberattacks as more and more of them incorporate new technologies (OT and IT). Let’s look at some of the significant reasons why the manufacturing sector is being targeted. 

Large Attack Surface

Industrial enterprises are vulnerable to attacks due to their extensive attack surface, which includes both operation and information technologies. These technologies are typically set up with simple security features that are easy to take advantage of.

Unpatched Vulnerabilities

Vulnerability prioritization is not a challenge particular to manufacturers but rather to all industries.  With the growth of vulnerabilities, companies do not have enough time or resources to patch just the high-severity ones. 

Furthermore, concentrating on vulnerabilities with a high CVSS (Common Vulnerability Scoring System) score ignores the level of risk that jeopardizes business continuity. Apart from that, the possible compensating controls could not stop exploitation in a larger organization’s environment.

Misconfigured Network Segmentation 

A manufacturing company may divide its corporate IT network from its production network, and a misconfigured or inappropriate policy may expose it to lateral movement. A manufacturing cyber attack can enter the business network laterally after gaining access to the production network, where it can either activate ransomware or exfiltrate private documents. 

The business may have to partially or completely stop production in order to respond to the attack, which would result in an even more significant financial loss.

Key Manufacturing Cybersecurity Data & Insights

The manufacturing industry is especially susceptible to cyber risk because of its emphasis on innovation and growing reliance on connected products. Let’s look at some concerning statistics that require immediate action and a more thought-provoking digital transformation strategy. 

• 23% of manufacturers experience cyberattacks daily, while 40% face weekly breaches.
• According to the IBM Cost of a Data Breach Report (2023), the average cost of a manufacturing breach is $4.73 million per incident.
• Basic CCPA and GDPR criteria are not met by 43% of manufacturers.
• 56% of manufacturers lack dedicated cybersecurity staff.
• Manufacturers lose $600 billion a year due to intellectual property theft.

Importance of Cybersecurity in Manufacturing Amid Industrial 4.0 Revolution

Industry 4.0, also known as the Fourth Industrial Revolution, is a revolutionary stage in the manufacturing sector that is defined by the incorporation of innovation-intensive technologies such as big data analytics, the Internet of Things, and artificial intelligence (AI). These developments are radically changing production by enabling previously unheard-of levels of automation, efficiency, and connectivity.

But this also brings with it serious cybersecurity issues. Manufacturing systems create and store enormous volumes of sensitive data on several platforms as they become more interconnected.  Cybercriminals can exploit the additional vulnerabilities brought about by the expansion of data points and storage sites.

Cyberattacks on manufacturing infrastructure can cause major financial losses, compromise critical data, or interrupt production. Manufacturers can preserve data integrity, ensure business continuity, and safeguard intellectual property by using cybersecurity in manufacturing Industry.

Now, let’s move forward to see which technologies can pose a threat if they are not protected. 

1. Wearable Sensors

The industrial sector is undergoing a change because of wearable sensors that improve worker safety and provide real-time monitoring. These sensors, which are integrated into apparel or equipment, gather information on worker health, equipment performance, and environmental variables. 

This data lowers downtime and avoids accidents by enabling preventative maintenance and quick reaction to possible risks. However, sensitive data may be intercepted or altered if improperly secured. Wearable technology’s growing popularity also brings new cybersecurity threats. Hackers can exploit factory IoT sensors to disrupt production or steal proprietary data.

2. Artificial Intelligence and Machine Learning

Automation and process optimization in manufacturing propels by artificial intelligence (AI) and machine learning (ML). AI in manufacturing analyzes large volumes of data to find trends, anticipate equipment breakdowns, and improve production schedules, all resulting in notable efficiency improvements.  

Accordingly, machine learning models in manufacturing get better with time, increasing the resilience and adaptability of industrial processes. However, dependence on AI/ML systems also introduces additional risks since these systems are susceptible to cyber attacks in manufacturing industry. Hacktivists can alter outputs or tamper with data inputs, which might cause extensive damage. 

3. Virtual Reality and Augmented Reality

Manufacturing uses VR/AR technology to enhance maintenance, training, and the software design process.  Engineers can build and test goods in a virtual environment because of VR’s ability to create immersive simulations.  

AR gives employees access to real-time information and direction, which improves their capacity to do challenging tasks. Notwithstanding their advantages, VR/AR systems are vulnerable to cyber attacks on manufacturing companies since they mainly depend on network connectivity and data exchange. Safeguarding these systems is crucial to ensure data accuracy and smooth operations.

4. Industrial Internet of Things (IIoT)

Manufacturing components such as equipment, sensors, and other devices are connected via the Industrial Internet of Things (IoT), which facilitates smooth data interchange and communication. Better automation, control, and monitoring of manufacturing processes are made possible by IIoT.

