The Impact of the Top 3 Strategic Imperatives on the Cybersecurity in the Smart Buildings Industry

Transformative Megatrends

Why: 

• The rapid growth in Internet of Things (IoT) deployment in buildings presents significant opportunities for cyberattackers to install malware, steal data, and hack into smart building systems.

Frost Perspective: 

• As smart buildings become more integrated and interconnected, robust cybersecurity solutions are paramount.
• With the growing IoT threat landscape and evolving cyber regulations, cybersecurity will emerge as an organization-wide approach with active board involvement rather than merely as an information technology (IT) function.

Disruptive Technologies

Why: 

• Automation and AI integration have accelerated the technological capabilities of cybersecurity solutions in buildings.

Frost Perspective: 

• Cybersecurity spending in buildings will reach $1.17 billion by 2030.
• Cybersecurity solutions will be a priority for crucial end-user segments, such as government buildings, hospitals, data centers, transportation, and industrial buildings.

Internal Challenges

Why:

•  The absence of cybersecurity regulations specific to smart buildings, limited budgets and awareness, and a lack of skilled expertise to manage smart buildings' cybersecurity are plaguing adoption.

Frost Perspective: 

• As operational technology (OT) cybersecurity solutions embrace more IT security principles, the gap between IT and OT security capabilities quickly converges.
• Adding more IT security principles, such as endpoint security protocols and zero-trust, will bring OT security to the forefront.

Scope of Analysis

• Frost & Sullivan defines a smart building as one that uses technology and processes to create a safe, healthy, and comfortable environment and enables productivity and well-being for its occupants. A smart building has active IT-aided intelligence, smart sensors and controls for seamless operation, and real-time dissemination of operational information for predictive analytics and diagnostics to facilitate better management, maintenance, and optimization over time.
• Frost & Sullivan defines 3 system architectures for smart buildings:
  • The management layer contains the human interface operators use to monitor, configure, and control the system.
  • The automation layer provides the primary monitoring and control equipment and devices that connect via a dedicated automation network. This layer implements the control logic to execute appropriate actions on various building equipment.
  • The field-level layer contains devices interacting with the physical world and providing specific functions.
• Cybersecurity in the context of a smart building is the quantum of technologies, including IT and OT, processes, and practices to protect all building systems and networks from unauthorized access. This process involves front-end physical and IT systems within the building, accessories, field-level devices, data and application platforms, and data aggregation systems, such as all localized and remote systems that help operate and maintain a smart building.
• OT is responsible for managing and controlling physical devices in a building—such as building automation systems (BASs); heating, ventilation, air conditioning (HVAC); lighting; access control; and surveillance systems—in operational environments.
• This research deals with OT cybersecurity solutions for buildings.

Growth Drivers

Cybersecurity in Smart Buildings

• The increasing prominence of smart buildings and the proliferation of IoT devices in smart buildings results in increased exposure to cybersecurity risks and threats.
• The need to protect crucial infrastructure in smart buildings to safeguard infrastructure and occupants and ensure the uninterrupted functionality of crucial systems and services is growing.
• The increasing frequency and sophistication of cyberattacks on smart buildings drives the adoption of advanced cybersecurity solutions.
• The amount of data collected during the operation of smart buildings and their sensitive nature drive investments in cybersecurity solutions.
• The need to comply with increasing cybersecurity standards and regulations boosts demand for robust cybersecurity measures.

Growth Restraints

• The high implementation costs and limited budget allocations for cybersecurity solutions impede widespread adoption.
• Interoperability challenges, the presence of legacy systems, and the overall complexity of integrating cybersecurity solutions into existing infrastructure significantly impact market adoption.
• Scarce availability of skilled professionals to combat threats and maintain cybersecurity solutions restraints uptake.
• The lack of cybersecurity regulations specific to smart buildings challenges the implementation of cohesive measures.
• Limited awareness and understanding of smart building cyber risks result in insufficient investments in cybersecurity solutions.