IoT in the automotive industry is also a major target for cyber criminals due to increased connection and broader attack surface.  IoT network security is essential to avoid data breaches in manufacturing, illegal access, and possible interruptions to manufacturing processes.

5. Big Data Analytics

Big Data in manufacturing helps manufacturers to use relevant data to make informed decisions. Manufacturers may enhance product quality, save waste, and optimize operations by examining massive datasets from several sources.  

Big data utilization, however, also brings up security issues because it can lead to vulnerabilities due to the aggregation of data from many sources.  To prevent manufacturing cyber security breaches and guarantee the integrity of the insights obtained by analytics, it is essential to secure the data both in transit and at rest.

6. 5G Cellular Networks

The manufacturing industry cybersecurity is transforming drastically with the introduction of 5G cellular networks. 5G offers quicker, low-latency connectivity and more dependable communication.  Massive IoT deployments, real-time device connections, and improved AI and machine learning capabilities in manufacturing settings are all made possible by 5G.  

However, because 5G increases connection and capacity, it creates additional entry points for cyberattacks, posing new security issues.  As the manufacturing infrastructure depends more and more on 5G technology, strong industrial cybersecurity measures must be put in place to safeguard it.

Common Cybersecurity Risks for the Manufacturing Sector

With the growing digitization and connected systems, manufacturers face a rise in cyber threats.  Cybercriminals take advantage of weaknesses in IT and OT, resulting in data breaches, financial losses, and operational interruptions. Let’s look at the most common cybersecurity risks for the manufacturing sector. 

Ransomware Attacks

Manufacturing ransomware is a major risk, which can stop production by encrypting important manufacturing data.  Attackers make enormous ransom demands, and nonpayment may cause extended outages. In Q4 of 2024, manufacturing accounted for nearly 35% of ransomware incidents, highlighting the industry’s susceptibility to cyber extortion.

Phishing & Social Engineering

In order to steal passwords or spread malware, cybercriminals pose as executives or suppliers and use misleading emails to deceive staff members.  Phishing attack methods account for over 91% of security breaches. Hackers can access critical systems with only one click, interfering with data security and production.

IP Theft & Industrial Espionage

Nation-state actors and cybercriminals seek a competitive advantage by targeting intellectual property (IP). Trade secrets, blueprints, and proprietary technology are compromised by cyberattacks, which weakens market positioning and causes financial losses. It mainly occurs in high-tech and defense-related industries like manufacturing.

Insider Threats

Insiders who are careless or malicious present a danger because they can introduce malware, disclose data, or bypass security protocols. Access to vital systems by employees, suppliers, or contractors may enable breaches due to resentment, pressure, or ignorance about cybersecurity.

Supply Chain Vulnerabilities

There are several avenues of entry for cyberattacks because manufacturers depend on vast international supply networks. Manufacturers are vulnerable to operational disruptions, data theft, and financial consequences due to compromised third-party suppliers, unprotected IoT devices, and poor software dependencies. 

According to ENISA, in 2022, 58% of attacks on manufacturers originated from third-party vendors, highlighting the growing importance of supply chain cybersecurity. Securing vendor networks is crucial to mitigate risks. 

Consequences of Poor Cybersecurity in Manufacturing

Weak cybersecurity in manufacturing leads to severe financial, operational, and reputational damages. Manufacturers are in danger of disruptions, regulatory fines, and a decline in customer trust due to their unsecured networks and outdated security procedures. Let’s look at cyber security threats in manufacturing industry that damage your entire manufacturing operations. 

Operational Disruptions

Cyberattacks can halt production, causing delays, supply chain bottlenecks, and financial setbacks. In 2023, manufacturing companies saw an average of 21 days of downtime due to ransomware incidents alone. It had an impact on contracts, deliveries, and customer satisfaction.

Data Breaches

Cybersecurity for manufacturers stores large volumes of private information, such as customer data, supplier numbers, prototype designs, and marketing strategies. Financial losses, legal repercussions, and the theft of valuable designs are all possible outcomes of a data breach.  The average cost of a data breach in manufacturing in 2024 reached $5.56 million.

Reputational Damage

A cyberattack erodes a brand’s reputation, which results in missed business opportunities and reduced consumer trust.  Publicized violations damage relationships, discourage possible investors, and undermine confidence.  Businesses that don’t protect their data may find it difficult to retain clients and secure new business.

Regulatory Non-Compliance

Non-compliance with cybersecurity regulations such as NIST, CMMC, and GDPR results in hefty fines and legal liabilities. Manufacturers must implement AI in cybersecurity, and manufacturing offers strong frameworks to avoid penalties and preserve company continuity.

Intellectual Property Loss

Neglecting industrial cybersecurity may have detrimental effects, from stealing vital intellectual property as rivals search for methods to steal production to compromising internal IT systems that keep equipment running smoothly. 

Competitive disadvantages can also result in cyberattacks that target patented technology. Market domination, R&D expenditures, and upcoming product breakthroughs are all undermined when stolen intellectual property ends up in the hands of rivals or foreign organizations.

Challenges in Implementing Cybersecurity for Manufacturing

Cybersecurity in manufacturing is complex due to outdated infrastructure, IT-OT convergence, supply chain vulnerabilities, and a lack of cybersecurity awareness. Let’s look at the challenges that require strategic investment in modern security frameworks. 

1. Legacy Systems

A lot of factories still rely on legacy systems that weren’t built with modern security in mind. And that’s a big problem. These outdated systems don’t have strong protections like encryption, regular updates, or extra layers of security (like two-factor authentication). This makes them an easy target for hackers, who are always looking for weak spots to exploit.

2. Convergence of IT & OT

Combining IT (computer systems) and OT (machines that run operations) can boost productivity, but it also opens the door to more cyber threats. The problem? Traditional OT systems were never meant to be connected to the internet. So, when IT security is weak, hackers can sneak in and take down entire operations. Imagine an assembly line suddenly stopping because of a cyberattack—it’s every manufacturer’s nightmare!

3. Lack of Cybersecurity Awareness

One of the biggest cybersecurity challenges in manufacturing isn’t just outdated systems or hackers—it’s human mistakes. When employees aren’t aware of cyber threats, they might accidentally share sensitive information, click on suspicious links, or fall for phishing scams. The good news? Regular cybersecurity training can make a huge difference, helping employees stay sharp and avoid these costly errors.

4. Complexity of the Supply Chain

Let’s not forget about suppliers. Manufacturers work with many different vendors, and not all of them have the same level of security. If even one supplier has weak protection, it can create a domino effect, putting the entire supply chain at risk. That’s why strong security rules, regular vendor checks, and strict access controls are so important.

Best Practices for Strengthening Cybersecurity in Manufacturing

Protecting digital assets is essential as the manufacturing industry evolves. Proactive cybersecurity solutions for manufacturing reduce risks, safeguard private information, and ensure smooth operations against expanding cyber threats.

Risk Assessment & Management

Strong cybersecurity starts with vulnerability assessment.  Frequent risk assessments help manufacturers implement effective mitigation plans by evaluating possible risks to IT and OT environments.  A proactive strategy reduces the effect of cyber disasters and ensures early discovery.

Implement a Zero-Trust Security Model

The best cybersecurity practices for smart factories include strict network segmentation, least-privilege access, and ongoing authentication for a Zero-Trust approach.  Manufacturers can reduce lateral movement within critical systems and stop unauthorized incursions by confirming each user and device before allowing access.

Secure IoT & Industrial Control Systems (ICS)

IoT and ICS devices lack built-in security features. Therefore, they are easy targets for cyberattacks. Manufacturing organizations can implement endpoint protection and strong encryption and monitor manufacturing infrastructure to avoid unwanted access.

Modernize Legacy Systems

Outdated systems pose significant security risks due to unpatched vulnerabilities. Upgrading legacy applications with modern security controls, virtual patching, and micro-segmentation enhances protection against cyber threats without disrupting operations.

Conduct Security Audits

Frequent security audits identify weak points in networks, applications, and devices. Cybersecurity consulting services help manufacturers address gaps before attackers exploit them. Additionally, it ensures compliance with industry regulations and best practices.

Train Employees 

Employee training for cybersecurity in manufacturing on phishing, password management, and safe online practices reduces human error. You can consult with cybersecurity training services that can enhance organizational security through a cyber awareness program.

Supply Chain Security

To reduce supply chain risks, manufacturers need to evaluate the security of their third-party vendors. Overall cybersecurity resilience increases when you impose data-sharing restrictions, implement stringent vendor security policies, and perform security testing.

Quick Incident Response Plan

Having a well-defined incident response plan ensures swift recovery from cyber incidents.  Operational interruptions and monetary losses are reduced by routinely testing business continuity plans, creating fast reaction protocols, and backing up essential data.

The Role of Regulations & Compliance in Industrial Cybersecurity

Cybersecurity regulations provide industry-wide guidelines to safeguard industrial infrastructure, data, and assets.  Adherence to these principles improves security posture and lowers financial and legal risks.

1. NIST Cybersecurity Framework 

Manufacturers may evaluate, identify, and address cyber hazards using the NIST (National Institute of Standards and Technology) framework, which offers an organized risk management method. It provides best practices for protecting IT and OT environments from evolving cyber risk in manufacturing.

2. ISO/IEC 27001 Standard

It is a worldwide standard for information security management systems (ISMS) described in ISO 27001.  Manufacturing companies that use these standards improve their risk management, regulatory compliance, and data protection tactics.

3. CMMC (Cybersecurity Maturity Model Certification)

CMMC ensures manufacturers working with the Department of Defense (DoD) maintain stringent cybersecurity standards. Achieving CMMC compliance helps secure sensitive defense-related data and improves manufacturing security maturity.

4. GDPR & Data Protection Laws

Manufacturers operating globally must comply with GDPR and similar data privacy regulations. These laws enforce strict data handling, breach notification, and security rules, reducing liability and protecting customer and employee data.

5. CISA Guidelines (U.S.)

The Cybersecurity & Infrastructure Security Agency (CISA) provides guidelines to safeguard critical manufacturing infrastructure. Implementing CISA recommendations in the manufacturing industry improves cyber resilience, threat intelligence sharing, and incident response strategies.

6. IEC 62443

IEC 62443 is a critical standard for securing industrial automation and control systems (IACS). It provides a framework for safeguarding interconnected manufacturing environments from cyber threats.

The Future of Cybersecurity in Manufacturing Industry

With cyber threats on the rise, manufacturers are turning to advanced technology to keep their systems secure. Let’s look at the future trends of cybersecurity in the industrial world.

AI-Powered Cybersecurity Solutions 

Imagine having smart factory security that learns and gets smarter over time. That’s exactly what AI does! It scans massive amounts of data, spots unusual activity like malware infections in industrial control systems, and even predicts cyber threats before they happen. 

Furthermore, Generative AI in automotive manufacturing helps create secure design layouts, automate quality control, and streamline processes. Not only that, GenAI in manufacturing strengthens cybersecurity by detecting anomalies and securing connected automotive systems from attacks.

Blockchain for Secure Supply Chain Management

Blockchain in manufacturing helps prevent fake parts from entering the system. It creates a secure and transparent record of every transaction. Since it’s decentralized, no single hacker can manipulate the data. This means manufacturers can track every part and ensure nothing gets tampered with.

Adoption of Secure Access Service Edge (SASE)

With more factories using cloud-based systems and remote operations, security needs to be flexible. That’s where Secure Access Service Edge (SASE) comes in. It combines manufacturing network security with access controls, making sure only the right people authorized engineers, system administrators, cybersecurity professionals, and designated personnel can get into sensitive systems. Its zero-trust architecture improves data security for worldwide operations.

Quantum Computing 

Quantum computing improves cybersecurity in manufacturing by making data protection stronger, spotting cyber threats quickly, and keeping smart devices safe. It can help manufacturers solve complicated problems that traditional computers struggle with. Quantum algorithms can render any complex mathematical solution in real time to improve production processes and make factories more productive.

Edge Computing

Instead of sending all data to a central server, edge computing in manufacturing processes information right where it’s created (like on machines in a factory). This reduces delays and makes it harder for hackers to intercept data. By keeping processing local, manufacturers can protect critical operations from cyber threats.

Conclusion

The good news for manufacturers is that there are more tools and resources than ever to boost cybersecurity! With Industry 4.0 technologies becoming the norm, factories are getting smarter, as are cyber threats. That’s why businesses should expect more cybersecurity monitoring in the coming years to keep systems safe.

So, what should manufacturers do? Stay connected. Working closely with government agencies and private organizations can help businesses stay in tandem with new cybersecurity rules and best practices. However, cybersecurity isn’t just an IT problem anymore.

Machines, production lines, and connected devices are just as vulnerable. That is why manufacturers must make cybersecurity a core part of their risk management strategy. After all, a single security breach could mean shut-down operations, financial losses, and even safety risks. 

The bottom line? Cyber threats are evolving, and so should manufacturers. 

How SparxIT’s Cybersecurity Solutions for Manufacturing Organizations Help?

At SparxIT, we know every manufacturing business has unique security needs. We tailor our approach to your systems, team expertise, and risk levels. As a leading manufacturing software development company, we give you the right level of protection.

Need our expertise in cybersecurity for the manufacturing industry to handle threats, a detailed attack analysis, or just timely security insights? We’ve got you covered. Our professionals work closely with you to build the best defense.

With cyber threats constantly evolving, a single attack can cause downtime and financial losses. But with SparxIT, you get:

🔹 Full visibility across IT and OT systems.

🔹 Real-time threat detection to stop attacks early.

🔹 AI-powered investigations for faster response times.

🔹 Autonomous threat response to keep operations running smoothly.

Stay ahead of cyber threats in manufacturing with SparxIT as your trusted security partner.